The Internet & Marketing Communication
Presentation JHI
Course objective:
“The aim of this course is to present and discuss a number of
international marketing communications theories and issues in
relation to the Internet. The presentations and discussions will assist
the students in identifying, discussing and analysing threats and
opportunities facing international marketers when working with the
Internet as a marketing communications parameter.”
= inspiration for further studies!
Course plan.
Teaching methods – lectures, discussions, workshop, cases, student input.
Literature: Text collection available at the university bookstore.
Slides – see online schedule.
Students’ expectations and backgrounds.
Some knowledge of advertising/marketing communication expected.
Good ideas and suggestions, please: hird@ihis.aau.dk
Subjectivity!
The Internet & Marketing Communication, Fall 2008
Course plan 1
Sessions 1, 2 & 3
Course introduction – contents, aim, teaching methods
International marketing communication in general
International marketing communication in an Internet context
International marketing communication and the Internet - characteristics, facts and
trends.
Offline >< localization discussion in an Internet context
Case presentations and discussions
Literature:
1. Subramani & Rajagopalan: “Knowledge-Sharing and Influence in Online Social Networks via
Viral Marketing.” Communications of the ACM, Vol. 46, No. 12, December 2003.,
2. Silverman: Word of Mouth: The Oldest, Newest Marketing Medium: In: Kimmel, Allan J. (ed.):
Marketing Communication, Oxford University Press 2005.
3. Meadows-Klue: “Falling in Love 2.0: Relationship marketing for the
Facebook generation.” Journal of Direct, Data and Digital Marketing Practice, 2008, Vol.9
No.3
4. Fuat Firat & Thøger Christensen: Marketing Communications in a Postmodern World. In:
Kimmel, Allan J. (ed.): Marketing Communication, Oxford University Press 2005.
5. Brown, Broderick & Lee: “Word of Mouth Communication within Online Communities:
Conceptualizing the Online Social Network.” Journal of Interactive Marketing, Vol. 21, No. 3,
Summer 2007
The Internet & Marketing Communication, Fall 2008
Course plan 4
Session 7
Workshop
Literature: TBA
Session 8
Workshop discussions and presentations
Class discussion on the future of marketing communication on the Internet
The Internet & Marketing Communication, Fall 2008
The ”challenge” of the course
E-MARKETING
By Thea Vesterby & Michael Chabert (2000)
”First Danish book on E-marketing”
Source: www.samfundslitteratur.dk
The Internet & Marketing Communication, Fall 2008
The basic ”ideology” of the course
”The web is no longer considered exotic – instead
it must prove its worth as a brand-building tool
alongside TV, print…”
(Strategieseurope, Dec. 2000)
The Internet & Marketing Communication, Fall 2008
”Ideology” : the texts
10
5
14
4 6
7
13 Discussions:
Inspiration
Overview
3 Insights
9
11 2 8
1
12
The Internet & Marketing Communication, Fall 2008
This course is not…
…about websites and website design, usability, etc.
It’s about marketing
e-marketing
…aboutcommunication only…
…about e-shopping
…about the net as a distribution channel or…
…about online businesses only – ”old-fashioned” companies too.
…about generating traffic to a site.
…about technology
The Internet & Marketing Communication, Fall 2008
So what is the Internet?
Medium?
PR-tool?
This course:
Advertising tool?
”…tool
Direct marketing tool?
alongside
Sales promotion tool?
TV, print…”
A VERY big shop?
Sales promotion tool?
Social network?
Toy?
Or?
The Internet & Marketing Communication, Fall 2008
(Online) Marketing Communication
Marketing communication
=
Promotion ”P” (of the famous 4 Ps)
=
Marketing communication mix
=
Promotional mix
=
E.g.: Advertising, Personal selling, Direct marketing,
Sales promotion, Public relations
All of which are relevant in an online context and thus also
relevant for this course
The Internet & Marketing Communication, Fall 2008
Marketing communication - what is it?
Ottosen’s definition:
””Marketing communication” refers to every kind of communication between a
company and buyers about what it has to offer.”
(Otto Ottosen, 2001)
Frandsen, Johansen & Nielsen’s definition:
”En virksomheds samlede kommunikation med sit marked med
henblik på salg/køb af varer og tjenesteydelser samt opbygning og varetagelse af
virksomhedens image”.
(Ottosen in: Frandsen, Johansen & Nielsen, 1997)
The Internet & Marketing Communication, Fall 2008
Integrated (holistic) marketing communication
”[..] a concept of marketing communications planning that recognizes the added
value of a comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines – for example general advertising, direct response,
sales promotion, and public relations – and combines these disciplines to
provide clarity, consistency, and maximum communications impact.”
The lines between the tools are blurred, but the tools still have certain
characteristics that are interesting/important. However, each channel of
communication of course also has its limitations that ”work against” integration.
It is of course relevant to integrate online activities with other online activities as
a well as with offline activities.
The Internet & Marketing Communication, Fall 2008
Integrated communication – a model
Tools
TV
Insight Individual
Radio
Core values Creative creative
brief(s)
Integration of all briefs for
Proposition online tools Web
each
marketing
(Tone of voice)
Pack- channel
aging
Print
The Internet & Marketing Communication, Fall 2008
Marketing Communication Basics
Emotional or
rational
Target group insight communication? Product insight
And ultimately:
Choice of media
and tools
Basically, marketing communications
can influence two things: Our
emotions and/or our common
sense/reason. Successful
communications is dependent on
knowledge of a.o. product and target
group(s). Both on an emotional and
a rational level.
The Internet & Marketing Communication, Fall 2008
…a whole new medium to consider
”…the first banner ad in 1994, marketers started to realize that they had a whole
new medium to consider, one that required new kinds of creativity, that sought to
interact with consumers, one that needed a new term altogether.”
”E-marketing brought to the forefront a key issue for all brands – the relationship
with the customer. After years of running television spots for the masses,
marketers were able to target specific ads to specific customers and even send
personalized email.”
(Chae & Bateman. In Meyers & Gerstman: Branding(at)thedigitalage, Palgrave 2001)
The Internet & Marketing Communication, Fall 2008
The ”challenge” of the Internet
20 days
Amount of time it took Apple Computer’s online store reach one million movie
downloads for the new video-playing iPod.
7 days
Amount of time it took the website SuicideGirls.com, which offers free porn videos
for iPods, to reach the same mark.
Source: Time, November 28, 2005
The Internet & Marketing Communication, Fall 2008
Once upon a time…
”Hvor ligger Cyberspace?”
Source: Politiken 1995 (in the Danish Søndagsavisen, 1 January 2006)
”Alle snakker om Internet, men ingen kan finde ud af at bruge det. Det er stort,
ufremkommeligt, og man har ikke en jordisk chance for at finde rundt mellem de
2-3 millioner computere, der verden over er tilsluttet Internet”.
Source: Berlingske Tidende 1994 (in the Danish Søndagsavisen, 1 January 2006)
The Internet & Marketing Communication, Fall 2008
The Web today
Web 2.0 and social media
It’s about creating relations between people.
A large number of Web 2.0 service are available online, and they become increasingly
Signs of saturation in
effective as more and more people use them. With these services users combine contents
the U.S.!
such as e.g. text, visuals and sound from a number of sources in a format which allows for
later use by other users.
Web 2.0 is interesting because of the blurring of lines between reader and writer, so that we
see a form of communication which is radically different from traditional ’sender-receiver-
models.
Examples: Weblogs og wikis. Youtube, MySpace, Jaiku, Twitter, Flickr, Blufr, Fotki, Diigo,
Macaca, Syncnotes, Trooker, Zoho, Doodle. Pandora
The Internet & Marketing Communication, Fall 2008
”The Good Old Days
C
C
S M M C
C Consumer C
M Medium
M Message
C
S Sender
The Internet & Marketing Communication, Fall 2008
2008?
C
C
C
C C
M
S M M M C
S M
S
S
The Internet & Marketing Communication, Fall 2008
A new world…no not anymore!
”The coming launch in America this autumn of a new Ford Fusion car provides an
example of where advertising is going. Even before the car has gone on sale, the
campaign has begun with the creation of a website. Among other things, the website
promises a series of ”flash concerts” by some leading rock bands and hip-hop
artists. These are musical events to be held at secret locations and announced at
the last minute via e-mail and text-messaging. Ford – through JWT – is doing this
because it hopes to win more younger, urban buyers for its cars.”
(The Economist, August 20, 2005)
The Internet & Marketing Communication, Fall 2008
…offline brands can export a little bit…
Two kinds of brands: E.g. Yahoo! and orange juice marketer. You can still get a
(online) gratification experience with the juice brand, e.g. in terms of information
about Vitamin C, how it’s squeezed, the special orange groves etc……..”Some
brands which are very analog and successful as offline brands can export a little
bit to become more online.”
(Chae & Bateman. In Meyers & Gerstman: Branding(at)thedigitalage, Palgrave 2001)
The Internet & Marketing Communication, Fall 2008
The Web today
Why marketers shouldn't ignore the widget craze
Once thought of as a cool way to share online content with friends, the widget is
quickly coming into its own and advertisers are taking note. However, advertiser
adoption is still behind the adoption rate of consumers, which makes widgets even
more important for marketers. Because so many consumers are using widgets, it
makes sense to place ads or sponsor content in widgets.
According to a recent Forrester Research report, widgets are currently being used by about one-third
of young people in the US. Although this number is small, it is still interesting when joined with other
factors. Researchers also found that adults using widgets are more likely to have high household
income levels. This makes widgets a draw for two segments: youth and wealthy adults, two
demographic segments which are key to advertisers.
Because widgets are created from content specifically chosen by the users, consumers look at them
differently that RSS feeds or forwarded content. Especially with the younger generation, consumers
want to know what their peers find interesting and like to share their opinions on different subjects. The
same is true, if to a different extent, with adults. Adults also are more likely to turn to friends for
product information and advice.
Placing an ad in a widget - with content chosen by an influential peer - could increase the favorability
of that brand for a consumer. The consumer might see the ad as an endorsement of sorts from the
owner of the widget.
(BizReport, 14 August, 2008)
The Internet & Marketing Communication, Fall 2008
The wonders of the Internet…
www.extrabad.com/blockdeath
The Internet & Marketing Communication, Fall 2008
The wonders of the Internet…
www.ifilm.com
The Internet & Marketing Communication, Fall 2008
The wonders of the Internet…
www.maskofdestiny.com
The Internet & Marketing Communication, Fall 2008
The web today
European management lacks Web 2.0 understanding
Over 300 respondents from 7 major European countries took part in a recent survey by
infrastructure software vendor BEA Systems.
The results found that over half, 57%,of businesses were keen to be educated about the
business benefits of Web 2.0 technologies.
Nearly a quarter weren’t using 2.0 technologies due to their lack of control over content, and
20% cited security concerns.
"So many things come under the Web 2.0 banner like MySpace and Facebook, that many
companies say 'how can we really apply that to us'," said BEA's Matt Davies. "It is a challenge to
place this new exciting technology in an enterprise structure – I would always say make sure you
have a sure foundation in place before you deliver on this."
(BizReport, September 7, 2007)
The Internet & Marketing Communication, Fall 2008
The web today
Online advertising spend overtakes radio
Online advertising spend in the U.S. is expected to reach $21.7 billion by the end of 2007, up 22
percent from last year, according to eMarketer’s recent report, “Radio Trends: On Air and
Online".
U.S. radio advertising spend, however, is expected to reach just $20.4 billion, an increase of just
1.5 percent on 2006.
As U.S. adults spend more and more time each day on the Internet or in front of the TV, radio is
losing its place in everyday life. Ben Macklin, author of the report, said that advertisers shouldn’t
abandon terrestrial radio but instead combine the two media to gain the benefits associated with
both. "There are many synergies between radio and the Internet and, for the most part, they
complement rather than compete with each other,'' he said.
(BizReport, August 10, 2007)
The Internet & Marketing Communication, Fall 2008
The web today
Growth in web advertising continues (DK)
27 % increase in banner advertising in first six months of 2008 compared to last year.
(Markedsføring, August 19, 2008)
The Internet & Marketing Communication, Fall 2008
The web today……..always read the small print
eMarketer, September 2, 2005: When it comes to understanding the size of the Internet
advertising market, it pays to look at the big picture.
Concerns about what formats get included or not in
Internet ad spending estimates cloud projections.
eMarketer's latest projections, are that Internet ad
spending will increase 33.7% in 2005 to reach $12.9 billion
– the first time that total annual Internet ad spending has
surpassed $10 billion. The projections include search
advertising, the largest single component of Internet
advertising. Search is the second-fasting growing Internet
ad format, trailing only rich media spending in terms of
growth rates.
Much of the disparity in ad estimates, results from different
definitions of Internet ad spending. Some do not include
paid search ad spending, so their figures are lower than
most other firms. Forrester, with the highest estimate of
Internet ad spending, includes e-mail marketing along with
standard Internet ad formats.
The figure on the left does not include: search-based
advertising, paid fee services, performance-based
campaigns, sponsorships, barters, partnership advertising,
advertorials, promotions, email and direct response.
The Internet & Marketing Communication, Fall 2008
The web today
Online ads to overtake TV ads by 2010 [U.S.]
The Internet Advertising Bureau predicts that Internet advertising could surpass
television marketing as early as next year.
Online ad networks have gone some way towards dealing with the “fragmented” nature of
the Internet drawing more and more advertisers to the medium.
"With the latest technology it is possible to amalgamate thousands of websites and
segment their content into broad and narrow categories," said Jack Wallington, IAB
programs manager.
A rising Internet audience, coupled with the technology and networks that allow targeting
of specific customers, such as DoubleClick, could see Internet advertising overtake
television marketing very soon. If not 2009, then certainly 2010, said the IAB.
In fact, online advertising in Sweden already surpasses television advertising spend and
GroupM’s recent research found that this could well happen in the U.K by the end of this
year.
(Bizreport, 17 January 2008)
The Internet & Marketing Communication, Fall 2008
The web today
Google [1] Google [2]
Google’s success still comes from one But even lucrative ”pay-per-click” has
main source: the small text ads placed limits, so Google is moving into other
next to its search results and on other areas. It is trying [..] to buy DoubleClick,
web pages. The advertisers pay only a firm that specialises in the other big
when consumers click on those ads. ”All online-advertising market, so-called
that money comes 50 cents at a time,” ”branded” display or banner ads (for
says Hal Varian, Google’s chief which each view, rather than each click,
economist. is charged for).
It [Google] had far higher ”click-through And Google now brokers ads on
rates” [than competitors], because it traditional radio stations, televisions
made these ads more relevant and channels and in nowepapers of the
useful, so that web users click on them dead-tree sort”.
more often.
(The Economist, September 1, 2007)) (The Economist, September 1, 2007))
The Internet & Marketing Communication, Fall 2008
Marketing communication on the Net - some advantages
Targetability – e.g. demographic targeting or: contextual, behaviorial,
geographic, daypart, affinity, purchase-based….or?
Tracking (easy and cheap to measure)
Deliverability and flexibility
Interactivity/involvement
Good at delivering complex messages
Can include other media
Immediate response
Customization/personalization/one-to-one
Speed
CRM/Data mining opportunities
Building relationships
New creative approaches suddenly realistic
Still a ”underdeveloped” medium
Others … ?
The Internet & Marketing Communication, Fall 2008
Marketing communication on the Net - some disadvantages
Uncontrollable medium
May not be that effective as a stand alone medium
Often low/slow coverage/low market penetration
Not very transparent/controllable
High communication clutter
Low-status medium
And?
And?
And?
Or?
Or?
Comments, please
The Internet & Marketing Communication, Fall 2008
Text…Crowned at last (1)
”Getting their [consumers’] attention is becoming increasingly difficult, because
audiences are splintering as people use different kinds of media, such as cable
television and the internet.” (p. 3)
”…the ability to get information about whatever you want, whenever you want, has
given shoppers unprecedented strength .” (p. 3)
”What you have today is an informed consumer who is taking control of the way he
learns and hears about products.” (p. 4)
”Over 80 % of Ford’s customers in America have already researched their
prospective purchase on the internet before they arrive at a showroom…” (p. 4)
The Internet & Marketing Communication, Fall 2008
Text…Crowned at last (2)
”Local search could be the next big moneyspinner……Microsoft’s MSN site, for
instance, will provide details about a local shop, and a map to get you there. A9, a
new search engine from Amazon, has a feature called ”Block View” with pictures of
streets and their shop fronts, so if you have forgotten the name of the restaurant you
are looking for, you may be able to recognise it in the picture.” (p. 5)
”Some change in consumer behaviour that were already under way have been
speeded up by the growing use of the internet…..”media multi-tasking”: using
different media at the same time. ”This has enormous implications for advertisers and
programmers…” (p. 5)
The Internet & Marketing Communication, Fall 2008
Text…The Ultimate Marketing Machine
From the television room which might be empty when your spot is shown to ”pay-per-
click”, ”pay-per-printed-coupon”, ”pay-per-call” and ”cost-per-action” (e.g. sale) – so
no more ”Half the money I spend on advertising is wasted. The trouble is, I don’t
know which half…
”If the internet enables such snazzy performance-based advertising methods, it is
also sparking a renaissance in branded advertising…” (p. 66) For example cars,
cosmetics and alcohol.
”Brand advertising is inherently about leaving an impression on a consumer, and thus
about some sort of exposure. On the internet, however, an exposure can also be tied
to an action by a consumer, and these actions can be counted, tracked and analysed
in ways that exposure in the established mass media cannot.” (p. 66)
”Whereas people might watch a television show in a semi-comatose state of mind
and at obtuse angles on their couches, consumers typically surf the web leaning
forward while paying attention to the screen.” (p. 66-67)
The Internet & Marketing Communication, Fall 2008
Text: Marketing Communication in the New Millennium
1. ”Among the most important changes that have confronted marketers in recent
decades, both audiences and media have become more fragmented and should
continue to become more so…”
2. ”Competition is so strong in the contemporary marketing environment that marketers
are obliged to keep experimenting with different ways and means to direct their
messeages to increasingly jaded consumer audiences.”
3. ”If anything, marketing professionals expect the search for evermore novel means of
communicating their product, services, and brands to continue well into the new
millennium.”
4. Media habits have changed with new technologies, so the ability for marketers to reach
their targets has grown more complicated. For example, young people are increasingly
turning to new media types.
(Allan J. Kimmel ,2005)
The Internet & Marketing Communication, Fall 2008
Text: Marketing Communication in the New Millennium
5. Also new consumer audiences are appearing: e.g. men buying products originally for
women.
6. … increasingly marketers have to move from broadcasting to ’narrowcasting’.
7. ”As target audiences become progressively more technology savvy, marketing
communicators have begun to utilize more aggressive and unconventional strategies
to reach them, with greater reliance on interactive, mobile, and personalized tactics.”
8. ”Moreover, as the number of marketing messages to which they are exposed
continues to grow, consumers’ ability (and desire) to differentiate among them has
diminished.”
(Allan J. Kimmel, 2005)
The Internet & Marketing Communication, Fall 2008
Text: Marketing Communication in the New Millennium
9. Growing consumer skepticism towards companies in general and also towards the
ethical implications of marketing communications.
10. Emotional messages consistent with the so-called ’soft-sell approach, oriented to the
building of brand image, have increasingly taken the place of ’harder-sell’ messages
that provide objective reasons why the consumer should make a purchase.”
11. Further, marketers have begun to actively elicit the assistance of consumers
themselves in the dissemination of positive word of mouth…” E.g. seeding.
(Allan J. Kimmel,2005)
The Internet & Marketing Communication, Fall 2008
Text: Electronic Marketing and Marketing communications…
Electronic marketing is having a dramatic impact on marketing communications.
Five messages that the authors believe today’s marketers need to understand if they are
to deliver marketing communications effectively in the future.
[Visit Little Big Ideas at lbi.dk]
The Internet & Marketing Communication, Fall 2008
Text: Electronic Marketing and Marketing communications…
Message 1: Electronic marketing and marketing communications require a
modified marketing model.
Highlights:
The electronic age is putting more power in the hands of the buyer than the seller.
Marketing communication activities are also becoming more targeted as a result of
more, and better information.
Companies forced to adapt
Traditional marketing is giving way to electronic marketing
It is not just about the Internet
Electronic marketing involves the effective use of technology in all its forms (hardware
and software).
The Internet & Marketing Communication, Fall 2008
Text: Electronic Marketing and Marketing communications…
Marketing area Traditional marketing Electronic marketing
Pricing Seller-driven Buyer-driven
Segmentation Demographic Biographic
Advertising Broadcast Interactive
Promotions Mass Tailored
Sales management Data with sales dept. Shared data
Distribution channels Intermediaries Direct
Customer ownership Company Network
Product Constrained Buyer-driven
The Internet & Marketing Communication, Fall 2008
Text: Electronic Marketing and Marketing communications…
Message 2: The marketing database is still at the center of marketing
communications.
Highlights:
Electronic marketing is not just Internet marketing.
Good customer segmentation requires individualized data on customers and
prospects.
In addition to psychographics and transactional data, a third micro-segmentation
approach that has emerged in recent years is biographics…..the ability to match
names, addresses, purchasing behavior, and lifestyles all together onto a single
database allows companies to build a model of someone’s life. By linking a number of
different customer data to credit history, actual purchasing behavior, media usage, and
frequency and monetary value of purchases.
The Internet & Marketing Communication, Fall 2008
Text: Electronic Marketing and Marketing communications…
Message 3: New technologies can improve communication with
customers.
Message 4: Electronic marketing requires new skills and ways of
transferring knowledge within an organization.
Message 5: Companies need to address the increasingly complex issues
of data privacy and data protection.
From the conclusion p. 151:
”Although the technology is different, receiving an inappropriately targeted SMS
message is no doubt just as annoying for a customer as receiving a piece of junk mail.”
”If, however, data can lead to a deeper understanding of customers, then the resulting
knowledge can be used to inform more effective interactions.”
The Internet & Marketing Communication, Fall 2008
Text: Convergence Marketing
”Today, we are entering the age of the centaur. Consumers act across multiple channels.
They combine timeless human needs and behaviors with new online activities. They
are like the centaur of Greek mythology – half human and half horse – running with
the rapid feet of new technology, yet carrying the same ancient and upredictable
human heart.”
”Even the most tech savvy of U.S. consumers – the 18-to-25-year-olds of Generation Y –
are not strictly cyberconsumers.”
(Wind, Y. & Mahajan, V.: “Convergence Marketing.” Journal of Interactive Marketing, Vol. 16, No. 2, Spring 2002 )
Implications for marketing communication?
The Internet & Marketing Communication, Fall 2008
Text: Convergence Marketing
”We need to know the answer to some of these questions:
What can the integration of the offline marketplace and the online marketspace do for
consumers that neither can do alone?”
”The most radical shift of marketing in the digital age is not merely the emergence of new
technology or channels, but transformations deep inside the consumer. The new
technologies have changed the way customers behave – what they expect and how
they view their relationship to corporations – online and offline.”
Implications for marketing communication?
The Internet & Marketing Communication, Fall 2008
Text: Convergence Marketing
”The challenge for organizations is to understand what these underlying desires and
complex behaviors mean for marketing and how to meet these needs. Which
traditional marketing concepts still work, and which ones do they need to eliminate or
change? Which new marketing approaches do they need to add? This emerging
centaur has enduring human needs and desires, but these have been sharpened and
attentuated by the promise of technology.”
The needs and desires on the next slide.
The Internet & Marketing Communication, Fall 2008
Text: Convergence Marketing
The needs and desires:
Desire for uniqueness, personalization, and customization.
Desire for social interaction – online and offline
Desire for convenience and options.
Desire for competitive value (we expect higher value and service)
Desire to make better choices
”These five interrelated opportunities of the centaur require companies to rethink their
approaches to marketing. What parts of their traditional marketing practices need to
be modified or abandoned? Which new capabilities and practices need to be added
to their portfolio of tools?
Implications for marketing communication?
The Internet & Marketing Communication, Fall 2008