1. Marketing in the Digital Age Presented by Karen Porter Department of Marketing School of Business Administration The University of Montana andImpactOnlineMarketing.com

2. Before the Internet Businesses relied upon traditional media: Businesses relied upon traditional media: Yellow Pages Yellow Pages Newspapers Newspapers Television Television Direct Mail Direct Mail Telemarketing Telemarketing Magazines Magazines Radio Radio Billboards Billboards

3. Times are Changing Yellow Pages – now skewed to older consumers / expensive Yellow Pages – now skewed to older consumers / expensive Traditional advertising media are losing effectiveness

4. Times are Changing Yellow Pages – skewed to older consumers / expensive Yellow Pages – skewed to older consumers / expensive Magazine – in decline / long lead time / shifting readership Magazine – in decline / long lead time / shifting readership Newspapers – in decline / skews older / day old news Newspapers – in decline / skews older / day old news Television – fragmentation / zipping / zapping / Hulu Television – fragmentation / zipping / zapping / Hulu Radio – audio only/ high freq needs / market fragmentation Radio – audio only/ high freq needs / market fragmentation Direct Mail – costly / low conversion / slow / “junk mail” Direct Mail – costly / low conversion / slow / “junk mail” Billboards – limited locations / limited messaging Billboards – limited locations / limited messaging Traditional advertising media are losing effectiveness

5. New Media is Online Online Statistics 1 Trillion + — number of web pages in the world 1 Trillion + — number of web pages in the world 200+ Billion online searches each year in U.S. alone 200+ Billion online searches each year in U.S. alone 30 % — searches that are targeted locally (city or zip ) * 30 % — searches that are targeted locally (city or zip ) * 20 % — total online searches done by mobile phones * 20 % — total online searches done by mobile phones * 37 % — small businesses without a website * 37 % — small businesses without a website * 80 % — local searches done on mobile devices = buyers * 80 % — local searches done on mobile devices = buyers * 0 % — chance to connect with consumers who are searching online if an organization doesn’t have a sufficient online presence 0 % — chance to connect with consumers who are searching online if an organization doesn’t have a sufficient online presence * 2012 statistics based on U.S. data only

6. Online Marketing Should Not Be an Afterthought Most Marcom texts treat it online generically Most Marcom texts treat it online generically Texts focus much more on traditional media Texts focus much more on traditional media Why? It doesn’t continually change! Why? It doesn’t continually change! Online marketing needs to be integrated with offline marketing for best marketing results Online marketing needs to be integrated with offline marketing for best marketing results

7. Needed: An Integrated Media Mix Offline and online marketing needs to work together to reinforce brand and messaging strategies Offline and online marketing needs to work together to reinforce brand and messaging strategies One is not “better” than the other One is not “better” than the other Use each to compliment the other Use each to compliment the other Need to meet needs / habits of the target market Need to meet needs / habits of the target market Evaluate effectiveness of each media (online or off) and spend where you’re getting results Evaluate effectiveness of each media (online or off) and spend where you’re getting results Eliminate what is not working Eliminate what is not working

8. Align Media with Target Audiences Learn about your media options – costs, demographics, other information Learn about your media options – costs, demographics, other information Select media vehicles to reach each target most efficiently and cost effectively Select media vehicles to reach each target most efficiently and cost effectively Avoid wasted coverage (i.e. don’t pay to reach people who are not in your target market) Avoid wasted coverage (i.e. don’t pay to reach people who are not in your target market) Plan media schedule to match budget / needs Plan media schedule to match budget / needs Track effectiveness of each vehicle used Track effectiveness of each vehicle used Fine tune media plan based on analytics & results Fine tune media plan based on analytics & results

9. Leveraging Offline Media for Online Impact Promote business website on everything – let the website do the heavy lifting Promote business website on everything – let the website do the heavy lifting Track / monitor offline ad effectiveness Track / monitor offline ad effectiveness Calculate return on investment and make future decisions accordingly Calculate return on investment and make future decisions accordingly Find what works best – then “rinse & repeat!” Find what works best – then “rinse & repeat!”

10. A Website is Essential But Having One isn’t Enough Websites lend credibility Websites lend credibility The business card of yesterday The business card of yesterday Is the website getting found? Is the website getting found? Know how consumers are searching & where the site is ranked Know how consumers are searching & where the site is ranked How do you drive traffic to a website? How do you drive traffic to a website? Know what prospective customers are doing online Know what prospective customers are doing online Is the web presence helping or hurting the business? Is the web presence helping or hurting the business? Develop a cohesive online / offline marketing strategy Develop a cohesive online / offline marketing strategy

11. Does a Business HAVE to Use … Google Places? Google Places? Facebook? Facebook? Twitter? Twitter? LinkedIn? LinkedIn? Blogging? Blogging? Mobile Marketing? Mobile Marketing? Other? Other?

12. Mobile Marketing – The Next Huge Wave 49 % of U.S. citizens now own smart phones 49 % of U.S. citizens now own smart phones Smart phone purchases up by 58% last year alone Smart phone purchases up by 58% last year alone Internet access via mobile devices is expected to surpass access by laptops & desktops in 2013/14 Internet access via mobile devices is expected to surpass access by laptops & desktops in 2013/14 97% of smart phone users search online by phone 97% of smart phone users search online by phone Mobile searches have quadrupled in past year Mobile searches have quadrupled in past year <5% of all sites are mobile-friendly <5% of all sites are mobile-friendly

13. What is “Mobile” Marketing? Mobile websites Mobile websites SMS text marketing SMS text marketing QR codes QR codes Mobile apps Mobile apps Mobile websites becoming essential – the rest may/may not be appropriate for a given business Mobile websites becoming essential – the rest may/may not be appropriate for a given business

14. BMKT343 “Remixed” Beyond the standard text Beyond the standard text Integration of online and offline marketing Integration of online and offline marketing Exposure to online marketing in this course is just a beginning – but a vitally important beginning Exposure to online marketing in this course is just a beginning – but a vitally important beginning The target market remains the driver of all marketing decisions The target market remains the driver of all marketing decisions All elements of the marketing mix MUST be congruent – with target market & each other All elements of the marketing mix MUST be congruent – with target market & each other