Promotion in the Internet Marketing Mix

Napster: New Tune; Same Chorus?

2006-05-02T21:02:00.000-04:00

The following article was found on the BusinessWeek website.

Chris Gorog, CEO of the music website we all know as Napster, has decided not to give up on his dream of creating a digital-music powerhouse. In the late 1990’s, as most of us remember, the words Napster and online piracy went hand in hand. Since then no one has much hope that Napster will survive, but Chris Gorog is eager to prove everyone wrong.

Similar to EBay, Napster has chosen to do everything in their power to please customers in hopes that they will increase brand awareness and raise sales. Napster is offering a new version of software that allows users to listen to any song out of their 2 million song collection, as long as they don’t listen to it more than five times. The company has taken this step in order to satisfy the target market. Gorog is aware of the reputation Napster holds, and wants to begin changing their image. By attracting consumers to their website, they hope that a good majority of these users will subscribe to Napster.

I believe that this is a step in the right direction for the business. By attracting new computer users to the website, people will begin relying on Napster like they once had in the past. I think an important issue for Napster is to get rid of their bad reputation. I, along with many other people, associate Napster with illegally downloading music. It would be very helpful for the company to liberate themselves from this image. Napster already has brand awareness online which is an advantage. However, the company must maintain and protect this brand. They should make customers feel as if they are a website that can always be relied on and trusted. Another benefit is that Napster has a solid domain name (napster.com) which they purchased almost one decade ago. The only main advice I have for Napster is to continue promoting the new software on the Internet. Also, try to advertise the company in a positive light, so that consumers forget about the troubles the business has experienced in the past.

Nine Jobs for New Grads in 2006

2006-04-26T08:58:00.000-04:00

For those of you who have been commenting to my blogs, I thought you might like to take a quick look at this article. The reading lists the top nine jobs for new graduates in 2006 along with an estimated starting salary. It seems that employers are expecting to hire 14.5% more new college grads this year than last year. Also, new grads are expected to earn a higher starting salary. This is all great news for most of us! One of the top jobs listed is an entry-level management position in marketing or adminstration. The estimated starting salary is $38,790. You can check out the rest of the list if you click on the article.

EBay's Bid for Impatient Shoppers

2006-04-25T22:17:00.000-04:00

The following article was found on the BusinessWeek website.

EBay has always been a company that is best known for its online auctions. The business has always done a tremendous job satisfying the needs and wants of their customers. However, in recent months EBay has received complaints that the payment registration process is too time-consuming. In order to keep the company’s prestige reputation, EBay decided to launch an entirely new e-commerce site for busy consumers who just want to click and buy. EBay Express will show the fixed price listings along with detailed pictures of the products.

EBay sells a variety of products on their website, so it is crucial that they understand how to successfully market to consumers. By creating EBay Express, the company is doing what they have to in order to continue to attract all those customers who wanted to purchase items quickly. Unlike EBay’s old plain vanilla listings, EBay Express has picture-rich designs along with descriptions. The company has learned as time goes by and technology becomes more advanced, promotional strategies must change. Businesses like EBay realize that they must continue altering the ways in which they promote products to the target market. When companies do this, the items seem new and fresh to consumers and the ultimate ideas are to increase sales and please customers. After seeing the benefits of the new addition, EBay Express, it is obvious that EBay is doing just that.

In my opinion, I think that this is a great idea! I have actually never purchased something on EBay before, but if I were to go about doing it I would not want to deal with an online auction. When I purchase products online, I want to know at that very moment if I got the item, how much it was, and when it will be delivered. EBay Express answers these questions. I think the website will become very popular very quickly.

Extra Credit - Google Article

2006-04-24T11:52:00.000-04:00

Where will Google be in the future? This is the question presented in the article asking readers to imagine where the multi-billion dollar company will be in next few decades. While the Internet is becoming more popular throughout the world, I cannot imagine Google dying down in the future. If anything, I believe as more companies turn to online promotion and the World Wide Web becomes accepted in all countries, Google will only have continued success in the years to come.

The scenario that I think is most likely to occur would be “Google is the Internet.” I feel that the company will definitely not fall apart in the future which eliminates the Google is dead scenario, and the other two situations are a bit unrealistic in my opinion. Google becoming the Internet seems to be the most practical case because if you think about all the company has done over the last few years, it will not be surprising if Google continues to take over the Web. For example, the business started out as a simple search engine and over the years developed programs like G-mail and became a main site for advertisements. I think as the years go by, the world can only expect much more from Google!

Poll: Web Plays Bigger Role in Life Decisions

2006-04-19T23:41:00.000-04:00

After posting blogs in reference to promotion in the Internet marketing mix, I found this article to do a successful job of summarizing the real reasons why advertising online is so important. The CNN article titled “Poll: Web plays bigger role in life decisions” states that the Internet is becoming increasingly vital in users’ everyday lives. The poll showed that 45 percent of Internet users, or an estimated 60 million Americans, said the Internet helped them make big decisions. These results show the growing number of people who are relying on the Web for information.

There are millions of Americans who are shopping online for a variety of products. Businesses who have already realized the significance of Internet promotion have a competitive advantage over those companies who are still using the traditional methods of advertising. For example, 16 million Americans use the Internet when buying a car. This should be a clear signal that car dealerships along with auto-mechanics, car repairmen, and other workers who are involved in the car industry should look to advertise their businesses and products on the Web. The growing number of Internet users who are searching for product information online will be persuaded to lean more towards using a business whose ads they see constantly popping up on their computer screen. These pop-up ads may seem annoying or insignificant, but they are really serving a purpose. The ads advertise the company’s name, ultimately increasing awareness among consumers.

This article caught my attention because it gives specific statistics which show the importance of promotion on the Internet. While I have previously written about different companies who have began advertising online, this article has gone in a different direction. I feel it shows those companies who have yet to adopt online promotion, that advertising on the Web is not just a phase. The bottom line is that millions of Americans are turning to the Internet to purchase products or find reliable businesses, so it is crucial for companies to begin advertising online.

Now Playing on Your Cell Phone

2006-04-13T13:00:00.000-04:00

The news article I chose this week presents the new advertising idea of mobile-marketing. Advertisers believe that this form of marketing will ultimately change the way wireless service providers and their vendors do business. So far, mobile-marketing has been extremely successful among the target market. For example, the Discovery Channel began offering prizes, free ringtones, and weekly trivia questions through short text messages to subscribers of the country’s largest mobile phone companies. I was surprised to read that over 15,000 people signed up for these rewards.

As mobile-marketing continues to grow, I question whether it will be a successful advertising method in the future. Personally I would not want to be bothered with ads on my cell phone. The article stated that 80% of mobile users were adamant about not wanting any ads at all. I think if advertisers continue to push for mobile-marketing, it may just anger customers and eventually turn them away from the company. If businesses contacted consumers through the radio, newspaper, or Internet, and gave them the option to sign up for mobile ads, then this is a different story. I feel as if companies should have the consent of mobile users before placing ads on their cell phone. A successful example of mobile-marketing would be McDonalds. The company incorporated a special SMS code into fifty million Big Mac packages. Consumers could dial the code on their mobiles for a chance to win free concert tickets. McDonalds found the marketing strategy to increase sales by 3%. I believe that mobile-marketing, like McDonalds has done, is a successful way of pleasing both businesses and consumers. The company is able to mobile-marketing which leads to an increase in sales, while the consumers are not being forced to view ads on their cell phones. Customers are given the choice to participate in the marketing plan through the possible chance of winning prizes; however they still have the option of not participating at all.

Hollywood to Sell Movies Online

2006-04-05T20:57:00.000-04:00

This article was found on the CNN website.

Just this past Monday, Hollywood studios announced that they will begin selling digital versions of films such as "Brokeback Mountain" and "King Kong" on the Internet. The companies have found that many consumers are turning to the Internet for entertainment. Studios realize that it will be to their own benefit to promote new films online. The movies will be provided through a download website called Movielink. The films will be priced the same as if they were in stores, so the studios will not be losing any money. The discs are able to be played on up to three PCs authorized by Movielink but cannot be viewed by a standard DVD player. A special security coding forbids the films to be played on regular DVD players. This is essential because of the increasing problem with illegally copying and distributing films.

I think that Movielink is a great idea for those consumers who are movie fanatics along with extreme Internet users. Realistically, if the price is going to be the same I would probably choose to buy a hard copy of the DVD rather than the right to download the film on my computer. However, if I had a laptop and traveled a lot, then Movielink would be very helpful. It allows consumers to simply store all films on one computer without having the hassle of bringing along cases of DVDs.

In my opinion, Hollywood studios is doing a successful job of satisfying customers’ wants and needs by providing films on the Internet. However, as of right now the Movielink target market is still somewhat small and may not produce the profits Hollywood studios want.

Nike, Google Kick Off Social Networking Site

2006-03-22T21:23:00.000-05:00

The artilce was found on Business Week Online: Nike, Google Kick Off Social Networking Site.

Nike and Google have teamed up to form the first invitation-only website for soccer fans around the world. Joga.com is a social networking site that became live late last week. Soccer fans in over 140 countries are able to communicate with one another about all things related to soccer such as players, equipment, games, and so on. The spokesperson for Nike states that management realizes they must reinvent the way the company connects with customers. Nike’s primary target market has been young males in the past. Studies have shown that these males are increasingly getting information from digital sources. Nike hopes that Joga.com will attract young soccer consumers as well. As we learned in class, there are a rising number of teenagers using the Web. It was a wise business decision for the companies to focus their target markets on two broad groups which have been relying on the Internet more and more each day.

As we all know social networking sites have become very popular in recent months. We have all seen the success of websites such as Facebook and MySpace. Nike and Google have seen the success of these sites as well, and are using this knowledge to benefit their companies. While I think it is a great idea for these companies to provide the world with an invite-only social networking website for soccer fans, I do question the companies’ true motives. Obviously, all businesses focus on making a profit, but I feel that Nike may be setting this site up solely to increase brand awareness on the Internet. The article states that customers are weary this new social networking site may just be a marketing strategy for Nike and Google. For example, consumers will receive an invite-only email to join the Joga.com website and chat with others about soccer games. However, during this time the chances that the consumer will be bombarded with new Nike products or Google advertisements will be very high I’m sure. Overall, being a huge soccer fan myself, I do think the website sounds interesting. However, I do not believe Joga.com will become as successful as these two companies hope.

More Agencies Investing in Marketing With a Click

2006-03-15T13:59:00.000-05:00

This article summarizes many of the issues that we have been discussing in class. The overall idea of the reading explains that agencies along with their parent companies are increasing online investments. Businesses are spending more money on what is known as search marketing or search engine marketing than they are for traditional advertising in media like television and newspapers. Search marketing is characterized by the text ads that are shown next to the results from online searches. Marketers must pay for the rights to have ads appear when Internet users type in key words.

David Hallerman, a senior analyst at a research company in New York explained it well when he quoted, “At first marketers were burned at the beginning of the decade by the dot-com bust, and now they have seen how effective it is.” The research company totaled ad revenues of $5.1 billion in 2005 from search engine marketing alone. Other businesses should learn from this company, and realize the profit that search marketing brings in.

There are an overwhelming number of computer users who turn to search engines like Google and Yahoo in order to find the topic they are looking for. I believe that it is a wise business decision for marketers to invest in search engine marketing. In my personal experience, I use Google at least twice a day to find information. Once the website is brought up, I will most likely click on the sites listed at the top of the page. It is beneficial for companies to pay more money for these top spots on a website. They will have a better chance of attracting customers and increasing brand awareness.

Teaching Students to Develop a Web Site as a Tool for Marketing Pharmaceutical Care Services

2006-03-07T21:41:00.000-05:00

I found the following article: Teaching Students to Develop a Web Site as a Tool for Marketing Pharmaceutical Care Services to be very interesting. In previous weeks, I have posted blogs that were written by reporters who were only talking about certain websites or companies that were getting involved with online marketing. This week I chose an article that was actually written by three professors who worked in the department of pharmacy care systems at Auburn University.

The professors focus on the significance of promoting the upcoming pharmaceutical care products and services on the Internet. I think this article really helped me realize that it is not only major business corporations that understand the importance of online promotion, but in fact all businesses are beginning to recognize that marketing on the World Wide Web is vital. The professors agree that because technology is advancing so quickly and the Internet will soon be in all companies’ marketing plans, that it is necessary for students to start learning in the classroom how to market products online. In my personal opinion, I truly do believe that the handful of classes I have taken at Delaware that specifically dealt with online marketing, have really helped me become more confident and comfortable with the Internet (and computers in general). I feel that growing up in a decade where technology is the new way of life, it is so vital that students learn how to do a variety of tasks on the Internet. Companies are now looking for potential employees who will know how to improve their marketing strategies online. If you are not familiar with working with the Internet, it could cost you a job, or even many jobs. As stated before, Internet marketing jobs are continuing to increase as computers become more and more critical in our culture. I agree with these three professors and believe that students should be taught the ways of Internet marketing; it will only help them and their companies in the future.

NexTag in the News

2006-02-26T11:49:00.000-05:00

The article was taken from CNN. The website address is: NexTag

Many companies have been turning to a website called NexTag.com in order to attract consumers to their online businesses by listing products on the site’s comparison shopping service. There are more than eleven million shoppers who use NexTag’s service every month to find the best places to buy products. If a company chooses to sign up with NexTag, the website will promote their products and send consumers to their homepage. This website has helped companies overcome the challenges of online marketing by creating a simple site devoted to listing businesses and their products.
A website like NexTag is very beneficial for many consumers. First, there are the customers who are concerned about price. By logging on to NexTag, shoppers can easily see which products are cheapest. Second, there are the consumers who focus more on quality. These shoppers can make use of the website as well, by viewing which products are rated as most effective and efficient. The website brings in a larger target market because it attracts a variety of customers who all have different needs.
I personally have never used a website similar to NexTag, however I can see why it is growing so rapidly. While the Internet is becoming more popular, we know that more customers are beginning to shop online. So why wouldn’t you use NexTag before purchasing a product online? It only takes a few seconds to log onto the website and find whether the product you wish to buy is a high quality offer priced correctly. The information you receive from the site will then directly connect you to a company’s homepage. Businesses are realizing that more shoppers are starting to use NexTag, so it would be a wise business maneuver to use the website as a promotion tool.

Online Globalization: Sink or Swim

2006-02-20T20:36:00.000-05:00

Over the years, online globalization has become a major competitive advantage for most businesses. Companies have found that promoting their products online is not only effective but efficient as well. Consumers in countries all around the world are able to view products easily on the Internet.

Think for one second about the experiences you have had shopping on the Internet. Personally, I was very hesitant about ordering products online. Both of my parents never found it necessary to buy things on the Internet, so I feel that their opinions may have rubbed off on me. However when I came to college and did not have a car my freshmen year, I was forced to turn to Internet shopping. I realized how simple it was to order products while saving so much time! I told my parents how easy and great it was, so they decided to give it a try. From that point on, when I was looking for something specific I would get on the Internet. It has made my life along with my parents much easier.

I think that a lot of people cannot get used to the idea of shopping online. Like my parents, people are afraid to reveal credit card numbers or personal information on the Internet. As Anu said, “If you can’t trust the Web, it is never going to work for you.” Most people do not realize that typing information on the Internet is more secure than giving your credit card number over the phone. Those people, who are still cautious about shopping online, should start trusting the system. Once they give it a try, I can guarantee they won’t regret it!

MySpace is the Place

2006-02-13T16:20:00.000-05:00

MySpace really is the place to go on the Internet. Only two years old, MySpace has quickly become the number one social-networking site. I have yet to create an account with MySpace, but from the article I am confident that the website will only continue to grow in the future. Just look at how fast facebook.com became popular. While sites like Facebook and Friendster are aimed at a younger college crowd where the main purpose it to find and make friends, MySpace provides much more. On MySpace users are able to find classmates or alumni, rate professors, play games, view classified ads, send party invitations, and take fun quizzes. In recent months MySpace has become a major tool for promoting music groups.

Members of the band Great Lakes Myth Society use MySpace.com to promote their music. “It's like being at a giant music conference 24 hours a day every day," said Greg McIntosh, guitarist for the Michigan-based music group. MySpace has become a great way to advertise bands, comedians, and even businesses. After reading this article, I decided to make my first visit to MySpace to see how many people really use the website for promotion. I was amazed with the results I found.

MySpace has an unlimited number of new musicians who are trying to get their music known. On the top left corner of the website, there is a space where you are able to search for the type of music you want to find. You can then look at pictures of the artists along with listening to their music. I believe that MySpace is a great way to promote music, because the website has numerous visitors of all ages. For solo artists and bands, it is a cheap and efficient way to have the public view their music.

A little bit about myself...

2006-02-12T14:13:00.000-05:00

My name is Lindsay Boyd and I am currently a senior at the University of Delaware. I am setting up this blog in order to complete a requirement for my BUAD477 Information Technology Applications in Marketing course. I am excited about this project because it will be the first time I have worked with blogs.

The topic that I will be focusing on in each of my blogs is Promotion in the Internet Marketing Mix. I will submit articles relating to my blog topic weekly, and then post my response to the article.