chapter 11: marketing communication tools for high-tech markets
TRANSCRIPT
Chapter 11: Marketing Communication Tools
for High-Tech Markets
©2010 Pearson Education, Inc. publishing as Prentice Hall
What are the two pricing models used for online advertising?
How are traditional media dealing with the disruption caused by new media?
What problems and limitations are associated with online advertising?
What considerations are crucial to implementing an effective Web site?
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Advertising and Promotion Mix: ◦Traditional advertising, trade shows, sales
promotions, PR, publicity, direct marketing, personal selling
New Media ◦Internet based and Web 2.0 techniques,
mobile marketing
Website Design and Management
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Narrow Broad
Coverage of Target Audience (Reach)
Cos
t p
er
Con
tact
HIGH
LOW
Salesperson
6. Tele- marketing
5. Catalog Lit. & Manuals
4. Trade Show Seminars, Training
3. Direct Mail
2. Public Relations/ Publicity
1. Media Advertising
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Using tools from all levels of the pyramid in an orchestrated campaign to deliver a consistent message to the target audience.
The use of high level tools in the pyramid is based on the effectiveness of low level tools
◦ Match tools to the task at hand
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Paid, nonpersonal Mass-media channels
◦ Print, radio, television, billboards, targeted trade journals
Critical issues:◦ Reach- overlap with target market ◦ Cost efficiency (CPM)◦ Fit of the editorial climate with brand message◦ Size/Frequency of the ads◦ Ad agency or not?◦ Message strategy: gain attention/ reinforce brand
message
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Positive image, good media relations are vital.
PR: activities to develop goodwill with its customers, community, and stakeholders ◦ Event sponsorship, charitable events/cause marketing,
corporate advertising
Publicity: any coverage received in the news media regarding the firm’s products or activities◦ Press conferences, press releases, staged events, “new
media” tools
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Precisely targeted Effectiveness is a function of:
◦List quality◦Appropriate mailing volume/frequency◦Message
Obtain lists from brokers or other sources Equivalent to online newsletter and
targeted email communications
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To launch new products, reach sales prospects, compare competitors’ products
Accelerates the progression of business buyers through the selling cycle
◦ Investment vs. return
◦Attract traffic to booth
◦Follow-up on leads
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Additional information
Build on earlier communications
Showcase key benefits in terms of:◦Relative advantage◦Compatibility◦Scalability◦Service/warranty◦Total cost of ownership
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Outbound basis: company’s personnel cold-call existing customers
Inbound basis: customers or prospects call into the company’s call center
Provide support to field salespeople
National “Do Not Call” list- reduced effectiveness of cold call communication channel
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Focus on one customer at a time
Effectiveness of this most expensive tool is a function of the foundation established by lower-level tools in the pyramid
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Most Usedin decreasing order
Perceived Efficiencyin decreasing order
Email ads Search ads
Display (banner) ads Email ads
Search ads Branded sponsorship
Branded sponsorshipReferrals from other web sites
Referrals from other web sites Video ads
Video ads Podcasts
Podcasts Display ads
Online Advertising Tools
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New Media: technology-enabled advertising/ promotion tools
Can be used in a complementary fashion at all levels of the pyramid
Permission-Based vs. “Interruption” Marketing◦Best practices: opt-in ◦Follow-up with relationship marketing strategies
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Display Ads/Banner Ads Click-through rates on display ads have
been decreasing over time
Better for long-term brand building ◦ Increase advertisement awareness, brand
awareness, and purchase intent◦ Reminder to current customers to buy again
Behavioral Targeting◦ “supersmart, supertargeted display ads” based on
previous online behavior
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Branded Sponsorship Use ads to associate brand with popular
web pages
Classified Similar to classified ads in print
newspapers (Craigslist.org)
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Search Ads
◦Paid searches◦Pay-per-click◦Contextual ads
Search engine optimization◦Keyword Relevance
Use of “tags” in html code (title, keywords, descriptions, links)
◦Link Popularity
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Search Ads (cont.)
Pricing: ◦CPM
◦Cost per click
Assessment◦Clickstream analysis
◦Click fraud
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Web 2.0◦Social media
Social networking sites, blogs, podcasting, video sites, virtual worlds
◦Wiki◦RSS◦AJAX
Host display/search ads Embedded advertising Creativity can compensate a lack of funds
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Web 3.0
Emerging technology ◦Semantic Web
Leverages artificial intelligence allowing computers to utilize the web independently of human intervention
◦Increased connection speeds◦Modular web applications◦Advances in computer graphics
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Viral Marketing
Compelling marketing offers, voluntarily passed around ◦Harness power of Internet communications and
connectivity ◦Use technology: email, mobile messaging, Web
2.0 tools
Buzz marketing: word-of-mouth communications to generate interest and excitement in a company’s product
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Widgets/Gadgets
Free web-based software applications associated with an ad
◦Downloadable, interactive News feeds, stock tickers, clocks, calculators,
◦Uploaded to personal sites Viral element Chat boxes, music players
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Affiliates
Web sites that drive traffic/sales to another Web site by carrying their display ad or link
◦Compensation based on number of referrals
◦Higher ranks in natural search listings
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Mobile Advertising
The “third screen” Phone platform as advertising tool
◦Text messages directly to individual phone Location-based marketing
◦Uses GPS Use phones to make purchases
◦Used as a credit card Worldwide spending: 2006- $2 Billion
(Expected) 2011- $15 Billion
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Virtual Reality Environments
Niche market
To be effective:◦Engage avatars◦Add value to the “community”◦Use smart policies regarding inappropriate
behavior/vandals
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New media technologies significantly disrupt traditional media
Response: TV programs are available on the web Legal action for copyright infringement Embedded brand/product plugs Branded entertainment Purchase of DVR viewer data
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Steps to Building a Powerful Web Presence Steps to Building a Powerful Web Presence 1. Analyze
Via RSS feeds, blogs, posts, videos, etc.
2. Optimize Keyword analysis, SEO (via content, links,
appropriate navigation techniques) Blog, PRNewswire, white papers, email newsletter
3. Particize Engage, interact Ex.: BattleAgainstBald.com; FreeToCompete.com
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Reinforce the company’s value proposition and brand meaning
Factors:◦Design
◦Build Traffic
◦Evaluate Effectiveness
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Web Design
Designed: ◦to achieve online objectives
◦with user’s experience in mind
(See next slide)
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Web Design (cont.)
Essential CharacteristicsEssential Characteristics
Context
Customization Connection
Communication Community Commerce
Content
*All elements have reinforcement (consistency) and fit (meets needs of the target).
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Web Design (cont.)
ContextContext: “Look and feel”; designed with an eye to
the target customers and the value proposition
ContentContent: The digital material presented
(information, products, and services); must be relevant
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Web Design (cont.)
CommunityCommunity: ability of users to interact, build bonds, and share common interests/values
CustomizationCustomization: ability to tailor information suit unique needs; personalized value
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Web Design (cont.)
CommunicationCommunication: means by which interaction occurs between the site and the user; one-way or two-way
ConnectionConnection: links to other useful sites to meet user needs; opportunities to earn revenue from affiliations
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Web Design (cont.)
CommerceCommerce: capability to execute commercial transactions; requires a shopping basket, invoicing, secure credit card processing, order acknowledgment
ReinforcingReinforcing: consistency between the previous seven characteristics
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Build Site Traffic
““Get Big Fast” conditions: Get Big Fast” conditions:
◦Network effects: exist when adoption by a customer increases the value of that product for other customers already using it
◦Scale economies: : fixed costs can be spread over a growing revenue base
◦Customer retention rates: high in the presence of network effects, solid competitive position, and high customer switching costs
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Evaluate Effectiveness
Track visitor numbers and activities
Web analytics ◦Analyze log files (from Web host server)◦Click-stream analysis ◦Search queries (keywords used)◦Referring pages/sites
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Evaluate Effectiveness (cont.)
Metrics to measure effectiveness:
◦Cost-per-click: Total online expenditure ÷ number of click-throughs
◦Conversion rate: % of total number of visitors who complete a specific action (purchase, register, etc.)
◦ROI: Ad expense ÷ total revenue generated from the ad expense
◦Bounce rate: Number of users that visit only a single page ÷ number of visits
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Technical details
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Opening Vignette: Microsoft People Ready Software
Technology Expert: Mario Schulzke
Technology Solution for Global Problems: Rapid Testing for Lymphatic Filariasis
End-of-Book Case: Goomzee Mobile Marketing
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