How can we persuade internet user of the merit of advertising?
The more users think internet advertising burdensome and avoid to see it, the less the value of the advertising will be. If many advertiser stop using internet advertising, free sites will be no more. User will be requested to pay some charge to use their favorite web sites in the future. To persuade them that advertising is inevitable to use web sites free of charge, it must be not bad to some sites declare to start subscription. Users who hate subscription will understand the role of advertising on the internet.
Internet advertising is only the gate.
Almost all banner advertising and e-mail advertising are gadgets to make users to jump to main web site. For the time being, internet advertising by itself will never fulfill the transaction. It makes users to proceed to the next step such as getting more information, asking some questions and making order and so on.
Targeting is the key.
Appropriate targeting is the key to success in the internet advertising. Internet, more precisely, particular web sites are kinds of media to appeal to specific target not to mass audience. There will be complete different way from traditional mass media.
Will it be a new communication tool for the young generation?
Young generation are very familiar with computer from their childhood. For them, internet is necessity for their life. In the 1950s and 60s, teenagers or younger children who grew up with television shared common interests and communication concerning television. It is hardly believable that older generation communicate each other using internet within a few years but young generation can easily do so.
3. The role of direct marketing on the internet
Internet can fulfill transaction all by itself.
The most important function of internet must be that it can fulfill transaction on the sites. Internet users can easily compare features and benefits of the products or services, know the price, choose, order, pay electronically. Moreover, they can visit several sites, compare the deals and select the best deal for themselves. There is no needs to go shopping to malls and no restriction of time. They can access any sites in the world.
Internet enable us to communicate in two way and it facilitate to fulfill transaction, of course. Traditionally, direct marketing utilize mail, TV commercials, catalogs to send information to the prospects and receive orders using mail, 1-800 number telephone or facsimile. Now that internet's two way communication function are just optimal for direct marketing.
Any business which propose advantageous deal
can win regardless of the size of business.
We can consider one web site as one outlet or retailer. There is no advantage of the size or location of business. Even the small company or foreign company can win if they can propose good deals.
B-to-B direct marketing,
electric commerce between business organization starts.
Most company can develop their business in the huge virtual market on the internet more effectively, more efficiently. On the internet, sellers have strength only they provide excellent products with reasonable prices. Buyers compare a lot of sites in the virtual market and can make decision. Internet is not only for B-to-C, Business to Consumer, market.
C-to-C, C-to-B direct marketing?
On the one hand, consumers begin to buy things from consumers on some auction sites. The subject of transaction is not limited to business. From B-to-C, B-to-B, now we can recognize C-to-C direct marketing using internet. I can imagine C-to-B direct marketing will start in the near future.
Managing customer database to build relationship to customers.
Direct marketing will not be finished to receive order and ship something. It is needed to analyze customer information and prepare for the next transaction. Building customer database and managing it is the most important task in direct marketing. Internet is a good tool for it.
4. The role of integrated marketing communicationon the internet
IMC definition is changing.
Shultz and Kitchen (2000) noted that definition of Integrated Marketing Communication is changing in the 21st. For example, they showed one of the early definition as follows:
IMC is a concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a number of communication disciplines (for example, general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency and maximum communication impact.
They also mentioned about four stages in IMC development, 1st stage; Tactical coordination of marketing communication, 2nd stage; Redefining the scope of marketing communication, 3rd stage; Application of information technology, 4th stage; Financial and strategic integration. The above definition is said to be closely linked with 1st and 2nd stages. They pointed that IMC is no longer the tactical integration of promotional elements, nor adaptation an outside-in perspective.
source:Shultz and Kitchen, Comminicating Globally. NTC, 2000
What will be IMC in the 21st century? Their new definition is as follows:
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated measurable, persuasive brand communication programs over time with consumers, prospects, and other targeted, relevant external and internal audiences.
This definition is linked with 3rd and 4th stage of IMC. They added. "Empirical studies in relation to clearly segmented target markets and publics need to be carried out to ascertain and measure brand image. Results need to be measured in behavioral, not just attitudinal, terms." Internet will be important factor in IMC without doubt.
Tactical coordination from consumer's point.
After reading new definition of IMC, tactical coordination of marketing communication seems to be not enough. But if we want more information about some product or service which we saw on traditional media, internet will be a convenient tool. For some kind of products, we can get virtual trial on the internet. Of course we can order and pay on the internet. We sometimes get additional premium when we order through internet.
From my experience.
From my personal experience, I dare say that to order something through internet is very easy and trustworthy for someone who has disability to listen and speak foreign language. If a company provides 1-800 number on their traditional advertising, I will search for its web site. On the internet, I can take a lot of time to study and select not bothering anybody. For the companies which is developing globally, internet is better than telephone or fax because it receive orders in one standardized format. Communication tool for disabled will be easy to use for everybody.
5. How the above should work on the internetin relation to their role in traditional approaches
In traditional sense, advertising goals are to induce consumer attitude change or action. In advertising using traditional media, it is said to be more effective in building positive image of brand than inducing buying behavior.
It is obvious that simple banner advertising is not enough to build brand image. We have to learn how to build brand through internet. For the feature of internet, it is hard to share topics of internet advertising even among friends. Mass communication media have so to speak "agenda setting effects." That means everybody tend to think something on the mass media must be popular. For example, after we saw TV commercial of one brand several times, we recognizes that this brand must be poplar among the young people. Or when we say huge newspaper advertising, we thought the advertiser would like to promote it heavily. But internet is very personal medium and users are too segmented. We can not expect "agenda setting effects" from internet. So, we make use of other media or viral marketing.
Direct marketing is marketing to get response directly from consumers not using retailer or channel. To get response, the subject of transaction send some catalogs or direct mail to prospects, use mass communication advertising to inform. Then they receive order using mail or 1-800 telephone.
Traditionally, for direct marketing, there must be at least two communication tool to send information and receive order. Internet facilitate them because it is two way communication tool. Moreover there is no time delay and customer database can be easily built.
IMC is rather new concept compare to advertising and direct marketing. In the beginning of the 1990s, IMC was said to be comprehensive, integrated coordination of communication tools such as advertising, direct marketing, sales promotion, public relations and so on to induce consumer buying behavior. It also need integration of product, price and place. Basically, IMC is not completed in one media. If we regard internet as one of the advertising media, it is not sufficient tool for IMC. However, internet can provide many kinds of information and virtual experience to the users, get order and receive payment, compile information about customer. If used properly, internet will be strong IMC tool.
6. The relative importance of advertisingto DM and IMCon the internet today and in the future
Definition of advertising.
For the time being, advertising is limited to be paid, non personal message communicated through the various media. While we are using traditional media, this definition is still useful. But what happen to definition of advertising when we utilize internet? Someone who clicks banner advertising jumps to one company's web site, he/she virtually experience some product or service and decide to buy one. In this flow, can we distinguish the function of advertising, DM and IMC? Or is it meaningful to distinguish?
In the world of internet, I am sure that definite border line between advertising, DM and IMC will disappear. Consumers try to gather information for their convenience as their own way, sometimes they buy products and evaluate them and the companies. They speak the evaluation to their friends or write comment on the company's web site or using e-mail. The company get information about visitors of the web site, customers who shopped their products or services on the internet. After carefully analyzing their taste, it prepare some promotion for the next purchase.
We could not catch all about this flow when we use traditional advertising media but now we can do thanks to internet. It is better to think the definition of advertising is changing after the advent of internet than to divide advertising, DM and IMC.
reference
Breakenridge, Deirdre, Cyberbranding. Prentice Hall, 2001
Dentsu Soken ed., A Research for Information and Media Society. Dentsu, 2001.
Impress ed., Internet White Paper. Impress, 2001.
Schultz, Don E. and Philip J. Kitchen, Communication Globally: An Integrated Marketing Approach. NTC , 2000.
Smith, Ellen Reid, e-Loyality. Harper Business, 2000.
