WEEK 3 - New Developments in Internet Marketing · 2011-07-19 · Week 3 – New Developments in...
Transcript of WEEK 3 - New Developments in Internet Marketing · 2011-07-19 · Week 3 – New Developments in...
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U55080: Marketing IssuesWeek 3 – New Developments in Internet Marketing
Dr. Bang Nguyen
Oxford Brookes University
www.brookes.ac.uk
Oxford Brookes Business School © 2011 Oxford Brookes University 2
Learning Outcomes
• Identify and discuss the major forms of direct marketing and define online marketing
• Explain how companies have responded to the Internet and other powerful new technologies with online marketing strategies
• Discuss how companies go about conducting online marketing to profitably deliver more value to customers
• Overview the public policy and ethical issues presented by direct marketing
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Direct Marketing
• Direct marketing consists of direct connection with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.
–No intermediaries
–An element of the promotion mix
–Fastest-growing form of marketing
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Direct Marketing
Benefits to Buyers
• Convenience
• Ready access to many products
• Access to comparative information about companies, products, and competitors
• Interactive and immediate
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Direct Marketing
Benefits to Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
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Customer Databases
Customer Database
• A customer database is an organized collection of comprehensive data about individual customers or prospects, including geographical, demographic, psychographic, and behavioral data.
Used to:
• Locate good and potential customers
• Generate sales leads
• Learn about customers
• Develop strong long-term relationships
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Forms of Direct Marketing
• Personal selling
• Direct-mail marketing
• Catalog marketing
• Telephone marketing
• Direct-response television marketing
• Kiosk marketing
• Digital direct marketing
• Online marketing
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Forms of Direct Marketing
Direct-(E)Mail Marketing
• Direct-(E)mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address.
–Personalized
–Easy-to measure results
–Costs more than mass media
–Provides better results than mass media
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Forms of Direct Marketing
Catalog Direct Marketing
Catalog direct marketing involves printed and Web-based catalogs.
• Benefits of Web-based catalogs–Lower cost than printed catalogs
–Unlimited amount of merchandise
–Real-time merchandising–Interactive content–Promotional features
• Challenges of Web-based catalogs
Require marketingDifficulties in attracting new customers
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Forms of Direct Marketing
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Forms of Direct Marketing
Digital Direct Marketing Technologies
• Mobile phone marketing
• Podcasts
• Vodcasts
• Interactive TV
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Forms of Direct Marketing
Digital Direct Marketing Technologies
• Mobile phone marketing includes:
–Ring-tone giveaways
–Mobile games
–Ad-supported content
–Contests and sweepstakes
–Apps
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Forms of Direct Marketing
Digital Direct Marketing Technologies
• Podcasts and vodcastsinvolve the downloading of audio and video files via the Internet to a handheld device such as a PDA or portable media player and listening to them at the consumer’s convenience.
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Forms of Direct Marketing
Digital Direct Marketing Technologies
• Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences.
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Online Marketing
Marketing and the Internet
• Internet marketing, also known as digital marketing, web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet.
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Online Marketing
Online Marketing Domains
• Business to consumer (B2C)
• Business to business (B2B)
• Consumer to consumer (C2C)
• Consumer to business (C2B)
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Online Marketing
Online Marketing Domains
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Online Marketing
Online Marketing Domains
• Business to consumer (B2C) involves selling goods and services online to final consumers.
• Business to business (B2B) involves selling goods and services, providing information online to businesses and building customer relationships.
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Online Marketing
Online Marketing Domains
• Consumer to consumer (C2C) occurs on the Web between interested parties over a wide range of products and subjects.
• Blogs
–Offer a fresh, original, and inexpensive way to reach fragmented audiences
–Difficult to control
Eg. Ebay, Gumtree, private blogs, etc.
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Online Marketing
Online Marketing Domains
• Consumer to business (C2B) involves consumers communicating with companies to send suggestions and questions via company Web sites.
• C2B is a business model in which consumers (individuals) offer products and services to companies, and the companies pay them.
• Eg. Google Adsense, Survey Monkey, etc.
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Online Marketing
Types of Online Marketers
• Click-only marketers
• Click-and-mortar marketers
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Online Marketing
Click-Only Marketers
• Click-only marketers operate only online without any brick and mortar presence.
–E-tailers
–Search engines and portals
–Shopping or price comparison sites
–Internet service providers
–Transaction sites
–Content sites
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Online Marketing
Click-Only Marketers
• E-tailers are dot coms that sell products and services directly to final buyers via the Internet.
–Amazon
–Expedia
• Search engines and portals are ports of entry to the Internet.
–Yahoo!
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Online Marketing
Click-Only Marketers
• Internet service providers (ISP) provide Internet connections for a fee.
–BT
–SKY
• Shopping or price comparison sites provide product and price comparison information
–Yahoo! Shopping
–comparethemarket.com
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Online Marketing
Click-Only Marketers
• Transaction sites take commissions for transactions on their sites.
–eBay
• Content sites provide financial, news, research, and other information
–Cna.com (Channel NewsAsia)
–ESPN.com
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Online Marketing
Click-and-Mortar Marketers
• Click-and-mortar companies are brick-and-mortar companies with an online presence.
• Advantages of click-and-mortar companies include–Known and trusted brand names–Strong financial resources–Large customer bases–Industry knowledge–Reputation–Strong supplier relationships–More options for customers
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Online Marketing
Setting Up an Online Presence
• Creating a Web site requires designing an attractive site and developing ways to get consumers to visit the site, remain on the site, and return to the site.
• Types of Web sites
–Corporate Web site
–Marketing Web site
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Online Marketing
Setting Up an Online Presence
• A corporate Web site is designed to build customer goodwill and to supplement other channels, rather than to sell the company’s products directly to
–Provide information
–Create excitement
–Build relationships
• A marketing Web site is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome.
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Online Marketing
Designing Effective Web Sites
• To attract visitors, companies must
–Promote in offline promotion and online links
–Create value and excitement
–Constantly update the site
–Make the site useful
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Online Marketing
Designing Effective Web Sites
• The seven Cs of effective Web site design
–Context
–Content
–Community
–Customization
–Communication
–Connection
–Commerce
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Online Marketing
Designing Effective Web Sites
• Context is the site’s layout.
• Content is the site’s pictures, sound, and video.
• Community is the site’s means to enable user-to-user communication.
• Customization is the site’s ability to tailor itself to different users or to allow users to personalize the site.
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Online Marketing
Designing Effective Web Sites
• Communication is the way the site enables user-to-user, user-to-site, or two-way communication.
• Connection is the degree that the site is linked to other sites.
• Commerce is the site’s capabilities to enable commercial transactions.
• The eighth C–To keep customers coming back, the site needs to constantly change.
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Online Marketing
Placing Ads and Promotions Online
• Forms of online advertising
–Display ads
–Search-related ads
–Online classifieds
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Online Marketing
Placing Ads and Promotions Online
• Display ads–Banners are banner-shaped ads found on a Web site.
–Interstitials are ads that appear between screen changes.
–Pop-ups are ads that suddenly appear in a new window in front of the window being viewed.
–Rich media ads incorporate animation, video, sound, and interactivity.
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Online Marketing – Facebook Walls
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Online Marketing
Placing Ads and Promotions Online
• Search-related ads are ads in which text-based ads and links appear alongside search engine results on sites such as Google and Yahoo! are effective in linking consumers to other forms of online promotion.
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Online Marketing
Placing Ads and Promotions Online
• Other forms of online promotion include
–Content sponsorships
–Alliances
–Affiliate programs
–Viral advertising
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Online Marketing
Placing Ads and Promotions Online
• Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information.
• Alliances and affiliate programs are relationships where online companies promote each other.
• Viral marketing is the Internet version of word-of-mouth marketing and involves the creation of a Web site, an e-mail message, or another marketing event that customers pass along to friends.
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Online Marketing
Creating or Participating in Web Communities
• Web communities allow members to congregate online and exchange views on issues of common interest.
Using E-mail
• Marketers are developing enriched messages that include animation, interactivity, and personal messages with streaming audio and video to compete with the cluttered e-mail environment.
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Online Marketing
The Future of Online Advertising
• Online advertising provides a useful purpose as a supplement to other marketing efforts and is playing an increasingly important role in the marketing mix.
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Online Marketing – Facebook Pages
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Online Marketing – Facebook Places
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Online Marketing – Groupon
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Integrated Direct Marketing
Integrated direct marketing involves the user of carefully coordinated multiple-media, multiple-stage campaigns.
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Public Policy Issues in Direct Marketing
• Customer irritation, unfairness, deception and fraud
• Privacy
• Security
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Public Policy Issues in Direct Marketing
Irritation, Unfairness, Deception, and Fraud
• Irritation includes annoying and offending customers.
• Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers.
• Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers.
• Internet fraud includes identity theft and financial scams.
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Public Policy Issues in Direct Marketing
Invasion of Privacy
• The concern is that marketers may know too much about the consumers and use this information to take unfair advantage.
–Sale of databases
–Microsoft