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Kleppners Advertising Procedure Ch. 13

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Copyright © 2006 by Zack Smith.
All rights reserved.

This is my personal summary of Kleppner's Advertising Procedure.

Chapters
Chapters 1 & 2: Basics of Advertising
Chapter 3: History and Brands
Chapter 4: Target Marketing
Chapter 5: Agencies and Services
Chapter 7: Media Strategy
Chapter 13: Internet Marketing
Chapter 24: Economic / Social / Legal Aspects of Advertising
My Addendum: Notes on Internet/Web Advertising

Chapter 13 -- Internet Advertising

[Caveat 1: These notes are based on the 2003 edition.
Caveat 2: This chapter also includes direct marketing, which I am ignoring.]

Pros of Internet marketing

  • It's cheap.
  • It's good for niche markets.
  • It reaches the consumer quickly.
  • The Internet is perfect for measuring the effectiveness of ads.
  • It's very flexible: ads can be changed and tailored to the consumer immediately.

Cons of Internet marketing

  • There are millions of websites to potentially put ads on.
  • Security of online purchases is an ongoing concern for some consumers.

MSM = mainstream media

CRM = customer relationship management

Research shows, Internet users use traditional media (MSM) less than they did before getting on the Internet, and less than people who don't use the Net.

The Internet feels empowered by the Net and they use it to get the info they want about everything, including products.

CRM permits achieving a higher percentage of people becoming prospects, because it uses automation to assess the consumer's wants, needs, and demographic.

Good software permits at least the following:

  • Extending one sale to another sale, thus improving profits per customer.
  • Improving customer loyalty. CRM effectively lets sellers say "We know what you want" implying "We care about you".
  • Better receptiveness to marketing campaigns.

Marketing material collection

In the book, the authors state a belief that marketing data can be collected about consumers "quickly and inexpensively". This is partly a fantasy. It would be more accurate to say that existing customers offer personal preference information readily, but that new customers are often militantly against doing so.

Concerns for consumers include

  • Spam
  • The ability to opt-in and opt-out of mailings.
To which I would add:
  • Spyware
  • Phishing.
  • False representation of stock availability by online resellers.
  • Return and refund policies, restocking fees.

Consumers are becoming savvy about companies, using websites such as Reseller Ratings to protect themselves and conferring with one another on Usenet and in web forums.

In 2003, consumers in the 13 to 24 year bracket spent 16.7 hours per week online, but only 13.6 hours watching TV, according to Harris Interactive.

Internet usage has been determined to occur in several periods of use. These are called dayparts.

  • Morning 6AM-8AM i.e. before work.
  • Daytime 8AM-5PM i.e. during work.
  • Evening 5PM-11PM i.e. after work.
  • Night i.e. after 11PM
  • Weekends

Email and search engine usage is nearly the same across dayparts.

Mobile

In some countries mobile phones can be used to buy stuff. This is termed in the book m-commerce and they think it may expand. The prospect of swiping a cell phone across a detector at a convenience store instead of a credit card or using cash may appeal to some.

Overall role of the Internet

It's used for
  • direct marketing
  • a new outlet for existing media e.g. magazines
  • a place to provide info about products, services, and support

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