Chapter-4-marketing-and-advertising-in-e-commerce

CHAPTER 4:Marketing and Advertising in E-Commerce
Advertising Strategies and
Promotions
-spamming
Using e-mail to send unwanted ads
(sometimes floods of ads)
-permission advertising
Advertising (marketing) strategy in
which customers agree to accept
advertising and marketing materials
(known as opt-in)
OTHER ADVERTISING STRATEGIES
-affiliate marketing
A marketing arrangement by which an
organization refers consumers to the
selling company’s website
-affiliate network
A network that acts as an
intermediary between publishers
(affiliates) and merchant affiliate
programs
-Ads as a Commodity (Paying People to
Watch Ads)
-Selling Space by Pixels
-Personalized Ads
-Webcasting
A free Internet news service that
broadcasts personalized news and
information, including seminars, in
categories selected by the user
-Ad Exchanges
-Advertisement as a Revenue Model
pay per click (PPC)
A popular Internet advertising
payment model where advertisers pay
their host only when the ad is clicked
on
-Choose-Your-Own-Ad Format
-ONLINE EVENTS, PROMOTIONS, AND
ATTRACTIONS
Live Web Events for Advertising
-localization
The process of converting media
products developed in one environment
(e.g., country) to a form culturally and
linguistically acceptable in countries
outside the original target market
-INTELLIGENT AGENTS
APPLICATIONS
-DEVELOPING AN ONLINE
ADVERTISING PLAN
Online Advertising Methods
-MAJOR CATEGORIES OF AD:S
Classified Ads
Display Ads
Interactive Ads
-banner
On a Web page, a graphic advertising
display linked to the advertiser’s Web
page
-keyword banners
Banner ads that appear when a
predetermined word is queried from a
search engine
-random banners
Banner ads that appear at random,
not as the result of the user’s action
-live banners
A banner ad that is created
dynamically (or whose content is
created dynamically) at the time of
display, instead of being
preprogrammed with fixed content
-Benefits and Limitations of Banner
Ads
-pop-up ad
An ad that appears in a separate
window before, after, or during
Internet surfing or when reading
e-mail
-pop-under ad
An ad that appears underneath the
current browser window, so when the
user closes the active window the ad is
still on the screen
-e-mail marketing
A form of direct marketing which
uses e-mail as a means of
communicating commercial messages to
an audience
-e-mail advertising
Adding advertisements to e-mail
messages sent to customers
-The Major Advantages and
Limitations of E-Mail Advertisement
-Implementing E-Mail Advertising
-search advertising
A method of placing online
advertisements on Web pages that
show results from search engine
queries
-URL Listing
-Keyword Advertising
-search engine optimization (SEO)
The craft of increasing site rank on
search engines; the optimizer uses the
ranking algorithm of the search
engine (which may be different for
different search engines) and best
search phrases, and tailors the ad
accordingly
-GOOGLE: THE ONLINE
ADVERTISING KING
Google’s Major Advertisement Methods:
AdWords and AdSense
-viral marketing (viral advertising)
Word-of-mouth marketing by which
customers promote a product or
service by telling others about it
VIDEO ADS
-Consumer-Generated Videos
-interactive video
A technique used to blend user
interaction and videos
-viral video
A video clip that gains widespread
popularity through the process of
Internet sharing, typically through
e-mail or IM messages, blogs, and
other media-sharing websites
-advergaming
The practice of using computer games
to advertise a product, an
organization, or a viewpoint
-augmented reality (AR)
A live direct or indirect view of a
physical, real-world environment whose
elements are augmented by
computer-generated sensory input,
such as sound or graphics
-ADVERTISING IN CHAT ROOMS AND
FORUMS
-mobile marketing
Conducting marketing on or with a
mobile device
-mobile advertising (m-advertising)
Ads sent to and presented on mobile
devices
Mobile Interactive Advertising
Types of Mobile Ads
Viral Mobile Marketing
Mobile Marketing and Advertising
Campaigns
Representative Examples of Mobile
Advertising
-MOBILE MARKETING
IMPLEMENTATION GUIDELINES
Notice
Choice and consent
Customization and constraint
Security
Enforcement and accountability
-TOOLS TO SUPPORT MOBILE
ADVERTISEMENT
-MOBILE AD TRENDS
Web Advertising
-interactive marketing
Online marketing, facilitated by the
Internet, by which marketers and
advertisers can interact directly with
customers, and consumers can
interact with advertisers/vendors
SOME BASIC INTERNET
ADVERTISING TERMINOLOGY
-ad views
The number of times users call up a
page that has a banner on it during a
specific period; known as impressions or
page views
-button
A small banner that is linked to a
website; may contain downloadable
software
-page
An HTML (Hypertext Markup
Language) document that may contain
text, images, and other online
elements, such as Java applets and
multimedia files; may be generated
statically or dynamically
-click (ad click)
A count made each time a visitor
clicks on an advertising banner to
access the advertiser’s website
-CPM (cost per mille, i.e., thousand
impressions)
The fee an advertiser pays for each
1,000 times a page with a banner ad is
shown
-conversion rate
The percentage of clickers who
actually make a purchase
-click-through rate/ratio (CTR)
The percentage of visitors who are
exposed to a banner ad and click on it
-hit
A request for data from a Web page
or file
-visit
A series of requests during one
navigation of a website; a pause of a
certain length of time ends a visit
-unique visit
A count of the number of visitors
entering a site, regardless of how
many pages are viewed per visit
-stickiness
Characteristic that influences the
average length of time a visitor
stays in a site
-Advertising Online and Its
Advantages:
Cost
Richness of format
Personalization
Timeliness
Location-based
Linking
Digital branding
-Traditional Versus Online
Advertisement
Market Research for
E-Commerce
OBJECTIVES AND CONCEPTS OF
MARKET RESEARCH ONLINE:
What Are Marketers Looking For in EC
Market Research?
REPRESENTATIVE MARKET
RESEARCH APPROACHES:
-Market Segmentation Research
-Data Collection and Analysis
-Online Surveys
-Hearing Directly from Customers
-Data Collection in the Web 2.0
Environment
-Observing Customers’ Movements
Online:
-transaction log
A record of user activities at a
company’s website
-clickstream behavior
Customer movements on the
Internet
-Web bugs
Tiny graphics files embedded in e-mail
messages and in websites that
transmit information about users and
their movements to a Web server
-spyware
Software that gathers user
information over an Internet
connection without the user’s
knowledge
-Web Analytics and Mining
-clickstream data
Data that occur inside the Web
environment; they provide a trail of
the user’s activities (the user’s
clickstream behavior) in the website
-Web mining
Data mining techniques for discovering
and extracting information from Web
documents; explores both Web content
and Web usage
-LIMITATIONS OF ONLINE MARKET
RESEARCH AND HOW TO OVERCOME
THEM
-biometrics
An individual’s unique physical or
behavioral characteristics that can be
used to identify an individual precisely
Personalization and Behavioral
Marketing
-personalization
The matching of services, products,
and advertising content with individual
consumers and their preferences
-user profile
The requirements, preferences,
behaviors, and demographic traits of a
particular customer
-Cookies in E-Commerce
-cookie
A data file that is placed on a user’s
hard drive by a remote Web server,
frequently without disclosure or the
user’s consent, which collects
information about the user’s
activities at a site
-Using Personalized Techniques to
Increase Sales
-behavioral targeting
Targeting that uses information
collected about an individual’s
Web-browsing behavior, such as the
pages they have visited or the
searches they have made, to select an
advertisement to display to that
individual
-collaborative filtering
A market research and personalization
method that uses customer data to
predict, based on formulas derived
from behavioral sciences, what other
products or services a customer may
enjoy; predictions can be extended to
other customers with similar profiles
-Other Methods:
Rule-Based Filtering
Content-Based Filtering
Activity-Based Filtering
-Legal and Ethical Issues in
Collaborative Filtering
-Social Psychology and Morphing in
Behavioral Marketing
-Use of Customer Database
Marketing
Mass Marketing, Market
Segmentation, and Relationship
Marketing
FROM MASS MARKETING TO
ONE-TO-ONE MARKETING:
-Mass Marketing and Advertising
-market segmentation
The process of dividing a consumer
market into logical groups for
conducting marketing research and
analyzing personal information
-relationship marketing
Marketing method that focuses on
building a long-term relationship with
customers
-one-to-one marketing
Marketing that treats each customer
in a unique way
Loyalty, Satisfaction, and
Trust in E-Commerce
-customer loyalty
A deep commitment to repurchase or
repatronize a preferred
product/service continually in the
future, thereby causing repetitive
same-brand or same brand-set
purchasing, despite situational
influences and marketing efforts
that have the potential to cause
switching behavior
-e-loyalty
Customer loyalty to an e-tailer or
loyalty programs delivered online or
supported electronically
TRUST IN EC
-trust
The psychological status of willingness
to depend on another person or
organization
EC Trust Models
-online trust
The belief that an online website or
other digital entities can deliver what
they promise so that the recipient
trusts them
How to Increase Trust in EC:
-Improve Your Website
-Affiliate with an Objective Third
Party
-Establish Trustworthiness
Other Methods for Facilitating Trust:
-reputation-based systems
Systems used to establish trust
among members of online communities
where parties with no prior knowledge
of each other use the feedback from
their peers to assess the
trustworthiness of the peers in the
community
-Online Word of Mouth
The Consumer Purchasing
Decision-Making Process
PLAYERS IN THE CONSUMER
DECISION PROCESS:
Initiator
Influencer
Decider
Buyer
User
The Consumer Purchasing
Decision-Making Process
A GENERIC PURCHASING-DECISION
MODEL:
-Need identification
-Information search
product brokering
Deciding what product to buy
merchant brokering
-Evaluation of alternatives
-Purchase and delivery
-Postpurchase activities
A MODEL OF CONSUMER
BEHAVIOR ONLINE:
-The Major Influential Factors:
-Personal Characteristics
-Product/Service Factors
-Merchant and Intermediary
Factors
-EC Systems
Motivational Factors
Hygiene Factors
-Environmental Factors
Social Variables
Cultural/Community Variables
Other Environmental Variables
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