1. Copyright © 2002 Pearson Education, Inc. Slide 8-1

2. Copyright © 2002 Pearson Education, Inc. Slide 8-2 CHAPTER 8 Created by, David Zolzer, Northwestern State University—Louisiana E-commerce Marketing Communications

3. Copyright © 2002 Pearson Education, Inc. Slide 8-3 Learning Objectives Identify the major forms of online marketing communications Understand the costs and benefits of online marketing communications Discuss the way is which a Web site can be used as a marketing communications tool

4. Copyright © 2002 Pearson Education, Inc. Slide 8-4 Online Marketing Communications Methods used by online firms to communicate to the consumer and create strong brand expectations Promotional sales communications suggest the consumer “buy now” and make offers to encourage immediate purchase Branding communications focus on extolling the differentiable benefits of consuming the product or service

5. Copyright © 2002 Pearson Education, Inc. Slide 8-5 Online Advertising A paid message on a Web site, online service, or other interactive medium Different forms include: banner and rich media ads paid search engine inclusion and placement sponsorships affiliate relationships

6. Copyright © 2002 Pearson Education, Inc. Slide 8-6 Online Advertising From 2000-2006 Page 414, Figure 8.1

7. Copyright © 2002 Pearson Education, Inc. Slide 8-7 Online Advertising by Category Page 415, Figure 8.2

8. Copyright © 2002 Pearson Education, Inc. Slide 8-8 Banner and Rich Media Ads Banner ad displays a promotional message in a rectangular box at the top or bottom of a computer screen Button is a permanent banner ad Pop-under ad opens underneath a user’s active browser window and does not appear until the user closes the active window Rich media ads employee Flash, DHTML, and Java, and streaming audio and/or video

9. Copyright © 2002 Pearson Education, Inc. Slide 8-9 Types of Banner Ads Page 417, Figure 8.3

10. Copyright © 2002 Pearson Education, Inc. Slide 8-10 Banner and Rich Media Ads Interstitial ad is a way of placing a full page message between the current and destination pages of a user Superstitial is a rich media ad that is preloaded into a browser’s cache and does not play until fully loaded and the user clicks to another page

11. Copyright © 2002 Pearson Education, Inc. Slide 8-11 Banner and Rich Media Ads Banner swapping is an arrangement among firms that allows each firm to have it banners displayed on other affiliate sites for no cost Banner exchanges arrange for banner swapping among firms

12. Copyright © 2002 Pearson Education, Inc. Slide 8-12 Most Popular Online Marketing Methods Page 419, Table 8.1

13. Copyright © 2002 Pearson Education, Inc. Slide 8-13 A Paid Listing on Overture.comOverture.com A search on “software training” at Overture.com (formerly GoTo.com) brings up a list of companies that have paid for their inclusion and placement on the search results list. The amount each company has agreed to pay per clickthrough is shown.

14. Copyright © 2002 Pearson Education, Inc. Slide 8-14 Search Engine Policies on Paid Placement and Inclusion Page 421, Table 8.2

15. Copyright © 2002 Pearson Education, Inc. Slide 8-15 Sponsorship A paid effort to tie an advertiser’s name to information, an event, or a venue in a way that reinforces its brand in a positive, yet not overtly commercial manner

16. Copyright © 2002 Pearson Education, Inc. Slide 8-16 Affiliate Relationships Permit a firm to put it logo or banner ad on another firm’s Web site from which users of that site can click through to the affiliate’s site

17. Copyright © 2002 Pearson Education, Inc. Slide 8-17 Direct E-mail Marketing E-mail marketing messages sent directly to interested users Spam is unsolicited commercial e-mail

18. Copyright © 2002 Pearson Education, Inc. Slide 8-18 Other Online Marketing Communications Online Catalogs provide the equivalent of a paper-based catalog Public relations involves communicating with target audiences, or publics, using methods other than advertising

19. Copyright © 2002 Pearson Education, Inc. Slide 8-19 Beval’s Online Catalog Page 425, Figure 8.5

20. Copyright © 2002 Pearson Education, Inc. Slide 8-20 Marketing Metrics Lexicon Page 429, Table 8.3

21. Copyright © 2002 Pearson Education, Inc. Slide 8-21 Online Marketing Metrics: Lexicon Impressions is the number of times an ad is served Clickthrough rate (CTR) is the percentage of people exposed to an online advertisement who actually click on the banner Hits is the number of HTTP requests received by a firm’s server

22. Copyright © 2002 Pearson Education, Inc. Slide 8-22 Online Marketing Metrics: Lexicon Page views is the number of pages requested by visitors Stickiness (duration) is the average length of time visitors remain at a site Unique visitors is the number of distinct, unique visitors to a site Loyalty is the percentage of purchasers who return in a year

23. Copyright © 2002 Pearson Education, Inc. Slide 8-23 Online Marketing Metrics: Lexicon Reach is the percentage of the total number of consumers in a market who will visit a site Recency is the average number of days elapsed between visits Acquisition rate measures the percentage of visitors who register or visit product pages

24. Copyright © 2002 Pearson Education, Inc. Slide 8-24 Online Marketing Metrics: Lexicon Conversion rate is the percentage of visitors who purchase something Attrition rate is percentage of customers who purchase once, but do not return within a year Abandonment rate is the percentage of shoppers who begin a shopping cart form, but then fail to complete the form Retention rate is the percentage of existing customers who continue to buy on a regular basis

25. Copyright © 2002 Pearson Education, Inc. Slide 8-25 An Online Consumer Purchasing Model Page 431, Figure 8.6

26. Copyright © 2002 Pearson Education, Inc. Slide 8-26 Online Marketing Communications Page 432, Table 8.4

27. Copyright © 2002 Pearson Education, Inc. Slide 8-27 The Costs of Online Advertising Cost per thousand is what an advertiser pays for impressions in 1,000 unit lots Cost per click is where the advertiser pays prenegotiated fee for each click an ad receives Cost per action is where the advertiser pays only for those users who perform a specific action

28. Copyright © 2002 Pearson Education, Inc. Slide 8-28 Different Pricing Models for Online Advertisements Page 433, Table 8.5

29. Copyright © 2002 Pearson Education, Inc. Slide 8-29 Traditional and Online Advertising Costs Compared Page 435, Table 8.6

30. Copyright © 2002 Pearson Education, Inc. Slide 8-30 Web Site Activity Analysis Page 436, Figure 8.7

31. Copyright © 2002 Pearson Education, Inc. Slide 8-31 The Web Site as a Marketing Communications Tool Domain names are the first communications an e- commerce site has with a prospective customer Search Engine Optimization register with as many search engines as possible ensure keywords used in the site description match keywords likely to be used as search terms by a user link the site to as many other sites as possible

32. Copyright © 2002 Pearson Education, Inc. Slide 8-32 Search Engine Ranking Criteria Page 440, Table 8.7

33. Copyright © 2002 Pearson Education, Inc. Slide 8-33 Site Design Features That Impact Online Purchases Page 441, Table 8.8

34. Copyright © 2002 Pearson Education, Inc. Slide 8-34 Web Site Functionality Compelling experience Fast download times Easy Product List navigation Few clicks to purchase Customer choice agents Responsiveness