internet attitudes survey results

An Assessment of the Practices of & Attitudes Towards Online

Marketing Tactics to Achieve Marketing Objectives

Irene J. DickeyUniversity of Dayton

William F. LewisUniversity of Dayton

Jerry R. PerrichInternet Marketing Institute

Jodesiah SumpterNCR Corporation

Online Marketing Tactics Defined

Online marketing tactics are defined as any marketing

tactic that utilizes the Internet for– Communicating– Selling– Providing content, &– Providing a network function (Hofacker 2001).

These 4 categories constitute the scope of marketing

activities which are the most common in terms of online

marketing & organizations engaging in online marketing

are most likely perform one or multiple categories.

Online Marketing Tactic Examples

• Search Engine Optimization (SEO)

• Advertising

• Newsletters

• Opt-In Opportunities

• Online Ordering System

• Online Order Tracking System

• Online Forms

• Chat Capability

• Internet Metrics – Traffic Measurements…

Research Objectives

1. To investigate & report on: the current use of; thepredicted future use of; & the relative perceived importance of various & specific online marketingtactics as reported by marketing professionals

2. To conduct an extensive literature review & a survey of the practices & attitudes of marketing professionals

3. To provide results that can be utilized by practitioners & academics to better construct marketing strategies which include the appropriate online marketing tactics

Literature Review

• There is a transformation in the ways that companies can communicate & establish rapport with existing & prospective customers (Sterne 1996)

• The Internet allows for “individualized” & “customized” marketing strategies, as well as the ability to target diffused & scattered customer groups (Dreighton 1998)

• Much of the existing online marketing research suggests that effects have been found to vary with the products or services of interest & with the online marketing tactics used to achieve marketing objectives

Literature Review

• These inconsistencies cannot be adequately explained by differences in products & services & in the online marketing tactics alone

• Further, much of the research has focused on a single online marketing tactic & it’s effects on marketing objectives rather than providing an explicit comparison of perceived performance among a broad range of tactics (Briggs & Hollis 1997; Armstrong & Hagan 1996).

• Other research findings related to online marketing as a comprehensive strategy without consideration to single tactics. (Hiltz & Johnson 1990; Hoffman & Chatterjee 1995)

Literature Review Sample Research Stream

• Internet reduces customer search, increases communication potential & provides opportunity for firms to leverage brand loyalty & increase profits (Lal & Savary 1999)

• Without the Internet the cost of search is the cost of visiting more than 1 store, & non-searching consumers do not have to undertake the shopping trip at all

• With the Internet, the cost of search is related to the cost of undertaking the entire shopping trip & consumers may not take the risk of searching for products, but instead, remain with the products they are familiar with (Lal & Savary 1999)

Pre-Survey Considerations

• After a broad-based literature search including articles from business & technological journals, & textbooks, trade publications were found to be suitable for providing reasonable information reflective of the vigorous & dynamic nature of the Internet & provided insight into the terms being used

• Assessment of survey terms identifying online tactics was necessary to determine if there was a reasonable common understanding of the nature of each term & tactic

Pre-Survey Considerations

• Assessment criteria comprised of three variables:

1. Testing of appropriate term (e.g., search engine strategy, keyword strategy, & permission marketing strategy); some manipulation of terms was required to yield an acceptable list of tactics

2. Requirement that persons in the pretest provide adequate explanation of each tactic

3. Provision of a specific example within the survey of each tactic to further enhance common understanding

Sample Frame

• Survey instrument was developed, tested & modified• email list of 830 persons, working in a diverse set of

industries & positions was developed– American Marketing Association Directory (700)– Marketing Faculty were eliminated– Business Colleagues (130) of authors & colleagues– Response Rate = 7.1 % (n = 59 out of 830)– Response rate was anticipated to be adequate as a

result of sponsoring organizations (e.g. Gatignon & Robertson 1989) & the use of the Internet for administering the survey (Mehta & Sivadas 1999)

Sample Demographics

NAIC Classifications of the Sample, n=59

14% 5% 14% 16%3%

14%3%

14%3%

14%

0%

25%

50%

75%

100%

Sample Demographics

Organization Size, n=59

66%

9% 14% 11%0%

0%

25%

50%

75%

100%

Sample Demographics

Positions within Organization, n=59

40%

20%31%

6% 3%0%

25%

50%

75%

100%

Sample Demographics

Marketing Authority, n=59

34%20%

40%

6%

0%

25%

50%

75%

100%

Online Communication Importance

Search Engine Natural Placements

8%22%

61%

10%

0%

25%

50%

75%

100%

Online Communication ImportanceSearch Engine Advertising such as

Banners & Text Ads on Search Engine Sites not Already Covered

in Pay for Placements

55%

25%12% 8%

0%25%50%

75%100%

Online Communication Importance

E-mail Using Your OwnCutomer Database

10% 10%

76%

4%0%

25%

50%

75%

100%

Online Communication Importance

Using a Customer Database

12% 14%

67%

6%

0%

25%

50%

75%

100%

Extent Communication Generate TrafficSearch Engine Natural Placements

11%21%

13%

53%

2%0%

25%

50%

75%

100%

Extent Communication Generate TrafficSearch Engine Advertising such as Banners and Text Ads on Search

Engines Sites not Already Covered in Pay for Placements

67%

27%4% 2% 0%

0%25%

50%75%

100%

Extent Communication Used inNext 12 Months

Search Engine Natural Placements

10%23%

10%

54%

2%0%

25%

50%

75%

100%

Extent Communication Used inNext 12 Months

Search Engine Advertising such as Banners and Text Ads on Search

Engine Sites not already Covered in Pay for Placements

60%

25%10% 4% 0%

0%25%

50%75%

100%

Extent Communication Used inNext 12 Months

Using a Customer Database

10%21% 23%

44%

2%0%

25%

50%

75%

100%

Web Site Objectives

To Sell Goods or Services Online

59%

41%

0%

25%

50%

75%

100%

Web Site Objectives

To Generate Leads for Offline Sales

82%

18%

0%

25%

50%

75%

100%

Web Site Objectives

To Provide Information, but not to Make Sales or Obtain Leads

66%

34%

0%

25%

50%

75%

100%

Web Site Objectives

To Service Customers, such as Order Tracking, Handle Problems,

Etc.

51% 49%

0%

25%

50%

75%

100%

Accomplishing Objectives

To Sell Goods or Services Online

43%34%

23%

0%

25%

50%

75%

100%

Accomplishing Objectives

To Generate Leads for Offline Sales

20%

58%

22%

0%

25%

50%

75%

100%

Accomplishing Objectives

To Provide Information, but not to make Sales or Obtain Leads

18%

52%

30%

0%

25%

50%

75%

100%

Accomplishing Objectives

To Service Customers, such as Order Tracking, Handle Problems,

Etc.

40% 37%23%

0%

25%

50%

75%

100%

Accomplishing Objectives

Product Catalogue

46%

13%

41%

0%

25%

50%

75%

100%

Accomplishing Objectives

Online Forms

72%

9%20%

0%

25%

50%

75%

100%

Conclusions

• Purpose of Web site?– Generate Leads– Provide Information – Sell– Service Customers

• What is Used to Generate Traffic To sites?– Search Engine Natural Placements – Customer Databases– E-mail

Sites CAN accomplish all of these, but for many, these are NOT objectives OR current strategies are not effective in meeting these objectives

Many new capabilities arenot being used, NOR are thereplans for their future use

Conclusions

• Items on Web site – E-mail Link– Toll-free Number– Online Forms– Product Information

• Do Not Plan to Add– Live Help via Instant Chat– Web Call-back Feature– Online Order Status– Online Ordering

Mostly the basics,the original tactics

These are some of the the new, innovative capabilities online

Conclusions

• Metrics Important

– Most respondents use metrics

– Current Metrics appear to be basic packages

provided by Web hosting organization– An increasing use of metrics is anticipated– Most respondents perceive these to be important

• Steady, but Slow Progress, Adoption of new Tactics, Online Capabilities

Future Research

• More In-depth Analysis of Research Findings

• Longitudinal Research Design

• B2B vs B2C strategies

• Thank You

• Questions? Discussion?