Ch. 6 E-commerce marketing and Advertising concepts

consumer behavior
social science to understand human behavior in a marketplace
consumer behavior models
attempts to predict/explain what consumer purchases and where/when/how/why
5 stages in consumer decision
1. Awareness of need
2. search for info
3. alternatives
4. actual purchase decision
5. post-purchase contact with form
clickstream behavior
refers to transaction log that consumers establish as they move about the Web
Browsers and buyers
online consumer categories
Types of purchases on web
Big ticket items ($1000 or more)
Small ticket items ($100 or less)

-level of experience is a factor

Trust and utility
important factors in shaping decision to purchase online
Traditional online marketing
search engine marketing, display ads, e-mail campaigns and affiliate programs
online advertising
paid message on a web site, online service, or other interactive medium
search engine marketing
using search engines to build and sustain brands
search engine advertising
support direct sales online
1. keyword paid/sponsored links
2. keyword advertising
3. Network keyword advertising
display ad marketing
1. banner ads
2. rich media ads/animated ads
3. interstitial ads
4. sponsorships
5. video ads
email marketing
affiliate, viral and lead generation marketing
advertising networks
specialized marketing firms connecting online marketers with publishers by displaying ads to consumers based on detailed customer information
ad exchanges
create a market where many ad networks sell ad space to marketers
real-time bidding process
marketers bid for slots based on marketing criteria
(google double click ad exchange)
Direct e-mail marketing
e-mail marketing messages sent to interested users
click through
clicking ads in an email
in-house lists
personalized email list to market to
unsolicited commercial e-mail
Affiliate marketing
a firm pays commission to other sites for sending customers to their site
viral marketing
social marketing involves getting friends, family to pass along marketing message (online word of mouth)
lead generation marketing
generate leads for businesses who later can be contacted and become customers via phone, email, etc.
(in-bound marketing)
personalization and one-to-one marketing
market segmentation based on individuals needs, personalize and position message to them
Interest-based advertising
use search engine queries and clicks to target customers (behavioral ads)
clickstream history
browsing history and links you click on
retargeting ads
showing same or similar ads to individuals across multiple web sites
changing product to user preference
customer co-production
allowing customer to interactively create the product
Long Tail Marketing

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