Digital Marketing Strategy

Digital Marketing Strategy

Forms of Direct and Digital Marketing
This figure shows the major forms of direct and digital marketing. Traditional direct marketing tools include face-to-face selling, direct-mail marketing, catalog marketing, telemarketing, direct-response television marketing, and kiosk marketing. A dazzling new set of direct digital marketing tools has burst onto the marketing scene, including online marketing (Web sites, online ads and promotions, , online videos, and blogs), social media marketing, and mobile marketing.

First Stop: Amazon The Poster Child for Direct and Digital Marketing
Amazon engages customers and creates highly satisfying customer online buying experiences. Amazon does much more than just sell goods online. It engages customers and creates direct, personalized, and highly satisfying customer online buying experiences. Amazon’s deep-down passion for creating superb online customer experiences has made it one of the most powerful names on the Internet. Amazon is the model for successful direct and digital marketing.

Rapid Growth of Direct and Digital Marketing
Fastest-growing form of marketing Direct marketing becoming more Internet-based Direct marketing claims a surging share of marketing spending and sales Includes online display and search advertising, video, social media, mobile, Direct and digital marketing have become the fastest-growing form of marketing. Direct marketing continues to become more Internet-based, and digital direct marketing is claiming a surging share of marketing spending and sales. Total digital marketing spending—including online display and search advertising, video, social media, mobile, and —now accounts for the second-largest share of media spending, behind only television, which it’s expected to overtake by 2018.

Benefits of Direct and Digital Marketing to Buyers & Sellers
Convenient, easy, and private Easy buyer-seller interaction Quick access to products and relevant information Brand engagement and community Sellers Low-cost, efficient, and speedy Build close, personalized, interactive, one-to-one customer relationships Greater flexibility For buyers, direct and digital marketing are convenient, easy, and private. They give buyers anywhere, anytime access to an almost unlimited assortment of goods and a wealth of products and buying information. Through direct marketing, buyers can interact with sellers by phone or on the seller’s Web site or app to create exactly the configuration of information, products, or services they want and then order them on the spot. Finally, for consumers who want it, digital marketing through online, mobile, and social media provides a sense of brand engagement and community. For sellers, direct marketing often provides a low-cost, efficient, speedy alternative for reaching their markets. Because of the one-to-one nature of direct marketing, companies can interact with customers by phone or online, learn more about their needs, and personalize products and services to specific customer tastes. Direct and digital marketing also offer sellers greater flexibility. They let marketers make ongoing adjustments to prices and programs, or make immediate, timely, and personal announcements and offers.

Benefits Summary For buyers, direct and digital marketing are convenient, easy, and private. For sellers, direct marketing often provides a low-cost, efficient, speedy alternative for reaching their markets. Direct and digital marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. Companies use direct marketing to tailor their offers and content to the needs and interests of narrowly defined segments or individual buyers to build direct customer engagement, brand community, and sales. Spurred by the surge in Internet usage and by rapid advances in digital technologies – from smartphones, tablets, and other digital devices to the spate of online social and mobile media – direct marketing has undergone a dramatic transformation. For buyers, direct and digital marketing are convenient, easy to use, and private. They give buyers anywhere, anytime access to an almost unlimited assortment of products and buying information. Direct marketing is also immediate and interactive, allowing buyers to create exactly the configuration of information, products, or services they desire and then order them on the spot. Finally, for consumers who want it, digital marketing through online, mobile, and social media provides a sense of brand engagement and community – a place to share brand information and experiences with other brand fans. For sellers, direct and digital marketing are powerful tools for building customer engagement and close, personalized, interactive customer relationships. They also offer greater flexibility, letting marketers make ongoing adjustments to prices and programs or make immediate, timely, and personal announcements and offers.

Online Marketing Marketing via the Internet using company Web sites, online ads and promotions, , online video, and blogs Marketing Web sites: Engage consumers to move them closer to a direct purchase or other marketing outcome Branded community Web sites: Present brand content that engages consumers and creates customer-brand community Online marketing refers to marketing via the Internet using company Web sites, online ads and promotions, marketing, online video, and blogs. For most companies, the first step in conducting online marketing is to create a Web site. Marketing Web sites are designed to interact with customers to move them closer to a direct purchase or other marketing outcome. In contrast, a branded community Web site does not try to sell anything but presents brand content that engages consumers and creates customer-brand community. A Web site should be easy to use and visually appealing. Ultimately, Web sites must be useful. When it comes to Web browsing and shopping, most people prefer substance over style and function over flash.

Online Advertising and Email Marketing
Online advertising: Appears while consumers are browsing online marketing: Sending highly targeted, highly personalized, relationship-building marketing messages via Spam: Unsolicited, unwanted commercial messages Online advertising refers to advertising that appears while consumers are browsing online, including display ads, search-related ads, online classifieds, and other forms. The main forms of online advertising are display ads and search-related ads. Online display ads might appear anywhere on an Internet user’s screen and are often related to the information being viewed. Today’s rich media ads incorporate animation, video, sound, and interactivity. The largest form of online advertising is search-related ads or contextual advertising. In this form of advertising, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing. marketing refers to sending highly targeted, highly personalized, relationship-building marketing messages via . When used properly, can be the ultimate direct marketing medium. But there is a dark side to the growing use of marketing – the explosion of spam – unsolicited, unwanted commercial messages that clog up our boxes. Spam has produced consumer irritation and frustration. To address these concerns, most legitimate marketers now practice permission-based marketing, sending pitches only to customers who opt in.

Internet Users The Internet has impacted personal lives and how business is conducted. Every Web site category is growing, as more and more people are using the Internet: B2B e-commerce now totals $1.3 trillion per year in the U.S. Businesses spend $3 trillion online per year, worldwide. People send more than 7 trillion s in the U.S. per year. There are 200 million boxes in the U.S.

Benefits of Internet Marketing for Companies
Real time – can change continuously through live feeds, etc. Information – information- gathering techniques can be controversial. Communications – medium close to consumers. Database warehousing – massive storage capabilities. Sales – growing every year. Interactivity – the Web site can engage the user. Multimedia capabilities – provide entertainment. Global reach – expanding throughout the world. Flexibility – content can be changed quickly. Cost efficiencies – allows smaller companies to be competitive.

Functions of Internet Marketing
Projecting an image Opportunity to sell directly to consumers Multi-channel marketing Can be an alternate channel to the distribution chain. E-commerce (consumers and businesses) Advertising Interstitial ads: Popup advertisements Rich media ads: Uses short audio or video clips Sales promotions Cyberbait: Luring someone to a Web site with an attractive offer. Public relations

Functions of Internet Marketing (contd.)
Database development Ideal medium for gathering information about consumers by tracking them Permits interactive marketing - the process of individualizing everything in accordance with data collected. Information gathering and sharing Purchasing and inventory management Sales support Helps salespeople provide information and troubleshoot. Customer service Online service centers are cost-effective.

Marketers’ Adoption of the Internet
Better targeting Direct feedback ROI tracking High-speed connections Users online longer New media technologies Relation to Text This slide relates to pages of the text. Summary Overview This slide lists the various reasons behind marketers’ rapid adoption of the Internet. Use of this Slide Use this slide to discuss why marketers have so rapidly adopted use of the Internet. The ability to target customers effectively. More direct feedback on the value of marketing expenditures, customer satisfaction, trends, and the competition. Unlike traditional media, it is easier to account for the ROI of marketing expenditures. An increase in high-speed Internet connections has led to consumers spending more time online. New media options are available that attract attention and involvement. Technology allows tracking of consumer interests and purchase behaviors. Increased ability to reach many more potential buyers. Interest and purchase tracking More potential buyers 15-13

Rich Media A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation Video on Demand Online Commercials Webisodes Other Forms Relation to Text This slide relates to pages of the text. Summary Overview This slide elaborates on the topic of rich media. Use of this Slide This slide can be used to discuss the various types of rich media. The increased penetration of broadband into households has increased the attention given to rich media. Common forms of advertising are: Online commercials… the equivalent of TV commercials, but shown on the Net. Some are specially created Web commercials, while others are the same spots shown on TV. Video on demand… video clips of various entertainment activities. Sports games, sports highlights, and demonstrations are a few of the many options available. Webisodes… companies create their own content to advertise their products. Target, Hitachi, and Honda have all employed them. Other forms of rich media… interactive banner ads, expandable ads, ads placed inside video games, instant messaging, Podcasts, and video ads placed within blogs.

Owned vs Earned Media OWNED MEDIA is online content that an organization creates and controls; examples include blogs, Web sites, Facebook pages, and other social media presences. EARNED MEDIA is a public relations term connoting free media such as mainstream media coverage; examples include viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence.

Relation to Text This slide relates to pages 496-497 of the text and Exhibit 15-1.
Summary Overview This slide contains an example of a well-designed website. Use of slide This slide can be used to discuss what is required to develop and maintain a successful website. Good overall context Customization Content Connections Communication Commerce To attract visitors to the site and have them return to it requires a combination of creativity, effective marketing, and continual updating of the site.

Web Design & Customer Interface Issues
Context Site’s layout and design, look and feel Content Text, pictures, sound and video that web pages contain Commerce Site’s capabilities to enable commercial transactions/ scheduling Community The ways sites enable user-to-user communication Relation to Text: This slide relates to pages of the text. Summary Overview: This slide contains supplemental information that pertains to website building. Use of this Slide: Use this slide to point out issues that must be considered when developing a Web site and customer interface. Context… the site layout, design, look, and feel Commerce… the capability to conduct commercial transactions and scheduling Connection… the degree to which the site is linked to other sites Communication… the ways site-to-user or two-way communication is enabled Content… text, pictures, sound, and video that the web pages contain Community… user-to-user communication capabilities Customization… the site’s ability to self-tailor to users or allow users to personalize the site Connection Degree site is linked to other sites Customization Site’s ability to self-tailor to users or allow users to personalize the site Communication The ways site-to-user or two-way communication is enabled

Internet Communications Objectives
Create Awareness Gain Consideration Generate Interest Objectives Create Buzz Disseminate Information Stimulate Trial Relation to Text This slide relates to pages of the text. Summary Overview This slide presents the communications objectives sought when using the Internet. Use of this Slide Use this slide to explain how the Internet is used to achieve IMC objectives. Creating awareness… for companies with limited budgets, the Web offers awareness opportunities beyond what can be achieved through traditional media. Generating interest… news, downloads, videos, promotions, and so on. Disseminating information… done more quickly than through other media. Creating an image…websites reflect the image the company wants to display. Creating a strong brand… can be a useful branding tool, but it doesn’t happen overnight. Stimulating trial… offering samples, promotions, and/or sweepstakes. Creating buzz… social networking sites are attractive to marketers. Gaining consideration… blogs and discussion boards are useful for providing information. Create an Image Create a Strong Brand

Many Options for Placing Ads and Promotions Online
Company Websites (e.g., Banner ads (click-through rates only .3%; B2B>B2C; brand familiarity; yet attention?) Sponsorships and Microsites (small area paid for by external co.) Rich Media: Interstitials/Superstitials/pop-ups/ online video ads Browser ads (viewer is paid to watch ads) Alliances and affiliate programs (e.g., AOL and Amazon; Push technology (e.g., Real Video; Infogate/AOL) Search engine advertising (keywords/targeted content; 40% of online ads), blogs ( podcasts (audio blogs; ) (Nielsen/McKinsey NMIncite tracks/ analyzes blogs) ads (opt-in versus opt-out; e-zines; wireless; mobile phone/ text messaging) Mobile Advertising (Google Goggles) Social Media: Facebook, MySpace, Twitter, YouTube, Second Life, LinkedIn, Pinterest, Flickr... ( tracks/analyzes)

Online Advertising: Benefits and Costs
Individualization Interactivity Immediate publishing Cost efficiency User distraction Too many choices International coordination Rapid change Short lead times Benefits Costs

The Online Ad Process

Purchasing Keywords and Selecting Content-Oriented Websites
Keyword Matching Advertising Prospective advertisers bid for keywords by indicating how much they are willing to pay each time an Internet shopper clicks on their website as a result of a search (cost per click). (Google Ad Words:

Rich Media: Pop-Ups, Interstitials, Superstitials, and Video Ads
Pop-Ups: Ads that appear in a separate window. Interstitials: Ads that appear between two content Web pages. Superstitials: short, animated ads that play over or on top of a Web page. Online video ads: audio-video ads that are similar to 30- second TV commercials, but are shortened to seconds and compressed.

Websites (advantage: sought by consumer versus stumbled upon)
Uses for Websites As an advertisement for the company As a venue for generating and transacting exchanges between organizations and their customers As a link to other integrated marcom communications Well-Designed Websites Are easy to navigate Provide useful information Are visually attractive Offer entertainment value Are perceived as trustworthy

Measures of Effectiveness for Internet Advertising
Viewers (stay on site/page): number of viewers to a site (and unique viewers) Ad views/page views/impressions: the number of times viewers see a Web page with an ad. (Used to calculate cost per thousand or CPM). Hits (leave the site or home page): number of times a specific component of a site is requested/clicked on. Clicks/click throughs: the number of visitors to a site that click on an ad to retrieve information. Click through rate: % of ad views that result in an ad click. (Cost per click (CPC) can be calculated) Cost per thousand (CPM) example for “go.com”: CPM = $10,000 per mo. x 1000 / 500,000 views per mo. = $20

Forms of Internet Advertising
Banners Interstitials Sponsorships Push Technologies Relation to Text This slide relates to pages of the text. Summary Overview The slide shows various forms of advertising that can be done on the Internet. Use of this Slide This slide can be used to discuss the various forms of advertising that are available to the Internet advertiser. More forms will be presented on a later slide. Banners... the most common form of ads that appear on web pages, they appear as side panels, skyscrapers, or verticals. Sponsorships... companies pay to sponsor a section of the site, or the sponsor provides dollars in return for name association and also provides content There are two types: regular and content. Pop-Ups... ads that appear when you access certain sites. Pop-Unders... ads that appear underneath the Web page and become visible only when the user leaves the site. Interstitials... ads that appear on the screen while the site’s content is downloading. Push technologies... allows the website to “push” information to the potential customer rather than waiting for them to find it. Links... a link to a different site that provides related or similar information. Pop-ups/ Pop-unders Links

Typical Banner Ads Relation to Text
This slide relates to page 500 of the text and Exhibit 15-7. Summary Overview This slide shows examples of banner ads, which encourage the viewer to click through for more information about the product. Use of this Slide This slide can be used to show two banner advertising formats. Banner ads are the most common form of advertising found on the Internet. Unfortunately, they are not very effective, and have low scores on recall and click-through rates. You may wish to engage students in a discussion of why they believe banner ads are ineffective.

Advertising on the Internet
Forms of Internet Advertising Paid Search Behavioral targeting Rich media Contextual Ads Additional Forms Online commercials Video on demand Webisodes Podcasting RSS feeds Blogs Relation to Text This slide relates to pages of the text. Summary Overview The slide shows various forms of advertising that can be done on the Internet. Use of this Slide This slide can be used to discuss additional forms of advertising that are available to the Internet advertiser. Paid Search—the fastest growing form of advertising on the Internet; advertisers pay only when a consumer clicks on an ad or link from a search engine page. Also known as search engine advertising. Behavioral Targeting—based on the targeting of consumers according to their web-surfing behaviors. Contextual Ads—ads based on the content of the website on which they appear. Rich Media—a broad range of interactive digital media that exhibit dynamic motion through video, audio, and animation. Additional Forms—there are too many forms to cover here, but the most recognized are Podcasting, RSS feeds, and Blogs. 15-28

Internet Advertising Models
Relation to Text: This slide contains supplemental information related to pages of the text and IMC Technology Perspective 15-1. Summary Overview: This slide shows the Internet advertising models available to marketers. Use of this Slide: Use this slide to illustrate the various ways in which you may purchase advertising through search engines, such as Google. Cost/impression… the advertiser is charged every time someone views their ad Cost/click… the advertiser is charged each time someone clicks an ad to get to the advertiser’s site Cost/order… the advertiser is charged for each order placed 15-29

Internet Search Advertising
Search Engine Marketing The entire set of techniques and strategies used to direct visitors from search engines to marketing web sites Paid Placement Text-only ads targeted to keyword search results on search engines Offered through programs such as Google AdWords, Yahoo Search, or Microsoft Bing Sometimes referred to as paid placement, pay-per-click, cost-per-click advertising Relation to Text: This slide relates to pages of the text. Summary Overview: This slide contains the definition of “search engine marketing” and “paid placement.” Use of this Slide: Use this slide when explaining the concept of search engine marketing, and how marketers can pay to have their ads moved to the top of the search results list, or to a designated location on the search results page.

Internet Search Advertising
Behavioral Targeting Targeting online ads to consumers based on their Web searching behavior Contextually Targeted Ads Text ads targeted to the content of web pages using programs such as Google AdSense and Yahoo Search Content Placement of ads determined by content of the web page where they are shown Organic Search Optimization Using a range of techniques to improve how well a site or page is listed in search engines for specific topics Relation to Text: This slide relates to pages of the text. Summary Overview: This slide defines the terms behavioral targeting, contextually target ads, and organic search optimization. Use of this Slide: Use this slide to explain these Internet search advertising terms: Behavioral Targeting… targeting online ads to consumers based on their Web searching behavior Contextually Targeted Ads… text ads targeted to the content of web pages using programs such as Google AdSense and Yahoo Search Content. Placement of ads is determined by content of the web page where they are shown Organic Search Optimization… using a range of techniques to improve how well a site or page gets listed in search engines for specific topics 15-31

Paid Search Online search-based advertising
Advertiser pays only when a Web surfer clicks on their link from a search engine page Search ads appear in a specified, sponsors-only area near the search results for that phrase Advertisers bid on search keywords Prices for popular search terms Background check - $1.18 per click Car loan - $1.34 per click Refinance - $4.46 per click Mesothelioma - $50 per click Relation to Text: This slide relates to pages of the text. Summary Overview: This slide defines search-based advertising and highlights the cost of bidding on key search terms. Use of this Slide: Use this slide to further explain search-based advertising and the cost of bidding on key search terms. Point out the high cost of clicks in highly competitive areas, such as lawyers looking for Mesothelioma clients. 15-32

Huggies Goes Beyond Providing Information
Relation to Text This slide relates to pages of the text and Exhibit 15-2. Summary Overview This slide shows how Huggies goes well beyond providing information. Use of this Slide This slide can be used to demonstrate the effective use of the Internet in the IMC process. The Huggies website shown here has additional objectives, such as: Developing a long-term relationship with parents Establishing a brand image for the products Supporting sales The site give expectant mothers encouragement and ideas on how to maintain a happy and healthy pregnancy. It also provides information to be used once the baby has been born, including how to create a nursery, games to play with the baby, and more. The site is designed to develop one-on-one relationships by offering useful information, a rewards program, coupons, giveaways, and more. Note: This would be a good time to review the Compari.com website on the accompanying DVD, which contains links to hundreds of promotional offers.

Using Web Sites to Build Image and Brand
Relation to Text This slide relates to page 498 of the text and Exhibit 15-5. Summary Overview This slide shows the consumer website which is an excellent example of a website used for image building. Use of this Slide Use this slide as an example of a Website that is used for image building. Websites are designed to reflect the brand image a company wants to portray, which is not as easy as it may seem. While some companies have been successful, others have come to realize that branding and image-creating strategies must be specifically adapted to this medium. Nor does successful branding take place overnight. When some marketers realize that the Internet is not a way to establish their brands instantly, they return their focus to ROI or the bottom line. Cutting advertising and brand identity efforts on the Internet will immediately reflect cost savings. Note: This would be a good time to show the Auto Trader commercials on the accompanying DVD.

Meeting Other Communications Objectives
Stimulate Trial Create Buzz Relation to Text This slide relates to pages of the text. Summary Overview This slide presents some of the other communications objectives that can be met through an Internet presence. Use of this Slide Use this slide when discussing other online communications objectives. Stimulate trials… websites often offer electronic coupons, samples, promotions, and sweepstakes designed to encourage trial. Music sites like allow a sampling of songs before a purchase, and business-to-business sites often allow you to test their software. Create buzz… the viral nature of social networking and other sites make them attractive to marketers intending to spread the word. Gain consideration… the Internet can be an effective medium for achieving consideration and/or evaluation. Blogs and discussion boards are particularly useful for providing information on products and brands. Gain Consideration

Under Armour Launches Protype Shoes via Internet
Relation to Text This slide relates to pages of the text. Summary Overview This slide contains supplemental information, the Under Armour website. Use of this slide This slide can be used as an example of a company that sought additional web objectives… to launch a new product line. 15-36

E-Commerce Definition: Selling of goods and services over the Internet. Works for both the consumer and the B-to-B market. Has gone through three stages: Bricks and mortar: Firms that only operate using traditional retail or wholesaling facilities. Clicks-only firms: Only sell via the internet. Many of the dot-com companies during the 1990s were clicks-only firms. Bricks-and-clicks: Firms that operate both a bricks-and-mortar facility as well as an e-commerce site.

Ebay is a Popular E-Commerce Site
Relation to Text This slide relates to page 499 of the text and Exhibit 15-6. Summary Overview This slide presents an example of an e-commerce site that students are probably already familiar with… eBay. Use of this Slide Use this slide to introduce one of the most well known and successful e-commerce sites on the Internet… eBay. Essentially an online auction, eBay allows users to both sell and purchase products and services. While many online e-commerce sites are extensions of the company’s brick and mortar store, eBay is an example of an e-commerce only site.

E-Commerce Components
Each e-commerce site must have three components: Catalog - can be simple or very complex. Shopping Cart - assists consumers as they select their products. Payment System - method to purchase the selected items. A brick-and-clicks company must also have a store locator to guide shoppers to retail stores.

E-Commerce:Why Consumers Shop Online
24-hour operation Merchandise shipped to customer Speed More production information Wide product variety No salespeople Ease of comparison shopping No crowds Saves time Convenient Lower Prices

E-Commerce Components Consumer Hesitation
Consumers hesitate shopping on the Internet, primarily due to: Security issues (concerned about transaction security) Purchase behavior habits (prefer to touch and feel products, interact with salespeople, etc.)

E-Commerce Incentives How to Encourage Purchases
To increase Internet sales, firms must provide incentives: Financial— Reduce price Offer consumer promotions Convenience— Provide a speedy transaction anytime, anywhere Value-Added— best incentive: Offer personalization

International Concerns
Communication barriers Cultural differences Global shipping challenges Payments in different currencies, by different payment methods Impossible to appeal to all consumers Technical side difficult to manage: Software, bandwidth for handling traffic

International E-Commerce Benefits
Increased sales in remote target markets that were previously inaccessible. Access to new, growing markets. Allows firm to remain competitive. Offers opportunities for small companies to sell internationally.

Internet Branding Brand spiraling:
Use of media to promote an online website Halo effect: Selling over Internet after establishing strong off-line brand Examples of successful Internet brands: Adobe, Amazon, Monster.com

Viral Marketing Definition: An advertisement tied to an email
Characteristics: Low cost Rapid brand development Greater credibility But will become less effective with time

Steps of Internet Marketing Strategy
Define the target audience of the Web site Determine the functions of the Web site Define the Internet functions Determine the Web site design Assess the Web site performance

Internet Marketing Strategy: Step 1
Define the target audience of the Web site Create objectives to match the needs of the target audience. Foundation for the development of the Web site Affects the functions and the content of the Web site

Determine the functions of the Web site: multi-channel marketing selling advertising and promotions public relations database development information gathering and sharing inventory management sales support customer service

Define the Internet functions For firms and manufacturers that sell to businesses, it is important to define: B-to-B functions Consumer functions E-commerce may or may not be included in the Internet functions.

Determine the Web site design Meet the functions identified Web site security Database development

Assessment of the Web site: How well is the firm meeting its objectives and functions? Should be a continuous process

Internet Marketing Strategy At a Glance

Social Media Internet Social Media
Online technologies and practices that people use to share conversations, content, opinions, insights, experiences, perspectives and media themselves Created, initiated, circulated and used by consumers intent on educating one another about products, brands, services, people and other topics of interest Relation to Text: This slide relates to pages of the text. Summary Overview: This slide defines social media, and explains its uses. Use of this Slide: Use this slide to explain the reasons for which people use social media sites. Share content, opinions, insights, experiences, perspectives and media Educating one another about products, brands, services, people and other topics of interest You may wish to poll students to see how many of them use social media sites, and if they use the sites for anything other than that listed here. 15-54

Examples of Social Media
Social networking MySpace, Facebook, Twitter Creativity work sharing Video (youtube) Photos (Flickr) Music (Jamendo) User-sponsored blogs Cnet.com Company-sponsored sites Blogs Cause/help sites (Dove Campaign for Real Beauty) Business networking LinkedIn Collaborative Wikipedia Commerce communities Ebay, Amazon Relation to Text: This slide relates to pages of the text. Summary Overview: This slide presents examples of social media sites. Use of this Slide: Use this slide to review the various types of social media sites, the type of content they contain, and by whom they are established and maintained. 15-55

Popular Social Media Sites
Relation to Text: This slide relates to pages of the text. Summary Overview: This slide presents some of the logos of the largest social media sites. Use of this Slide: Use this slide to point out who the larges social media players are and the content they specialize in. For example: YouTube… videos Twitter… texting Linkedin… business networking Wikipedia… an online encyclopedia that is written and maintained by the users themselves Craigslist… a free web site that allows buying, selling, trading, job postings and social interaction Digg… news 15-56

Uses of Social Media in IMC Mix
Enable companies to interact with their customers Way to engage customers (contests, online voting, online games, submit ideas (Frito Lay) Enables consumers to see others using product (Swiffer contest) Provides information to customers Enable customers to interact with one another as well as companies Word-of-mouth Support causes important to consumers Relation to Text: This slide relates to pages of the text. Summary Overview: This slide presents reasons to add social media to the IMC mix. Use of this Slide: Use this slide to point out the key reasons that marketers should consider adding social media to the IMC mix. Enables companies to interact with their customers Way to engage customers (contests, online voting, online games, submit ideas (Frito Lay) Enables consumers to see others using product (Swiffer contest) Provides information to customers Enables customers to interact with one another as well as companies Word-of-mouth buzz Can support causes important to consumers, which is good PR 15-57

Social Media Marketing
Etsy has created an active and engaged worldwide brand community of buyers and sellers. Through its extensive online and social media presence, Etsy has created an active and engaged worldwide brand community of buyers and sellers in what it calls “The marketplace we make together.”

Social Media Marketing Advantages and Challenges
Targeted and personal Interactive Immediate and timely Cost effective Engagement and social sharing capabilities Challenges Effective usage uncertain Difficult to measure results Largely user controlled Using social media presents both advantages and challenges. On the plus side, social media are targeted and personal, so they allow marketers to create and share tailored brand content with individual consumers and customer communities. Social media are interactive, making them ideal for starting and participating in customer conversations and listening to customer feedback. Social media are also immediate and timely. They can be used to reach customers anytime, anywhere with timely and relevant content regarding brand happenings and activities. Social media can be very cost effective. Although creating and administering social media content can be costly, many social media are free or inexpensive to use. The biggest advantages of social media are the engagement and social sharing capabilities. Social media are especially well suited to creating customer engagement and community. Social media marketing also presents challenges. Most companies are still experimenting with how to use them effectively, and results are hard to measure. Social networks are largely user controlled. Marketers cannot simply muscle their way into consumers’ digital interactions – they need to earn the right to be there. Rather than intruding, marketers must learn to become a valued part of the online experience by developing a steady flow of engaging content.

Integrated Social Media Marketing
Large companies design social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics. Firms that use social media effectively create brand-related social sharing, engagement, and customer community. Most large companies are now designing full-scale social media efforts that blend with and support other elements of a brand’s marketing strategy and tactics. More than making scattered efforts and chasing “Likes” and Tweets, companies that use social media successfully are integrating a broad range of diverse media to create brand-related social sharing, engagement, and customer community.

Social Media Tools and Platforms
Chapter 18 Social Media and Marketing Social Media Tools and Platforms Media sharing sites Microblogs Blogs Social networks Notes: Social media have several implications for marketers and the ways that they interact with their customers: Marketers must realize that they often do not control the content on social media sites. The ability to share experiences quickly and with such large numbers of people amplifies the impact of word of mouth in a way that can eventually affect a company’s bottom line. Social media allow marketers to listen. Social media provide more sophisticated methods of measuring how marketers meet and interact with consumers than traditional advertising does. Social media allow marketers to have much more direct and meaningful conversations with customers. 1

Social Media and Consumers
Chapter 18 Social Media and Marketing Social Media and Consumers At the basic level, social media consumers want to: Exchange information Collaborate with others Have conversations It is up to the marketer to decide if engaging in those conversations will be profitable and to find the most effective method of entering the conversation. Notes: Social media has changed how and where conversations take place, making human interaction global. Social media have changed how and where conversations take place, even globalizing human interaction through rapidly evolving technology. 1

How Consumers Use Social Media
Chapter 18 Social Media and Marketing How Consumers Use Social Media Every day: Two million blog posts are written 4.7 billion minutes are spent on Facebook Half a million tweets are posted More than 860,000 hours of video are uploaded to YouTube Notes: In the United States, 87 percent of American adults own a cell phone, while 45 percent own a smartphone. These numbers jump to 93 percent and 63 percent for adults age eighteen to twenty-nine. Among all adults, 55 percent access the Internet on a mobile phone, and 40 percent have accessed a social media Web site. Tablet usage has hit critical mass among mobile surfers—one in four smartphone users owns a tablet. 1

Chapter 18 Social Media and Marketing
Social Commerce A subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services. Notes: Social commerce is expected to generate $30 billion each year by 2015, with half of all online sales coming through social media sites. 1

Social Media and Integrated Marketing Communications
Chapter 18 Social Media and Marketing Social Media and Integrated Marketing Communications Allows marketers to: Allows consumers to: Have conversations with consumers Forge deeper relationships Build brand loyalty Connect with each other Share opinions Collaborate on new ideas according to interests Notes: While marketers typically employ a social media strategy alongside traditional channels, many marketers are increasingly incorporating social media into their budgets. Crowdsourcing, or using consumers to develop and market products, is one example of how social media has enabled companies to use the input of many where before it had the input of few. 1

LISTEN The Listening System
Chapter 18 Social Media and Marketing The Listening System The first action a marketing team should take when initiating a social media campaign is simple: LISTEN Notes: Social media monitoring is the process of identifying and assessing what is being said about a company, individual, product or brand. It can involve text mining specific key words on social networking Web sites, blogs, discussion forums, and other social media. 2

Eight Stages of Effective Listening
Chapter 18 Social Media and Marketing Eight Stages of Effective Listening Stage 1: Stage 2: Stage 3: Stage 4: Stage 5: Stage 6: Stage 7: Stage 8: Without objective Tracking brand mentions Identifying market risks and opportunities Improving campaign efficiency Measuring customer satisfaction Responding to customer inquiry Better understanding of customers Being proactive and anticipating customer demands Stage Description SOURCE: Jeremiah Owyang, “Web Strategy Matrix: The Eight Stages of Listening,” Web Strategy, November 10, 2009, Jim Sterne, Social Media Metrics (Hoboken, NJ: John Wiley & Sons, 2010).

Social Media Objectives
Chapter 18 Social Media and Marketing Social Media Objectives Listen and Learn Build relationships and awareness Promote products and services Manage your reputation Improve customer service Open dialogues with stakeholders. Answer customer questions candidly. Get customers talking about products and services. Respond to comments and criticisms. Participate in forums and discussions. Seek out displeased customers and engage them directly to solve issues. Monitor what is being said about the brand. Develop a listening strategy. Notes: Here are some practical ideas that marketing managers should consider when setting social media objectives. 2

Social Media Metrics to Assess
Chapter 18 Social Media and Marketing Social Media Metrics to Assess Buzz Search Engine Interest Influence Participation Sentiment Analysis Notes: This slide lists some of the top social media metrics used today. However, these measurements are only valuable if they are tied to performance indicators that allow marketers and managers to see how social media directly impact the business. Web Site Metrics 3

Categories of Social Media Users
Chapter 18 Social Media and Marketing Categories of Social Media Users A study of social media users determined that: 24 percent functioned as creators 37 percent functioned as critics 21 percent functioned as collectors 51 percent functioned as joiners 73 percent functioned as spectators 18 percent functioned as inactives 4

Social Media Tools Blogs Microblogs Social Networks
Chapter 18 Social Media and Marketing Social Media Tools Blogs Microblogs Social Networks Media Sharing Sites Social News Sites Notes: These are all tools in a marketing manager’s toolbox, available when applicable to the marketing plan but not necessarily to be used all at once. Location-Based Social Networking Sites Review Sites Virtual Worlds and Online Gaming 5

Blogs 5 Blog Corporate Blogs Non-corporate Blogs
Chapter 18 Social Media and Marketing Blogs Non-corporate Blogs Blog Corporate Blogs Independent blogs that are not associated with the marketing efforts of any particular company or brand. A publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author’s entries. Blogs that are sponsored by a company or one of its brands and maintained by one or more of the company’s employees. 5

Microblogs Microblogs are blogs that entail shorter posts than traditional blogs. Useful for disseminating news, promoting longer blog posts, sharing links, announcing events, and promoting sales. The ways a business can use Twitter to engage customers are almost limitless. 5

Social Networks Marketing Goals for Social Networking Sites
Chapter 18 Social Media and Marketing Social Networks Marketing Goals for Social Networking Sites Increasing awareness Targeting audiences Promoting products Forging relationships Highlighting expertise and leadership Attracting event participants Performing research Generating new business Notes: Social networking sites allow individuals to connect—or network—with friends, peers, and business associates. 5

© Cengage Learning 2015. All Rights Reserved
Chapter 18 Social Media and Marketing Media Sharing Sites Web sites that allow users to upload and distribute multimedia content like videos and photos. Notes: Photo sharing sites allow users to archive and share photos. Video creation and distribution have gained popularity among marketers because of video’s rich ability to tell stories. A podcast is a digital audio or video file that is distributed serially for other people to listen to or watch. 5 © Cengage Learning All Rights Reserved

Social News Sites Web sites that allow users to decide which content is promoted on a given Web site by voting that content up or down. Notes: Marketers have found that these sites are useful for promoting campaigns, creating conversations around related issues, and building Web site traffic. If marketing content posted to a crowdsourced site is voted up, discussed, and shared enough to be listed among the most popular topics of the day, it can go viral across other sites, and eventually, the entire Web. 5

Location-Based Social Networking Sites
Chapter 18 Social Media and Marketing Location-Based Social Networking Sites Web sites that combine the fun of social networking with the utility of location-based GPS technology. 5

Review Sites Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services. Notes: According to Nielsen Media Research, more than 70 percent of consumers said they trusted online consumer opinions. By giving marketers the opportunity to respond to their customers directly and put their businesses in a positive light, review sites certainly serve as useful tools for local and national businesses. 5

Virtual Worlds and Online Gaming
Chapter 18 Social Media and Marketing Virtual Worlds and Online Gaming Virtual worlds and online gaming include massive multiplayer online games (DayZ) and online communities (Second Life). Almost 800 million people participated in some sort of virtual world experience. Annual revenue near $1 billion. Nearly 25 percent of people play games within social networking sites or on mobile devices. Notes: The top five games on Facebook are FarmVille 2, Texas HoldEm Poker, Candy Crush Saga, CoasterVille, and Diamond Dash. Rovio’s Angry Birds nets 200 million users per month, while Social Point’s Dragon City entices more than 10 million users a day. A growing trend among mobile games is to use mobile ads to generate revenue for the game-makers. 5

Common Mobile Marketing Tools
Chapter 18 Social Media and Marketing Common Mobile Marketing Tools SMS MMS Mobile Web Sites Mobile ads Bluetooth Smartphone Apps Notes: QR codes and Near Field Communication are also popular trends that allow marketers to communicate web messages while people are on the go. 6

Applications and Widgets
Chapter 18 Social Media and Marketing Applications and Widgets Apps Widgets Also called “gadgets” and “badges” Run within existing online platforms Cheaper to develop Extend reach beyond existing platforms Harness mobile technology Platform-specific or convert existing content to mobile format Can generate buzz and customer engagement Notes: When an app is well branded and integrated into a company’s overall marketing strategy, it can create buzz and generate customer engagement. A web widget allows a developer to embed a simple application such as a weather forecast, horoscope, or stock market ticker into a Web site, even if the developer did not write (or does not understand) the application’s source code. 6 81

Applications and Widgets
Chapter 18 Social Media and Marketing Applications and Widgets The following questions should be considered before investing in a marketing-oriented widget. Does my organization regularly publish compelling content? Does my content engage individuals or appeal to customer needs? Is my content likely to inspire conversations? Will customers want to share my content? 6 82

The Social Media Plan 1. Listen 2. Set social media objectives
Chapter 18 Social Media and Marketing The Social Media Plan 1. Listen 2. Set social media objectives 3. Define strategies 4. Identify the target audience Notes: The social media plan should be linked to other factors in the overall marketing plan, and fit with those established objectives. The social media plan should also be evaluated regularly to take into account new platforms and the rapid changes in social media. This slide lists the six stages of developing a social media plan. 5. Select tools and platforms 6. Implement and monitor the strategy 7

Mobile Marketing Promotional content delivered to consumers through their mobile devices Engages customers anywhere, anytime during the buying and relationship-building processes Mobile marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices. Marketers use mobile marketing to engage customers anywhere, anytime during the buying and relationship-building processes. The widespread adoption of mobile devices and the surge in mobile Web traffic have made mobile marketing a must for most brands. Retailers can use mobile marketing to enrich the customer’s shopping experience at the same time they stimulate buying. For example, Macy’s built its recent “Brasil: A Magical Journey” promotion around a popular and imaginative smartphone app. The campaign featured apparel from Brazilian designers and in-store experiences celebrating Brazilian culture. By using their smartphones to scan codes throughout the store, shoppers could learn about featured fashions and experience Brazilian culture through virtual tours.

Catalog Marketing Print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online Eliminates printing and mailing costs No space constraints Broader assortment of presentation formats Real-time merchandising capabilities Prices can be adjusted instantly Advances in technology, along with the trend of personalized, one-to-one marketing, have resulted in exciting changes in catalog marketing. Catalog marketing is a form of direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online. With the stampede to the Internet and digital marketing, more and more catalogs are going digital. They eliminate printing and mailing costs. They can offer an almost unlimited amount of merchandise. They offer a broader assortment of presentation formats, including search and video. They allow real-time merchandising; products and features can be added or removed as needed, and prices can be adjusted instantly to match demand.

Telemarketing and Direct-Response Television (DRTV) Marketing
Telemarketing: Selling directly to customers using the telephone Outbound and inbound telephone marketing Rise of do-not-call legislation resulted in opt-in calling systems Direct-response television (DRTV) marketing Direct-response television advertising Interactive TV (iTV) advertising Telemarketing involves using the telephone to sell directly to consumers and business customers. Marketers use outbound telephone marketing to sell directly to consumers and businesses and inbound toll-free numbers to receive orders from television and print ads, direct mail, or catalogs. In 2003, U.S. lawmakers established the National Do Not Call Registry, which is managed by the Federal Trade Commission (FTC). The legislation bans most telemarketing calls to registered phone numbers. Rather than making unwanted calls, many of these marketers are developing “opt-in” calling systems, in which they provide useful information and offers to customers who have invited the company to contact them by phone or . Direct-response television (DRTV) marketing refers to direct marketing via television, including direct-response television advertising (or infomercials) and interactive television (or iTV) advertising. DRTV ads are often associated with somewhat loud or questionable pitches for cleaners, stain removers, kitchen gadgets, and nifty ways to stay in shape without working very hard at it. A more recent form of direct-response television marketing is interactive TV (iTV), which lets viewers interact with television programming and advertising. As the lines continue to blur between TV screens and other video screens, interactive ads and infomercials are appearing not just on TV, but also on mobile, online, and social media platforms, adding even more TV-like interactive direct marketing venues.

Kiosk Marketing Product or service information and ordering machines placed by companies Smart kiosks Wireless-enabled Facial recognition As consumers become more and more comfortable with digital and touchscreen technologies, many companies are placing information and ordering machines, called kiosks, in stores, airports, hotels, college campuses, and other locations. Many modern smart kiosks are now wireless-enabled. Some machines even use facial recognition software that lets them guess gender and age and make product recommendations based on that data. ZoomSystems creates small, free-standing kiosks called ZoomShops for retailers ranging from Apple, and The Body Shop to Macy’s and Best Buy. For example, 100 Best Buy Express ZoomShop kiosks across the country, conveniently located in airports, busy malls, military bases, and resorts, automatically dispense an assortment of portable media players, digital cameras, gaming consoles, headphones, phone chargers, travel gadgets, and other popular products.

Kiosk Marketing Redbox operates more than 42,000 DVD rental kiosks.
Redbox operates more than 42,000 DVD rental kiosks in supermarkets, fast-food restaurants, and other retail outlets.

Measures of Internet Effectiveness
Frequency to Conversion Ratios Post-click conversions Clicks Cost per conversion Average frequency Unique visitors Ad exposure time Relation to Text This slide relates to pages 511 of the text and Figure 15-7. Summary Overview This slide summarizes some of the measures of effectiveness for Internet marketing efforts. Use of this Slide Use this slide to review some of the ways marketers measure the effectiveness of various aspects of their Internet strategy and consumer reaction to their Websites. One of the most interesting of these is webpage eye tracking, which uses a type of heat map that utilizes infrared sensors to determine how long users looked at different parts of a Web page. View-through rate Ad interaction rate Visits Offline sales lift Webpage eye tracking Cross-media models 15-89

Traditional Measures of Effectiveness
Tracking ROI Sales Recall and retention Surveys Relation to Text This slide relates to page 511 of the text. Summary Overview This slide presents some of the traditional measures used to determine the effectiveness of the Internet. Use of this Slide Use this slide to point out some of the ways marketers can attempt to measure the effectiveness of their Internet strategy and consumer reaction to their Websites. Recall and retention measures… to determine whether viewers remember seeing ads. These same measures have been used to pretest online commercials. Surveys… conducted both online and offline, can be used to determine everything from site usage to attitudes. Sales… a prime indicator of effectiveness. Adding demographics, user behaviors, and so on increases the effectiveness of this measure. Tracking.. of such things as brand awareness, ad recall, message association, and purchase intent. ROI… what the net return was on the investment. 15-90

Internet Marketing Pros and Cons
Advantages Target Marketing Sales Potential Message Tailoring Creativity Interactive Capabilities Exposure/Speed Relation to Text This slide relates to pages of the text. Summary Overview This slide summarizes the advantages of the Internet. Use of this Slide This slide can be used to explain the advantages of marketing on the Internet. Targeting capabilities… the ability to target very specific groups of individuals with a minimum of waste coverage. Message tailoring… messages can be designed to appeal to the specific needs and wants of the target audience, much of which comes from behavior tracking. Interactive capabilities… provides strong potential for increasing customer involvement and satisfaction and immediate feedback for buyers and sellers. Information access… the greatest advantage of the Internet is its availability as an information source. Sales potential… incredible sales numbers are being generated in both the business-to-business and consumer segments, with a continued growth forecast. Creativity… creatively designed sites enhance a company’s image, lead to repeat visits, and positively position the company or organization in the consumer’s mind. Exposure… For a fraction of the investment that would be required using traditional media, companies can gain national and even international exposure in a timely manner. Speed… the Internet is the quickest means of acquiring company and product information. Complementing other IMC elements… business managers see the ability of the Internet to enhance and complement other media as its major advantage. Information Access Complement to IMC 15-91

Internet Marketing Pros and Cons
Disadvantages Measurement Problems Clutter Potential for Deception Privacy Irritation Relation to Text This slide relates to page 513 of the text. Summary Overview This slide summarizes the disadvantages of the Internet. Use of this Slide This slide can be used to explain the disadvantages of marketing on the Internet. Measurement problems… lack of reliability of the research numbers and metrics generated. Clutter… as the number of ads increases, the likelihood of your ad being noticed drops accordingly. Potential for deception… the Center for Media Education has referred to the Web as “a web of deceit” in regard to advertisers’ attempts to target children with subtle advertising messages. In addition, data collection often occurs without the consumers’ knowledge, and hacking and credit card theft are major issues. Privacy… while younger users seem less worried, actions taken by Facebook have led to user boycotts, as well as calls for more regulation. Irritation… consumers are unhappy with clutter, SPAM, pop-ups, and pop-unders. This can deter visitors from visiting certain sites and result in negative attributes toward the advertiser. 15-92

Internet and E-Mail Advertising Problems
Privacy and Behavioral Targeting (online profiling via cookies and marriage of online and offline data: Double Click; Children’s Online Privacy Protection Rule) Opt-in and opt-out battles SPAM (unsolicited commercial 2/3 of all commercial ) Phishing and international fraud (credit card #s, social security #s, ATM #s) Click fraud with search engine advertising

Irritation, Unfairness, Deception, and Fraud
Loud, long, and insistent TV commercials Junk mail and spam Irritation Taking unfair advantage of impulsive buyers Unfairness Investment scams or phony collections for charity Internet fraud Phishing Online and digital security Access by vulnerable or unauthorized groups Deception and fraud Direct marketing excesses sometimes annoy or offend consumers. For example, many customers dislike direct-response TV commercials that are too loud, long, and insistent. Their mailboxes fill up with unwanted junk mail, and their computer, phone, and tablet screens flash with unwanted online or mobile display ads, pop-ups, or pop-unders. Some direct marketers have been accused of taking unfair advantage of impulsive or less-sophisticated buyers through television shopping channels, enticing Web sites, and program-long infomercials targeting television-addicted shoppers. They feature smooth-talking hosts, elaborately staged demonstrations, claims of drastic price reductions, time limitations, and unequaled ease of purchase to inflame buyers who have low sales resistance. Fraudulent schemes, such as investment scams or phony collections for charity, have also multiplied in recent years. One common form of Internet fraud is phishing, a type of identity theft that uses deceptive s and fraudulent online sites to fool users into divulging their personal data. Many consumers worry about online and digital security. They fear that unscrupulous snoopers will eavesdrop on their online transactions and social media postings, picking up personal information or intercepting credit and debit card numbers. Another Internet marketing concern is that of access by vulnerable or unauthorized groups. For example, marketers of adult-oriented materials and sites have found it difficult to restrict access by minors.

Consumer Privacy Fear of invasion of privacy
Ready availability of information leaves consumers open to abuse Invasion of privacy is perhaps the toughest public policy issue now confronting the direct marketing industry. Consumers benefit from database marketing. However, too much knowledge about consumers’ lives may lead to marketers taking unfair advantage of consumers. Some consumers and policy makers worry that the ready availability of information about consumers may leave them open to abuse.

A Need for Action Government actions Marketers’ actions
Do-not-call, do-not-mail, do-not-track lists Spam legislation Congressional legislation – Give more control to consumers over how online information is used Federal Trade Commission (FTC) – Policing online privacy Marketers’ actions Self-regulatory principles Advertising option icon Privacy rights of children Companies’ actions Own security measures Industry-wide measures To curb direct marketing excesses, various government agencies are investigating not only do-not-call lists but also do-not-mail lists, do-not-track online lists, and Can Spam legislation. In response to online privacy and security concerns, the federal government has considered numerous legislative actions to regulate how online, social media, and mobile operators obtain and use consumer information. For example, Congress is drafting legislation that would give consumers more control over how online information is used. In addition, the FTC is taking a more active role in policing online privacy.

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