Class Discussion Notes MKT 390 - 401

1. Class Discussion Notes MKT 390 - 401 February 27, 2001

2. E-Marketing Communication • Broadcast media • Network TV • Strengths • Reach • Multimedia • Good quality • Emotional appeal • Helps with branding • Low CPM • Demographic targeting • Easy to measure • Weaknesses • Passive viewing • Message length • Geographic markets • Expensive

3. E-Marketing Communication • Broadcast media – cont’d • Radio • Strengths • Reach • Inexpensive • Good local markets • Promotions • Immediate • Easy to measure • Weaknesses • Passive viewing • Message length • Low recall • Not emotional

4. E-Marketing Communication • Narrowcast media • Cable TV • Strengths • Targeted • Inexpensive • Flexible message length • Good quality • Multimedia • Weaknesses • Markets fragmented and small • Low status • Difficult to measure

5. E-Marketing Communication • Pointcast media • Internet • Pagers • Cell phones • FAX • Strengths • Targeted • Relatively easy to measure • Flexible message length • Delivery timing • Interactive • Weaknesses • User control

6. E-Marketing Communication • Print media • Newspapers • Strengths • Good local coverage • Easy to measure • Inexpensive • Immediate • National papers good for branding • National papers have good pass-along readership • Weaknesses • Poor quality • Hasty reading • Not creative • National papers have low penetration

7. E-Marketing Communication • Print media - cont’d • Magazines • Strengths • Targeting • Good quality • Easy to measure • Promotions • Good pass-along readership • Weaknesses • High CPM • Inflexible timing • Low circulation • Markets fragmented and small

8. E-Marketing Communication • Print media - cont’d • Direct mail • Strengths • Highly selective targeting • Personalization • Flexible message content and timing • Easy to measure • Promotions • Weaknesses • Low image • High cost of production and distribution

9. E-Marketing Communication • Audience measurement • Hits • A file requested from a Web site • Weaknesses • Inflated numbers • Page views • Single access to a URL • Strengths • Better than measuring hits • Weaknesses • Page construction can lead to inflated numbers • Repeat visit measurement

10. E-Marketing Communication • Audience measurement – cont’d • Visitors • Strengths • Avoids site design issues • Weaknesses • Repeat visit measurement • Solution – measure unique visitors • Usually done over a period of time • Stickiness • Measures length of stay • Strengths • Easy to measure Site log files

11. E-Marketing Communication • Audience measurement – cont’d • Impressions • Number of times an ad was served • A digital asset must be seen one time by an individual user • Link • Button • Icon • Search keyword • Graphic • Image • Headline • Banner • Line of text • Ad space on Internet sold by number of impressions

12. E-Marketing Communication • Audience measurement – cont’d • Key words • Search words at search engine sites which generate banner ads • Strengths • Highly targeted • Click-through • Weaknesses • Response may be tied to the creative • Banners enhance brand recognition without click-through • Risky to the media

13. E-Marketing Communication • How to measure • Consumer-centric model • Panel of users, randomly selected • Clickstream data recorded via software on user’s PC • Advantages • Statistically reliable • Data can be demographically segmented • Allows for comparison among Web sites • Disadvantages • Reliable only for larger sites • Cannot accurately capture business users • Cannot adequately compensate for deficiencies in population sample

14. E-Marketing Communication • How to measure cont’d • Site-centric model • User activity measured by analyzing Web server log data • Thru self analysis • Thru auditing agencies • Advantages Less expensive than consumer-centric method Can measure impressions Can measure small sites • Disadvantages Proxy server caching Cannot record impressions in these cases Cannot distinguish unique visits Cannot produce demographic information

15. E-Marketing Communication • Which media to buy? • Effectiveness • Reaching the target market • Needs good audience statistics • Efficiency • Reaching the target market at the lowest possible cost • Measured by CPM (cost per thousdand) • Ad cost / audience size x 1000 • Useful for comparisons across media & vehicles • Consider the audience • Consider the CPM • Which media are appropriate • Consider strengths and weaknesses of media

16. E-Marketing Communication • Which vehicle to buy? • Portals • Vertical sites • Niche sites • Other considerations • Click-through % • Conversion rate • Number of orders / number of visitors • Cost per click • Total ad cost / number of clicks • Cost per order • Total ad cost / number of orders • Average order value • Sales / number of orders