An Assessment of thePractices of & Attitudes Towards Online Marketing Tactics to Achieve Marketing Objectives Irene J. Dickey University of Dayton William F. Lewis University of Dayton Jerry R. Perrich Internet Marketing Institute Jodesiah Sumpter NCR Corporation
Online Marketing Tactics DefinedOnline marketing tactics are defined as any marketingtactic that utilizes the Internet for – Communicating – Selling – Providing content, & – Providing a network function (Hofacker 2001).These 4 categories constitute the scope of marketingactivities which are the most common in terms of onlinemarketing & organizations engaging in online marketingare most likely perform one or multiple categories.
Research Objectives1. To investigate & report on: the current use of; the predicted future use of; & the relative perceived importance of various & specific online marketing tactics as reported by marketing professionals2. To conduct an extensive literature review & a survey of the practices & attitudes of marketing professionals3. To provide results that can be utilized by practitioners & academics to better construct marketing strategies which include the appropriate online marketing tactics
Literature Review• There is a transformation in the ways that companies can communicate & establish rapport with existing & prospective customers (Sterne 1996)• The Internet allows for “individualized” & “customized” marketing strategies, as well as the ability to target diffused & scattered customer groups (Dreighton 1998)• Much of the existing online marketing research suggests that effects have been found to vary with the products or services of interest & with the online marketing tactics used to achieve marketing objectives
Literature Review• These inconsistencies cannot be adequately explained by differences in products & services & in the online marketing tactics alone• Further, much of the research has focused on a single online marketing tactic & it’s effects on marketing objectives rather than providing an explicit comparison of perceived performance among a broad range of tactics (Briggs & Hollis 1997; Armstrong & Hagan 1996).• Other research findings related to online marketing as a comprehensive strategy without consideration to single tactics. (Hiltz & Johnson 1990; Hoffman & Chatterjee 1995)
Literature Review Sample Research Stream• Internet reduces customer search, increases communication potential & provides opportunity for firms to leverage brand loyalty & increase profits (Lal & Savary 1999)• Without the Internet the cost of search is the cost of visiting more than 1 store, & non-searching consumers do not have to undertake the shopping trip at all• With the Internet, the cost of search is related to the cost of undertaking the entire shopping trip & consumers may not take the risk of searching for products, but instead, remain with the products they are familiar with (Lal & Savary 1999)
Pre-Survey Considerations• After a broad-based literature search including articles from business & technological journals, & textbooks, trade publications were found to be suitable for providing reasonable information reflective of the vigorous & dynamic nature of the Internet & provided insight into the terms being used• Assessment of survey terms identifying online tactics was necessary to determine if there was a reasonable common understanding of the nature of each term & tactic
Pre-Survey Considerations• Assessment criteria comprised of three variables: 1. Testing of appropriate term (e.g., search engine strategy, keyword strategy, & permission marketing strategy); some manipulation of terms was required to yield an acceptable list of tactics 2. Requirement that persons in the pretest provide adequate explanation of each tactic 3. Provision of a specific example within the survey of each tactic to further enhance common understanding
Sample Frame• Survey instrument was developed, tested & modified• email list of 830 persons, working in a diverse set of industries & positions was developed – American Marketing Association Directory (700) – Marketing Faculty were eliminated – Business Colleagues (130) of authors & colleagues – Response Rate = 7.1 % (n = 59 out of 830) – Response rate was anticipated to be adequate as a result of sponsoring organizations (e.g. Gatignon & Robertson 1989) & the use of the Internet for administering the survey (Mehta & Sivadas 1999)
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e ov ab d an 00 ,0 .. 10 E. 9 0% 99Sample Demographics 9, Organization Size, n=59 to 0 00 .. 5, E. 11% 9 99 4, to 0 00 ... 1, pl 14% Em 9 99 to s 0 ee 50 oy pl 9% Em 9 49 to 1 66% 75% 50% 25% 0% 100%
Sample Demographics Positions within Organization, n=59100%75%50% 40% 31% 20%25% 6% 3% 0% O S O S O en up w th th ne er e i er or rM r vi M or M so an an an Pr r a a ag ge ge in e ci r r r lep
Sample Demographics Marketing Authority, n=59100%75%50% 34% 40% 20%25% 6% 0% M No Ha M ak ak t ve e re e so fin m sp os m al o ns e tr ap re ib ec pr ... le ... ov al
Online Communication Importance Search Engine Natural Placements100%75% 61%50% 22%25% 8% 10% 0% Ve No So Do ry n t m t Im ew Im k po no po ha rt w tI rta an m n t po t at ... Al l
Online Communication Importance Search Engine Advertising such as Banners & Text Ads on Search Engine Sites not Already Covered in Pay for Placements100% 75% 55% 50% 25% 25% 12% 8% 0% N S V D ot om er on y Im t ew Im k po no h po at rt w rt an ... an t t ..
Online Communication Importance E-mail Using Your Own Cutomer Database100% 76%75%50%25% 10% 10% 4% 0% V N S D er o o o n t m y t Im ew Im k p no p h o o at rt w rt an Im a n t p t at o rt A an ll t
Online Communication Importance Using a Customer Database100%75% 67%50%25% 12% 14% 6% 0% V N S D er o o o n t m y t Im ew Im k p no p h o o at rt w rt an Im a n t p t at o rt A an ll t
Extent Communication Generate Traffic Search Engine Natural Placements100% 75% 53% 50% 21% 25% 11% 13% 2% 0% U U D U D se se o on se no t m al so k lo tu os m no to ft se e w he of ft at he th tim al e l t im e tim e e
Extent Communication Generate Traffic Search Engine Advertising such as Banners and Text Ads on Search Engines Sites not Already Covered in Pay for Placements100% 67% 75% 50% 27% 25% 4% 2% 0% 0% D U U U D on o se se se no t so m al k tu lo os m no se e to ft w of h. ft at .. t.. ... ..
Extent Communication Used in Next 12 Months Search Engine Natural Placements100%75% 54%50% 23%25% 10% 10% 2% 0% U U N U D s s o s o e e t e n t p m al so la k l o m no n o st f e to w o th o f us e f th th ti e e m e at ti e ti m m al e l e
Extent Communication Used in Next 12 Months Search Engine Advertising such as Banners and Text Ads on Search Engine Sites not already Covered in Pay for Placements100% 75% 60% 50% 25% 25% 10% 4% 0% 0% N U U U D o s s o s t e e e n p t al so m la k l o m n no o st e f to w th o o f u. f ... t. t. . . .
Extent Communication Used in Next 12 Months Using a Customer Database100%75% 44%50% 21% 23%25% 10% 2% 0% U U N U D s s o s o e e t e n p t al m so la k l o m n no o st f e to w o th o f us e f th th ti e e m e at ti e ti m m al e l e
Web Site Objectives To Sell Goods or Services Online100%75% 59%50% 41%25% 0% Is Is an no t ob an je o ct bj iv ec e tiv e
Web Site Objectives To Generate Leads for Offline Sales100% 82%75%50%25% 18% 0% Is Is an no t o a b n je o ct b iv je e ct iv e
Web Site Objectives To Provide Information, but not to Make Sales or Obtain Leads100%75% 66%50% 34%25% 0% Is Is an no t ob an je ob ct iv je e ct iv e
Web Site Objectives To Service Customers, such as Order Tracking, Handle Problems, Etc.100%75% 51% 49%50%25% 0% Is Is an no t ob an je ob ct iv je e ct iv e
Accomplishing Objectives To Sell Goods or Services Online100%75% 43%50% 34% 23%25% 0% S C D o o o m m es ew p n le o h te t at ly a cc ac ac o co co m m pl m p i p sh li. l.. .. ... .
Accomplishing Objectives To Generate Leads for Offline Sales100%75% 58%50% 20% 22%25% 0% S C D om om oe s ew pl no et ha el tac ta y ac co cc co o m m pl m pl is pl i.. h. .. . . ..
Accomplishing Objectives To Provide Information, but not to make Sales or Obtain Leads100%75% 52%50% 30% 18%25% 0% D S C o o om es m ew p no le h te t at ac ly ac co ac co m co m pl m p. i.. ... ..
Accomplishing Objectives To Service Customers, such as Order Tracking, Handle Problems, Etc.100%75%50% 40% 37% 23%25% 0% D S C oe om om s ew pl no et ha ta el ta y cc ac c. om .. ... ...
Accomplishing Objectives Product Catalogue100%75% 46% 41%50%25% 13% 0% H P N av la ot n e ha to rig ve ad h /n tn d ot ow in p 12 la n m to o. ... ..
Accomplishing Objectives Online Forms100% 72%75%50% 20%25% 9% 0% H P N a la o ve t n h to av ri g ad e/ h t n d n ot o in w p 12 la n m to o ... ...
Conclusions• Purpose of Web site? Sites CAN accomplish all of these, but for – Generate Leads many, these are NOT – Provide Information objectives OR current – Sell strategies are not effective in meeting – Service Customers these objectives• What is Used to Generate Traffic To sites? – Search Engine Natural Placements – Customer Databases Many new capabilities are – E-mail not being used, NOR are there plans for their future use
Conclusions• Items on Web site Mostly the basics, – E-mail Link the original tactics – Toll-free Number – Online Forms – Product Information• Do Not Plan to Add These are some of the the new, innovative – Live Help via Instant Chat capabilities online – Web Call-back Feature – Online Order Status – Online Ordering
Conclusions• Metrics Important – Most respondents use metrics – Current Metrics appear to be basic packages provided by Web hosting organization – An increasing use of metrics is anticipated – Most respondents perceive these to be important• Steady, but Slow Progress, Adoption of new Tactics, Online Capabilities
Future Research• More In-depth Analysis of Research Findings• Longitudinal Research Design• B2B vs B2C strategies• Thank You• Questions? Discussion?