Lecture 9 Communication

Communication — Today’s Objectives Objectives will be to: Explore how the Internet affects marketing communications Examine the marketing levers — offline and online Discuss the six steps of the communication process Explore integrated implementation of levers across the four relationship stages

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

The Effects of the 2Is on Communication Individualization Interactivity Allows consumers to specify preferences Facilitates relationship building through two-way communication Allows tracking of consumer response to marketing communications Individual controls information flow Allows more targeted communications Individualized marketing communications are more relevant to the consumer Communication

Personalization and Predicting Behavior Point-Counterpoint

The 2Is Streamline Advancement Through the Stages One Seamless Experience Banner Ad (to promote awareness) Website Personalized Website Permission e-mails Individualized offerings 2Is 2Is User can set up the webpage according to personal preferences, register for e-mails, give feedback, or make a purchase User clicks on banner to find out more Awareness Exploration Commitment

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

Online and Offline Levers Outdoor Advertising (Billboards) Sales force/Face-to-Face Radio Public Relations Yellow Pages Telemarketing Television Offline Brochures Direct Mailings Magazines Newsletters Newspapers Point-of-Purchase Displays Sponsorships Customer Service Banner Ads Wireless Devices Websites Personal Websites Online Rich Media E-Mail Marketing Interstitials Dynamic Ads Classifieds & Listings Search Engines Interactive Television Mass Personal

Profiles of Online Media Types

Ad Views (Impressions) Internet Ad Terms Ad Clicks Aggregate number of user clicks on a banner ad Ad Views (Impressions) Number of times a banner ad is downloaded to a user’s browser and presumably looked at Click-Through Percentage of ad views that are clicked upon; also “Ad Click Rate” CPC (Cost-per-Click) Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates CPM Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500) Measurement recorded in server log files that represent each file downloaded to a browser; since page design can include multiple files, hits are not a good guide for measuring traffic at a website Hit Unique Users Number of individuals who visit a website in a specified period of time; requires the use of registration or cookies to verify and identify unique users A series of requests made by an individual at one site; if no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit — a 30 minute time-out is now standard Visits

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

Six Steps of the Communication Process Identify the Target Audience Step 1 Determine the Communication Objective Step 2 Develop the Media Plan Step 3 Create the Message Step 4 Execute the Campaign Step 5 Evaluate the Effectiveness of the Campaign Step 6

A Process for Defining Media Choice and Mix Communication Criteria Media Criteria Chose Media Mix Allocate Spending Tie Back to Overall Plan Behavioral objectives Available spending Customer segments Ability to further behavioral objectives CPM Ability to reach target segments Direct mail, Internet, broadcast, print, point-of-sale, etc. Allocation of spending across media mix elements and time periods based on relative priority Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required)

Genuity Ads

Genuity Website

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

Exploring the Levers Across the Relationship Stages Awareness Exploratory / Expansion Commitment Dissolution Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor advertising Banner ads Television, iTV Magazines and newspapers Radio Rich media ads and dynamic ad placement Website E-mail Direct mail Telemarketing Customer service Sales force Terminate marketing Search engines Listings Classifieds Website Personalized pages Permission e-mail E-mail Permission direct mail Direct mail Telemarketing Customer service Sales force Public relations Sales force

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

EBay Sponsored Link

EBay/Disney Cobranded Site

Communication How the Internet Affects Marketing Communications The Marketing Levers — Offline and Online The Six Steps of the Communication Process Integrated Implementation of Levers Across the Four Relationship Stages EBay Example Conclusion

Communication — Conclusion Effective marketing communications must be integrated and work together with synergy, and they must be consumer-centric The communication marketing levers include various communication types that can be organized into the following categories: mass offline, personal offline, mass online, personal online The communication process involves six steps: 1) Identify the target audience, 2) determine the communication objective, 3) develop the media plan, 4) create the message, 5) execute the campaign and 6) evaluate the effectiveness of the campaign Specific levers can be applied that are appropriate for each relationship stage