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Chapter 7

MCS 3620 Chapter Notes - Chapter 7: Interactive Advertising Bureau, Viral Marketing, Click-Through Rate


Department
Marketing and Consumer Studies
Course Code
MCS 3620
Professor
Bharat Sud
Chapter
7

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Chapter 7 Marketing Communications
Planning for Online & Interactive Communications
Online communications offer a high degree of personalization
Medium is unique b/c it allows an organization to listen to customers, learn from them & deliver content &
services tailored to their responses & actions
Being used w/ more traditional media
Internet Penetration and Adoption
Canada has 1 of the highest levels of internet penetration and broadband access
Seems that Canadians have adopted Internet while maintaining a strong appetite for other traditional
media
Traditional media use by Canadians has declined from 50 hours/week to 45 hours
Embraces all age categories
Result of more time spent online
Time spent w/ a media is a factor media planners will consider
Internet now ranks 3rd in terms of weekly time spent w/ all media
Among 18-24 year olds, internet is #1 in terms of weekly time spent w/ a media
Internet is an ideal medium for reaching younger Canadians as well as middle-to-upper income households
Internet is taking on mass media status b/c of time spent will it
Online and Interactive Marketing Communications
Unique Visitor: An individual who has either accessed a site or been served unique content and/or advertising
messages
The internet is absolutely essential for reaching audience under age of 35 years old
Advertisers are investing considerable sums in online advertising
Challenge for marketers is devising a plan that effectively integrates online ads into the marketing
communications mix but also determining how much of its budget to devote to online ads
Online advertising provides immediate feedback to advertisers regarding how effectively their message
reached the target
Unlike any of the traditional mass media
Automatically gears ads to the personal viewer’s tastes
Since online advertising is measurable it should be attractive to marketing organizations whom have a
corporate mandate to be more accountable
The expansion of broadband capabilities and the growing penetration of cell phones & other electronic
devices will provide for video downloading, a very attractive option for advertisers who have relied on TV
ads in the past
The Internet & Targeting
Consumers voluntarily visit specific website and offer to give up info about themselves
Audiences can be targeted based on demographic or geographic variables, time of day and by behaviour
All websites accumulate data on who visits, when and how long they stay
Unlike TV, prime time online is during the day when people are at work
Attractive because these people usually have higher-than-average incomes. Education and tendencies to
shop & buy online
Behavioural Targeting: A means of delivering online ads based on consumer’s previous surfing patterns
Internet is unique medium for this
Surfing is tracked by a cookie, a small text file uploaded to a consumer’s web browser and sometimes
stored in person’s hard drive
Cookie can remember peoples preferences
Reach is smaller w/ behavioural targeting but is measurable
Ideal for reaching consumers when they are researching a purchase
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Impression: An ad request that was successfully sent to a visitor. This is the standard way of determining
exposure for an ad on the web
An organization can also complete a sale online
Mass Customization: The development, manufacture, and marketing of unique products to unique customers
Target an audience of 1
Online & Interactive Communications Planning
Interactive Communications: The placement of an advertising message on a website or an ad delivered by email
or through mobile communication devices
Usually in form of a banner, rich media ad, sponsorship on website, or ad via email
Can be through cell phones, PDA, Mp3 & video games
Decisions about medium are largely based on the communications objectives & budget available
1st step: establish objectives
2nd step: Evaluate the various media options strategically (online campaign? Mobile media campaign?)
3rd step: Execution (decide how much to spend, how to schedule media activity for year etc.)
Creating Brand Awareness
Portal: A website that serves as a gateway to a variety of services such as searching, news, online shopping,
email, and links to other sites
Most obvious way to achieve awareness is to advertise on web portal
E.g. Google, Yahoo!, Facebook, Canoe etc.
To create brand awareness & awareness of a brand’s promise, a variety of advertising alternatives are
available such as banner ads, rich media & sponsorships
Building & Enhancing Brand Image
Brand building is the responsibility of marketing communications activities
Goal is to have public see brand positively
Consumers actively seek out product info on company websites so its important that the site project an
image in keeping with the overall company image
Common for consumers to be routed to sub-pages on a website (brand page) as they search for info
Offering Incentives
To encourage customers to make their initial purchase, price discounts are common
Companies active w/ CRM programs are capable of delivering incentives to customers in their database
using email advertising
Contests & sweepstakes are popular online promos
For the chance of winning a prize, a consumer will divulge a lot of information
Generating Leads
In B2C or B2B marketing situations, the internet is useful for generating leads
Business people & consumers will also leave vital info when they are searching for info online
Online visitors are known to give out more details about themselves or their business so that they can
retrieve info they are looking for
Business sites often request info such as company size, # of employees, type of business, location etc.
This type of info once analyzed & mined can identify potential targets and be used to customize
messages
Providing Customer Service
In any form of marketing, offering good customer service is crucial
Satisfied customers = good attitude about company and likeness to buy more goods
Online site must be organized & provide good service to customer including speed of service, and
openness /accessibility of info
Successful online businesses don't forget their online activities must be backed up by a human component
etc. replying to emails speedily
Must pay attention to inbound sales, order tracking, out-of-stock issues etc.
Conducting Transactions
The B2B market is booming w/ online transactions and the B2C market is growing steadily yearly
Having a website w/ E-business capabilities is important today
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