Chapter 14
Interactive marketing

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Learning objectives
1. To examine the development and evaluate the
reasons for growth of the internet and interactive
media.
2. To define the role and relationships of the
internet and interactive media and apply them in
an IMC program.
3. To compare the advantages and disadvantages
of direct communication on the internet and
interactive media.
4. To evaluate the effectiveness of communication
through direct communication via the internet.

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History
and
growth

Advertising

Measuring
effectiveness

Interactive and social
media marketing

internet

Part of
IMC

Objectives

Sales
promotion

Personal
selling

Advantages
and
limitations

PR

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Behavioural
targeting

Direct
marketing

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Be more kissable

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A brief history of the internet
1969
ARPANET
Launched in
USA

1991
First search
engine, Archie,
launched

1996

Google launched and
soon becomes
number one search
engine in the West

1986
Commercial
internet services
permitted

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2008
More than 65% of
Australian
households are
connected to the
internet

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Growth of internet access
(Australia)
Household Home Computer or internet Access

Source: Australian Bureau of Statistics, Household Use of Information Technology, Australia, 2008–09 (Catalogue 8146.0)

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Use of digital media
Time spent with digital media
Australia
60

57

Hours (per month)

50
40
30
20
10

7

0
Online

Social Networking

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Social networking participation
rates (New Zealand)
Time spent on social networking sites
Hours spent
(per month)

8
7
6
5

Total Population (15+)

4

Males

3

Females

2
1
0
All PPL 15+

All PPL 15+


15-24

25-34

35-44

45-54

55+

Source: ComScore, State of The internet with a Focus on New Zealand, July, 2011

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The web as an IMC channel

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Modified hierarchy of effects
model for the internet
Attract

Attract

Engage
Engage
Retain
Retain
Learn
Learn
Relate
Relate
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Internet communications
objectives
Create
Create awareness
awareness

Generate
Generate interest
interest

Stimulate
Stimulate trial
trial


Objectives
Objectives
Create
Create aa strong
strong
brand
brand

Disseminate
Disseminate
information
information

Create
Create an
an image
image

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14-11


Absolut drinks

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Business-to-business websites

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Huggies go well beyond
providing information

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Sportsgirl offers multiple
interaction opportunities

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Ebay offers personalisation and
online community


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Integrating the internet into an
IMC program
Advertising
Advertising
Sales
Sales promotions
promotions
The
The internet
internet site
site
should
should be
be integrated
integrated
with…
with…

Personal
Personal selling
selling
Public
Public relations

relations
Direct
Direct marketing
marketing

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14-17


The marketer–customer interface

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14-18


Advertising on the internet
Banners
Banners
Sponsorships
Sponsorships
Internet
Internet
advertising
advertising
has
has aa variety

variety
of
of forms:
forms:

Pop-ups/unders
Pop-ups/unders
Interstitials
Interstitials

Contextual
Contextual ads
ads
Rich
Rich media
media

Push
Push
technologies
technologies
(webcasting)
(webcasting)

Links
Links
Paid
Paid search
search
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Standard internet advertising sizes
Leaderboard (728X 90 pixels)

Banner (468 X 90 pixels)

Button
(125 X 125
 pixels)

Rectangle
(180 X 150 pixels)

Skyscraper
(120 
X 600
pixels)

Not to scale
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Types of rich media

Online
Online commercials
commercials

AA broad
broad range
range of
of
interactive
interactive digital
digital media
media
that
that exhibit
exhibit dynamic
dynamic
motion,
motion, utilising
utilising
advanced
advanced technologies
technologies
such
such as
as videos
videos
streaming
streaming applets.
applets.


Webisodes
Webisodes

Podcasting
Podcasting
RSS
RSS
Blogs
Blogs

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Marketing bloggers

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Sales promotion on the internet

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Personal selling on the internet
May
May replace
replace personal
personal
selling
selling
Reduces
Reduces high
high cost
cost of
of
personal
personal calls
calls

Vastly
Vastly increases
increases
potential
potential reach
reach

May
May enhance
enhance personal
personal selling
selling

efforts
efforts
Provides
Provides quick,
quick, easy
easy
information
information to
to
prospects
prospects

May
May help
help to
to enhance
enhance
customer
customer databases
databases

May
May improve
improve one-onone-onone
one communications
communications

May
May be
be aa source

source of
of
leads
leads

May
May stimulate
stimulate trial
trial of
of
the
the goods
goods or
or service
service

May
May serve
serve as
as aa sales
sales
conference
conference medium
medium

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Caterpillar provides information

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