Implementation of marketing strategy: Marketing communications

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Implementation of marketing strategy Marketing
communications

• MARK 430

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Marketing process

• Target your market
• Position your product
• Communicate to your target audience
• Communication
• Advertising
• Personal selling

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2 main goals of marketing communication

• Brand advertising aim is to build awareness of
  a product by putting the brand name and product
  benefits in front of users
• Develop positive attitudes prior to purchase
• Direct-response advertising seeks to motivate
  action BUY!

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Online communications media types
Medium Advantages Disadvantages
Website / personalized website Communicate rich, detailed information that users can navigate at will can track users and customize site accordingly Narrow reach
Banner ads Link directly to buying opportunity easy to measure effectiveness wide reach potential for effective targeting Low attention and click-through rates short life limited pass-along audience very high clutter fleeting exposure
Interstitials Catch users attention link to buying opportunity Can annoy users limited pass-along audience
Rich media Attention getting link to buying opportunity Can annoy users without broadband access
Dynamic ad placement Serves up customized ads to users in real time Difficult to execute well can annoy users and/or other advertisers
Search engines Good credibility high believability guarantee of position available significant audience at major sites High competition information overload limited pass-along
Classified and listings Relatively inexpensive potential for wide exposure qualified audience Clutter
Opt-in email High demographic selectivity high credibility significant flexibility proven high click-through rates absolutely inexpensive some pass-along Requires substantial user base before effective high clutter
Mass email High reach inexpensive flexible Low attention and significant resentment (spam image)
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Marketing communications we will look at over the
next few weeks

• This week online advertising (banners,
  interstitials and rich media)
• Week after study break search engine marketing
• Following week email and viral marketing

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What difference does the Internet make to
advertising?

• Traditional form of one-way, one-to-many mass
  advertising no longer necessary or appropriate
• Web provides a highly targeted, receptive
  audience
• Web advertising can be interactive, and therefore
  by definition, more engaging
• Web provides a mechanism for instant action
• Immediate gratification of the consumer not
  available with print, TV or radio advertising
• Consumers complain more about web advertising
  than about other forms of advertising

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Internet advertising

• Advertising is non-personal communication of
  information through various media
• Usually persuasive in nature about products
• Usually paid for by an identified sponsor
• Paid space on a website or in an email is
  considered internet advertising
• The process of selling advertising on the
  Internet is very similar to offline media web
  companies create content then sell advertising
  space to advertisers
• But also include the situation where a content
  provider will pay to include that content on
  another firms site (sponsored content
  advertising)

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The importance of Internet advertising

• Began in 1994 with banners on Hotwired.com
• Saw strong growth until 2000-2001 (on a par with
  the drop in advertising spending in all media)
• Now on the upswing again, as dissatisfaction with
  traditional media grows (see link to reading)
• The importance of the Internet as an advertising
  medium varies across industries. Most advertising
  comes from following categories
• consumer related advertising (30)
• computing (18)
• financial services (12)
• media (12)
• business services (9)

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How successful is web advertising?

• Banner ad click-through rates are very low
• around 1 of users actually click on a banner ad
• of that 1, around 5 actually follow through
  with a transaction
• The web is very good at person-to-person
  interactive services, and at promoting product
  loyalty
• Growth has been in interactive ads using rich
  media
• Said to be twice as effective as traditional
  banners
• Big payoff is in the capability to track ad
  effectiveness and ability to respond to change
  very quickly

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Web site advertising formats

• Began as static banners in the mid 1990s, added
  animation, then moved to the use of rich media
• Interactive formats, including
• Banners
• Buttons
• Skyscrapers
• Pop-ups, pop-unders, interstitials
• Floater ads and Shoshkele (United Virtualities)
• Rich media gallery (Macromedia)
• For examples of all kinds of web advertising, go
  to
• www.eyeblaster.com Eyeblaster

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Paying for, and measuring usage
Online media have varied payment schemes unlike
traditional media which is usually priced on a
pay for placement basis (based on ratings)
Ad Clicks

• Aggregate number of user clicks on a banner ad

• Number of times a banner ad is downloaded to a
  users browser and presumably looked at

Ad Views (Impressions)
Click-Through

• Percentage of ad views that are clicked upon
  also Ad Click Rate

• Formula used to calculate what an advertiser will
  pay to an Internet publisher based on number of
  click-throughs a banner generates

CPC(Cost-per-Click)

• Cost per thousand impressions of a banner ad a
  publisher that charges 10,000 per banner and
  guarantees 500,000 impressions has a CPM of 20
  (10,000 divided by 500)

CPM
Going beyond click-through rates Clickstream
data gives you the whole picture of a consumers
movements before, during and after viewing an
advert
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Complexities of online advertising

• Designing interactive rich media is challenging
• Non-linear consumer can take many paths
• Getting the right balance between intrusive and
  engaging
• Tracking effectiveness
• Online ads delivered to individuals rather than
  to mass markets makes placement and tracking
  much more complex
• Technical complexity of rich media adverts mean
  closer ties between the advertiser and the media
  seller
• Ad placement
• Disagregated medium means ads must be placed with
  several Internet publishers to reach audiences

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Helping marketers deal with these complexities

• Workflow software to help in the buying, selling,
  and managing of managing of online ads eg.
  Solbright
• Macromedia and DoubleClicks joint product to
  help manage both the creation and measurement of
  ad effectiveness
• DART Motif

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Advertising to wireless devices

• Huge growth potential
• PDAs, cellphones, laptops etc now widely used
• Big question is would mobile users rather pay
  for content, or will they tolerate advertisements
  in exchange for free content
• Answer is not clear because of several factors
• low bandwidth
• small screen size
• different techniques needed to track ad
  effectiveness
• by-the-minute payment for air-time by user

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Viewing advertising in exchange for viewing
content

• A growing trend as content providers try to make
  sense of business realities
• www.ivillage.com - view ad before gaining access
  to site
• www.salon.com - view ad in exchange for getting
  access to complete magazine article

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The future of web advertising

• Web technology allows for many interesting
  multimedia advertising formats
• These catch attention when they first appear, but
  quickly become intrusive and annoying
• Big backlash against pop-ups
• Marketing fundamentals will prevail
• Success is about reaching the right audience with
  the right message at the right time