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Online Marketing: Building Direct Customer Relationships

LECTURE-28. Online Marketing: Building Direct Customer Relationships. Online Marketing Setting up an Online Marketing Presence Public Policy Issues in Direct Marketing. Topic Outline. Online Marketing.

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Online Marketing: Building Direct Customer Relationships

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  1. LECTURE-28 Online Marketing:Building Direct Customer Relationships

  2. Online Marketing • Setting up an Online Marketing Presence • Public Policy Issues in Direct Marketing Topic Outline

  3. Online Marketing Internet is a vast public Web of computer networks that connects users of all types around the world to each other and to a large information repository Marketing and the Internet

  4. Shifting Power Being Accessible Lower Operating Costs Providing Extensive Range of Info Lower Cost of Entry Fast, Worldwide Coverage Roles Played By The Internet Shifting Power Being Accessible InternetRoles Providing Extensive Range of Info Lower Cost of Entry Fast, Worldwide Coverage

  5. As a Mass Medium: Banner Ads As an Addressable Medium: E-mail Messages As an Interactive Medium: Live Chat Internet Media Flexibility As a Mass Medium: Banner Ads Flexibility As an Addressable Medium: E-mail Messages

  6. Online Marketing Online Marketing Domains

  7. Online Marketing Business to consumer (B2C) involves selling goods and services online to final consumers Business to business (B2B) involves selling goods and services, providing information online to businesses, and building customer relationships Online Marketing Domains

  8. Online Marketing Consumer to consumer (C2C) occurs on the Web between interested parties over a wide range of products and subjects Blogs • Offer fresh, original, and inexpensive ways to reach fragmented audiences • Difficult to control Online Marketing Domains

  9. Online Marketing Consumer to business (C2B) involves consumers communicating with companies to send suggestions and questions via company websites Online Marketing Domains

  10. Online Marketing Setting Up an Online Presence Creating a website requires designing an attractive site and developing ways to get consumers to visit the site, remain on the site, and return to the site

  11. Online Marketing Setting Up an Online Presence Types of sites Corporate website Marketing website

  12. Online Marketing Corporate website is designed to build customer goodwill and to supplement other channels, rather than to sell the company’s products directly to: Provide information Create excitement Build relationships Setting Up an Online Presence

  13. Online Marketing Marketing website is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome Setting Up an Online Presence

  14. Online Marketing To attract visitors, companies must: Promote an offline promotion and online links Create value and excitement Constantly update the site Make the site useful Designing Effective websites

  15. Online Marketing Designing Effective websites The Seven C’s

  16. Tales From the Real World Web sites are somewhat of a status symbol in the real world, with organizations scrambling just to get something—anything—online, so they can claim they have a web presence. Unfortunately, it would be better for some organizations not to be online at all than with a poorly designed site. Two of the most serious errors: to have outdated information that makes the organization look foolish; and to have a site that just posts copy or photos and offers no interactivity—not even an email address or toll free number to respond.

  17. Online Marketing Forms of online advertising • Display ads • Search-related ads • Online classifieds Placing Ads and Promotions Online

  18. Online Marketing Banners are banner-shaped ads found on a website Interstitials are ads that appear between screen changes Pop-ups are ads that suddenly appear in a new window in front of the window being viewed Rich media ads incorporate animation, video, sound, and interactivity Placing Ads and Promotions Online

  19. Online Marketing Search-related ads are ads in which text-based ads and links appear alongside search engine results on sites such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion Placing Ads and Promotions Online

  20. Online Marketing Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information Viral marketing is the Internet version of word-of-mouth marketing and involves the creation of a website, e-mail message, or other marketing event that customers pass along to friends Placing Ads and Promotions Online

  21. Online Marketing Social Networks (Web communities) allow members to congregate online and exchange views on issues of common interest • Facebook Creating or Participating in Social Networks (Web Communities)

  22. Online Marketing Marketers are developing enriched messages that include animation, interactivity, and personal messages with streaming audio and video to compete with the cluttered e-mail environment Using E-mail

  23. Online Marketing Spam is unsolicited, unwanted commercial e-mail messages Permission-based marketing allows users to opt in or opt out of e-mail marketing Using E-mail

  24. Interactive More Flexible Measurable Precise Targeting Quick Results Online Advertising Is Growing Fast Interactive More Flexible Advantages Precise Targeting Quick Results

  25. Forms of Direct Marketing • Mobile phone marketing includes: • Ring-tone giveaways • Mobile games • Ad-supported content • Contests and sweepstakes

  26. Public Policy Issues in Direct Marketing Irritation includes annoying and offending customers Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers Fraud includes identity theft and financial scams Irritation, Unfairness, Deception, and Fraud

  27. 80% of consumers object to selling personal data 52% think tracking on-line activity is privacy invasion 56% don’t know how cookies work What are Online Marketing Concerns? 80% of consumers object to selling personal data Some MajorIssues 52% think tracking on-line activity is privacy invasion

  28. Public Policy Issues in Direct Marketing The concern is that marketers may know too much about consumers and use this information to take unfair advantage Sale of databases Invasion of Privacy

  29. Public Policy Issues in Direct Marketing Can Spam California Online Privacy Protection Act (OPPA) Children’s Online Privacy Protection Act (COPPA) TRUSTe A Need for Action

  30. Bibliography • Principles of Marketing by Philip Kotler & Gary Armstrong • Fifteenth Edition, Published by Prentice Hall • Marketing Management – A South Asian Perspective • by Philip Kotler, Kevin Lane Keller, Abraham Koshy & • Mithileshwar Jha, 13th Edition, Published by Pearson • Education, Inc. •   Principles and Practices of Marketing by Jobber, D. 4th  • edition, McGraw Hill International. • Principles of Advertising & IMC by Tom Duncan 2nd • Edition, Published by McGraw-Hill Irwin.

  31. The End “Leave everything a little better than you found it ”

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