An Assessment of the Practices of & Attitudes Towards Online Marketing Tactics to Achieve Marketing Objectives

1. An Assessment of the
Practices 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

2. Online Marketing Tactics Defined
Online marketing tactics are defined as any marketing
tactic that utilizes the Internet for
– Communicating
– Selling
– Providing content, &
– Providing a network function (Hofacker 2001).
These 4 categories constitute the scope of marketing
activities which are the most common in terms of online
marketing & organizations engaging in online marketing
are most likely perform one or multiple categories.

3. Online Marketing Tactic Examples
• Search Engine Optimization (SEO)
• Advertising
• Newsletters
• Opt-In Opportunities
• Online Ordering System
• Online Order Tracking System
• Online Forms
• Chat Capability
• Internet Metrics – Traffic Measurements…

4. Research Objectives
1. 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 professionals
2. To conduct an extensive literature review & a survey
of the practices & attitudes of marketing professionals
3. To provide results that can be utilized by practitioners
& academics to better construct marketing strategies
which include the appropriate online marketing tactics

5. 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

6. 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)

7. 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)

8. 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

9. 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

10. 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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14. Sample Demographics
Positions within Organization, n=59
100%
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31%
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15. Sample Demographics
Marketing Authority, n=59
100%
75%
50% 34% 40%
20%
25% 6%
0%
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16. Online Communication Importance
Search Engine Natural Placements
100%
75% 61%
50%
22%
25% 8% 10%
0%
Ve
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17. Online Communication Importance
Search Engine Advertising such as
Banners & Text Ads on Search
Engine Sites not Already Covered
in Pay for Placements
100%
75% 55%
50% 25%
25% 12% 8%
0%
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18. Online Communication Importance
E-mail Using Your Own
Cutomer Database
100%
76%
75%
50%
25% 10% 10% 4%
0%
V
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19. Online Communication Importance
Using a Customer Database
100%
75% 67%
50%
25% 12% 14%
6%
0%
V
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D
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o
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o
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a
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A
an
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t

20. Extent Communication Generate Traffic
Search Engine Natural Placements
100%
75%
53%
50%
21%
25% 11% 13%
2%
0%
U
U
D
U
D
se
se
o
on
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no
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m
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so
k
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m
no
to
ft
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e
w
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of
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at
he
th
tim
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e
l
t im
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tim
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e

21. Extent Communication Generate Traffic
Search Engine Advertising such as
Banners and Text Ads on Search
Engines Sites not Already Covered
in Pay for Placements
100%
67%
75%
50% 27%
25% 4% 2% 0%
0%
D
U
U
U
D
on
o
se
se
se
no
't
so
m
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k
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lo
os
m
no
se
e
to
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w
of
h.
ft
at
..
t..
...
..

22. Extent Communication Used in
Next 12 Months
Search Engine Natural Placements
100%
75%
54%
50%
23%
25% 10% 10%
2%
0%
U
U
N
U
D
s
s
o
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o
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at
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ti
m
m
al
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l
e

23. 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 Placements
100%
75% 60%
50% 25%
25% 10% 4% 0%
0%
N
U
U
U
D
o
s
s
o
s
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w
th
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f
u.
f
...
t.
t.
.
.
.

24. Extent Communication Used in
Next 12 Months
Using a Customer Database
100%
75%
44%
50%
21% 23%
25% 10%
2%
0%
U
U
N
U
D
s
s
o
s
o
e
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t
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p
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al
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us
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f
th
th
ti
e
e
m
e
at
ti
e
ti
m
m
al
e
l
e

25. Web Site Objectives
To Sell Goods or Services Online
100%
75%
59%
50% 41%
25%
0%
Is
Is
an
no
t
ob
an
je
o
ct
bj
iv
ec
e
tiv
e

26. Web Site Objectives
To Generate Leads for Offline Sales
100%
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

27. Web Site Objectives
To Provide Information, but not to
Make Sales or Obtain Leads
100%
75% 66%
50% 34%
25%
0%
Is
Is
an
no
t
ob
an
je
ob
ct
iv
je
e
ct
iv
e

28. 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

29. Accomplishing Objectives
To Sell Goods or Services Online
100%
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..
..
...
.

30. Accomplishing Objectives
To Generate Leads for Offline Sales
100%
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.
..
.
.
..

31. Accomplishing Objectives
To Provide Information, but not to
make Sales or Obtain Leads
100%
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..
...
..

32. 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
..
...
...

33. Accomplishing Objectives
Product Catalogue
100%
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.
...
..

34. Accomplishing Objectives
Online Forms
100%
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
...
...

35. 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

36. 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

37. 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

38. Future Research
• More In-depth Analysis of Research
Findings
• Longitudinal Research Design
• B2B vs B2C strategies
• Thank You
• Questions? Discussion?