COIN 72 - Lesson 3
Internet Marketing Examples
In this week we'll focus on examples of Internet marketing including direct email, search engine (SEO and paid search), Google AdWords, a multi-channel approach (Flex-Your-Power), the now infamous slugfest between Amazon and Barnes & Noble, iTunes and Apple, a quick tour of Google Ad words and paid search, and a click-and-mortar retail comparison of BestBuy and Circuit City. And of course your favorite Internet brand.
Amazon.com and Barnes & Noble
Amazon.com is one of the older (maybe even oldest) examples of working very hard to establish a brand, and stay in contact with customers through database marketing. Amazon spent millions (and millions) of dollars for brand awareness and developing an early lead in online retail market share. After some brand extension, they developed a business around books, electronics, and clothing, plus a second-hand market in Z-shops. For some years Amazon advertised on TV at Christmas, but now they stay focused on online advertising only. They typically use:
- Paid search placement and PPC for books
- Carefully placed affiliate advertising
- Database / email marketing for new product releases
Amazon also allows you to pick up books in affiliate stores including Border's Books (I have used this).
Barnes & Noble started later, and ran its online store as a separate division, with very little integration with the physical stores. The physical stores would put inserts (book marks) into the shopping bags for customers buying books, but no real effort to cross-sell. Only recently were email addresses collected during a purchase, and that has stopped (unless you have a rewards card). Today, patrons of the online store will receive weekly electronic mailings from B&N, especially new product announcements, but not from the physical store. Sadly, integration is lacking. B&N also doesn't use strong paid placement for individual books, but will engage in sponsored links. B&N doesn't have the affiliate marketing program that Amazon.com used to drive 50% of it's inbound traffic. see http://www.amazon.com/ and http://www.barnesandnoble.com/
iTunes and Apple Computer
iTunes and Apple Computer have built a very strong allegiance with young consumers purchasing iPods, and fairly good traction among all age groups with iTunes. Building the iPod brand was a matter of producing and delivering very cool products, integrating the device with iTunes software, and connecting both to the iTunes music store. But how do you keep in constant contact with your customer base? http://www.itunes.com/ and http://www.apple.com/
Google AdWords and Paid Search
Google AdWords are such an amazing tool that many people don't even know they exist. "You create ads and choose keywords, which are words or phrases related to your business. When people search on Google using one of your keywords, your ad may appear next to the search results. Now you're advertising to an audience that's already interested in you. People can simply click your ad to make a purchase or learn more about you. You don't even need a web page to get started - Google will help you create one for free. It's that easy!"
Paid search is a little more challenging, but the pay-per placement really is the way to go to guarantee that your search will rise above the noise. See http://adwords.google.com/
Flex-Your-Power
Flex-Your-Power has the unenviable goal to reduce power usage during peak demand, usually heat-waves, and uses a combination of TV advertising with email alerts that come during the day during a power emergency, and also at the start of the day when power needs to be managed. This form of alerts is still managed through humans, but will someday be connected between computers and power meters, and power devices inside buildings. See http://www.flexyourpower.org/
BestBuy and Circuit City
Another great comparison is BestBuy and Circuit City, which are both click and mortar electronics retailers that have expanded into household appliances. BestBuy has integrated store pick-up, as does Circuit City, and both use a combination of TV, direct email advertising, and in store promotions to increase awareness, as well as appeal to direct sales. See http://www.bestbuy.com/ and http://www.circuitcity.com/
Lab activity
This week you will pay attention to all types of advertising in your daily life, including Internet, but the emphasis is on determining how businesses deliver marketing messages, and your thoughts about strategy. Keep track of the messages you hear, see, and read, and the multi channel approach. Can you decipher a brand, a value proposition, a call to action, and with Web and email advertising, a quick way to 'complete a transaction'?
|