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Chapter 14 - Interactive marketing. The goals of this chapter are: To examine the development and evaluate the reasons for growth of the internet and interactive media, to define the role and relationships of the internet and interactive media and apply them in an IMC program, to compare the advantages and disadvantages of direct communication on the internet and interactive media,...
Chapter 14 Interactive marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-1 Learning objectives To examine the development and evaluate the reasons for growth of the internet and interactive media To define the role and relationships of the internet and interactive media and apply them in an IMC program To compare the advantages and disadvantages of direct communication on the internet and interactive media To evaluate the effectiveness of communication through direct communication via the internet Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-2 History and growth Advertising Measuring effectiveness Interactive and social media marketing internet Part of IMC Objectives Sales promotion Personal selling Advantages and limitations PR Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Behavioural targeting Direct marketing 14-3 Be more kissable Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-4 A brief history of the internet 1969 ARPANET Launched in USA 1991 First search engine, Archie, launched 1996 Google launched and soon becomes number one search engine in the West 1986 Commercial internet services permitted Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2008 More than 65% of Australian households are connected to the internet 14-5 Growth of internet access (Australia) Household Home Computer or internet Access Source: Australian Bureau of Statistics, Household Use of Information Technology, Australia, 2008–09 (Catalogue 8146.0) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-6 Use of digital media Time spent with digital media Australia 60 57 Hours (per month) 50 40 30 20 10 Online Social Networking Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-7 Social networking participation rates (New Zealand) Time spent on social networking sites Hours spent (per month) Total Population (15+) Males Females All PPL 15+ All PPL 15+ 15-24 25-34 35-44 45-54 55+ Source: ComScore, State of The internet with a Focus on New Zealand, July, 2011 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-8 The web as an IMC channel Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-9 Modified hierarchy of effects model for the internet Attract Attract Engage Engage Retain Retain Learn Learn Relate Relate Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-10 Personal selling on the internet May May replace replace personal personal selling selling Reduces Reduces high high cost cost of of personal personal calls calls Vastly Vastly increases increases potential potential reach reach May May enhance enhance personal personal selling selling efforts efforts Provides Provides quick, quick, easy easy information information to to prospects prospects May May help help to to enhance enhance customer customer databases databases May May improve improve one-onone-onone one communications communications May May be be aa source source of of leads leads May May stimulate stimulate trial trial of of the the goods goods or or service service May May serve serve as as aa sales sales conference conference medium medium Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-24 Caterpillar provides information Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-25 Public relations on the internet News News stories stories and and press press releases releases Popular Popular PR PR applications applications Press Press kits kits Photographs Photographs Cross Cross references references to to other other sites sites or or media media Support Support other other activities activities (e.g (e.g cause-related cause-related marketing) marketing) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-26 Public relations on the internet (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-27 Public relations on the internet (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-28 History and growth Advertising Measuring effectiveness Interactive and social media marketing internet Part of IMC Objectives Sales promotion Personal selling Advantages and limitations PR Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Behavioural targeting Direct marketing 14-29 Measures of effectiveness Internet-specific Internet-specific measures measures Cross-media Cross-media optimisation optimisation studies studies (XMOS) (XMOS) Traditional Traditional measures measures Recall/retention Recall/retention Surveys Surveys Tracking Tracking Sales Sales Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-30 Measuring the internet Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-31 Cross-media optimisation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-32 Measuring interactive media Recall Recall and and retention retention Traditional Traditional measures measures Surveys Surveys Sales Sales Tracking Tracking Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-33 Sources of audience measurement data Nielsen Nielsen Net Net Ratings Ratings Data Data sources sources Syndicated Syndicated research research (e.g (e.g Roy Roy Morgan) Morgan) internet internet Advertising Advertising Bureau Bureau (IAB) (IAB) Bureaux Bureaux of of statistics statistics Internet Internet service service providers providers Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-34 The internet and creative impact Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-35 Internet advantages and disadvantages Advantages Target Target marketing marketing Message Message tailoring tailoring Disadvantages Measurement Measurement problems problems Annoyance Annoyance Interactive Interactive capabilities capabilities Information Information access access Sales Sales potential potential Clutter Clutter Potential Potential for for deception deception Privacy Privacy Creativity Creativity Exposure/speed Exposure/speed Poor Poor reach reach Complement Complement to to IMC IMC Irritation Irritation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-36 Additional interactive media Kiosks Kiosks Location-based Location-based technologies technologies Interactive Interactive CDs/DVDs CDs/DVDs Emerging Emerging interactive interactive media media Interactive Interactive TV TV (ITV) (ITV) Interactive Interactive mobile mobile phones phones Wireless Wireless Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-37 Summary and conclusions As advertisers search for more engaging ways to interact with customers, new marketing applications for online and interactive technologies continue to emerge Interactive marketing communications are changing the interface between organisations and consumers Online communications must be integrated into the IMC program Advantages of the internet include its versatility, interactivity and its use in building customer relationships Interactive media present challenges for audience measurement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-38 ... Direct Direct marketing marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 14-17 The marketer–customer interface... Belch, Kerr & Powell 14-2 History and growth Advertising Measuring effectiveness Interactive and social media marketing internet Part of IMC Objectives Sales promotion Personal selling Advantages... development and evaluate the reasons for growth of the internet and interactive media To define the role and relationships of the internet and interactive media and apply them in an IMC program To compare