Ch 17_NEW! Mini Sim_Online Marketing

Search Engine or Portal

Baidu, founded in 2000, is one of the most popular search engines in China.

Content Site

Coffeeandhealth.org is a content site that provides its users with information focusing on a specific topic.

E- Tailer

Drugstore.com is an e-tailer, which is a retailer that operates only online.

Online Social Media

Flixter.com is a niche social media site that facilitates user-generated content and peer communication.

Up until this point, the owners have felt that creating a website was an unnecessary expense because you can't sell lattes online. However, you know that the first step in online marketing is often the creation of a website, and you feel that Caffè Gustoso would benefit from an online presence. As a first step, you need to decide what type of website to create: a marketing website designed to engage consumers and promote a marketing outcome or a branded community website designed to engage consumers and create a customer-brand community.

Marketing website: Design CaffeGustoso.com to focus on providing information about its products and new locations to promote its offline sales.

Before Caffè Gustoso's owners can develop a marketing plan for the new store, they need to decide how to expand. To keep the market expansion manageable, they have decided to limit the potential locations to the Chicago suburbs. However, they don't know which suburb to target. The profile of Caffè Gustoso's current downtown customer is as follows: Total population: 39,404 Average household income: $121,000 Average household expenditures: $81,000 In their 20s and 30s: 53% White collar employment: 73.3% Bachelor's degree or higher: 79.1% Married: 49.3% Households without children: 78% The owners have collected data on three potential markets presented in the market analysis report shown here and want your feedback. Which of the Chicago suburbs is the best target for Caffè Gustoso's planned market development?

Naperville

The owners and you meet up at the cafe to discuss the last element you recommend for Caffè Gustoso's online marketing plan: social media. They share their concerns with you. "It seems that everyone is using social media these days, but it's unclear to us as to what the marketing goal of social media really is. We want to spend our limited budget on marketing that produces results, and we just don't understand what social media can do for us. What is your goal for the social media campaign?"

Online brand engagement: The goal for the social media campaign is to create online brand engagement.

After you recommend expanding to Naperville, you and Caffè Gustoso's owners start discussing your plans for marketing the new location. The owners first want to know what type of media you plan on primarily using for your campaign: traditional media such as television, print, radio, and direct mail or online media such as websites, email, online advertising, and social media? The owners see pros and cons with both types of media and need your help to decide -- keeping in mind Caffè Gustoso's goals and financial constraints.

Online media: website, email, online advertising, social media

Email marketing, the online counterpart of direct mail marketing, can be a highly personalized, very targeted means of communication. With its very low cost and wide reach, you feel that email marketing must play a major role in Caffè Gustoso's online advertising campaign. The owners want to send as many emails as possible to potential customers. However, before you send out the first email, you have to choose an email permission strategy.

Opt-in: Request the consumer's permission before sending any Caffè Gustoso email correspondence.

You sit down with Caffe Gustoso's owners to discuss your online advertising plans. You tell the owners that if they decide to incorporate search marketing into the plan, there are three primary payment options: pay per action, pay per click, and pay per view. Search engines favor pay per view because they earn income each time the ad is displayed to the consumer, whereas pay per click generates income for the search engine only when the ad is actually clicked on. Pay per action generates search engine income based on an action such as a purchase. Search engines often provide preferred placement to ads that generate the most income. Which form of payment would you recommend for Caffè Gustoso's search marketing?

Pay per click: Pay the search engine when consumers click on the search ad that leads them to CaffèGustoso.com.

With a plan for Caffè Gustoso's website in place, you turn your attention to online advertising. Although the choices seem endless, Caffè Gustoso's small budget requires that you limit your spending as much as possible. You narrow your list down to your top three online advertising choices: search advertising, online display (banner) ads, and website sponsorship. Which form of online advertising would be most useful for driving traffic to Caffè Gustoso's new locations?

Search advertising: Pay to have Caffè Gustoso's image-based ads appear along with search results for coffee houses.

Your next online advertising recommendation includes posting digital videos on branded websites and on social media sites. You ask the owners to create a series of entertaining, informative videos to deepen consumer engagement with coffee and promote the new Caffè Gustoso locations. The owners are skeptical about this recommendation and want to know how you plan on measuring the success of the videos. Which metric do you recommend to measure the success of the video marketing campaign?

Word of mouth: To quantify the success of the video marketing campaign, you count the number of times Caffè Gustoso's videos are shared to estimate word of mouth.