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The Internet and Interactive Media

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The Internet and Interactive Media


Internet - Overview

A worldwide means of exchanging information


and communicating through a system of
interconnected computers from military,
government, educational and commercial
sources.

Components include:
 Electronic mail – method of sending messages
electronically
 World Wide Web – universal database of
information available to internet users
Uses of the Internet for Marketing

 Electronic business – use of the Internet to


conduct business activities
 Electronic marketing – the use of the Internet
to conduct marketing activities
 Electronic commerce – use of the Internet for
buying and selling products and services
 Electronic media – using the Internet as an
advertising medium and a way to disseminate
information to consumers
Elements of the Internet

 Electronic mail (e-mail)


– Allows users to send electronic mail
 Usenet
– Discussion groups, newsgroups, bulletin boards
 Telnet
– Databases, library catalogs, and electronic journals
 File transfer protocol (ftp)
– Software protocol for transferring files
 Hypertext transfer protocol (http)
– Software protocol for transferring hypertext language files
 Client server
– Computer system for transferring files between computers
 Gopher
– Document retrieval system used to search for Information
 Wide Area Information Server (WAIS)
– Use of keywords in databases to retrieve full text information
 World Wide Web (WWW)
– Sound, graphic images, video, and hypertext on single pages
The Internet Picture

Senders Internet Receivers

Advertisers
Advertisers Users
Users

Sponsors
Sponsors Internet
Internet Shoppers
Shoppers

e-Commerce
e-Commerce Customers
Customers
Merchants
Merchants
Internet Terms

 Ad clicks  Interstitial
 Ad click rate  Link
 Ad views (impressions)  Opt-in-e-mail
 Banner  Page views
 Button  Rich media
 CPC  Sponsorships
 CPM  Unique users
 Domain name  Valid hits
 Hit  Visits
Internet Communications Objectives

 To create awareness
 To generate interest
 To disseminate information
 To create an image
 To create a strong brand
 To stimulate trial
Skyy Blue creates an image for the brand
through its web site
Internet Advertising

 Sponsorship
– Ownership of an entire site or page
 Banner Ads
– A portion of another owner’s page
 Pop-Ups
– Small windows that appear automatically
 Interstitial
– Ads appearing while waiting for a page to load
 Push Technologies or Webcasting
– Automatic or unsolicited message delivery
 Links
– Hypertext links to other sites, pages or locations
iVillage has numerous sponsorship partners
Banner ads come in a variety of formats
Personal Selling on the Internet

 May replace personal selling


– Reduces high cost of personal calls
– Vastly increases potential reach

 May enhance personal selling efforts


– Provides quick, easy, information to prospects
– May be a source of leads
– May help to enhance customer data bases
– May stimulate trial of the goods or service
– May improve one-on-one communications
– May serve as a sales conference medium
Sales Promotion on the Internet

Offering consumers special incentives via


the internet to encourage trial, repeat
purchase, or customer loyalty

 Distribution of samples, coupons


 Ability to enter contests, sweepstakes
 Premium offers
 Loyalty programs
Pepsi uses the Internet for promotions
Public Relations on the Internet

Internet as a medium for conducting PR

 Media relations websites


 Dissemination of customized information
 Provision of information on the company
and its products
 Philanthropic activities
Chicken of the Sea International uses the
Internet for public relations
Internet Direct Marketing

 Direct Mail
– Highly targeted
– Relies on e-mail lists
– Attempts to reach those with specific needs
– Often used by catalogers
 Marketing Databases on the Net
– Companies build or acquire a database
– The database is sold to subscribers
– Delivery may be on- or off-line
Internet Direct Marketing

 Infomercials
– Program content similar to television,
cable or satellite
– Web provides for greater audience
interaction
 E-Commerce
– Rapid growth rates likely to continue
– CDs, books, travel are main categories
– Clothing, cars, financial services are all
gaining ground
ebaY is a popular site for e-commerce
Measures of Effectiveness

 Online Measuring
 Data on demographics, psychographics, location of access,
media used, buying habits, and more.
 Recall and Retention
 Daily user interviews to measure recall and retention of
web content viewed
 Nonresponse
 Measures of destination after failure to click-through
 Surveys
 On- and off-line surveys to determine usage factors
 Panels
 Usage and attitude data obtained from a specific group
 Sales
 Sales volume keyed to specific times and sites
 Tracking
 Accumulation of site performance data
Sources of Measurement Data

 Arbitron
 MRI and SMRB
 Audit Bureau of Circulation
 Internet Advertising Bureau (IAB)
 iVALS
 PC-Meter
 eMarketer
 eAdvertiser
 Double-Click
 24/7
 Jupiter, Forrester and MediaMetrics
 Business 2.0, Industry Standard, Fast Company
 Internet Advertising Report and Individual.com
Internet Advantages

 Target Marketing
 Message Tailoring
 Interactive Capabilities
 Information Access
 Sales Potential
 Creativity
 Exposure
 Speed
Internet Disadvantages

 Measurement problems
 Audience characteristics
 Websnarl
 Clutter
 Potential for deception
 Costs
 Limited production quality
 Poor reach

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