kerinmarketing21

AFTER READING THIS CHAPTER

YOU SHOULD BE ABLE TO:

•Understand what interactive marketing is and how it creates customer value, customer relationships, and customer experiences in the new marketspace.

•

•Identify the demographic and lifestyle profile of online customers.

•Explain why certain types of products and services are particularly suited for interactive marketing.

•

•Describe why consumers shop and buy online and how marketers influence online purchasing behavior.

•Distinguish between the use of multiple channels and multichannel marketing in reaching online consumers.

•

•Recognize the different roles played by transactional websites and promotional websites in multichannel marketing.

IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING

ANYTIME, ANYWHERE, ANYWAY:

THE NEW MARKETING MANTRA

Interactive Marketing

Two-way buyer-seller electronic communications in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN THE NEW MARKETSPACE

FIGURE 21-1 The 10-year trend in Internet/Web users

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN THE NEW MARKETSPACE

•Customer Value Creation in Market-space

•Interactivity, Individuality, and Customer Relationships in Marketspace

•Choiceboards
§Collaborative filtering
•Personalization
§Permission marketing

An interactive, Internet/Web-enabled system that allows individual customers to design their own products and services.

Collaborative Filtering

A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.

The consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences.

Permission Marketing

The solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer.

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN THE NEW MARKETSPACE

Creating an Online Customer Experience

Customer Experience

The sum total of interactions that a customer has with a company’s website.

FIGURE 21-2 Website design elements that drive customer experience

1. The greatest marketspace opportunity for marketers lies in the creation of what kind of utility?

A: Form utility

2. The consumer-initiated practice of generating content on a marketer’s website that is customer tailored to an individual’s specific needs and preferences is called _____________.

A: personalization

3. Companies produce a customer experience through what seven website design elements?

A: Context, content, community, customization, communication, connection, and commerce

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN CYBERSPACE

•The Online Consumer

•Profiling the Online Consumer

Online Consumers

The subsegment of all Internet/web users who employ this technology to research products and services and make purchases.

FIGURE 21-3 Internet access in the U.S

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN CYBERSPACE

•The Online Consumer (cont)
•Online Consumer Lifestyle Segmentation
•What Online Consumers Buy

FIGURE 21-4 Online consumer sales by product/service category: 2001 and 2005

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN CYBERSPACE

•Why Consumers Shop and Buy Online

FIGURE 21-5 Why consumers shop and buy online

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN CYBERSPACE

•Why Consumers Shop and Buy Online (cont)

•Convenience
§Bots
§Eight-second rule
•Choice
•Customization
§Customerization

•Communication

§Web communities
§Spam
§Viral marketing

•Cost

§Dynamic pricing

•Control

§Portals
§Cookies

Electronic shopping agents or robots that comb websites to compare prices and product or service features.

Eight-second rule

Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.

The growing practice of customizing not only a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.

Websites that allow people to congregate online and exchange views on topics of common interest.

Electronic junk mail or unsolicited e-mail.

An Internet/Web-enabled promotional strategy that encourages users to forward marketer-initiated messages to others via e-mail.

The practice of changing prices for products and services in real time in response to supply and demand conditions.

Electronic gateways to the World Wide Web that supply a broad array of news and entertainment, information resources, and shopping services.

Computer files that a market can download onto the computer of an online shopper who visits the marketer’s website.

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN CYBERSPACE

When and Where Online Consumers Shop and Buy

1. What is the eight-second rule?

A: Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.

2. Which online consumer lifestyle segment spends the most money online and which spends the most time online?

A: Brand loyalists spend the most money online. The hooked, online, and single segment spends the most time online.

3. What are the six reasons consumers prefer to shop and buy online?

A: Convenience, cost, choice, customization, communication, and control

MULTICHANNEL MARKETING
TO THE ONLINE CONSUMER

•Integrating and Leveraging Multiple Channels with Multichannel Marketing

•Implementing Multichannel Marketing

•Multichannel Marketing with Transactional Websites
•Multichannel Marketing with Promotional Websites

Multichannel Marketing

The blending of different communications and delivery channels that are usually reinforcing in attracting, retaining, and building relationships with customers.

FIGURE 21-6 Implementing multichannel marketing with promotional websites

1. Multichannel marketing is:

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and marketspace.

2. Channel conflict between manufacturers and retailers is likely to arise when manufacturers use ___________ websites.

A: transactional

Chapter 21 - Summary

Consumers and companies populate two market environments today-the traditional marketplace and the new marketspace. A company's marketspace success hinges largely on designing and executing a marketing program that capitalizes on the unique value-creation capabilities of Internet/Web technology.
Internet/Web technology creates time, place, form, and possession utility in novel ways, resulting in customer value.
Marketers benefit from two unique capabilities of Internet/ Web-enabled technology that create customer relationships-interactivity and individuality-which make interactive marketing possible. Interactive marketing, in turn, is characterized by choiceboard and personalization systems that transform information supplied by customers into customized responses to their individual needs.
Customer experience is the standard by which a meaningful marketspace presence is measured and produced through seven website elements: context, content, community, customization, communication, connection, and commerce.
Online consumers represent a segment of all Internet/Web users, differ demographically from the general population, and exhibit distinct lifestyle and spending profiles. Six general product and service categories are bought by online consumers. However, travel reservations, computer hardware and consumer electronics, media, and clothing and accessories account for the majority of consumer purchases.
Consumers refer to six reasons they shop and buy online: convenience, cost, choice, customization, communication, and control. Marketers capitalize on these reasons using a variety of approaches including electronic shopping agents (bots), web communities, viral marketing, and dynamic pricing. However, consumers are concerned about electronic junk mail (spam) and online privacy and security.
The prevalence of consumer shopping online and buying in retail stores has made multichannel marketing popular. Multichannel marketing is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and marketspace.
Not all companies approach multichannel marketing the same way. A major difference in approach is the use of transactional websites and promotional websites.

Chapter 21

Marketing: Implementing Interactive and Multi-Channel Marketing