The Marketing Book 5th Edition

660 The Marketing Book

Table 25.3 On-line executions of different communications tools

Communications tool On-line executions

1 Advertising Banner ads, search engine registration

2 Selling Virtual sales staff, affiliate marketing, web rings, links

3 Sales promotion Incentives, rewards, loyalty schemes

4 PR On-line editorial, e-zines, newsletters, discussion groups, portals

5 Sponsorship Sponsoring an on-line event, site or service

6 Direct mail Opt-in e-mail and web response

7 Exhibitions Virtual exhibitions

8 Merchandising Shopping malls, e-tailing, the interface

9 Packaging Real packaging is displayed on-line

10 Word of mouth Viral, affiliate marketing, e-mail a friend, web rings, links

Table 25.4 Summary of the strengths and weaknesses of different

communications tools for promoting an on-line presence

Promotion technique Main strengths Main weaknesses

Search engine

registration and

advertising

Large on-line reach – used by high

proportion of web users. Visitors are

self-selecting. Relatively low cost, but

increasing.

Works best for specialist products rather

than generic products, e.g. insurance.

Cost – search engine optimization is

continuous as techniques change.

Link-building

campaigns

Relatively low cost and good targeting. Setting up a large number of links can be

time consuming.

Affiliate campaigns Payment is by results (e.g. 10% of sale goes

to referring site).

Further payment to affiliate manager

required for large-scale campaigns.

Banner Main intention to achieve visit, i.e. direct

response model. Useful role in branding also.

Response rates have declined historically

to banner blindness.

Sponsorship Most effective if low-cost, long-term

co-branding arrangement with synergistic

site.

May increase mind-share, but does not

directly lead to sales.

E-mail marketing Push medium – can’t be ignored in users’

in-box. Can be used for direct response link

to website.

Requires opt-in list for effectiveness.

Better for customer retention than

acquisition? Message diluted amongst

other e-mails.

Viral marketing With effective creative marketing, possible to

reach a large number at relatively low cost.

Risks damaging brand, since unsolicited

messages may be received.

PR Relatively low cost vehicle for PR. Many

alternatives for innovation.

Off-line PR may give higher impact and

reach.

Traditional off-line

advertising (TV,

Print, etc.)

Larger reach than most on-line techniques.

Greater creativity possible leading to greater

impact. Can use direct response or website.

Targeting arguably less easy than on-line.

Typically high cost of acquisition.