Podcast
Questions and Answers
What is rational branding, and how does it differ from emotional branding?
What is rational branding, and how does it differ from emotional branding?
Rational branding focuses on cognitive appeals by offering specific help to users in exchange for viewing ads, while emotional branding aims to connect with consumers on a personal level through feelings.
Explain the role of affiliate marketing in reducing costs for sellers.
Explain the role of affiliate marketing in reducing costs for sellers.
Affiliate marketing reduces costs for sellers as affiliate sites handle advertising, product promotion, and transaction processing, without the need for inventory management.
What are the two common types of affiliate commissions mentioned?
What are the two common types of affiliate commissions mentioned?
The two common types of affiliate commissions are pay-per-click, which pays each time a link is clicked, and pay-per-conversion, which pays when a visitor becomes a customer.
How does viral marketing utilize existing customers to promote products?
How does viral marketing utilize existing customers to promote products?
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Identify the main factors influencing search engine ranking.
Identify the main factors influencing search engine ranking.
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What is the purpose of search engine optimization (SEO)?
What is the purpose of search engine optimization (SEO)?
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Describe how contextual advertising works.
Describe how contextual advertising works.
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What is the relationship between customer acquisition cost and retention marketing techniques?
What is the relationship between customer acquisition cost and retention marketing techniques?
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How do social media platforms facilitate indirect marketing approaches?
How do social media platforms facilitate indirect marketing approaches?
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What is the function of paid search engine inclusion?
What is the function of paid search engine inclusion?
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What is the primary goal of the customer loyalty model?
What is the primary goal of the customer loyalty model?
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How does the funnel model of acquisition differ from the customer life-cycle model?
How does the funnel model of acquisition differ from the customer life-cycle model?
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What does 'acquisition cost' refer to in the context of customer acquisition?
What does 'acquisition cost' refer to in the context of customer acquisition?
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List two strategies companies can employ for effective banner advertising.
List two strategies companies can employ for effective banner advertising.
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What are the potential disadvantages of pop-up ads?
What are the potential disadvantages of pop-up ads?
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Explain the concept of 'retention cost' in marketing.
Explain the concept of 'retention cost' in marketing.
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What are some ways to measure the effectiveness of online advertising?
What are some ways to measure the effectiveness of online advertising?
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Define the term 'impression' in the context of online advertising.
Define the term 'impression' in the context of online advertising.
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In what way does usage-based segmentation benefit online marketing?
In what way does usage-based segmentation benefit online marketing?
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What is the significance of the commitment stage in the customer loyalty model?
What is the significance of the commitment stage in the customer loyalty model?
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How do banner ad networks function in advertising?
How do banner ad networks function in advertising?
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What role does customer feedback play in retention marketing techniques?
What role does customer feedback play in retention marketing techniques?
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What is the relationship between customer acquisition and conversion costs?
What is the relationship between customer acquisition and conversion costs?
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Why is it important for online advertisers to target their ads effectively?
Why is it important for online advertisers to target their ads effectively?
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What is 'cost per click' (CPC) in online advertising?
What is 'cost per click' (CPC) in online advertising?
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Study Notes
Marketing on the Web
- The four Ps of marketing contribute to marketing strategy.
- Product (physical item or service sold)
- Price (amount customer pays)
- Promotion (any means to spread word)
- Place (distribution)
- Product-based marketing strategies are often used by managers, focusing on products and services sold.
- This works well when customers need specific products.
- This works poorly when customers have a specific need to fulfill.
- Customer-based marketing strategies are designed to meet various types of customers’ specific needs.
- Companies need to take a view beyond internal perspective.
- Web communication offers advantages of personal contact selling, but with mass media cost savings.
- Mass media advertising offers the lowest trust level.
- Product complexity is a factor in media choice.
- Blogs and social media allow for two-way communication.
- Market segmentation divides potential customer pools into segments defined by customer characteristics.
- Micromarketing targets very small market segments.
- Geographic segmentation (location)
- Demographic segmentation (age, gender, income, etc.)
- Psychographic segmentation (social class, personality)
- The Web presents an opportunity for different store environments online.
- Retail stores have limited floor and display space.
- Web stores can provide separate virtual spaces for different market segments.
- One-to-one marketing offers products and services matched to the needs of a particular customer.
- Dell offers several different ways to a business, using Dell Premier accounts, for high-level customer-based market segmentation.
- Behavioral segmentation creates separate customer experiences based on behavior.
- Occasion segmentation considers things happening at a specific time or occasion.
- Usage-based market segmentation customizes visitor experiences to match site usage or visitor type.
- Visitors behave in different ways on the web.
- Browsers are visitors who are just surfing the sites.
- Buyers are visitors intent on making a purchase.
- Shoppers are visitors motivated to buy but need more information.
- McKinsey & Company identified six behavioral-based categories for visitors:
- Simplifiers (convenience)
- Surfers (find information)
- Bargainers (good deals)
- Connectors (stay in touch)
- Routiners (return to the same sites)
- Sportsters (sports/entertainment sites)
- The five-stage model of customer loyalty shows increasing relationship intensity:
- Awareness
- Exploration
- Familiarity
- Commitment
- Separation
- The goal is to move customers into the commitment stage and keep them there as long as possible.
- Only want to see customers move into the separation stage if they are costing more to serve than they are worth.
- Customer acquisition is the process of attracting new customers to your site and can be conceptualized by the funnel method.
- The total cost of acquiring a customer includes the acquisition cost and conversion cost..
- Banner ads use stationary or moving graphics and include hyperlinks.
- Interactive marketing unit (IMU) ad formats provide a standard for ad sizes.
- Banner ad placement is managed by an ad exchange network, advertising agencies, or a banner advertising network.
- Click through rates measure the effectiveness of banner ads, with some banner ads using rich media effects (video clips) and animated GIFs to optimize their effectiveness.
- Text ads are short promotional messages with no graphic elements.
- Intrusive ad formats, such as pop-up ads and interstitial ads, are often considered annoying by users.
- Rich media and video ads generate graphical activity that floats over the Web page itself.
- Pre-roll video ads require a visitor to view all or part of an ad before the content selected plays.
- Mobile device advertising utilizes messages displayed from advertisers.
- Site sponsorships allow advertisers to sponsor all or parts of a site, which is a more subtle way of promoting the product.
- Ethical concerns arise if the sponsor is allowed to create content or weave advertising into the site’s content.
- Online advertising cost and effectiveness can be measured by cost per thousand (CPM) or cost per click (CPC).
- CPM rates are used for mass media advertising.
- E-mail marketing can be used to announce new products or features, but avoiding unsolicited commercial email (UCE, spam) is important.
- Obtain customer approval prior to sending.
- Permission marketing is the strategy of sending e-mail messages to people who request information.
- Opt-in e-mail is an essential part of permission marketing.
- Combining content and advertising increases acceptance of e-mail.
- Advertisers use hyperlinks in e-mail messages to take customers to advertiser’s Web site content.
- Outsourcing e-mail processing manages an e-mail campaign by e-mail processing service providers.
- Branded products are easier to advertise and promote due to their established reputation.
- The value of a branded product far exceeds the cost of creating it.
- The three key brand elements are product differentiation, relevance, and perceived value.
Rational Branding
- Involves offering something of value to web users in exchange for viewing an ad
- Relies on the cognitive appeal of the specific benefit offered
- Web is an active medium controlled by the customer, making it difficult to use emotional appeals
- Emotional appeals are effective in passive media like television, radio, billboards, and print
Affiliate Marketing
- Uses an affiliate website to promote products or services
- Affiliate site receives a commission for each visitor who follows a link to the seller’s site
- Affiliate saves expenses related to inventory, advertising, promoting, and transaction processing
- Amazon.com was a pioneer in affiliate marketing
Affiliate Commissions / Cause Marketing
- Pay-per-click: commission is paid for each click on a link
- Pay-per-conversion: commission is paid when a visitor becomes a qualified prospect or customer
- Affiliate programs are often managed by a clearinghouse that connects affiliate sites with sellers
Viral Marketing Strategies and Social Media
- Relies on existing customers to spread the word about products or services
- BlueMountain Arts is an example of viral marketing with electronic greeting cards that include links to their site
- Social media marketing is best done indirectly, encouraging community discussions about a product or service
- "Fans" are website followers who engage in discussion activities
Search Engine Positioning and Domain Names
- How potential customers find websites: referrals, affiliate links, website URLs in advertising, unintentional visits, search engines
- Search engines and directories are websites that help people discover online content
Search Engines and Web Directories
- Web directories use spider programs to automatically search for interesting web pages
- Spiders index and store information in a database
- Search utility matches user search terms with relevant web pages
- Search engine ranking considers several factors to determine which URLs appear first in search results
- Search engine positioning is the process of optimizing website content to rank high in search results
Paid Search Engine Inclusion and Placement
- Search term sponsorship offers the option of purchasing a top listing on results pages for a particular term
- Paid display ad space can be purchased at the top of search results pages
- Search engine positioning is complex, involving brokers, Google AdWords, contextual advertising, and localized advertising
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