Shanghai Jiao Tong University EMBA class

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  • From a topline perspective, the good news is that all brands indicate there should be a higher percent of the budget online. For Colgate, which actually started with a 7% budget in online, should have put 11% online, which would have dramatically increased their key metrics, imagery up 34% and Intent up 20% Dove started with 2%, however they should have allocated 15% to online which would have results in an average +8% increase in all the brand metrics and a 14% increase in Purchase Intent, which they say is a good measure of sales impact For McD’s, their 1% budget in online should have been 13%, which would have achieve an 8% increase in brand awareness, as a result they Added 6 Million new consumers that are aware of McDonald’s Grilled Chicken Flatbread Sandwich. These are significant findings. And there are more to come from KCC, AstraZeneca, Universal, and ING. “ McDonald's joined the chorus last week, saying that it plans to devote more money to digital marketing, quite possibly at the expense of the millions of dollars it spends on TV commercials…McDonald's is just the latest major advertiser to step up its rhetoric about the Web. Half of the top 20 online advertisers in 2002 were Fortune 500 companies--up from about two in 2000---including Amazon.com, Estee Lauder, SBC Communications, General Motors and Barnes & Noble, according to market researcher Nielsen NetRatings…” - CNET, April 24, 2003
  • It’s given consumers more options, more information – and they’ve responded accordingly. We live in a world of multi-channel shoppers – and they’re often browsing in one channel and shopping in another. Internet retailing was the bright spot in a gloomy holiday season. A study we conducted of consumers in January showed that 60%…….most importantly, multi-channel shoppers spent more money than those who just shop at retail or just shop through catalogs.

Transcript

  • 1. Shanghai Jiao Tong University EMBA class By Ralf Hirt, Managing Director, Asia Pacific Tony Cheung, Regional Director, Greater China Shanghai, December 3 & 4, 2004 We Make Marketing Work Better
  • 2. Agenda
    • Friday
    • Big Picture – e-business and Society
    • in China - Fundamentals
    • New marketing and Communication
    • Infrastructures
    • Online as part of integrated marketing
    • Saturday
    • Campaign Planning & Measurement
    • Market Trends and Benchmarks
    • Case Study
    • Hands-On Session
  • 3. Emarketer Study on China
  • 4. Emarketer Study on China
  • 5. Emarketer Study on China
  • 6. Emarketer Study on China
  • 7. Emarketer Study on China
  • 8. Impact and Opportunities – New Marketing and Communication Infrastructures
    • Branding
    • - Multi-Nationals build brand awareness in China
    • Chinese companies start building own brands
    • Chinese companies go global with their brands
    • Chinese companies acquire companies and brands abroad
  • 9. Impact and Opportunities – New Marketing and Communication Infrastructures
    • 2. Pan Asian – Outbound – Inbound
    • Building markets
    • Selling
    • Sourcing
    • Sharing
  • 10. Impact and Opportunities – New Marketing and Communication Infrastructures
    • 3. Facilitator for SME
    • - Opportunity vs. Risk
    • Window to the markets
    • 4. Marketing and Communication Backbone
    • Gravity and Reach
    • 5. Education in a Knowledge Based Economy
  • 11. Online as Part of Integrated Marketing
  • 12. DoubleClick Inc.
    • 1500 employees, growing
    • HQ in New York
    • Nasdaq: DCLK
    • Market Cap: approx. 1 billion USD
    • In China since 2000: Beijing; Shanghai, Guangzhou
    • In Hong Kong since 1998
    • Founded in 1996
    • Ads served per day: 4 billion plus
    • Emails sent per quarter: 2 billion plus
  • 13. What DoubleClick Does? Enterprise Marketing Management MRM Workflow Management Campaign Management Cross – Media Planning MRM MediaVisor Brand and DR Advertising DFA, DART Search, DART Motif Website Analytics Analysis and Optimization Campaign and Website DFA ReportCentral, SiteAdvance Customer Data Integration Data solutions Data transfer Cross-Channel Remarketing Online, Email, Call center, Website Boomerang, DARTmail, Ensemble
  • 14. Media Consumption Source: Online Publishers Association/MBIQ Media Consumption Study, May 2003 At Work
  • 15. Reallocation = Same Budget, Better Results Originally Allocated % Online: Changed to Recommended % Online:
    • +14%
    • --
    • +8%*
    • --
    • --
    • +8%
    • +20%
    • +34%
    • --
    • Intent
    • Imagery
    • Awareness *
    Results * Overall Increase in all Brand Metrics Source: Internet Advertising Bureau, (IAB) 13% Online 15% Online 1% 2% 7% 11% Online
  • 16. Trends We’re Seeing
    • Consumers are shifting their media consumption habits with more time spent online
    • Consumers are browsing and buying across channels
    • Marketers are responding by building multi-channel marketing strategies
  • 17. What is Multi-Channel Marketing?
      • Order Channels
      • Offer Channels
    Advertising Catalog/Other DM Telemarketing Email Online Advertising Website Retail/Outlet Stores Catalog/Mail Order Call Center Website Consumers exposed to integrated marketing messages in multiple channels which motivates them to purchase in others.
  • 18. 57% of multi-channel shoppers browsed in one channel, purchased in another
    • Online often sends shoppers to purchase at retail
    Catalog Retail Store Online ?% 19% 5% 16% 43% 6% 11% Base = multi-channel shoppers buy browse DoubleClick Multi-Channel Shopping Study: Holiday 2003, January 2004
  • 19. Triple-channel shoppers most valuable, spending over $1,000 Base = multi-channel shoppers DoubleClick Multi-Channel Shopping Study: Holiday 2003, January 2004
  • 20. What’s the Challenge for Marketers, Publishers and Agencies?
    • D A T A
    too much of it… what does it mean ?… will it integrate ?… how can I act on it… D A T A D A T A
  • 21. Marketers, Publishers & Agencies Need to….
    • Identify and communicate with the right target
    • Streamline and automate campaigns …. faster, cheaper, better
    • Measure ROI within and across channels… improve performance and grow business
  • 22. Thank You. More Tomorrow  , or please contact us any time at [email_address] / [email_address]