Strategic Tools in e-commerce and Direct marketing

1. Strategic Tools ine-commerce and Direct marketing Helpful Info for the Project

2. P-Mail Distinctive Features • Targetability – capable of targeting a precisely defined group of people. • Measurability – know how many were sent and how many responded • Accountability – results easily demonstrated • Flexibility – produced quickly, not obvious to competitor’s • Efficiency – targeting far more efficient than mass media

3. What does P-mail accomplish • Increase sales and usage from current customers • Sell products and services to new customers • Build traffic at a specific retailer or website • Stimulate product trial • Generate leads for sales force • Deliver product related information and news • Gather customer information for database • Communicate in a relatively private manner

4. Internet Advertising • Individualization – Internet user has control over the flow of information. Therefore, relevant ads and promos can be targeted to consumers. • Interactivity – users select information they perceive as relevant and brand managers can build relationships based on two-way communications • Traditional media vary by the degree they can engage the consumer i.e., generate mental activity .. Passive .. Consumers listens, sees information but limited control on amount or rate of information received. One way communication ..

5. Internet Advertising Formats • Web Sites • Display or Banner Ads • Rich Media Formats • Pop-Ups • Interstitials • Superstitials • Video Ads • Advertising via Behavioral Targeting • Blogs, Podcasts, and Social Networks • E-Mail • Opt-in vs. Spam • E-zines • Wireless E-mail Advertising • Mobile Phone Advertising • Search Engine Advertising • Key Word • Content

6. Websites • Websites are apart of a company’s advertising • Venue for generating and transacting exchanges between the organization and the customer • Website can be the center of the online advertising efforts • Banner ads, e-mail, paid searches then drive traffic to the site • Website is the cornerstone and cannot be difficult to navigate and use, provide little or useless advertising, be unattractive or not entertaining

7. Websites - tips • Attractive and user-friendly sites invite usage and revisits • Simple backgrounds are preferred • Too many bells and whistles can distract users away from the message • Form follows function • Relaxing background colors such as blue and green are perceived to download quicker than exciting colors such as red and yellow!

8. Pop-Ups Interstitials and Superstitials • Pop Up ads – appear in a separate window and materialize on screen and remain til manually closed • Interstitials – appear “between” things … appear between content pages • Do not interrupt interactive experience of user but can’t exit often • Superstitials – short. Animated ads that play over or on top of a web page • Online Video ads – 15 seconds to several minutes • All these forms can irritate but transfer a lot of information • Research – 10% said TV ads annoy, Pop ups – 80%!

9. Video Ads or Webisodes • Webisodes – series of ads that run on websites • $3 billion spent on Webisodes in 2010 • Range from 15 seconds to several minutes

10. Blogs • Web logs (Blogs) the everyman’s approach to communicating with others online. • Others can then share their opinions and thoughts • http://www.blogads.com – network of blogs that accept advertising (matches advertisers to blogs) • Companies can try to develop brand equity in these formats through awareness and enhancing their images • Appeal – company can communicate directly with prospective consumers by engaging in this format • Monitoring Blogs a great way of learning about consumers’ impressions

11. Podcasts • Audio version of blogging • Podcasters self produce, radio type programs • available free online • www.podnova.com lists more than 90,000 podcast programs arranged alphabetically • Target messages by consumer • GM, Nestle pet foods division (Animal Advice), Johnson and Johnson

12. Social Networks • Millions interact with friends • You can advertise • Have organization pages • Bratz (Mattel and Barbie) have set up a separate social network (Be-Bratz.com – accessible when by product containing a USB code). Users choose screen names, discuss clothing for their avatars, etc.

13. E-mail Advertising • Highly effective for delivering marcomm information and incentives • Can use as a mass approach or targeted • Spamming has hurt the effectiveness and image • OPT – IN Email • Asked would you like to get information on “cameras” after searching on DSLRs for example • You say “yes” your permission granted is recorded and then your information is sold to a list broker • Information results in messages for that product category are sent • Regulations against CAN SPAM protecting against unsolicited e-mail

14. Phishing • Phishing – illegal activity where criminals send emails appearing to be legitimate communication and they direct recipients to phony websites • Websites designed to appear to be legitimate corporate venues • Information is given and then identities are stolen • Brand equity suffers for those companies that are also the victims

15. Email Magazines • Free magazine type publications generally focusing on entertainment, fashion, food, and beverages • Small number of ads included that link readers to the websites of stores and brands • Enables advertisers to target fairly effectively

16. Wireless E-Mail Communication • Wi-Fi has enabled this form of communication to be used (radio vs. cable access to Internet. Consumers are no longer tethered to their home or office for Internet communications • Consumers can be contacted at or near the point for purchase now • Sitting in a mall in a hotspot and you receive a message regarding a sale for a shop just 100 yards away! • Must assume when sitting in hotspots everything you do is monitored • MMS Communications – do you want to be contacted via texts?

17. Search Engine Advertising • 40% of total expenditures of US advertisers for online advertising • $25 billion projected to be spent in 2011 on this form of advertising • Natural searches are done “inexpensive book bags” .. Companies like Google, Yahoo, MSN search provide responses and you achieve communication and advertising effectiveness through a chance encounter via KEYWORDS

18. Search Engine Advertising • Key words are specific words or key phrases that describe the nature, attributes, and benefits of a marketer’s offering • Sponsored links will appear in the right hand side of the page with click thru capability • SEA places ads exactly where potential customers are searching • Two forms of key word advertising • Keyword Matching • Content Targeted Advertising

19. Keyword Matching • Interested advertisers must bid for and purchase keywords from search engine services such as GOOGLE • www.adwords.google.com • How much are you willing to pay for key words and click thrus • CPC varies by country • US – 1 penny to as much as willing to pay, and top amount willing to pay each day. GOOGLE provides performance reports • Higher pay, sponsored ad in more prominent location

20. Content Targeted Advertising • Adsense run by GOGGLE as well • Run ads on Web Sites other than GOOGLE’s website • Advertiser picks content pages they want ads to appear • Advertiser pays GOOGLE who then pays content page owner 80%; GOOGLE operates as the ad agency • Great for products not traditionally searched by keywords

21. SEA Problems • Click Fraud • Competitors could repeat click on links to spend out your daily budget quickly • Employees of the content owner could be repeat clicking to up their payments received • Click fraud ranges from 5-20%

22. Behavioral Targeting • You click on golf magazine, that is recorded and next time you log on you get ads for ??? Golf related products! • Ad-server companies (Double Click, 24/7 Media) sign up hundreds of client websites onto their ad networks enabling them to follow users from website to website