Slide 1. Welcome to Chapter 12. This chapter is an excursion on Marketing called Online Marketing. The author is Vicente Lluch.

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1 Slide 1 Welcome to Chapter 12 This chapter is an excursion on Marketing called Online Marketing. The author is Vicente Lluch.

2 Slide 2 At the end of this chapter you should understand key elements of online marketing, be able to assess the potential of the internet as an advertising medium, to identify key aspects of online campaigns, to develop appropriate strategies for promoting on the internet, to evaluate the various advertising models available, and to learn the basics about e-crm.

3 Slide 3 The content of this lesson covers the main topics like what is online marketing, what are online marketing tools and what is electronic Customer Relationship Management (ecrm).

4 Slide 4 What is online marketing? Let s start with a definition. Online marketing is the marketing of products or services on the internet. In the internet era, e-marketing is becoming very popular and a cost effective tool of promotion. Using a friendly and informative web would be more effective than any other promotional tools. The most important online marketing tools are SEO (Search Engine Optimization), SEM (Search Engine Marketing), SMO (Social Media Optimization), online advertising with display ads, e-crm, and lastly permission marketing.

5 Slide 5 The first step for any internet marketing campaign is to set objectives. Firstly, the building of the brand: try to populate a web, drive traffic to your site. Secondly, it should boost the sales: Increase the sales of a certain product. And thirdly, capture the data of your campaign looking for new leads.

6 Slide 6 The advantages of online marketing can be summarized as follows: It s relatively inexpensive when compared to the ratio of cost against the reach of the target audience. It appeals to consumers in an environment that can bring results quickly. It measures statistics easily and inexpensively. Nearly all aspects of an internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression; pay per click; pay per action. And marketers can determine which messages or offerings are more appealing to the audience.

7 Slide 7 This slide describes the tools of online marketing. We will start with search engine marketing (SEM). Search Engine Marketing (SEM) is a form of internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of paid placement, contextual advertising, and paid inclusion. The advantages are as follows. Firstly, it delivers quick results: we can be number one within hours of opening a SEM account. Secondly, one can customize the website s ads and create specific landing pages for specific keywords. The disadvantages are: SEM can be very costly: the click is paid by the advertiser and it may require daily management to remain competitive.

8 Slide 8 Another important tool is the optimization of the search engine (SEO): search engine optimization is the process of improving the volume or quality of traffic to a website from search engines via natural or un-paid search results. The goal of SEO is to increase the number of visitors who are searching for your treatments or services. The advantages are: increased internet exposure, it s affordable, and it boosts business efforts. The disadvantage is that we have no immediate results, it s a long-term action.

9 Slide 9 To design an efficient SEM campaign the following questions need to be answered. Where we will put our internet ads? Which search engines should be used? Which terms or keywords will we buy, for example fertility, IVF, or other keywords? How much money will we expend? Which text we will choose? And lastly, which segmentation should be used?

10 Slide 10 Here you can see the possible results of investing in the online marketing tools SEO and SEM: SEM-sponsored links can reach a top-ranking in a short time while SEO is a long-term investment to increase the natural search results.

11 Slide 11 Another online marketing tool is called Social Media Optimization (SMO): Social media optimization (SMO) is a set of methods for generating publicity through social media, online communities, and community websites. Methods of SMO include: blogging and incorporating third party community functionalities like Flickr photo slides, Facebook/Myspace corporative profiles or YouTube videos. We can add a Digg This button or RSS feeds. In the medical sector, forums are powerful tools in patient capture and word-of-mouth spreading.

12 Slide 12 The Top Five rules for conducting Social Media Optimization should be followed: Increase your linkability. Make tagging and bookmarking easy. Reward inbound links. Help your content travel, and Encourage the mashup.

13 Slide 13 Another online marketing tool is online advertising. Online advertising is a form of promotion that uses the internet for delivering marketing messages to attract customers. Online advertising includes banner ads, rich media ads, social network advertising, and advertising networks. The advantages are that customers have a direct link to your web site, it promotes your company identity, and it brings potential clients to your site. On the bottom of the chart you can see some standard banner ad sizes.

14 Slide 14 This slide shows the revenues models of online advertising by display ads. CPM (Cost Per Mille) is where advertisers pay for exposure of their message to a specific audience. "Per mille" means per thousand impressions or loads of an advertisement. CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. CPA (Cost Per Action) advertising is performance based. The publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as making an appointment.

15 Slide 15 We come to the electronic Customer Relationship Management (ecrm). ecrm are defined as activities to manage customer relationships by using the internet. The challenge is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customer s specific needs. The main targets of ecrm are the conquest of new and lost customers, increase in customer royalty, and increase in process and resource efficiency.

16 Slide 16 An effective ecrm needs permission marketing and individualized communication. Permission marketing requires that the user/customer has given explicit permission to receive promotional messages (e.g. s). Permission marketing considers individual customer preferences. Individualized communication means selecting individual target groups for each campaign and sending personally s to each customer.

17 Slide 17 To summarize this chapter, the internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience. Effective internet lead generation and sales strategies are about SEO, SEM, SMO and Display ads. ecrm are activities to manage customer relationships by using the internet through permission marketing and individualized communication.

18 Slide 18 This slide shows some links for your further reading.

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