Chapter Overview
• Internet has changed U.S. culture• Global customers, competition• E-active marketing
e-Commerce + Interactive marketing• Consumer e-commerce• Business-to-business e-commerce• Interactive marketing methods
E-Commerce
• Selling of goods/services on the Internet
• >50% of U.S. households use e-commerce
• Online sales is 12% of total U.S. retail sales
•E-commerce sites also used for info gathering
E-Commerce Components
• Catalog• Shopping cart• Payment procedure• Customer service
FAQs• Public relations• Optional elements
Cyber Shopping Categories
•Travel $53B•Office, home, and garden $16B•Computers & accessories $12B•Apparel $12B
Financial Incentives
• Attract first-time purchaser• Effective incentives
Reduced price Free shipping E-coupon
• Incentives must be meaningful and changed periodically
• Reduces costs through Lower shipping costs Lower labor costs Lower personnel costs
Convenience Incentives
• E-commerce available 24/7• Used to obtain product information
• Update and change Web site• Easy to locate merchandise• Convenience services Event registries Popular items Measurement charts
Concerns About E-Commerce
• Seller opportunism
• Security issues
• Information privacy issues
• Brick-and-mortar purchasing habits
Value-Added Incentives
• Change purchasing habits – long term
• Personalized shopping• Examples
Merchandise available only online Free online courses Free information, household tips
Interactive Marketing
• Two-way communications• Customer involvement• Tracking of Internet
activities• Personalize targeted
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Online Interactive Tactics
Newslet
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Online Advertising
• Increase in online budgets• Effective method for reaching
today’s consumers• Becoming “standard”
Click-through response rate – 0.27%
• Traditional integration - Brand spiraling
F ig. 9. 8
Types of Online Advertising
• Display or banner ad• Classified ads • Search advertising • Media/video ads
OnlineAdvertising
Banner Advertising
• First online advertising• Accounts for 32% of online
advertising• Can embed videos and
widgets• Targeted display ads
Auction exchangesMatches audience
Online Advertising - Rates
• CPMs will rise more than 75% over next 5 years
• Overall growth of online advertising will grow more slowly.
• Average CPM will rise from ~$2.66 in 2012 to $4.68 by 2017.
• Largely due to “Visible Impression Standard”
Source: Advertising Age, October 9, 2012, “Forrester Reduces Its Forecast for Online Spending”
Online Advertising - Rates
Visible Impression Standard:• Advertisers pay only for ads that
are visible on the screen.• May mean fewer impressions;
offsetting CPM gains.• Online growth rate overall for
2012 ~17%, down from 20% in 2011.
Classified and Media/Video Advertising
• Online classified ad popular• Media/video ads fastest-growing
format• Mobile phones and hand-held
devices• Dwell time, rate higher for video
ads
Blogs
• Online musings• Power of online buzz• 50% go to social networks
Download coupons Search for information Upcoming sales Discounts
• 22% read or write a product review on a blog
Company-Sponsored Blogs
• Effective? Blog visitors spend more Online 23 hours/week versus 13
• Benefits Communicate! Let customers see who you
are. Reassure shoppers Customers can voice opinion Company controls site
• Must be honest Identify your company if you contribute
significantly to a site.
Online Social Networks
• Facebook, YouTube, etc.• Developing social network presence
Specific product page – Sprite Posting of ads on social networks (Nike) Possible privacy issues
• Consumer-generated advertising “Crowdsourcing”
Consumer-Generated Reviews
• Amazon-com – leader• Retailers – online reviews of
brands• Early adopters• Implications
Negative reviews, Low ratings Consistent quality products Information for
• Marketing plans• Product modifications• Service strategies
E-mail Campaigns
It is essential to:• Integrate with other marketing
channels• Be based on web analytics• Combine with future web analytics
It is beneficial to:• Integrate with Web site’s content
management• Integrate with a customer
relationship program
Newsletters
• E-mail newsletters Build brand awareness Tie-in and drive web traffic Customers newsletters,
subscriptions Provide value
• Advertising on other newsletters Build brand awareness Drive web traffic Pick newsletters that are
relevant
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