Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 9 Chapter Nine Digital Marketing.

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Presentation transcript:

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Chapter Nine Digital Marketing

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-2 Companies shifting dollars to online communication Changes consumer communications and interactions with companies Pushing to “real-time” communications Companies now employ individuals to monitor Twitter and social media sites

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-3 E-Commerce Click-only operations to bricks-and-clicks B2C and B2B online commerce Online sales 8 percent of retail activity Search online for information May buy online May buy in a retail store

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-4 F I G U R E 9. 1 E-Commerce Web Site Components Catalog Product information Product navigation Shopping cart Save or wish basket Payment system Easy, quick, convenient checkout Store locator Customization functionality Customer reviews or feedback options

9-5 E-Commerce Incentives Financial incentives Convenience incentives Value-based incentives Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

9-6 F I G U R E 9. 3 Top U.S. Online Search Providers Source: Adapted from “Top 10 U.S. Search Providers, Home & Work,” Nielsen Internet, us.nielsen.com/rankings/insights/rankings/internet, accessed February 22, us.nielsen.com/rankings/insights/rankings/internet

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-7 Seller opportunism Security issues Privacy issues Purchasing habits F I G U R E 9. 4 Reasons Consumers are Wary of Purchasing Online

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-8 Interactive Marketing Two-way communication and involvement Internet ideal medium Can track activity Personalize messages Emphasizes two primary activities Targeting individuals Engageing consumers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-9 F I G U R E 9. 6 Interactive Marketing Objectives Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp

Mobile Marketing Smartphones (43%) Ways people use Social device Search product information Method of shopping Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 9-10

Figure 9.3 Types of Mobile Marketing Display ads Search ads Video advertising Text messages In-app advtg QR Codes Geo-targeting Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 9-11

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-12 F I G U R E 9. 8 US Online Ad Spending by Format Source: Based on “Online Ad Spending Consolidates Among Search, Banners, Video,” eMarkter Digital Intelligence, February 3, 2012,

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-13 Search Engine Optimization Largest category of online expenditures 80% of Web traffic begins with a search Results of SEO Click rate 5% (0.2% for online ads)

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-14 Online Social Networks 75% of Internet users participate in social media Facebook Twitter

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-15 Blogs Online musings Power of online buzz

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-16 Consumer-Generated Advertising Crowdsourcing Goal is to create consumer buzz Consumer-generated ads Created for television YouTube Viewed as more genuine Contests for consumer-generated ads

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-17 Consumer-Generated Reviews Amazon.com – leader Best Buy – online reviews of brands Early adopters Implications Negative reviews Low-star ratings Consistent quality products Information for Marketing plans Product modifications Service strategies

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall newsletters Build brand awareness Drive Web traffic Customers sign up for newsletters Provide value Free subscription Tie-in with Web site

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-19 Viral Marketing Message passed from one consumer to another Blogs Form of advocacy or word-of-mouth endorsement Viral marketing messages Advertisements Hyperlinked promotions Online newsletters Streaming videos Games

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-20 International Implications Shipping issues Payment methods Communication issues Technology issues