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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

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

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Consumer b ehavior is c hanging

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Technology h as c hanged t oo ..

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We i nfluence e ach o ther differently

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

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

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How do internet marketing communications differ from traditional marketing communications? <ul><li>Interactivity </li></ul><ul><li>Intelligence </li></ul><ul><li>Individualisation </li></ul><ul><li>Integration </li></ul><ul><li>Industry restructuring </li></ul><ul><li>Independence of location </li></ul>

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

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

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İnternet marketing tools

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

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

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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

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

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

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Direct Marketing <ul><li>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. </li></ul><ul><li>Ex:http://directmarketingstore.com </li></ul>

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Techniques <ul><li>E-mail </li></ul><ul><li>Permission Marketing </li></ul><ul><li>Viral Marketing </li></ul><ul><li>Messaging </li></ul><ul><li>Location Based-Marketing </li></ul>

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

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

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Email: Spam! <ul><li>All unsolicited e-mails is considered spam! </li></ul><ul><li>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 </li></ul>

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

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

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Opt-in, opt-out example

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

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

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

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

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

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

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

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

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

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Pop-Ups <ul><li>Appears with page loading, mouse action or page content. </li></ul><ul><li>Definitely visible; but extremely irritating. </li></ul><ul><li>“ 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) </li></ul><ul><li>GartnerG2 conducted the research, finding 78 percent of Internet users say pop-ups are &quot;very annoying.&quot; Only 49 percent find banner ads as annoying as pop-ups. (2) </li></ul><ul><li>http://advertising.about.com/library/weekly/aa012803a.htm (1,2) </li></ul>

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Sponsorships <ul><li>Wrigley candystand </li></ul>

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

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Example: An Interstitial

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

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Marketing Public Relations <ul><li>Web Site </li></ul><ul><li>Blogs </li></ul><ul><li>Community Building </li></ul><ul><li>Online Events </li></ul>

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

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

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Blogs

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Blogs

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Marketing Public Relations <ul><li>Brand Communities </li></ul><ul><ul><li>Network of customer relationships </li></ul></ul><ul><ul><li>Built on context and relevance of content </li></ul></ul><ul><ul><li>Mutual Responsibility </li></ul></ul><ul><ul><li>Rituals and traditions </li></ul></ul><ul><ul><li>Celebrate brand history </li></ul></ul><ul><ul><li>Share brand stories </li></ul></ul><ul><ul><li>Assimilate new brand users </li></ul></ul>“ 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)

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Marketing Public Relations Spread Firefox Nike Plus Harley Davidson Dell Ideastorms

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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) <ul><li>Brand Communities: Members are the messengers </li></ul>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

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

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Sales Promotion Offer <ul><li>Coupons </li></ul><ul><li>Sampling </li></ul><ul><li>Contests & Sweepstakes </li></ul><ul><li>Advergames </li></ul>

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

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

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Advergames

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Traffic and Metrics <ul><li>Efficient and Effective </li></ul><ul><ul><li>Right target at low cost </li></ul></ul><ul><li> ADs </li></ul><ul><ul><li>Inorganic vs Organic </li></ul></ul>

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

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Tracking Progress <ul><li>IMC Metrics </li></ul><ul><ul><li>AD click; most likely a purchase </li></ul></ul><ul><ul><li>Has only 2.4% chance </li></ul></ul>

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

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Results <ul><ul><ul><ul><li>100% increase in impressions </li></ul></ul></ul></ul><ul><li>42% increase in brand effectiveness </li></ul>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

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

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Mini-Case <ul><li>Heineken </li></ul><ul><li>Porche </li></ul><ul><li>HSBC </li></ul><ul><li>Benetton </li></ul><ul><li>How would you communicate your brand online? </li></ul>

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

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