Chapter 15 : Internet Marketing and Interactive Media
Chapter Objectives
• To explore the different ways the internet is used to communicate.
• To understand the role of the internet and interactive media in an IMC program.
• To review the strengths and limitations of the internet.
• To evaluate the effectiveness of communications through the internet.
Chapter 15 : Internet Marketing and Interactive Media
Internet Terms
• Ad clicks• Ad click rate• Ad views (impressions)• Banner• Button• CPC• CPM• Domain name• Hit
• Interstitial• Link• Opt-in-e-mail• Page views• Rich media• Sponsorships• Unique users• Valid hits• Visits
Chapter 15 : Internet Marketing and Interactive Media
Elements of the Internet
• Electronic mail (e-mail)– Allows users to send electronic mail
• Usenet– Discussion groups, newsgroups, bulletin boards
• Telnet– Databases, library catalogs, and electronic journals
Chapter 15 : Internet Marketing and Interactive Media
Elements of the Internet
• Hypertext transfer protocol (http)– Software protocol for transferring hypertext language
files
• Client server– Computer system for transferring files between
computers
• Gopher– Document retrieval system used to search for
information
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Users: consumer market– Internet users continue to grow in numbers– Higher education and income are more likely to use the
internet– 81% of households with income over $80 000 use the
internet
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Shoppers– Internet shoppers clearly evidence a rich, active, and
diverse lifestyle.– These people are happy with the convenience of the
internet.– Expected that consumer internet spending will reach
$184 billion by 2004.
Chapter 15 : Internet Marketing and Interactive Media
Web Participants
• Users: business to business– Approximately 90% of all businesses have websites.– B2B sites generate much higher revenues than B2C.– Revenue expected to reach $2.7 trillion by 2004.– Major advantage is finding information about products
and services.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Build brand image– Brand loyalty still the most important aspect of any
marketing strategy• I.E. “I AM CANADIAN” pride commercial
– Well designed websites are an excellent way to relay product and service information
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Disseminate information– Primary objective for using the web is to provide in-
depth information about the company.– Having a website has become a necessity in B2B
markets.– B2C websites are used to communicate information
about firm’s products and services.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Create awareness– Even with limited budgets, the web creates opportunity
to expand awareness.
• Gather research information– Web is used to gain audience profile information
• I.E. Use of cookies, internet surveys
– Critical that consumers are aware that their information may be kept in a database.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Stimulate Trial and Re-Buy– Some websites offer E-coupons– Links to your site from other sites
• Improve Customer Service– Providing information, answering inquiries, taking
complaints, email response sections, FAQs.– Available personnel on 24/7 basis.
Chapter 15 : Internet Marketing and Interactive Media
Web-site Communication Objectives
• Increase distribution– Internet being used to distribute coupons and samples.– Affiliations - relationships among websites in which
companies cross-promote one another’s products.
Chapter 15 : Internet Marketing and Interactive Media
Developing & Maintaining a Website
• Requires significant time and effort.– Creativity, effective marketing, and continual updating
of the site.
• Some sites are used for information purposes.• Other sites market more aggressively.
– I.E. Www.kimberlyclark.Com.
Chapter 15 : Internet Marketing and Interactive Media
Advertising on the Internet
• Variety of forms of advertising on the internet– Banners– Sponsorships– Text ads– Pop ups– Interstitials– Push technologies– Link ads
Chapter 15 : Internet Marketing and Interactive Media
Sales Promotion on the Internet
• Has become most frequently use method of encouraging repeat visits.– “Free stuff.”– Sweepstakes.– Marketing alliances.– Coupons.
• 30% of web user respondents had used online coupons.
Chapter 15 : Internet Marketing and Interactive Media
Personal Selling on the Internet
• High-cost and poor-reach disadvantages of personal selling can now be cut back.
• Provides excellent selling support.• Provides more information in a more timely
manner.• Internet and personal selling are designed to be
complementary tools in a good IMC program.
Chapter 15 : Internet Marketing and Interactive Media
PR on the Internet
• Many sites devote a portion of their content to PR activities.
• Web offers many opportunities to PR practitioners:– Development of media relations websites.– Provide customized information dissemination.– Development of positive e-mail relationships.
Chapter 15 : Internet Marketing and Interactive Media
Direct Marketing on the Internet
• Direct mail– Highly targeted– Relies on e-mail lists– Attempts to reach those with specific needs– Often used by catalogers
• Marketing databases on the net – Companies build or acquire a database– The database is sold to subscribers– Delivery may be on- or off-line
Chapter 15 : Internet Marketing and Interactive Media
Direct Marketing on the Internet
• Infomercials– Program content similar to television, cable or satellite– Web provides for greater audience interaction
• E-commerce– Rapid growth rates likely to continue– CDs, books, travel are main categories– Clothing, cars, financial services are all gaining ground
Chapter 15 : Internet Marketing and Interactive Media
Strengths of Internet Marketing
• Target marketing• Message tailoring• Interactive capabilities• Information access• Sales potential• Creativity• Exposure• Speed
Chapter 15 : Internet Marketing and Interactive Media
Limitations of Internet Marketing
• Measurement problems• Audience characteristics• Websnarl• Clutter• Potential for deception• Costs• Limited production quality• Poor reach