1. Internet Marketing and Interactive Media
Chapter 15
Internet Marketing and Interactive Media

2. Chapter 15 : Internet Marketing and Interactive Media
Chapter Objectives
To explore the different ways the internet is used to communicate.
To understand the role of the internet and interactive media in an IMC program.
To review the strengths and limitations of the internet.
To evaluate the effectiveness of communications through the internet.
Chapter 15 : Internet Marketing and Interactive Media

3. Chapter 15 : Internet Marketing and Interactive Media
Internet Terms
Ad clicks
Ad click rate
Ad views (impressions)
Banner
Button
CPC
CPM
Domain name
Hit
Interstitial
Link
Opt-in-
Page views
Rich media
Sponsorships
Unique users
Valid hits
Visits
Chapter 15 : Internet Marketing and Interactive Media

4. Elements of the Internet
Electronic mail ( )
Allows users to send electronic mail
Usenet
Discussion groups, newsgroups, bulletin boards
Telnet
Databases, library catalogs, and electronic journals
Chapter 15 : Internet Marketing and Interactive Media

5. Elements of the Internet
Hypertext transfer protocol (http)
Software protocol for transferring hypertext language files
Client server
Computer system for transferring files between computers
Gopher
Document retrieval system used to search for information
Chapter 15 : Internet Marketing and Interactive Media

6. Chapter 15 : Internet Marketing and Interactive Media
Web Participants
Users: consumer market
Internet users continue to grow in numbers
Higher education and income are more likely to use the internet
81% of households with income over $ use the internet
Chapter 15 : Internet Marketing and Interactive Media

7. Chapter 15 : Internet Marketing and Interactive Media
Web Participants
Shoppers
Internet shoppers clearly evidence a rich, active, and diverse lifestyle.
These people are happy with the convenience of the internet.
Expected that consumer internet spending will reach $184 billion by 2004.
Chapter 15 : Internet Marketing and Interactive Media

8. Chapter 15 : Internet Marketing and Interactive Media
Web Participants
Users: business to business
Approximately 90% of all businesses have websites.
B2B sites generate much higher revenues than B2C.
Revenue expected to reach $2.7 trillion by 2004.
Major advantage is finding information about products and services.
Chapter 15 : Internet Marketing and Interactive Media

9. Web-site Communication Objectives
Build brand image
Brand loyalty still the most important aspect of any marketing strategy
I.E. “I AM CANADIAN” pride commercial
Well designed websites are an excellent way to relay product and service information
Chapter 15 : Internet Marketing and Interactive Media

10. Web-site Communication Objectives
Disseminate information
Primary objective for using the web is to provide in-depth information about the company.
Having a website has become a necessity in B2B markets.
B2C websites are used to communicate information about firm’s products and services.
Chapter 15 : Internet Marketing and Interactive Media

11. Web-site Communication Objectives
Create awareness
Even with limited budgets, the web creates opportunity to expand awareness.
Gather research information
Web is used to gain audience profile information
I.E. Use of cookies, internet surveys
Critical that consumers are aware that their information may be kept in a database.
Chapter 15 : Internet Marketing and Interactive Media

12. Web-site Communication Objectives
Stimulate Trial and Re-Buy
Some websites offer E-coupons
Links to your site from other sites
Improve Customer Service
Providing information, answering inquiries, taking complaints, response sections, FAQs.
Available personnel on 24/7 basis.
Chapter 15 : Internet Marketing and Interactive Media

13. Web-site Communication Objectives
Increase distribution
Internet being used to distribute coupons and samples.
Affiliations - relationships among websites in which companies cross-promote one another’s products.
Chapter 15 : Internet Marketing and Interactive Media

14. Developing & Maintaining a Website
Requires significant time and effort.
Creativity, effective marketing, and continual updating of the site.
Some sites are used for information purposes.
Other sites market more aggressively.
I.E.
Chapter 15 : Internet Marketing and Interactive Media

15. Advertising on the Internet
Variety of forms of advertising on the internet
Banners
Sponsorships
Text ads
Pop ups
Interstitials
Push technologies
Link ads
Chapter 15 : Internet Marketing and Interactive Media

16. Sales Promotion on the Internet
Has become most frequently use method of encouraging repeat visits.
“Free stuff.”
Sweepstakes.
Marketing alliances.
Coupons.
30% of web user respondents had used online coupons.
Chapter 15 : Internet Marketing and Interactive Media

17. Personal Selling on the Internet
High-cost and poor-reach disadvantages of personal selling can now be cut back.
Provides excellent selling support.
Provides more information in a more timely manner.
Internet and personal selling are designed to be complementary tools in a good IMC program.
Chapter 15 : Internet Marketing and Interactive Media

18. Chapter 15 : Internet Marketing and Interactive Media
PR on the Internet
Many sites devote a portion of their content to PR activities.
Web offers many opportunities to PR practitioners:
Development of media relations websites.
Provide customized information dissemination.
Development of positive relationships.
Chapter 15 : Internet Marketing and Interactive Media

19. Direct Marketing on the Internet
Direct mail
Highly targeted
Relies on lists
Attempts to reach those with specific needs
Often used by catalogers
Marketing databases on the net
Companies build or acquire a database
The database is sold to subscribers
Delivery may be on- or off-line
Chapter 15 : Internet Marketing and Interactive Media

20. Direct Marketing on the Internet
Infomercials
Program content similar to television, cable or satellite
Web provides for greater audience interaction
E-commerce
Rapid growth rates likely to continue
CDs, books, travel are main categories
Clothing, cars, financial services are all gaining ground
Chapter 15 : Internet Marketing and Interactive Media

21. Strengths of Internet Marketing
Target marketing
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Chapter 15 : Internet Marketing and Interactive Media

22. Limitations of Internet Marketing
Measurement problems
Audience characteristics
Websnarl
Clutter
Potential for deception
Costs
Limited production quality
Poor reach
Chapter 15 : Internet Marketing and Interactive Media