E-Marketing Communication 05 May 2008 / Lecture slides for Digital Marketing course Contact: ysoylu@su.sabanciuniv.edu Yeşim Soylu Melike Akdülger Okan Erol Ilgın Ece Şahin Kemal Yerlikaya Seda Çetin

Lecture Objectives The new age consumer and communication Define integrated marketing communication (IMC) and explain the importance of hierarchy of effects models. Describe the characteristics of the major media and the Internet’s media characteristics. Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, and direct marketing. Outline the methods for buying media and vehicles and for evaluating an IMC campaign’s effectiveness.

The new age consumer and communication

Define integrated marketing communication (IMC) and explain the importance of hierarchy of effects models.

Describe the characteristics of the major media and the Internet’s media characteristics.

Discuss how marketers use the Internet for advertising, marketing public relations, sales promotions, and direct marketing.

Outline the methods for buying media and vehicles and for evaluating an IMC campaign’s effectiveness.

Consumer b ehavior is c hanging

Technology h as c hanged t oo ..

We i nfluence e ach o ther differently

From advertising age to conversation age http://darmano.typepad.com/logic_emotion/conversation_marketing/index.html

Integrated Marketing Communications IMC Characteristics: Coherence Consistency Continuity Complementary IMC is a cross-functional process for planning, executing, and monitoring brand communications. The goal is to profitably acquire, retain, and grow customers. Integrated marketing communications The coordiation of communications channels to deliver a clear,consistent message

IMC Characteristics:

Coherence

Consistency

Continuity

Complementary

IMC is a cross-functional process for planning, executing, and monitoring brand communications.

The goal is to profitably acquire, retain, and grow customers.

How do internet marketing communications differ from traditional marketing communications? Interactivity Intelligence Individualisation Integration Industry restructuring Independence of location

Interactivity

Intelligence

Individualisation

Integration

Industry restructuring

Independence of location

Online communication mix Decision on the mix between different communication techniques such as search engine marketing, e-mail marketing and online advertising. Control of media spending and purpose of communication Attraction Conversion Retention

Decision on the mix between different communication techniques such as search engine marketing, e-mail marketing and online advertising.

Control of media spending and purpose of communication

Attraction

Conversion

Retention

Characteristics of interactive marketing communications Push media: Communications are broadcast from an advertiser to consumers of the message who are passive recipients (TV and radio) Pull media: The consumers is proactive in selection of the message through actively seeking out a web site. (internet) From push to pull From monologue to dialogue Creating a dialogue through interactivity

Push media: Communications are broadcast from an advertiser to consumers of the message who are passive recipients (TV and radio)

Pull media: The consumers is proactive in selection of the message through actively seeking out a web site. (internet)

From push to pull

From monologue to dialogue

Creating a dialogue through interactivity

İnternet marketing tools

Marketing Communication Tools Marketing Communication consists of both planned and unplanned messages between firms and customers and among customers. E-marketers can enhance Marketing Communication by using innovative technologies. Internet Marketing Communication may include advertising, sales promotion, marketing public relations, and direct marketing.

Marketing Communication consists of both planned and unplanned messages between firms and customers and among customers.

E-marketers can enhance Marketing Communication by using innovative technologies.

Internet Marketing Communication may include advertising, sales promotion, marketing public relations, and direct marketing.

Marketing Communication Media The Internet is just one of many media used to carry Mar keting Com mnication messages. Based on their ability to reach increasingly narrower audiences, electronic media can be viewed as: Broadcast (TV and radio) Narrowcast (Cable TV) Pointcast (Internet and cell phone)

The Internet is just one of many media used to carry Mar keting Com mnication messages.

Based on their ability to reach increasingly narrower audiences, electronic media can be viewed as:

Broadcast (TV and radio)

Narrowcast (Cable TV)

Pointcast (Internet and cell phone)

Strengths & Weaknesses of Media Criterion TV Radio Magazine Newspaper Direct Mail Internet Involvement passive passive active active active interactive Media Richness multi- media audio text and graphic text and graphic text and graphic multi-media Geographic Coverage global local global local varies global CPM low lowest high medium high medium Reach high medium low medium varies medium Targeting good good excellent good excellent excellent Track Effectiveness fair fair fair fair excellent excellent Message Flexibility poor good poor good excellent excellent

IMC Goals and Strategies The AIDA and “think, feel, do” (hierarchy of effects) models help guide selection of online and offline Mar keting Com munication tools. Consumers first become aware of a product before they develop feelings and purchase it. Application depends on whether the product purchasing decision is high- or low- involvement. The models can help marketers select appropriate communication objectives and strategies, such as: Build brand equity. Elicit a direct response.

The AIDA and “think, feel, do” (hierarchy of effects) models help guide selection of online and offline Mar keting Com munication tools.

Consumers first become aware

of a product before they develop

feelings and purchase it.

Application depends on whether

the product purchasing decision is

high- or low- involvement.

The models can help marketers select appropriate communication objectives and strategies, such as:

Build brand equity.

Elicit a direct response.

Direct Marketing Direct marketing includes techniques such as: Telemarketing Outgoing e-mail Postal mail, including catalog marketing Targeted online ads Short message services (SMS) Multimedia message services (MMS) Instant messaging (IM)

Direct marketing includes techniques such as:

Telemarketing

Outgoing e-mail

Postal mail, including catalog marketing

Targeted online ads

Short message services (SMS)

Multimedia message services (MMS)

Instant messaging (IM)

Direct Marketing Direct marketing is broadly defined as any direct communication to a consumer that is designed to generate a response in the form of an order, a request for information, and/or a visit to a store or other place of business for purchase of a product or products. Ex:http://directmarketingstore.com

Direct marketing is broadly defined as any direct communication to a consumer that is designed to generate a response in the form of an order, a request for information, and/or a visit to a store or other place of business for purchase of a product or products.

Ex:http://directmarketingstore.com

Techniques E-mail Permission Marketing Viral Marketing Messaging Location Based-Marketing

E-mail

Permission Marketing

Viral Marketing

Messaging

Location Based-Marketing

E-mail (Advantages) No postage or Printing Charges Immediate and direct response Can be individualized to meet the needs of specific users

No postage or Printing Charges

Immediate and direct response

Can be individualized to meet the needs of specific users

E-mail (Disadvantages) Unsolicited e-mail Difficulty in finding appropriate lists Web site registration Rented from list broker Harvested from newsgroups

Unsolicited e-mail

Difficulty in finding appropriate lists

Web site registration

Rented from list broker

Harvested from newsgroups

Email: Spam! All unsolicited e-mails is considered spam! E-mail offers the chance for real dialogue with individual customers, as well as a way to develop broad and deep customer relationships instead of merely using it to acquire to customers

All unsolicited e-mails is considered spam!

E-mail offers the chance for real dialogue with individual customers, as well as a way to develop broad and deep customer relationships instead of merely using it to acquire to customers

Newsletter Advantages Promote the company name Personalize communication Position the company as an expert in a subject Makes it easy to pass information Pay themselves with carrying small ads

Promote the company name

Personalize communication

Position the company as an expert in a subject

Makes it easy to pass information

Pay themselves with carrying small ads

Permission Marketing Turning strangers into customers Asking people about what they are interested in Successfull because in return for participation users get coupons, cash or free products

Turning strangers into customers

Asking people about what they are interested in

Successfull because in return for participation users get coupons, cash or free products

Opt-in, opt-out example

Opt-in Techniques will evolve and grow in years to attract customers for opt-in such as using quizes, games; Heineken’s Delivery Game Axe’s Maneater

Techniques will evolve and grow in years to attract customers for opt-in such as using quizes, games;

Heineken’s Delivery Game

Axe’s Maneater

Viral Marketing - WoM Hotmail story, from 50000$ to 400m$ with 12m customers Bush vs Kerry cartoon visited 4.5m without ad American Psycho’s invitations written by the murderer

Hotmail story, from 50000$ to 400m$ with 12m customers

Bush vs Kerry cartoon visited 4.5m without ad

American Psycho’s invitations written by the murderer

Messaging SMS, MMS, IM To be successfull, messages should be short, personalized, interactive and relevant Such as; notification of upcoming flight delay, notfication

SMS, MMS, IM

To be successfull, messages should be short, personalized, interactive and relevant

Such as; notification of upcoming flight delay, notfication

Location Based Marketings Isnt it great to receive an SMS on your cell, offering a free beverage from your favorite restaurant? With GPS it can be done but expensive comparison to other techniques %88 says they will use accept the offer if they recieved such message

Isnt it great to receive an SMS on your cell, offering a free beverage from your favorite restaurant?

With GPS it can be done but expensive comparison to other techniques

%88 says they will use accept the offer if they recieved such message

Internet Advertising Formats Banners Pop-Ups Sponsorships Interstitials, Superstitials & Screen Interrupts Search Engine Marketing (SEM) Key word advertising Search Engine Optimization

Formats

Banners

Pop-Ups

Sponsorships

Interstitials, Superstitials & Screen Interrupts

Search Engine Marketing (SEM)

Key word advertising

Search Engine Optimization

Banners: Attract attention for awareness or direct response May involve graphics, audio or video capabilities Pros Adressed to the users of selected websites Cost-effective ad method Easy to implement Effective measurement Cons Too much loading time Irritating (Banner blocker softwares…) Mostly ineffective

Attract attention for awareness or direct response

May involve graphics, audio or video capabilities

Pros

Adressed to the users of selected websites

Cost-effective ad method

Easy to implement

Effective measurement

Cons

Too much loading time

Irritating (Banner blocker softwares…)

Mostly ineffective

Banners: History Started in 1994 By AT&T 30% click-through 0.15% today Declining effect New tech updates Still popular after video ads, search ads and advergames.

History

Started in 1994

By AT&T

30% click-through

0.15% today

Declining effect

New tech updates

Still popular after

video ads, search ads

and advergames.

Banners: How To Determine need Planning Plan your ad & Design Select tools & Compute costs Decide on publisher media Construct campaign Monitor

Determine need

Planning

Plan your ad & Design

Select tools & Compute costs

Decide on publisher media

Construct campaign

Monitor

Banners: Top 10 Tips Target Pose questions Bright colors Home is not always sweet Location Use animation Use cryptic messages Call to action Avoid Banner Burnout Measure beyond the click

Target

Pose questions

Bright colors

Home is not always sweet

Location

Use animation

Use cryptic messages

Call to action

Avoid Banner Burnout

Measure beyond the click

Pop-Ups Appears with page loading, mouse action or page content. Definitely visible; but extremely irritating. “ Current click-through rates are inflated because many Internet users are not familiar with how to close the pop-up window. The rates will decrease as users gain experience ” (1) GartnerG2 conducted the research, finding 78 percent of Internet users say pop-ups are "very annoying." Only 49 percent find banner ads as annoying as pop-ups. (2) http://advertising.about.com/library/weekly/aa012803a.htm (1,2)

Appears with page loading, mouse action or page content.

Definitely visible; but extremely irritating.

“ Current click-through rates are inflated because many Internet users are not familiar with how to close the pop-up window. The rates will decrease as users gain experience ” (1)

GartnerG2 conducted the research, finding 78 percent of Internet users say pop-ups are "very annoying." Only 49 percent find banner ads as annoying as pop-ups. (2)

http://advertising.about.com/library/weekly/aa012803a.htm (1,2)

Sponsorships Wrigley candystand

Wrigley candystand

Interstitials, Superstitials & Screen Interrupts Interstitials Appears while loading Negative bias for slow loading Superstitials Embedded mini-videos in website content Faster loading time Responds to mouse activation Screen Interrupts (Shoshkele) Enjoyable but invasive

Interstitials

Appears while loading

Negative bias for slow loading

Superstitials

Embedded mini-videos in website content

Faster loading time

Responds to mouse activation

Screen Interrupts (Shoshkele)

Enjoyable but invasive

Example: An Interstitial

Example: Superstitials http:// www.hillmancurtis.com/hc_web/web_motion/source/ultimatetv _ superstitial.html

http:// www.hillmancurtis.com/hc_web/web_motion/source/ultimatetv _ superstitial.html

Marketing Public Relations Web Site Blogs Community Building Online Events

Web Site

Blogs

Community Building

Online Events

Marketing Public Relations Web site Improve web site in order to increase customer experience Modify web site for special events and days Co l lect customer data for further interaction Low-cost PR alternative Under satisfactory visiting frequencies

Web site

Improve web site in order to increase customer experience

Modify web site for special events and days

Co l lect customer data for further interaction

Low-cost PR alternative

Under satisfactory visiting frequencies

Marketing Public Relations Blogs Started in 1997 as diaries Became mainstream & effective since 2004 For sharing info and experience Created by fans, users & companies http ://ilovemyadidas.blogspot.com/ http://blogs.motortrend.com/2/110/porsche/index.html

Blogs

Started in 1997 as diaries

Became mainstream & effective since 2004

For sharing info and experience

Created by fans, users & companies

http ://ilovemyadidas.blogspot.com/

http://blogs.motortrend.com/2/110/porsche/index.html

Blogs

Blogs

Marketing Public Relations Brand Communities Network of customer relationships Built on context and relevance of content Mutual Responsibility Rituals and traditions Celebrate brand history Share brand stories Assimilate new brand users “ A brand community is a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.” Muniz and O’Guinn (2001, p.412)

Brand Communities

Network of customer relationships

Built on context and relevance of content

Mutual Responsibility

Rituals and traditions

Celebrate brand history

Share brand stories

Assimilate new brand users

Marketing Public Relations Spread Firefox Nike Plus Harley Davidson Dell Ideastorms

Marketing Public Relations Information Exchange Social Interaction Group Focus Loose High Social Structure The first types of virtual internet based communities that were of value to marketers. Source: Kozinets (2000) Types of users found in virtual internet based communities and their characteristics. Source: Kozinets (2000) Brand Communities: Members are the messengers Dungeons Rooms Lists Boards Rings High self-centrality of consumption Strong social ties to community Low self centrality of consumption Weak social ties to community Devotee Tourist Insider Mingler

Brand Communities: Members are the messengers

Marketing Public Relations Online Events Generate user interest & draw traffic to site Examples: Amazon let members to contribute stories started by famous authors Land Rover broadcasts Camel Trophy online Online Victoria’s Secret and Superbowl shows Online discussions and workshops with corporate managers

Online Events

Generate user interest & draw traffic to site

Examples:

Amazon let members to contribute stories started by famous authors

Land Rover broadcasts Camel Trophy online

Online Victoria’s Secret and Superbowl shows

Online discussions and workshops with corporate managers

Sales Promotion Offer Coupons Sampling Contests & Sweepstakes Advergames

Coupons

Sampling

Contests & Sweepstakes

Advergames

Coupons & Sampling Coupons For both online & offline clients Offers include both online and offline advantages http://www.indirimkuponlarim.com/ http://www.yemeksepeti.com/elit/ Sampling Free testware or partial software Home delivery sampling after online application

Coupons

For both online & offline clients

Offers include both online and offline advantages

http://www.indirimkuponlarim.com/

http://www.yemeksepeti.com/elit/

Sampling

Free testware or partial software

Home delivery sampling after online application

Advergames “ Let’s face it. 30-second tv commercial is tired. The banner ad just ain’t clicking. And pop-ups are public enemy #1.” Adressed to teenagers, game-o-holics & anyone visiting the corporate websites Consumers’ willingness is the key to participate and create viral buzz Strengthens connections and increases brand awareness while offering fascinating experiences 40 million hits monthly, only at advergames.com

“ Let’s face it. 30-second tv commercial is tired. The banner ad just ain’t clicking. And pop-ups are public enemy #1.”

Adressed to teenagers, game-o-holics & anyone visiting the corporate websites

Consumers’ willingness is the key to participate and create viral buzz

Strengthens connections and increases brand awareness while offering fascinating experiences

40 million hits monthly, only at advergames.com

Advergames

Traffic and Metrics Efficient and Effective Right target at low cost ADs Inorganic vs Organic

Efficient and Effective

Right target at low cost

ADs

Inorganic vs Organic

Traffic and Metrics Appropriate ad for user’s interest Using cookies CPM (cost per thousand) Impressions efficiency $7-15

Appropriate ad for user’s interest

Using cookies

CPM (cost per thousand)

Impressions efficiency

$7-15

Tracking Progress IMC Metrics AD click; most likely a purchase Has only 2.4% chance

IMC Metrics

AD click; most likely a purchase

Has only 2.4% chance

Tracking Progress Top sites in Turkey that drive traffic. Taken from: Alexa.com Display Ads Brand awareness Message association

Top sites in Turkey that drive traffic.

Taken from:

Alexa.com

Display Ads

Brand awareness

Message association

Results 100% increase in impressions 42% increase in brand effectiveness More Results Click Through Rate – click to impressions; 0.4 - 10% Customer Acquisation Cost - $82 for online vs $31 offline Conversion Rate – customers to visitors; 1.8%(banners) -5%(emails) Cost per Click – pay per click ADS

100% increase in impressions

42% increase in brand effectiveness

IMC Metrics Banner ads are ineffective ? Only 0.15% of all users click on them. Rich media ads receive an average 2.5% click-through. Online ads that were bigger, placed as interstitials or contained rich media delivered greater impact. There is increasing evidence that online and offline advertising work well together.

Banner ads are ineffective ?

Only 0.15% of all users click on them.

Rich media ads receive an average 2.5% click-through.

Online ads that were bigger, placed as interstitials or contained rich media delivered greater impact.

There is increasing evidence that online and offline advertising work well together.

Mini-Case Heineken Porche HSBC Benetton How would you communicate your brand online?

Heineken

Porche

HSBC

Benetton

How would you communicate your brand online?

To summarize... When designing e-marketing communication strategy take into account the changing media and consumer the cost and effectiveness of the media choose between many alternatives that best fit your purpose e-mail marketing/online advertising/direct marketing measure to see results

When designing e-marketing communication strategy

take into account the changing media and consumer

the cost and effectiveness of the media

choose between many alternatives that best fit your purpose

e-mail marketing/online advertising/direct marketing

measure to see results

Thanks for listening! Please send questions and comments. [email_address] References Dave Chaffey, Internet Marketing Strategy, Implementation and Practice Ch# 1,4,8 Dave Chaffey, Total E-mail Marketing Maximizing Your Results From Integrated E-marketing John O’Connor, Electronic Marketing Theory and Practice for the Twenty-first Century Ch#12 Promoting to markets of one Larry Weber, Marketing to the Social Web How Digital Customer Communities Build Your Business http://darmano.typepad.com/

Please send questions and comments. [email_address]

References

Dave Chaffey, Internet Marketing Strategy, Implementation and Practice Ch# 1,4,8

Dave Chaffey, Total E-mail Marketing Maximizing Your Results From Integrated E-marketing

John O’Connor, Electronic Marketing Theory and Practice for the Twenty-first Century Ch#12 Promoting to markets of one

Larry Weber, Marketing to the Social Web How Digital Customer Communities Build Your Business

http://darmano.typepad.com/