chapter
9
Communication
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Communication — Today’s
Objectives

Objectives will be to:

Explore how the Internet affects marketing communications

Examine the marketing levers — offline and online

Discuss the six steps of the communication process

Explore integrated implementation of levers across the four
relationship stages
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Exhibit 9.1: The Effects of the 2Is on
Communication
Individualization
Interactivity

Individual controls
information flow

Allows consumers to
specify preferences

Allows more targeted
communications


Individualized
marketing
communications are
more relevant to the
consumer
Facilitates relationship
building through twoway communication

Allows tracking of
consumer response to
marketing
communications
Communication
Personalization and Predicting
Behavior
Point-Counterpoint
Prediction Based on
Past Behavior Is Effective
Past behavior is predictive of
preferences and current behavior
People who buy products of type x
will be interested in products similar
to type x
Not only is this an effective way to
determine consumer preferences, it
is also simple to track

Past Behavior Is Not a
Good Predictor
Purchase behavior is driven by
goals, not past behavior
Personal goals constantly change
and past behavior does not provide
much insight into these goals
Purchases such as gifts and
infrequently purchased products like
a TV set are examples of instances
where past behavior is ineffective

Exhibit 9.2: The 2Is Streamline
Advancement Through the Stages
One Seamless Experience
2Is
Banner Ad
(to promote
awareness)
2Is
Website
User can set up the webpage
according to personal preferences,
register for e-mails, give feedback,
or make a purchase
User clicks on banner
to find out more
Awareness
Personalized
Website
 Permission emails
 Individualized
offerings
Exploration
Commitment
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Exhibit 9.3: Online and Offline
Levers
Offline
Outdoor
Advertising
(Billboards)
Radio
Yellow
Pages
Sales
force/Faceto-Face
Public
Relations
Televisio
n
Telemarketing
Brochure
s
Newsletter
s
Magazine
s
Newspapers
Direct
Mailings
Point-ofPurchase
Displays
Sponsorship
s
Customer
Service
Online
Banner Ads
Websites
Rich
Media
Interstitial
s
Dynamic
Ads
Classifieds
& Listings
Search
Engines
Mass
Personal
Websites
Interactiv
e
Television
Personal
Wireless
Devices
E-Mail
Marketing
Exhibit 9.4: Profiles of Online Media
Types
Medium
Advantages
Disadvantages
Websites/Personalized
websites
Communicate rich, detailed information that users
can navigate at will; can track users and customize
site accordingly.
Narrow reach
Banner ads
Link directly to buying opportunity; easy to measure
effectiveness; wide reach; potential for effective
targeting
Low attention and click-through rates; short life;
limited “pass-along” audience; very high clutter;
fleeting exposure
Interstitials
Catch users’ attention; link to buying opportunity
Can annoy users; limited “pass-along” audience
Rich media
Attention-getting; link to buying opportunity
Can annoy users without broadband access
Dynamic ad placement
Serves up customized ads to users in real time
Difficult to execute well; can annoy users, other
advertisers
Search engines
Good credibility; high believability; guarantee of
position available; significant audience at major sites
High competition; information overload; limited
“pass-along”
Classifieds and
listings
Relatively inexpensive, potential for wide exposure;
qualified audience
Clutter
Opt-in e-mail
High demographic selectivity; high credibility;
significant flexibility; proven high click-through rates;
absolutely inexpensive; some pass-along
Requires substantial user base before effective;
high clutter
Mass e-mail
High reach; inexpensive; flexible
Low attention and significant resentment (spam
image)
Customer service
Interested parties asking for help, thus high targeting
value; generates loyal customers
Very expensive to provide comprehensive
telephone, e-mail, and online support
Exhibit 9.5: Internet Ad Terms
Ad Clicks

Aggregate number of user clicks on a banner ad
Ad Views
(Impressions)

Number of times a banner ad is downloaded to a user’s browser and presumably looked at
Click-Through

Percentage of ad views that are clicked upon; also “Ad Click Rate”
CPC
(Cost-per-Click)

Formula used to calculate what an advertiser will pay to an Internet publisher based on
number of click-throughs a banner generates

Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per
banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500)

Measurement recorded in server log files that represent each file downloaded to a
browser; since page design can include multiple files, hits are not a good guide for
measuring traffic at a website

Number of individuals who visit a website in a specified period of time; requires the use of
registration or cookies to verify and identify unique users

A series of requests made by an individual at one site; if no information is requested for a
certain period of time, a “time-out” occurs and the next request made counts as a new visit
— a 30 minute time-out is now standard
CPM
Hit
Unique Users
Visits
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Six Steps of the Communication
Process
Step 1
Identify the Target Audience
Step 2
Determine the
Communication Objective
Step 3
Develop the Media Plan
Step 4
Create the Message
Step 5
Execute the Campaign
Step 6
Evaluate the Effectiveness
of the Campaign
Exhibit 9.9: A Process for Defining
Media Choice and Mix
Communication
Criteria

Behavioral
objectives

Available
spending

Customer
segments
Media
Criteria

Ability to
further
behavioral
objectives

CPM

Ability to
reach target
segments
Chose
Media Mix

Direct mail,
Internet,
broadcast,
print, pointof-sale, etc.
Tie Back to
Overall
Plan
Allocate
Spending

Allocation
of spending
across
media mix
elements
and time
periods
based on
relative
priority

Tie media plan
back to
communications
plan (e.g., make
sure the media
plan will drive
the trial or
awareness
required)
Exhibit 9.11: Genuity Ads
Exhibit 9.12: Genuity Website
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four
Relationship Stages

EBay Example

Conclusion
Exhibit 9.13: Exploring the Levers
Across the Relationship Stages
Exploratory /
Expansion
Awareness
Television, iTV
Magazines and newspapers
Radio
Yellow pages
Billboards / outdoor
advertising
Banner ads


Rich media ads and
dynamic ad placement

Website

Search engines
Listings
Classifieds

E-mail


Direct mail
Telemarketing

Public relations

Sales force










Commitment
Television, iTV
Magazines and
newspapers
Radio
Dissolution


Website
Personalized pages


E-mail

Permission e-mail

Direct mail

Permission direct mail

Telemarketing

Customer service

Customer service

Sales force

Sales force
Terminate marketing
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Exhibit 9.14: EBay Sponsored Link
Exhibit 9.16: EBay/Disney
Cobranded Site
Chapter 9: Communication

How the Internet Affects Marketing Communications

The Marketing Levers — Offline and Online

The Six Steps of the Communication Process

Integrated Implementation of Levers Across the Four Relationship
Stages

EBay Example

Conclusion
Communication — Conclusion

Effective marketing communications must be integrated and work
together with synergy, and they must be consumer-centric

The communication marketing levers include various communication
types that can be organized into the following categories: mass
offline, personal offline, mass online, personal online

The communication process involves six steps: 1) Identify the target
audience, 2) determine the communication objective, 3) develop the
media plan, 4) create the message, 5) execute the campaign and 6)
evaluate the effectiveness of the campaign

Specific levers can be applied that are appropriate for each
relationship stage