INMA_A01.QXD

(National Geographic (Little) Kids) #1

Online coupon redemption
This technique is often used in the early adoption stages of the Internet as a marketing communication.
The online advertiser incorporates/promotes a discount coupon via e-mail (or web site) and requests the
customer print out a voucher and then take it to a participating store in order to redeem the discount
(e.g. see Figure 10.6 concerning McArthur Glen Designer Outlets). On redemption of the printed voucher
the retailer is able to analyse the impact of the online promotion on the offline purchasing behaviour and
in doing so develops an understanding of their return on investment in online advertising.


Online rebate/gift with purchase
In this instance the retailer tracks the online customer’s information through the
use of cookies and offers some form of discount or gift offer with purchase.
Generally, the customer will be required to register online (see Figure 10.7).
Just as consumer use of the Internet has been growing rapidly during the
last decade so too has the use of the Internet as a medium to communicate a
company’s marketing messages. Research has shown the Internet as having an
increasing share of voicewhen compared with other media. Furthermore, a
survey conducted by PricewaterhouseCooper (2005) found that consumer
advertisers are leading the online advertising spend (see Figure 10.8). The
strategic implications of such findings are that retailers should be developing
measurement techniques to determine the effectiveness of the online media on
the offline spend.




IMPLICATIONS FOR E-RETAIL MARKETING STRATEGY

Figure 10.6Online coupon redemption in an offline store

Share of voice
The relative advertising
spend of the different
competitive brands
within the product
category. Share of voice
(SOV) is calculated by
dividing a particular
brand’s advertising
spend by the total
category spend (De
Pelsmacker et al.,
2004).

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