chapter 15 internet marketing and interactive media

Chapter 15 : Internet Marketing and Interactive Media

Chapter Objectives

• To explore the different ways the internet is used to communicate.

• To understand the role of the internet and interactive media in an IMC program.

• To review the strengths and limitations of the internet.

• To evaluate the effectiveness of communications through the internet.


Internet Terms

• Ad clicks• Ad click rate• Ad views (impressions)• Banner• Button• CPC• CPM• Domain name• Hit

• Interstitial• Link• Opt-in-e-mail• Page views• Rich media• Sponsorships• Unique users• Valid hits• Visits


Elements of the Internet

• Electronic mail (e-mail)– Allows users to send electronic mail

• Usenet– Discussion groups, newsgroups, bulletin boards

• Telnet– Databases, library catalogs, and electronic journals


Elements of the Internet

• Hypertext transfer protocol (http)– Software protocol for transferring hypertext language

files

• Client server– Computer system for transferring files between

computers

• Gopher– Document retrieval system used to search for

information


Web Participants

• Users: consumer market– Internet users continue to grow in numbers– Higher education and income are more likely to use the

internet– 81% of households with income over $80 000 use the

internet


Web Participants

• Shoppers– Internet shoppers clearly evidence a rich, active, and

diverse lifestyle.– These people are happy with the convenience of the

internet.– Expected that consumer internet spending will reach

$184 billion by 2004.


Web Participants

• Users: business to business– Approximately 90% of all businesses have websites.– B2B sites generate much higher revenues than B2C.– Revenue expected to reach $2.7 trillion by 2004.– Major advantage is finding information about products

and services.


Web-site Communication Objectives

• Build brand image– Brand loyalty still the most important aspect of any

marketing strategy• I.E. “I AM CANADIAN” pride commercial

– Well designed websites are an excellent way to relay product and service information



• Disseminate information– Primary objective for using the web is to provide in-

depth information about the company.– Having a website has become a necessity in B2B

markets.– B2C websites are used to communicate information

about firm’s products and services.



• Create awareness– Even with limited budgets, the web creates opportunity

to expand awareness.

• Gather research information– Web is used to gain audience profile information

• I.E. Use of cookies, internet surveys

– Critical that consumers are aware that their information may be kept in a database.



• Stimulate Trial and Re-Buy– Some websites offer E-coupons– Links to your site from other sites

• Improve Customer Service– Providing information, answering inquiries, taking

complaints, email response sections, FAQs.– Available personnel on 24/7 basis.



• Increase distribution– Internet being used to distribute coupons and samples.– Affiliations - relationships among websites in which

companies cross-promote one another’s products.


Developing & Maintaining a Website

• Requires significant time and effort.– Creativity, effective marketing, and continual updating

of the site.

• Some sites are used for information purposes.• Other sites market more aggressively.

– I.E. Www.kimberlyclark.Com.


Advertising on the Internet

• Variety of forms of advertising on the internet– Banners– Sponsorships– Text ads– Pop ups– Interstitials– Push technologies– Link ads


Sales Promotion on the Internet

• Has become most frequently use method of encouraging repeat visits.– “Free stuff.”– Sweepstakes.– Marketing alliances.– Coupons.

• 30% of web user respondents had used online coupons.


Personal Selling on the Internet

• High-cost and poor-reach disadvantages of personal selling can now be cut back.

• Provides excellent selling support.• Provides more information in a more timely

manner.• Internet and personal selling are designed to be

complementary tools in a good IMC program.


PR on the Internet

• Many sites devote a portion of their content to PR activities.

• Web offers many opportunities to PR practitioners:– Development of media relations websites.– Provide customized information dissemination.– Development of positive e-mail relationships.


Direct Marketing on the Internet

• Direct mail– Highly targeted– Relies on e-mail lists– Attempts to reach those with specific needs– Often used by catalogers

• Marketing databases on the net – Companies build or acquire a database– The database is sold to subscribers– Delivery may be on- or off-line


Direct Marketing on the Internet

• Infomercials– Program content similar to television, cable or satellite– Web provides for greater audience interaction

• E-commerce– Rapid growth rates likely to continue– CDs, books, travel are main categories– Clothing, cars, financial services are all gaining ground


Strengths of Internet Marketing

• Target marketing• Message tailoring• Interactive capabilities• Information access• Sales potential• Creativity• Exposure• Speed


Limitations of Internet Marketing

• Measurement problems• Audience characteristics• Websnarl• Clutter• Potential for deception• Costs• Limited production quality• Poor reach

chapter 15 internet marketing and interactive media

Documents

internet marketing

internet surveyscritical

consumer internet spending

internet termsad clicksad

information purposes

indepth information

rebuysome websites

research informationweb