CHAPTER 6

E-COMMERCE MARKETING
AND ADVERTISING
 E-commerce

Offline
 L EA R N I NG O B J ECT IV ES

Understand the key features of the Internet audience, the basic concepts of
consumer behavior and purchasing, and how consumers behave online.
Identify and describe the basic digital commerce marketing and advertising
strategies and tools.
Identify and describe the main technologies that support online marketing.
 Understand the costs and benefits of online marketing communications.
 A GENERAL MODEL OF CONSUMER BEHAVIOR

consumer behavior
a social science discipline
that attempts to model and
understand the behavior of
humans in a marketplace
THE CONSUMER DECISION PROCESS AND SUPPORTING
COMMUNICATIONS
 THE DIGITAL MARKETING ROADMAP
TYPEOF P L AT F O R M S EXAM PLE S FUNCTION
MARK ETI NG

Website Traditional website Ford.com Anchor site

Search engine marketing Google; Bing; yahoo Query-based intention
Traditional online Display advertising Yahoo; Google: MSN Marketing, targeted
marketing E-mail, Affiliates marketing
Social networks, Blogs/ Major retailer, Amazon, Permission marketing
Forums, Visual marketing, Facebook, Twitter Brand extension
Social Marketing Video marketing, Game Pinterest/Instagram, Conversations; sharing
marketing YouTube, Chipotle Spot News, quick updates
the Branding; sharing,
Imposter game Engage; inform,
Identification
Mobile site , m.ford.com , Quick access; news;
Mobile Marketing apps updates

Apple/The Human Brand anchoring;

Family: Shot on Inform
iPhone
Television American Airlines/The Brand anchoring;
Offline Marketing Newspapers World’s Greatest Inform
Magazines Flyers Fly American
Apple Watch/Vogue Brand anchoring;
Magazine inform
ONLINE ADVERTISING SPENDING WORLDWIDE
HOW AN ADVERTISING NETWORK WORKS
 content marketing
search engine
creates a content campaign
marketing (SEM)
for a brand and then
involves the use of search
attempts to secure placement
engines to build and
on a variety of websites
sustain brands

search engine advertising
involves the use of search
engines to support direct
sales to online
organic search
inclusion and ranking of sites depends
on a more or less unbiased application
of a set of rules imposed by
the search engine
AVERAGE TIME SPENT PER DAY BY UK ADULTS WITH MAJOR MEDIA
Database management
system (DBMS)
a software application used
by organizations to create,
maintain, and access databases
data warehouse
a database that collects a firm’s transactional and
customer data in a single location for offline analysis
 DATA MINING PROCESS
DATA MINING
a set of analytical techniques
that look for patterns in the
data of a database or data warehouse,
or seek to model the behavior of customers
customer relationship
management (CRM)
system
a repository of customer
information that records all
of the contacts that a
customer has with a firm
and generates a customer
profile available to
everyone in the firm with a
need to “know the
customer”
A CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM
PERCENTAGE OF ADS THAT ARE ACTUALLY SEEN BY PEOPLE ONLINE
AN ONLINE CONSUMER PURCHASING MODEL
DIFFERENT PRICING MODELS FOR ONLINE ADVERTISEMENTS
PRIC ING M O D EL D E S C R I PT I O N
Barter Exchange of ad space for something of equal
value
Cost per thousand (CPM) Advertiser pays for impressions in 1,000-unit
lots
Cost per click (CPC) Advertiser pays prenegotiated fee for each
click ad received
Cost per lead (CPL) Advertiser pays only for qualified leads or
contacts
Advertiser pays only for those users who
Cost per action (CPA) perform a specific action, such as registering,
purchasing, etc.
Two or more of the above models used together
Hybrid

Sponsorship Term-based; advertiser pays fixed fee for a slot

on a website
MARKETING ANALYTICS AND THE ONLINE PURCHASING PROCESS
 THE END
THANK YOU