COM3701

Study Unit 3: Online

Marketing
 This presentation…
• Discuss Chapter 10, sections 10.1 to 10.10
• See Study Unit 3 p. 27 – 40 of Tutorial letter
501 for guidance, and for various activities.
• NB to follow study guide AND your prescribed
book to truly grasp the various concepts.
Prescribed book gives the info and
explanations you need to understand each
section.
 Introduction

• Focus of this study unit: The importance of the

internet as medium for marketing
communication.
• This study unit discuss online marketing and
how it is practiced on the internet.
• But remember – all online communication
messages should be integrated.
• We cannot always distinguish between online
marketing, online advertising and online public
relations messages.
• “Web-based communication” is used to refer
to the integrated nature of all these messages.
• In this study unit we focus on and refer to
online marketing messages (these messages
may include advertising, PR, and other
marketing communication messages).
 Key Terminology

• See section 10.2 “Key terminology for

integrated online communication” p. 332, 333
for a list of important terms relating to
integrated online communication.
• See descriptions for: Corporate website,
email, the extranet, the internet, internet
phone and picture phone, intranet, mailing list,
online marketing, world wide web, etc.
• Remember: we use the term “online
marketing”, still all communication messages
on the internet are/should be integrated and
therefore integrated online communication
terms also apply to online marketing
communication
• see section 10.3 page 333-335 for full
discussion on “Contextualising integrated
online communication”.
 Digital Divide
• Digital divide is a term that refers to the gap between
demographics and regions that have access to
modern information and communications technology
(ICT), and those that don't or have restricted access.
• Think about this…
• Name and explain factors that contribute to the
digital divide in SA and how to overcome this
problem.
• Industrial, rural, service providers, roll-out of new
technology, poverty, illiteracy, expense, etc.
• See section 10.4 p. 335
 Integrated Online Processes
• All communication processes in any organisation
should be integrated, not only with other
communication processes but with other online
processes as well.
• Use term “web-based communication’” to refer to
all online marketing communication messages.
• Study unit 2 (IMC) discuss the marketing
communications mix/ promotional mix. THIS study
unit also discusses those elements but this
marketing communication mix focuses on websites.
• Thus the elements of the marketing
communications mix for websites are:
• Online marketing, Online advertising, Online
public relations
• Think about this…
• Explain (define) each of these elements and
consider how these elements should function
in synergy within the organisation (see section
10.5 p.335-336).
 Push and Pull Mechanism and
Information Overload
• Internet traffic pull: provision of information to
individuals at their request. When the target
audience finds a specific site then steps are taken
to ensure the process is open and easy. Done
through the use of links to sites and directories.
• Internet traffic push: Information that is provided to
individuals whether they want it/asked for/looked
for it or not. Aim is to persuade the target
audience to visit a site and is done by ensuring
the site has real value to them
• Information overload: receiving more
information than is needed, wanted for
effective functioning or the realisation of
individual or organisational goals.
• Think about this…
• Provided examples of internet push and pull
mechanisms?
• What effect does information overload have
on the individual and or organisation?
• See section 10.6 and 10.7 p. 336
 Online marketing
Nature and development of online marketing –
•Online marketing developed because marketers
realized how the online environment can benefit
and enhance their marketing strategies.
•First; Rapid growth in business-to-consumer
market, second; business-to-business market
evolved, third; organisations establishing corporate
websites, extranets and intranets (transformed
customer and employee relationships).
• The growth of online marketing attributed by
technological (better connectivity, security, new
technologies) and economic (prices for hardware
and software, safe and reliable online purchases)
factors.
• Online marketing’s 3 objectives; Brand
development, Income generation, Customer
services support.
• Think about this…
• What do you think are some of the characteristics
or online marketing?
• Explain online marketing’s objectives.
• Internet can be used to develop strategies for
individuals, customers can search for offerings
they need from organisations, internet is
interactive, two-way, and strength of internet
as medium is the ability to personalise offers,
match interest and lifestyles, great reach to
audiences. Attention on personal interaction,
interactivity & feedback.
• Section 10.8.1 p. 337-339
Online marketing mix –
•Study unit 1, chapter 5 explains the traditional
marketing mix.
•Online marketing mix = online product, online
price, online distribution and online promotion.
•Think about this…
•Can you explain what each of these elements
entail?
•See section 10.8.2 p. 339, 340
•In addition to the online marketing mix there’s 10
Cs that are fundamental to online success:
Customer – Consistency –
center focus Online messages should be consistent & compliment traditional
marketing messages

Corporate culture – Creative content –

Should be evident online Creative content to attract

Convenience – Customisation –
Online purchase should be convenient and flexible Customise online experience according to individual
requirements

Competition – Co-ordination –
More competition on internet Coordination between all departments

Communication – Control –
Carefully choose promotional mix Monitoring and analytics

See section 10.8.3 p. 340-341

Difference between online marketing and
traditional marketing –
•Both types of marketing are used to increase
sales and profits for an organisation. These two
types of marketing also work together to ensure
activities are harmonized.
•See Section 10.8.4 p. 341, 342
•See table 10.1 p. 342 for differences
Internet resources for online marketing –
•Basically those internet resources that are
available to the marketer who wants to use
online marketing as part of their organisation’s
marketing strategy.
•Think about this…
•You know what traditional marketing resources
are available now what about online resources.
What about corporate websites, electronic
newsletters, e-mail, multimedia…
• For a detailed list and explanation of these
resources, see Section 10.8.5 p. 343-344
• See Activity 3.6 in your Tutorial letter 501 p.
35
Online marketing applications –
•Here we focus on one of the above resources,
namely corporate website and the online
marketing applications or actions that a marker
can use on a corporate website.
•The applications:
•E-commerce; buying and selling over the
internet
•Online research; key to understand target
audience and their wants, needs. Research =
customer profile
• Customer service; immediacy, two-way
communication
• E-mail; effective but intrusive and sometimes
unwanted
• SMS; effective, but intrusive and sometimes
unwanted
• Online advertising; see slide on Social Media
marketing or section 10.9 in your prescribed
book.
• Think about this….
• You are a marketer for a company and have to
use online marketing applications in your
marketing strategy to market a specific
product…
• Thus based on the type of company and product
you can decide which application to use and
discuss. Remember these types of questions will
always have a theory and application side to it.
Discuss the theory, name and define the
applications and then apply it to the scenario.
• See Section 10.8.6 p. 344-346.
Integration of online marketing with traditional
marketing –
•Think about integrated marketing and IMC of
study unit 1 and 2.
•NB to integrate the marketing mix elements and
marketing communication elements to ensure
strategies are in line with corporate brand.
•Integrate traditional and online marketing tools,
techniques, elements.
• Many times traditional marketing media are
used to make target audiences aware of
online activities.
• See Section 10.8.7 p. 347
Online marketing as a push and pull mechanism -
•Push mechanism; organisations push web
pages so that customers can find them. Social
media push notifications/adverts.
•Pull; customers are pulled to a website
because of possible benefits.
•Think about this…
•Can you identify and name various push and
pull mechanisms used today?
•See Section 10.8.8 p. 347
 • Advantages and disadvantages of online
marketing –
Advantages Disadvantages
Marketers can reach a global target audience. Marketers reach only those people who are able
to buy a computer and can afford the costs of a
telephone and an internet dial-up connection.

Advertising expenditure is spent on a target Barriers still exist, such as computer illiteracy and
audience that is extremely receptive to the the digital divide.
marketing message.
The target audience can read marketing Many people prefer personal service to online
messages 24 hours a day and seven days a purchasing.
week.
People who are able to afford the Many organisations still do not know how to
organisation's product or service tend to react benefit from their websites commercially.
to online marketing messages.
Marketing occurs through a customer-driven South Africa continues to face barriers with
channel. regard to correct and secure online payment
systems.
Marketers deal with customers at the point Many organisations' websites are not perceived
when they are ready to buy. as credible.
Multimedia makes the marketing message Many organisations still do not know how to fulfil
more appealing and creates relationships with consumers' online needs or to retain online
customers. customers.
It allows organisations to link directly to The organisation can make more profit by cutting
consumers, which enables new relationships out salespeople, warehouse costs and
and interactions. distributors.
It is cost-effective in comparison with other Small organisations can compete against larger
media. organisations on an equal footing.

See section 10.8.9 p 347-348

 Social Media Marketing

• Social media is an important marketing tool

• Facebook, Instagram, Twitter, Linkedin…
• Social media marketing has its roots in viral
marketing and electronic word-of-mouth (eWOM)
• eWOM – any positive or negative story spread
via internet by people
• Social media is and should be used to
complement their traditional and online marketing
• Think about this…
• Do you agree that social media content can
complement traditional and online marketing
strategies? How? Can you give examples of
where you see marketing from one
organisation across traditional, online and
social media?
• Social media marketing concept = is a social
media application that strategically uses
ordinary conversations primarily for brand-
building purposes.
• Here we look at things like blogs, podcasts,
wikis etc.
• Remember all social media marketing is
carefully planned and used as part of a social
media strategy.
• Read up on the various social media content
platforms, social media marketing and
creating a social media strategy for the
organisation in the prescribed book.
• See section 10.9 p. 348-352
 Mobile Marketing

• Marketers communicating info about products

and services to target audience via phones =
mobile marketing
• Customers can subscribe to branded mobile
channels
• Contextual marketing = marketers providing
customers with relevant info in the right
context in real time
• Limitations: range from device capability and
size to regulation
• Sometimes unwanted (intrusion).
• Consider mobile medium as complimentary or
substitute for marketing strategies
• See section 10.10 p. 352-353
• Please note:
- This presentation is not an examination guideline and is based on content provided
in the prescribed book and tutorial letters.
- Example questions, activities and “think about this” mentions are based on various
writings, sections and activities from the prescribed book, and the tutorial letters
etc. and cannot be seen as questions you will get in the exam nor can assumptions
be made as to the importance of one section over another.