Saturday, 31 May 2014

Web (Online) marketing communication



 Written by Kannan Balaram
Introduction:
Web (Online) has created a new type of market for customers and companies, and has become a serious alternative to traditional markets. The Internet as a marketing communication tool is something that businesses must consider (Paul 1996). While businesses rush into the Internet market, the successful operation of this medium requires selecting an appropriate strategy and designing an effective website. Since websites are the main interface between companies and their customers in the Internet market, a company's website should reflect its policies and strategy. The effective adoption and implementation of policies on websites require an understanding regarding how the website elements may influence customers' beliefs and behaviour. Good web marketing could be achieved by creating an integrated approach to strategy and implementation for operating in the web (online) market. Marketing development is given to the real-time connections, communication, and exchange of information with the use of high-tech gadgets and devices (White 2010). Internet is a powerful, fast and flexible way of communication, and the communication principles that we use in everyday life nowadays can be applied in mobile and web marketing communications. That is where digital marketing takes place (Eisenberg & Eisenberg 2006).

Definition and characteristics of web marketing:
Addressability: Digital media provides companies with an ability to distinguish the potential customers before the actual marketing activities implementation. This is what addressability is about. The basic principles of obtaining the information on the target audience could be registration on a website where the user should put some background data, like age, city of origin, sex. (Pride & Ferrell 2011).
Connectivity: Social networking as a process of Internet users’ interaction and communication on special social media platforms has its key feature in connectivity. (Pride & Ferrell 2011).
Interactivity: Inter-activity is expressed in the customers’ ability to express their needs, desires, and demands directly to companies, also give feedbacks and comments on entities’ operations (Pride & Ferrell 2011).
Accessibility: Accessibility represents customers’ capacity to obtain the information on Internet easy and to determine the most useful and valuable data that is in user’s interest. (Pride & Ferrell 2011).
Control: Consumer control of contact means that consumers are more willing to participate in some e-marketing communication activities as they feel a sense of control over them. Meanwhile consumer control of content is about the interactive way of information creation and spreading. (Blythe 2006).
 

 Internet: The Internet is a global network of networks. Any computer connected to the Internet can communicate with any server in the system. (Zinkhan 2002). Organizations are increasingly using the Internet to market products and services to customers, transact with suppliers and intermediaries, communicate with employees, deal with government and inform investors.
Intranet: The intranet is especially well suited for communication with “internal customers” such as employees (Zinkhan, 2002). Companies use intranets to build relationships with internal stakeholders and primarily employees.
Extranet: “Extranet” can be used in other areas like purchasing where approved suppliers or approved tenderness have access to stock level, job specifications, purchase order numbers. (Smith, 1998). An extranet connects the intranets of an organization with its trading partners, suppliers, distributors and customers.
(Kippenberger 2000).


Source: The Internet as a medium for marketing communication (from internet.)

Web marketing vs. Traditional marketing communication channels:
In identifying Internet market strategies, it is important to distinguish between two types of markets in general: traditional and Internet markets (Strader and Shaw 1997). We define traditional markets as those in which buyers and sellers do not use the Internet for public, market-related activities. By contrast, in the Internet market, buyers and sellers rely on the Internet to conduct market-related activities. The first question is whether these two types of market are different, and if so, what are the possible strategies for choosing a market to operate in. We can differentiate the Internet and traditional markets in three dimensions: access, competition, and information. 

Source: The evolution of Marketing Communications (Tuten & Solomon 2013).

Web (Online) marketing communication channels:
In the book by Chaffey et al. (2009) digital media channels are defined as online communication tools that are applied to obtain brand awareness and to impact purchases by the digital media users, who visit websites and get engaged with the marketed brands or commodities. It is important not to mix up digital and Internet marketing communications that include only those communication tools used via Internet.

Source: Online communication tools (Chaffey 2009).
Banners: A banner is a graphic display that is used for advertising on a Web page. There are several types of banners. Keyword banners appear when a predetermined word is queried from a search engine. They are effective for companies that want to narrow their target audience. (Turban 2004) Banners can be static or interactive. (Janal 1997).  Static banners are always on the Web page and Pop-up banners appear when least expected (Turban 2004). Banner ads are small advertisement that companies buy and place on other companies' advertising vehicles, such as search engines, chat rooms, online magazines, and web pages.
Gamification:  The basic tenet of gamification in marketing considers the utilization of game play mechanics for non-game applications especially on consumer-oriented web and mobile sites. The objective of this process is to motivate and encourage people to accept the applications and to make them aware of the marketed product or brand.
Pop-Up and Similar Ads: A pop-up ad, also known as ad spawning, is the automatic launching of new browser windows with an ad when a visitor enters or exits a site, on delay, or on other triggers. (Turban 2004).
Interstitials: An interstitial is a page or box that appears after a user clicks on a link these ads remain while content is loading. An interstitial may be an initial Web page or a portion of one that is used to capture the user's attention for a short time. (Turban 2004).
Social media marketing: Over a short period of time social media has become one of the most usable and popular Internet communication platforms, and it is possible to notice the same tendency in marketing – involvement of social media in marketing campaigns has become extremely huge. Social media plays an incredibly huge role in current branding and if applied in a right way, it may boost business operations. It is a radical shift in the way people communicate and companies lead their marketing activities. (Qualman 2009). The social networking that allows the quick and easy dissemination of information is in part a product of changes in online communication channels. In fact, online marketing means focusing on the use of Internet for promotion where both pull (a banner, search engine result pages) and push (e-mailing, instant messaging) strategies can be applied (Kitchenman 2010).



Source: Steps to achieve a social media success (Underhill & Kurit 2009).

E-mail and Mailing lists: A popular way to advertise on the Internet is to send company or product information to people or companies listed in mailing lists via electronic mail - e-mail. (Turban 2004). According to Chaffey (2003), e-mail is a significant communications medium since it is widely used. E-mail advertising is the online equivalent of direct mail advertising and e-mail ads often direct visitors to Web sites using hyperlinks. (Strauss & Frost, 1999). The advantages of the e-mail advertising approach are its low cost and the ability to reach a wide variety of targeted audience. Also, e-mail is an interactive medium, and it can combine advertising and customer service. (Turban 2004).
Online press releases: The popularity of this marketing communication channel is determined by the customers’ want to be aware of selling company’s operations, production processes, quality of services and products presented on the market. They are targeted directly at potential buyers and include redirections to a company’s website, as many Internet marketing communications do (Scott 2011).
Newspaper-Like Standardized Ads: These standardized ads are larger and more noticeable than banner ads. They look like the ads in a newspaper or magazine. The ads appear on Web sites in columns or boxes. One of the most popular of the standardized ads is a full-column-deep ad called a skyscraper ad. Some of these ads are interactive; users can click on a link inside the ad for more information about a product or service.
URLs: Most search engines allow companies to submit their Internet addresses, called URLs (Universal Resource Locators), for free so that these URLs can be searched electronically (Turban 2004). The major advantage of using URLs as an advertising tool is that it is free.
Advertising in Chat Rooms: A chat room can be used for advertising. The main difference between an advertisement that appears on a static Web page and one that comes through a chat room is that the latter allows advertisers to cycle through messages and target the chatters again and again. Also, advertising can become more thematic in a chat
Video marketing: Video marketing is able to promote the effectiveness. It enables the company to create an emotional connection with its target audience, as it not only provides people with valuable information, but also presents audio and visual effects.
Video Conferencing: Video conferencing enable marketers to create a relationship with a customer, provide support, and distribute sales information at the customer's convenience for the cost of a local phone call to the Internet service provider (ISP). A possible advantage of the online conference is that all people can participate.
Virtual Exhibitions: Virtual exhibitions bring suppliers, competitors and customers under one virtual roof without leaving their office, or home, customers can reduce the exhausting medium of massive exhibitions by visiting specific shows at any time of day or night. They can go to the virtual stands, examine products and services and leave their details for future quotations. (Smith, 1998).
Online sponsorships: Sponsorships are blooming on the Web as banner rises and as more firms build synergistic partnerships to provide useful content. Sponsorships are particularly well suited for the Web because in many ways the commercial side of the Web is simply a series of firms clamoring after similar targets. (Strauss & Frost 1999).
Blog marketing: There are two ways of implementing blog marketing online: creation of the corporate blog and the usage of a third-party blog for promotional and advertising purposes. The main advantages of blogging that make it so popular these days are its capacity to generate traffic to company’s website, diversifying its content, influencing SEO and other media channels effectiveness, enhancing brand image, and demonstrating in-formative expertise to the readers. (Miller 2012).
Article marketing: This marketing communication tool is highly significant for online promotion, especially in the combination with several other channels, like social media. It brings the awareness of target groups and contributes to the online visibility of a company. Usually articles are not posted on one social media platform, but are spread all over the Internet - on blogs, forums, websites, via e-mails. (Taylor & Riklan 2011).
Other forms of advertising: Smart cell phones are dominating day by day in web marking. These devices are more handy and easy to customers to access seller. So, companies also target more and more in this area.

Web (Online) marketing Advantages:
The Internet is the least expensive marketing communication tool as well as the most cost-effective. People from around the world can create a business relationship for a fraction of the cost of any other marketing method. (Janal 1997).♣ The Internet offers a new, additional marketing communications channel to inform customers of the benefits of a product and assist in the buying decision. (Chaffey 2003). ♣ The Internet offers marketers the ability to make available full-colour virtual catalogues, provide on-screen order form, offer on-line customer support, announce and even distribute certain products easily, and to elicit customer feedback. (Pitt 1996). The Web provides an efficient channel for advertising, marketing and even direct distribution of certain goods and information services. ♣ The Internet and websites have become extremely important avenues for firms in many industries to interact with their customers and other stakeholders. (Merwe & Bekker 2003). ♣ The open-market nature of the Internet increases the bargaining power of buyers by increasing their ability to search for the best price, which may make the Internet more competitive than a traditional market. ♣ The global accessibility of the Internet provides a higher degree of cultural, social, and preference diversities, demanding different business approaches to product design, marketing, and other related business activities.

Web (Online) marketing disadvantages:
1. A reliance of an entity on the customer’s interactivity and activity online
2. Vulnerability of company’s image concerning feedback on forums, blogs and discussions
3. Lack of security of information

Reference:
 Blythe, Jim (2006). Marketing. SAGE, New York.
Chaffey, D., Mayer, R., Johnston, K., and Ellis-Chadwick, F. (2003). Internet Marketing: Strategy, Implementation and Practice. Perentice Hall, London
Eisenberg, Bryan & Eisenberg, Jeffrey (2006). Call to Action. Secret formulas to improve online results. Nashville, Tennessee: Thomas Nelson.
Janal, S. (1997). Online Marketing Handbook: How to Promote, Advertise, and Sell your Products and Services on the Internet. John Wiley & Co., New York.
Kippenberger, T. (2000). From Intranet to Extranet: bringing customers and suppliers into the loop. The Antidote. 5(1) pp. 32-33
Kitchenman, Walter (2010). An Introduction to Digital Marketing. Online presentation. http://www.slideshare.net/wkitchenman/introduction-to-digital-marketing.
Korgaonkar, P., & Wolin, L. D. (2002). Web usage, advertising, and shopping: relationship patterns. Internet Research: Electronic Networking Applications and Policy. 12(2), pp.191-204.
Merwe R. V. D., & Bekker J. (2003). A framework and methodology for evaluating e-commerce Web sites. Internet Research: Electronic Networking Applications and Policy.13(5), pp. 330-341.
Miller, Michael (2012). B2B Digital Marketing. Using the Web to market directly to businesses. UK: Pearson Education.
Paul, P. (1996). Marketing on the Internet. Journal of Consumer Marketing. 13 (4), pp.27-39.
Pitt, L., Berthon, P., and Watson, R. (1996). The World Wide Web as an Industrial Marketing Communication Tool: Models for the Identification and Assessment of opportunities. HenleyManagement College, UK
Pride, William & Ferrell, O. C. (2011). Marketing. Sixteenth edition. Stamford, USA: Cengage Learning.
Qualman, Erik 2009. Socialnomics: How Social Media Transforms the Way We Live and Do Business. John Wiley & Sons, New York.
Scott, David Meerman (2011). The New Rules of Marketing & PR. How to use social media, online video, mobile applications, blogs, new releases & viral marketing to reach buyers directly. Third edition. Hoboken, New Jersey: John Wiley & Sons.
Smith, P., Berry, C., & Pulford, A. (1998). Strategic Marketing Communications: New ways to build and integrate communications. Kogan Page Ltd., London
Strauss, J., & Frost, R. (1999). Marketing on the Internet: principles of online marketing. Prentice Hall, New Jersey.
Taylor, Eric & Riklan, David (2011). Mastering the World of Marketing. Hoboken, New Jersey: John Wiley & Sons.
Turban, E., King, D., Lee, J., and Viehland, D. (2004). Electronic Commerce: A Managerial Perspective. Person Education Inc., New Jersey
Tuten, Tracy & Solomon, Michael (2013). Social Media Marketing. Upper Saddle River, New Jersey: Pearson education: FT Prentice-Hall.
Underhill, Joby & Kurit, Eric (2009). Social Media Marketing in Three Minutes. Video. http://www.youtube.com/watch?v=gza8dvN8Hkc.
Watson, R.T., Berthon, P., Pitt, L. and Zinkhan, G.M. (2001). Electronic Commerce: The Strategic Perspective. Harcourt, FortWorth, TX
White, D. Steve (2010). The evolution of Marketing. WWW-document. http://dstevenwhite.com/2010/06/18/the-evolution-of-marketing/.
Zinkhan, G. M. (2002). Promoting services via the Internet: new opportunities and challenges. Journal of services marketing. 16(2), pp. 412-425

Sunday, 6 April 2014

Integrated Marketing Communication tools



Integrated Marketing Communication tools

Written by Sanna Haapaniemi

Elements of promotion mix, advertising, personal selling, public relations and publicity, direct marketing and sales promotion, are tools for integrated marketing communication. Those are shown in figure 1. and explained later.


Advertising:
Advertising is usually the most visible component of the marketing communication. It is one of the most visible forms of marketing communication. Although advertising methods may vary from country to country the major advertising objectives  remain the same.  Advertising can reach many customers with simple messages that present what a product is, what its primary function is and how it relates to all the other similar products within the shortest possible time. Advertisements help end-users to believe in your brand and also motivate them to buy the same to remain loyal to the brand.  Major advertising objectives might include some of the following: Increasing sales from existing customers or obtaining new customers. Advertising tools are for example broadcast, newspaper, Internet, mobile, outdoor and other forms.

Sales promotion:
Sales promotion seeks to offer additional value as an inducement to generate an immediate sale. These inducements can be targeted at customers, distributors, agents and members of the sales force. Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. A whole range of network members can benefit from the use of sales promotion. Company may use sales promotion tools like discounts, coupons, loyalty clubs, membership coupons, displays and demonstrations.

Personal selling:
Personal selling is one of the most effective tool for integrated marketing communication. Personal selling involves interpersonal interactions between sales and the customer. It can happen face to face, by phone, e-mail, through video or Internet conferences. Personal selling takes place when marketer or sales representative sells products or services to clients. Personal selling goes a long way in strengthening the relationship between the organization and the end-users. Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationship. In complex selling situation personal selling can be more effective than advertising. Selling tools are sales presentations, trade shows and incentive programs for example.

Public relations:
Public relation activities help promote a brand through press releases, news, events and public appearances. Public relations provides visibility for an organization, and this in turn allows it to be properly identified, positioned and understood by all of its stakeholders. The role of public relation officer is to present the organization in the best light. Public relations should be a planned activity, one that encompasses a wide range of events. The use of public relations does not require the purchase of airtime or space in media vehicles, such as television or magazines. Public relations tools are press releases, sponsorship, events and Web pages.

Direct marketing:
Direct marketing is a term used to refer to all media activities that generate a series of  communications and responses with an existing or potential customer. It is concerned with the management of customer behavior and is used to complement the strengths and weaknesses of the other communication disciplines. Direct marketing is a strategy that is used to create a personal and broker-free conversation with customers. It enables organizations to communicate directly with the end-users. Tools for direct marketing are emails, direct-response TV, kiosks, text messages, catalogues, the Internet, brochures and promotional letters.


 
References:
Hollansen, S. 2010. Global maketing. a Decision-oriented approach. Pearson education
Fill, C. 2009. Marketing communications: interactivity, Communities and content. Pearson Education
Kotler, P. 2014 Principles of marketing. Pearson Education
Percy, L. 2008. Strategic integrated marketing communications. Taylor & Francis Ltd

Saturday, 5 April 2014

Integrated Marketing Communication tools

Written by Kannan Balaram

What are IMC tools?
The Integrated Marketing Communication (IMC) approach believes that a company must leave no chance for error, no patience for miscommunication, and no time for confusion. (Picton and Broderick 2005). IMC tools refer to integrating various marketing tools such as advertising, online marketing, public relation activities, direct marketing, sales campaigns to promote brands so that similar message reaches a wider audience. In this respect, (Kliatchko 2005) opined that value added services need not start and end in only advertising messages and strategies. But now, in an expanded view of advertising, advertising agencies must positively evolve specific promotional mix to provide clarity, consistency and maximum communication impact.

Why are IMC tools needed? 
The marketing environment is becoming more highly competitive. The globalization and glamorous world of advertising is loosing out to integrated marketing communications (IMC) under which managers can combine approaches and allow brands to speak with a single voice across all kind of formats. Campaigns may be run across country markets; need to coordinate quality, timing and costs.  Develop common themes or advertising messages (consistent image and positioning) with media mix could vary across country markets.  The promotions mix itself varies across country markets.  Push and pull strategies could be used concurrently in different country markets.

IMC tools' Strategy and Planning:
Models of communications planning generally tend to be based on the planning framework of situation analysis, objective setting, strategy development, budgeting, implementation and control. (Smith, P., Perry, C. and Pulford A 1997). Successful of IMC tools is depending on proper strategy and planning. According to (Belch and Belch 2003) IMC are capable of promoting marketers towards the development of alternative ways to communicate with target audience.

IMC tools' Finance:
Any communication campaign will be set within certain organizational constraints. These constraints will include the managerial style of the organization in terms of risk-taking, innovativeness and creative freedom and of course the willingness to commit financial resources. Many organization executives are craving for ways of minimizing cost of marketing communications with better results. They are not sure of the synergy effects, of the use of IMC (Fill 2006). Companies/Producers are using different promotional mixes without due consideration for the cost and appropriateness of the stage of product in its life cycle.

Basic IMC tools' model:
Basic IMC tools must address thorough understanding of the customer's needs, emotions, interests and activities are essential to ensure the accuracy and relevance of any message.
IMC = strategy + online + offline
STRATEGY means brand positioning, marketing communications strategy and planning, Internet marketing strategy, advertising campaigns.
ONLINE means Content marketing and web copywriting, Web content management/maintenance, Inbound marketing/conversion optimization, Search engine optimization (SEO) copywriting, Social media marketing.
OFFLINE means Public relations and corporate communications, Event planning (seminar marketing, networking events), Graphic design and creative production, Internal and external communications, Media buying and placement, Professional writing.

Example of IMC tools:
Focus on a clear marketing communications strategy. Have crystal clear communications objectives; clear positioning statements. Link core values into every communication. Ensure all communications add value to (instead of dilute) the brand or organisation. Exploit areas of sustainable competitive advantage. Think Customers First. Wrap communications around the customer's buying process. Identify the stages they go through before, during and after a purchase. Select communication tools which are right for each stage. Develop a sequence of communications activities which help the customer to move easily through each stage.
Also, as in a single business firm there are subsections which perform the same type of work but at more specified levels, integrated marketing communication examples should show how the relevant information from the subsections should be collected and relied to other subsections it is needed. For example, data from market research is needed by the marketing people to plan the marketing strategies while the data from the marketing subsection is need in the sales subsection to project sales, which is then relied to production people.
In reality, marketers have to select communications tools that are most suitable for the stage which the target audience has reached. For example, advertising may be very good at raising awareness or developing interest, while free samples and sales promotions may be the way to generate trial. This is just a glimpse into some of the theory.




(Source: from internet)

IMC tools should consider the importance of  4Ps and 7Ps.
4Ps = A memory aid for the marketing mix: product, price, promotion, place, (distribution).  7Ps = A memory aid for the services marketing mix: product, promotion, place, price, process, people and physical evidence.
Clever encoding also helps a message to cut through the clutter of other advertisements and distractions, what is called 'noise'. If successful, the audience will spot the message and then decode or interpret it correctly. The marketer then looks for 'feedback' such as coupons returned from mail shots, to see if the audience has decoded the message correctly. Communications are in fact multifaceted, multi-step and multi-directional.

Out result from competent IMC tools:
In a marketing mixture, integrated marketing communication such as like production, distribution, communication and finance should be designed to work in a way that they send messages to customers. Those are cost containment, increased communication between departments and agencies, customer satisfaction and increased sales of products and services.
The out come benefits of IMC tools, which move towards integrated marketing communications is one of the most significant marketing developments that occurred during the 1990s and this approach is growing daily as this new millennium continues to advance. (Belch and Belch 2003) believed that the IMC approach to marketing communication planning and strategy is being adopted by both large and small companies and has become popular among firms marketing consumer products and services as well as business-to-business marketers.
IMC Not just for domestic markets but across country markets. It can be integrated regionally or globally to convey the same idea to prospects by having consistency, integration and cohesiveness, marketers are able to maximize the impact of their communications tools. IMC Needs close collaboration between the firm and its agencies. The IMC movement is also being driven by changes in the ways companies market their products and services. A shift in marketing dollars from advertising to sales promotion, the rapid growth and development of database marketing, and the fragmentation of media markets are among the key changes taking place. Mr. Low G (Low 2000) opined that integrated marketing is simply a step further from IMC or the highest stage of IMC by focusing on conveying unified messages to customers via the correct blending of the promotional mix.

Written by Kannan Balaram

Reference:
Broderick, A. and Pickton, D. (2005): Integrated Marketing Communications, Edinburgh Gate Pearson Education.
Belch, G. & Belch, M. (2003): Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill/Irwin.
Fill, C. (2006): Marketing Communications Engagement, Strategies and Practices, Edinburgh Gate Pearson Education.
Kliatchko, J. (2005) “Towards a new definition of Integrated Marketing Communications – IMC, International Journal of Advertising, 24(1), pp. 7-34.
Low, G. (2000) “Correlates of integrated marketing communications”. Journal of Advertising Research, 40(1/2), pp. 27-39.
Smith, P., Perry, C. and Pulford, A. (1997) Strategic Marketing Communications. Kogan Page.

Monday, 31 March 2014

About this blog

A blog created for assignment on International Marketing Communication at Satakunta University of Applied Sciences. 

Team 5 members: Kannan Balaram and Sanna Haapaniemi