chapter 9 Communication McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

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

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 Chapter 9: 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

Exhibit 9.1: The Effects of the 2Is on Communication Individual controls information flow Allows more targeted communications Individualized marketing communications are more relevant to the consumer Allows consumers to specify preferences Facilitates relationship building through two- way communication Allows tracking of consumer response to marketing communications Individualization Interactivity Communication

Personalization and Predicting Behavior Point-Counterpoint

Banner Ad (to promote awareness) Personalized Website Permission e- mails Individualized offerings Personalized Website Permission e- mails Individualized offerings Website Awareness Commitment Exploration 2Is User clicks on banner to find out more User can set up the webpage according to personal preferences, register for s, give feedback, or make a purchase One Seamless Experience Exhibit 9.2: The 2Is Streamline Advancement Through the Stages

Chapter 9: 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 Offline Outdoor Advertising (Billboards) Yellow Pages Radio Televisio n Brochure s Newspapers Sponsorship s Magazine s Newsletter s Point-of- Purchase Displays Customer Service Direct Mailings Telemarketing Sales force/Face- to-Face Banner Ads Rich Media Search Engines Interstitial s Classifieds & Listings Wireless Devices Websites Marketing Personal Websites Exhibit 9.3: Online and Offline Levers Mass Personal Public Relations Dynamic Ads Interactiv e Television

Exhibit 9.4: Profiles of Online Media Types

Aggregate number of user clicks on a banner ad Ad Clicks Number of times a banner ad is downloaded to a user’s browser and presumably looked at Ad Views (Impressions) Percentage of ad views that are clicked upon; also “Ad Click Rate” Click-Through Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates CPC (Cost-per-Click) 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) CPM 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 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 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 Exhibit 9.5: Internet Ad Terms

Chapter 9: 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

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

Communication Criteria Media Criteria Chose Media Mix Tie Back to Overall Plan Allocate Spending 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. Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required) Allocation of spending across media mix elements and time periods based on relative priority Exhibit 9.9: A Process for Defining Media Choice and Mix

Exhibit 9.11: Genuity Ads

Exhibit 9.12: Genuity Website

Chapter 9: 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

Exhibit 9.13: Exploring the Levers Across the Relationship Stages Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor advertising Banner ads Awareness Television, iTV Magazines and newspapers Radio Rich media ads and dynamic ad placement Website Direct mail Telemarketing Customer service Sales force Exploratory / Expansion Commitment Terminate marketing Dissolution Search engines Listings Classifieds Direct mail Telemarketing Public relations Permission Permission direct mail Sales force Website Personalized pages Customer service Sales force

Chapter 9: 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

Exhibit 9.14: EBay Sponsored Link

Exhibit 9.16: EBay/Disney Cobranded Site

Chapter 9: 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