Principles of Marketing Revision. Nov 2014 Nghiem Huyen Anh

Principles of Marketing Revision Nov 2014 Nghiem Huyen Anh

Final exam format 2 hours Section A: 20 MCQs (30 Marks) Section B: 3 short answers (30 marks) Section C: Case study with 4 questions (40 marks)

Chapter Seven Customer-Driven Marketing Strategy: Creating Value for Target Customers

Market Segmentation Market segmentation Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Market Segmentation

Market Segmentation Segmenting Consumer Markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

Market Segmentation Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities

Market Segmentation Segmenting Consumer Markets Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

Market Segmentation Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female)

Market Segmentation Segmenting Consumer Markets Income segmentation divides the market into affluent, middle-income or lowincome consumers Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits

Market Segmentation Segmenting Consumer Markets Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status

Market Segmentation Using Multiple Segmentation Bases Multiple segmentation is used to identify smaller, better-defined target groups

Market Segmentation Requirements for Effective Segmentation To be useful, market segments must be: Measurable Accessible Substantial Differentiable Actionable

Market Targeting Selecting Target Market Segments Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve

Market Targeting Evaluating Market Segments Segment size and growth Segment structural attractiveness Company objectives and resources.

Market Targeting Target Marketing Strategies Undifferentiated marketing targets the whole market with one offer Mass marketing Fo uses o o o different eeds rather tha hat s

Market Targeting Target Marketing Strategies Differentiated marketing targets several different market segments and designs separate offers for each Goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing

Market Targeting Target Market Strategies Concentrated marketing targets a small share of a large market Limited company resources Knowledge of the market More effective and efficient

Differentiation and Positioning Product position is the way the product is defined by consumers on important attributes the place the product occupies in o su ers i ds relative to competing products Perceptions Impressions Feelings

Differentiation and Positioning Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions

Differentiation and Positioning Choosing a Differentiation and Positioning Strategy Identifying a set of possible competitive advantages to build a position Choosing the right competitive advantages Selecting an overall positioning strategy Communicating and delivering the chosen position to the market

Differentiation and Positioning Identifying Possible Value Differences and Competitive Advantages Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices

Differentiation and Positioning Choosing a Differentiation and Positioning Strategy Identifying a set of possible competitive advantages to build a position by providing superior value from: Product differentiation Service differentiation Channel differentiation People differentiation Image differentiation

Differentiation and Positioning Choosing the Right Competitive Advantage Difference to promote should be: Important Distinctive Superior Communicable Preemptive Affordable Profitable

Differentiation and Positioning Selecting an Overall Positioning Strategy Value proposition is the full mix of benefits upon which a brand is positioned

Chapter Eight Product, Services, and Brands: Building Customer Value

What Is a Product? Levels of Product and Services

What Is a Product? Product and Service Classifications Consumer products are products and services for personal consumption Classified by how consumers buy them Convenience products Shopping products Specialty products Unsought products

What Is a Product? Product and Service Classifications Convenience products consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort Newspapers Candy Fast food

What Is a Product? Product and Service Classifications Shopping products consumer products and services that the customer compares carefully on suitability, quality, price, and style Furniture Cars Appliances

What Is a Product? Product and Service Classifications Specialty products consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort Medical services Designer clothes High-end electronics

What Is a Product? Product and Service Classifications Unsought products consumer products that the consumer does not know about or knows about but does not normally think of buying Life insurance Funeral services Blood donations

Product and Service Decisions Individual Product and Service Decisions

Product and Service Decisions Individual Product and Service Decisions Product or service attributes communicate and deliver the benefits Quality Features Style and design

Product and Service Decisions Individual Product and Service Decisions Product Quality Level is the level of quality that supports the produ t s positio i g Product Conformance Quality is the produ t s freedom from defects and consistency in delivering a targeted level of performance

Product and Service Decisions Individual Product and Service Decisions Product features are a competitive tool for differentiating a product fro o petitors produ ts are assessed based on the value to the customer versus the cost to the company

Product and Service Decisions Individual Product and Service Decisions Style describes the appearance of the product Design contributes to a produ t s useful ess as well as to its looks

Product and Service Decisions Individual Product and Service Decisions Brand is the name, term, sign, or design or a combination of these that identifies the maker or seller of a product or service

Product and Service Decisions Individual Product and Service Decisions Packaging involves designing and producing the container or wrapper for a product Labels identify the product or brand, describe attributes, and provide promotion

Product and Service Decisions Individual Product and Service Decisions Product support services augment actual products

Product and Service Decisions Product Line Decisions Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Product and Service Decisions Product Line Decisions Product linelength is the number of items in the product line Line stretching Line filling

Product and Service Decisions Product Mix Decisions Product mix consists of all the products and items that a particular seller offers for sale» Width» Length» Depth» Consistency

Branding Strategy: Building Strong Brands Brand Name Selection Desirable qualities 1. Suggest benefits and qualities 2. Easy to pronounce, recognize, and remember 3. Distinctive 4. Extendable 5. Translatable for the global economy 6. Capable of registration and legal protection

Branding Strategy: Building Strong Brands Brand Sponsorship Ma ufa turer s ra d Private brand Licensed brand Co-brand

Branding Strategy: Building Strong Brands Brand Development Strategies

Chapter Nine New-Product Development and Product Life-Cycle Strategies

Product Life-Cycle Strategies Product Life Cycle

Product Life-Cycle Strategies Product development Sales are zero and investment costs mount Introduction Slow sales growth and profits are nonexistent Growth Rapid market acceptance and increasing profits. Maturity Slowdown in sales growth and profits level off or decline Decline Sales fall off and profits drop

Product Life-Cycle Strategies Introduction Stage Slow sales growth Little or no profit High distribution and promotion expense

Product Life-Cycle Strategies Growth Stage Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale

Product Life-Cycle Strategies Maturity Stage Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to support sales and profits

Product Life-Cycle Strategies Maturity Stage Modifying Strategies Market modifying Product modifying Marketing mix modifying

Product Life-Cycle Strategies Decline Stage Maintain the product Harvest the product Drop the product

Chapter Ten Pricing: Understanding and Capturing Customer Value

Major Pricing Strategies Customer Value-Based Pricing Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value

Major Pricing Strategies Customer Value-Based Pricing

Major Pricing Strategies Customer Value-Based Pricing Value-based pricing uses the uyers perceptions of value, not the sellers cost, as the key to pricing. Price is considered before the marketing program is set. Value-based pricing is customer driven Cost-based pricing is product driven

Major Pricing Strategies Customer Value-Based Pricing

Major Pricing Strategies Customer Value-Based Pricing Good-value pricing offers the right combination of quality and good service at a fair price

Major Pricing Strategies Customer Value-Based Pricing Everyday low pricing (EDLP) charging a constant everyday low price with few or no temporary price discounts

Major Pricing Strategies Customer Value-Based Pricing High-low pricing charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

Major Pricing Strategies Customer Value-Based Pricing Value-added pricing attaches value-added features and services to differentiate offers, support higher prices, and build pricing power

Major Pricing Strategies Cost-Based Pricing Cost-based pricing setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

Major Pricing Strategies Cost-Based Pricing Cost-based pricing adds a standard markup to the cost of the product

Major Pricing Strategies Cost-Based Pricing Types of costs Fixed costs Variable costs Total costs

Major Pricing Strategies Cost-Based Pricing Fixed costs are the costs that do not vary with production or sales level Rent Heat Interest Executive salaries

Major Pricing Strategies Cost-Based Pricing Variable costs are the costs that vary with the level of production Packaging Raw materials

Major Pricing Strategies Cost-Based Pricing Total costs are the sum of the fixed and variable costs for any given level of production

Chapter Eleven Pricing Strategies

New-Product Pricing Strategies Pricing Strategies Market-skimming pricing Marketpenetration pricing

New-Product Pricing Strategies Market-skimming pricing is a strategy with high i itial pri es to ski re e ue layers fro the market Product quality and image must support the price Buyers must want the product at the price Costs of producing the product in small volume should not cancel the advantage of higher prices Competitors should not be able to enter the market easily

New-Product Pricing Strategies Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share Price sensitive market Inverse relationship of production and distribution cost to sales growth Low prices must keep competition out of the market

Product Mix Pricing Strategies Product line pricing Optionalproduct pricing By-product pricing Captiveproduct pricing Product bundle pricing

Product Mix Pricing Strategies Product line pricing takes into account the cost differences between products in the line, customer evaluation of their features, a d o petitors pri es Optional-productpricing takes into account optional or accessory products along with the main product

Product Mix Pricing Strategies Captive-product pricing involves products that must be used along with the main product

Price Mix Pricing Strategies By-product pricing refers to products with little or no value produced as a result of the main product. Producers will seek little or no profit other than the cost to cover storage and delivery.

Price Mix Pricing Strategies Product bundle pricing combines several products at a reduced price

Price-Adjustment Strategies Discount and allowance pricing Psychological pricing Geographic pricing Segmented pricing Promotional pricing Dynamic pricing International pricing

Price-Adjustment Strategies Discount and allowance pricing reduces prices to reward customer responses such as paying early or promoting the product Discounts Allowances

Price-Adjustment Strategies Segmented pricing is used when a company sells a product at two or more prices even though the difference is not based on cost

Price-Adjustment Strategies Segmented Pricing To be effective: Market must be segmentable Segments must show different degrees of demand Watching the market cannot exceed the extra revenue obtained from the price difference Must be legal

Price-Adjustment Strategies Psychological pricing occurs when sellers consider the psychology of prices and not simply the economics Reference prices are prices that buyers carry in their minds and refer to when looking at a given product Noting current prices Remembering past prices Assessing the buying situations

Price-Adjustment Strategies Promotional pricing is when prices are temporarily priced below list price or cost to increase demand Loss leaders Special event pricing Cash rebates Low-interest financing Longer warrantees Free maintenance

Price-Adjustment Strategies Risks of promotional pricing Used too frequently, and copies by o petitors a reate deal-pro e customers who will wait for promotions and avoid buying at regular price Creates price wars

Price-Adjustment Strategies Dynamic pricing is when prices are adjusted continually to meet the characteristics and needs of the individual customer and situations

Chapter Twelve Marketing Channels: Delivering Customer Value

The Nature and Importance of Marketing Channels Number of Channel Levels Connected by types of flows: Physical flow of products Flow of ownership Payment flow Information flow Promotion flow

Channel Behavior and Organization Multichannel Distribution Systems Hybrid Marketing Channels Multichannel Distribution systems (Hybrid marketing channels) are when a single firm sets up two or more marketing channels to reach one or more customer segments

Channel Behavior and Organization Multichannel Distribution System

Channel Design Decisions Analyzing consumer needs Setting channel objectives Identifying major channel alternatives Evaluation

Channel Design Decisions Setting Channel Objectives Targeted levels of customer service What segments to serve Best channels to use Minimizing the cost of meeting customer service requirements

Channel Design Decisions Identifying Major Alternatives Types of intermediaries Number of marketing intermediaries Responsibilities of channel members

Channel Design Decisions Identifying Major Alternatives Intensive distribution Candy and toothpaste Exclusive distribution Luxury automobiles and prestige clothing Selective distribution Television and home appliance

Channel Design Decisions Evaluating the Major Alternatives Each alternative should be evaluated against: Economic criteria Control Adaptive criteria

Channel Design Decisions Designing International Distribution Channels Channel systems can vary from country to country Must be able to adapt channel strategies to the existing structures within each country

Retailing Types of Retailers Amount of service Self-service Limited service Full service

Retailing Product Line Specialty stores Narrow product line with deep assortment Department stores Wide variety of product lines Convenience stores Limited line of high-turnover goods Superstores Non-food goods Category killers Deep in category with sales staff

Retailing Types of Retailers Organizational Approach Franchise organizations are based on some unique product or service; on a method of doing business; or on the trade name, good will, or patent that the franchisor has developed

Retailing Retailer Marketing Decisions - Place Decision Central business districts are located in cities and include department and specialty stores, banks, and movie theaters Shopping center is a group of retail businesses planned, developed, owned, and managed as a unit

Retailing Retailing Trends and Developments New Retail Forms and Shortening Retail Life Cycles s Growth of non-store retailing includes: Mail order Television Phone Online

Chapter Fourteen Communicating Customer Value: Integrated Marketing Communications Strategy

The Promotion Mix The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships

The Promotion Mix The Promotion Mix Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Broadcast Print Internet Outdoor

The Promotion Mix The Promotion Mix Sales promotion is the short-term incentive to encourage the purchase or sale of a product or service Discounts Coupons Displays Demonstrations

The Promotion Mix The Promotion Mix Public relations involves building good relations ith the o pa y s arious pu li s y obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Press releases Sponsorships Special events Web pages

The Promotion Mix The Promotion Mix Personal selling is the personal prese tatio y the fir s sales for e for the purpose of making sales and building customer relationships Sales presentations Trade shows Incentive programs

The Promotion Mix The Promotion Mix Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers Catalog Telemarketing Kiosks

Integrated Marketing Communications The Need for Integrated Marketing Communications Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands

Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Copyright 2012Pearson Education 14-113

Steps in Developing Effective Marketing Communication Determining the Communication Objectives Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness

Steps in Developing Effective Marketing Communication Designing a Message Message content is an appeal or theme that will produce the desired response Rational appeal Emotional appeal Moral appeal Message Format

Steps in Developing Effective Marketing Communication Designing a Message Rational appeal relates to the audie e s selfinterest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase

Steps in Developing Effective Marketing Communication Designing a Message Moral appeal is directed at the audie e s se se of right and proper

Steps in Developing Effective Marketing Communication Choosing Media Personal communication involves two or more people communicating directly with each other Face to face Phone Mail E-mail Internet chat

Steps in Developing Effective Marketing Communication Choosing Media Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Major media include print, broadcast, display, and online media Atmospheres are designed environments that reate or rei for e the uyer s lea i gs toward buying a product

Steps in Developing Effective Marketing Communication Nonpersonal Communication Channels Events are staged occurrences that communicate messages to target audiences Press conferences Grand openings Exhibits Public tours

Steps in Developing Effective Marketing Communication Selecting the Message Source The essage s i pa t o the target audience is affected by how the audience views the communicator Celebrities Athletes Entertainers Professionals Health care providers

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Affordable budget method sets the budget at an affordable level Ignores the effects of promotion on sales

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Percentage of salesmethod sets the budget at a certain percentage of current or forecasted sales or unit sales price Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Wrongly views sales as the cause rather than the result of promotion

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: Defining promotion objectives Determining tasks to achieve the objectives Estimating costs

Shaping the Overall Promotion Mix Promotion Mix Strategies

Chapter Fifteen Advertising and Public Relations

Advertising Major Advertising Decisions

Advertising Setting Advertising Objectives Informative advertising is used when introducing a new product category; the objective is to build primary demand Persuasive advertising is important with increased competition to build selective demand Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product

Table 15.1 Possible Advertising Objectives

Advertising Creating the Advertising Message Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial or endorsement

Public Relations Major Public Relations Tools News Speeches Special events Written materials Corporate identity materials Public service activities Buzz marketing Social networking Internet

Chapter Sixteen Personal Selling and Sales Promotion

Managing the Sales Force Designing Sales Force Structure Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structure

The Personal Selling Process The goal of the personal selling process is to get new customers and obtain orders from them

The Personal Selling Process Steps in the Personal Selling Process Prospecting identifies qualified potential customers through referrals from: Customers Suppliers Dealers Internet

The Personal Selling Process Steps in the Personal Selling Process Qualifying is identifying good customers and screening out poor ones by looking at: Financial ability Volume of business Needs Location Growth potential

The Personal Selling Process Steps in the Personal Selling Process Pre-approach is the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers Objectives Qualify the prospect Gather information Make an immediate sale Approaches Personal visit Phone call Letter

The Personal Selling Process Steps in the Personal Selling Process Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperso s: Appearance Opening lines Follow-up remarks

The Personal Selling Process Steps in the Personal Selling Process Opening lines should be positive, build goodwill, and be followed by key questions to learn about the usto er s eeds or sho i g a display or sa ple to attra t the uyer s attention and curiosity The most important attribute is for the salesperson to: listen

The Personal Selling Process Steps in the Personal Selling Process Presentation is when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the usto er s pro le s Need-satisfaction approach: Buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems

The Personal Selling Process Steps in the Personal Selling Process Bad Traits Good traits Pushy Late Good listeners Empathetic Deceitful Disorganized Honest Dependable Thorough Follow-up types Unprepared

The Personal Selling Process Steps in the Personal Selling Process Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken

The Personal Selling Process Steps in the Personal Selling Process Closing is the process where salespeople should recognize signals from the buyer including physical actions, comments, and questions to close the sale

The Personal Selling Process Steps in the Personal Selling Process Follow-up is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business

The Personal Selling Process Personal Selling and Managing Customer Relationships Personal selling is transaction-oriented to close a specific sale with a specific customer The long-term goal is to develop a mutually profitable relationship

Sales Promotion Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service: Consumer promotions Trade promotions Sales force promotions

Sales Promotion Major Sales Promotion Tools Samples Coupons Cash refunds Price packs Premiums Advertising specialties Patronage rewards Point-ofpurchase displays Demonstrations Contests Sweepstakes Games

Sales Promotion Major Sales Promotion Tools Consumer Promotion Tools Samples offer a trial amount of a product Coupons are certificates that give buyers a saving when they purchase specified products Cash refunds are similar to coupons except that the price reduction occurs after the purchase Price packs offer consumers savings off the regular price of a product

Sales Promotion Major Sales Promotion Tools Consumer Promotion Tools Premiums are goods offered either for free or at a low price Advertising specialties are useful articles i pri ted ith the ad ertiser s a e, logo, or message that are given as gifts to consumers Point-of-purchase promotions include displays and demonstrations that take place at the point of sales

Sales Promotion Major Sales Promotion Tools Consumer Promotion Tools Contests, sweepstakes, and games give consumers the chance to win something such as cash, trips, or goods by luck or through extra effort Contests require an entry by a consumer Sweepstakes require consumers to submit their names for a drawing Games present consumers with something that may or may not help them win a prize Event marketing

Sales Promotion Major Sales Promotion Tools Trade Promotion Tools Discount Allowance Free goods Specialty advertising

Chapter Seventeen Direct and Online Marketing: Building Direct Customer Relationships

Forms of Direct Marketing Personal selling direct marketing Direct-mail direct marketing Catalog direct marketing Telephone marketing Direct-response television marketing Kiosk marketing Digital direct marketing Online marketing

Forms of Direct Marketing Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address Personalized Easy-to-measure results Costs more than mass media Provides better results than mass media

Forms of Direct Marketing Catalog direct marketing involves printed and Web-based catalogs Benefits of Web-based catalogs Challenges of Web-based catalogs Lower cost than printed catalogs Unlimited amount of merchandise Real-time merchandising Interactive content Promotional features Require marketing Difficulties in attracting new customers

Forms of Direct Marketing Telephone direct marketing involves using the telephone to sell directly to consumers and business customers Outbound telephone marketing sells directly to consumers and businesses Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs

Forms of Direct Marketing Direct-response television Direct-response television (DRTV) marketing involves 60- to 120-second advertisements that describe products or give customers a toll-free number or Web site to purchase and 30-minute infomercials such as home shopping channels Less expensive than other forms of promotion and easier to track results

Forms of Direct Marketing Kiosk marketing Digital direct marketing technologies Mobile phone marketing Podcasts Vodcasts Interactive TV

Forms of Direct Marketing Mobile phone marketing includes: Ring-tone giveaways Mobile games Ad-supported content Contests and sweepstakes

Forms of Direct Marketing Podcasts and vodcast involve the downloading of audio and video files via the Internet to a handheld device such as a PDA or ipod and liste i g to the at the o su er s convenience Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences

Online Marketing Online Marketing Domains Business to consumer (B2C) Business to business (B2B) Consumer to consumer (C2C) Consumer to business (C2B)

Online Marketing Online Marketing Domains Business to consumer (B2C) involves selling goods and services online to final consumers Business to business (B2B) involves selling goods and services, providing information online to businesses, and building customer relationships

Online Marketing Online Marketing Domains Consumer to consumer (C2C) occurs on the Web between interested parties over a wide range of products and subjects Blogs Offer fresh, original, and inexpensive ways to reach fragmented audiences Difficult to control

Online Marketing Online Marketing Domains Consumer to business (C2B) involves consumers communicating with companies to send suggestions and questions via company Web sites

Online Marketing Setting Up an Online Presence Creating a Web site requires designing an attractive site and developing ways to get consumers to visit the site, remain on the site, and return to the site

Online Marketing Setting Up an Online Presence Types of sites Corporate Web site Marketing Web site

Online Marketing Setting Up an Online Presence Corporate Web site is designed to build customer goodwill and to supplement other channels, rather than to sell the o pa y s produ ts dire tly to: Provide information Create excitement Build relationships

Online Marketing Setting Up an Online Presence Marketing Web site is designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome

Online Marketing Designing Effective Web Sites To attract visitors, companies must: Promote an offline promotion and online links Create value and excitement Constantly update the site Make the site useful

Online Marketing Designing Effective Web Sites The Seven C s Context Customization Content Communication Commerce Community Connection

Online Marketing Placing Ads and Promotions Online Forms of online advertising Display ads Search-related ads Online classifieds

Online Marketing Placing Ads and Promotions Online Banners are banner-shaped ads found on a Web site Interstitials are ads that appear between screen changes Pop-ups are ads that suddenly appear in a new window in front of the window being viewed Rich media ads incorporate animation, video, sound, and interactivity

Online Marketing Placing Ads and Promotions Online Search-related ads are ads in which textbased ads and links appear alongside search engine results on sites such as Google and Yahoo! and are effective in linking consumers to other forms of online promotion

Online Marketing Placing Ads and Promotions Online Content sponsorships provide companies with name exposure through the sponsorship of special content such as news or financial information Viral marketing is the Internet version of word-ofmouth marketing and involves the creation of a Web site, e-mail message, or other marketing event that customers pass along to friends

Online Marketing Creating or Participating in Social Networks (Web Communities) Social Networks (Web communities) allow members to congregate online and exchange views on issues of common interest Facebook