E-ACTIVE MARKETING

MARKETING ZEN
• Shama Kabani – founder
• Social media
• Twitter
• Shift in nature of communication
• Started as a consulting service
• Now full-service agency
• Metrics to assess effectiveness
• Quantitative
• Qualitative
• Goal – increase Web traffic
 E-Active Marketing

OBJECTIVES

1. What is e-active marketing?

2. How had Web 2.0 affected the field of marketing
communications?
3. How can e-commerce programs and incentives build a
stronger customer base and overcome customer concerns at
the same time?
4. What makes e-commerce a crucial part of business-to-
business commerce?
 E-Active Marketing

OBJECTIVES

5. How can interactive marketing and online advertising increase

brand awareness, sales, and customer loyalty?
6. How can brand spiraling and blogs generate positive outcomes
for the marketing department?
7. Why have online social networks, consumer-generated
advertising and reviews, e-mail, and viral marketing become
key components of marketing communications programs?
8. How can e-active marketing be conducted successfully in
international markets?
 E-Active Marketing
OVERVIEW
• Web 1.0  Web 2.0
• New ways of communicating
• E-active marketing
• e-Commerce + Interactive marketing
• E-commerce programs
• Interactive marketing methods
• International challenges
 WEB 2.0
• Companies shifting dollars to online communication
• Changes consumer communications and interactions with companies
• Pushing to “real-time” communications
• Instant communications and instant service
• Instant response to negative events

Companies now employ

individuals to monitor Twitter
and social media sites
 E-COMMERCE
• Click-only operations to bricks-and-clicks
• B2C and B2B online commerce
• Online sales 8 percent of retail activity
• Luxury shoppers like shopping online
• Search online for information
• May buy online
• May buy in a retail store
E-Commerce Web Site Components

• Catalog
• Product information
• Product navigation
• Shopping cart
• Save or wish basket
• Payment system
• Easy, quick, convenient checkout
• Store locator
• Customization functionality
• Customer reviews or feedback options
E-COMMERCE COMPONENTS

Catalogs
• Easy to use
• Photos, streaming videos, information
• Match store and printed catalog
• Sears “Shop Your Way”
• Products not in store or printed catalog
• Choose where to purchase
E-COMMERCE COMPONENTS
Shopping carts
• Allows consumers to select products
• “Save” or “Wish” button
• Shoppers abandoning shopping cart
Payment systems
• Easy, quick, and convenient
• Multiple methods
• B-to-B voucher or charge system
 E-COMMERCE COMPONENTS

Store locators
Customization
• Customers prefer
• Promotions from Web site
• Access via mobile phone
Customer reviews and feedback
• Emerging trend
• Provides opportunity for interaction
• Provides level of confidence
Building the Next Generation of E-Commerce Sites

• Consider how users will interact with the brand - then

develop means of brand engagement.
• Allow for drill-down search results by grouping products
around brands and common parameters.
• Maximize traffic through effective search engine optimization.
• Encourage consumer interaction via blogs, feedback
applications, or customer reviews.
• Develop a simple, secure checkout procedure.

Source: Adapted from Mike Fletcher, “How to Create the Perfect E-Commerce Web site,” Revolution, March 2009, pp. 6-63.
E-COMMERCE INCENTIVES

• Financial incentives
• Convenience incentives
• Value-based incentives

CYBERBAIT
 Financial Incentives
• Attract first-time purchaser
• Effective incentives
• Reduced price
• Free shipping
• Most popular (80%)
• E-coupon
• Incentives must be
• Meaningful
• Changed periodically
•Reduces costs through
• Lower shipping costs
• Lower labor costs
• Lower personnel costs
Convenience Incentives
• E-commerce available 24/7
• Availability of product information
• Online peer reviews
• Compared product features online
Top U.S. Online Search Providers

Ask.com Search; 1.9% Others; 4.9%

AOL Search; 1.5%

MSN/Bing Search;
10.9%

Yahoo Search; 14.5%

Google
Search; 66.3%

Source: Adapted from “Top 10 U.S. Search Providers, Home & Work,” Nielsen Internet,
https://en-us.nielsen.com/rankings/insights/rankings/internet, accessed February 22, 2010.
 VALUE-ADDED INCENTIVES
• Change purchasing habits
• Long term
• Personalized shopping
• Examples
• Merchandise available only online
• Combination of incentives
• Free information
Reasons Consumers are Wary of Purchasing Online

•Seller opportunism
•Security issues
•Privacy issues
•Purchasing habits
BUSINESS-TO-BUSINESS E-COMMERCE

• E-commerce is critical
• Websites hits directly related to
advertising and sales promotions
• Requires incentives
• Financial
• Convenience
• Value-added
• Online exchanges and auctions
INTERACTIVE MARKETING

• Two-way communication and involvement

• Internet ideal medium
• Can track activity
• Personalize messages
• Emphasizes two primary activities
• Targeting individuals
• Engageing consumers
 Online Interactive Tactics
80.0%
72.6%
70.0%
60.8%
60.0%
Percent of Total

50.0%
44.5%

40.0% 36.9%

30.0%
22.8%
20.0% 17.9%
15.6%
13.7%
11.0%
10.0%

0.0%
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Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp. 5-10.
 Interactive Marketing Objectives
70.0%
58.9%
60.0% 55.1% 54.4%
53.2%
Percent of Total

49.8%
50.0%
41.1%
40.0% 36.5%
30.8%
30.0% 27.0%

20.0% 17.1%

10.0%

0.0%
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Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp. 5-10.
Steps in Developing an Interactive Marketing Strategy

1. Cultivate an attitude of giving

2. Gain trust
3. Identify your one word brand
4. Define your ultimate vision
5. Choose your communication channels
6. Evaluate and adjust

Source: Adapted from Shama Hyder Kabani, “Online Marketing Plan” The Marketing Zen Group,
www.marketingzen.com, pp. 9-13.
ONLINE ADVERTISING
• Highly effective
• Online budgets have increased
• Online Metrics
• Measure results
• Almost simultaneously
• Major advantage
Types of Online Advertising

• Display or banner ad
• Classified ads
Online
Advertising • Search advertising
• Media/video ads
BANNER
ADVERTISING

• First online advertising

• Accounts for 32% of online
advertising
• Can embed videos and
widgets
• Target display ads
• Auction exchanges
• Matches audience
 • Mini-applications
embedded in banners
• Access external dynamic
WIDGETS content
BANNER ADVERTISING
• Provide personalized
access to information
• Micro-site landing pages
• Geo-targeted ads
 Online classified ad popular

Media/video ads fastest-growing

format
CLASSIFIED AND
MEDIA/VIDEO • Mobile phones and hand-held devices
ADVERTISING
Dwell rate higher for video ads

Dwell time higher for video ads

SEARCH ENGINE OPTIMIZATION

• Largest category of online expenditures

• Text ads on search results
• 41% of online advertising
• 80% of Web traffic begins with a search
• Three methods of SEO
• Paid search insertion
• Natural or organic emergence
• Paid search ads
• Results of SEO
• Click rate 5% (0.2% for online ads)
BRAND SPIRALING
• Use of traditional media
• Traditional media → drive consumers to Web sites
• PURLs – personalized URLs
• Integrate online and offline advertising
 BLOGS
• Online musings
• Power of online buzz
• 47% go to social networks
• Download coupons
• Search for information
• 45% go to social networks
• Upcoming sales
• Discounts
• 22% read or write a product review on a blog
COMPANY-SPONSORED BLOGGING
• Bluefly.com – Flypaper blog
• Fashion news
• New styles
• Fashion faux pas
• Do they work?
• Blog visitors spend more
• Online 23 hours/week versus 13
• Benefits
• Reassure shoppers
• Glimpse of how firm deals with customers
• Release company information
• Customers can voice opinion
• Company controls site
• Must be honest
 ONLINE SOCIAL NETWORKS
• 75% of Internet users participate in social media
• Facebook
• 310 million users worldwide
• Display ads
• Companies have pages – fans
• Offer discounts or special promotions
• Twitter
• Micro-blogging service
• Monitor what customers are saying
• Interact with customers
• Combined Social Media Programs
• Ford Fiesta – 100 bloggers
• Coca-Cola – Expedition 206
• Social media major part of IMC
CONSUMER-GENERATED
ADVERTISING
• Crowdsourcing
• Alternative to using agencies and in-house
• Goal is to create consumer buzz
• Consumer-generated ads
• Created for television
• Spread via the Internet
• YouTube
• Viewed as more genuine
• Contests for consumer-generated ads
 CONSUMER-GENERATED
REVIEWS
• Amazon.com – leader
• Best Buy – online reviews of brands
• Early adopters
• Implications
• Negative reviews
• Low-star ratings
• Consistent quality products
• Information for
• Marketing plans
• Product modifications
• Service strategies
 E-MAIL
• Important component of interactive strategy
• Integrate with other channels
• Resemble information on Web site
• Using Web analytics to direct e-mail campaign
• Individuals who visit Web site
• Individuals who abandon shopping cart
• Targeted e-mails have higher conversion rates
• E-mail newsletters
• Build brand awareness
• Drive Web traffic
• Customers sign up for newsletters
• Provide value
• Free subscription
• Tie-in with Web site
 VIRAL MARKETING
• Message passed from one consumer to another
• E-mail
• Blogs
• Form of advocacy or word-of-mouth endorsement
• Viral marketing messages
• Advertisements
• Hyperlinked promotions
• Online newsletters
• Streaming videos
• Games
Keys to Successful Viral Marketing

• Focus on the product or business

• Determine why individuals would want to pass
the message along
• Offer an incentive
• Make it personal
• Track the results and analyze the data
 INTERNATIONAL IMPLICATIONS

• Shipping issues
• Payment methods
• Communication issues
• Technology issues