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2. IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING
CHAPTER
IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING
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3. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences.
Identify the demographic and lifestyle profile of online consumers.
Explain why certain types of products and services are particularly suited for interactive marketing.
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4. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Describe why consumers shop and buy online and how marketers influence online purchasing behavior.
Define multichannel marketing and the role of transactional and promotional websites in reaching online consumers.
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5. REFLECT.COM: CREATING CUSTOMIZED COSMETICS
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6. CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
Marketplace
Marketspace
Customer Value Creation in Marketspace
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7. FIGURE 21-1 Trend in online shoppers and online retail sales revenue in the United States
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8. FIGURE 21-1A Online shoppers in the United States
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9. FIGURE 21-1B Online retail sales revenue in the United States
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10. Godiva Chocolatier What utility is created by its website?
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11. CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
Interactivity, Individuality, and Customer Relationships in Marketspace
Interactivity
Interactive Marketing
Choiceboards
Collaborative Filtering
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12. Interactivity and Individuality— Your Nike iD Customized Product?
WEB LINK
Interactivity and Individuality— Your Nike iD Customized Product?
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13. CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
Interactivity, Individuality, and Customer Relationships in Marketspace
Personalization
Permission Marketing
Opt-In
Opt-Out
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14. CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
Creating an Online Customer Experience
Context
Communication
Content
Community
Customization
Commerce
Connection
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15. FIGURE 21-2 Website design elements that drive customer experience
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16. Harley-Davidson What customer experience is created by its website?
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17. Concept Check
1. The greatest marketspace opportunity for marketers lies in the creation of what kind of utility?
A: form utility
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18. Concept Check
2. The consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences is called ____________.
personalization
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19. Concept Check
3. Companies produce a customer experience through what seven website design elements?
A: These design elements are: context, content, community, customization, communication, connection, and commerce.
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20. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Profiling the Online Consumer
Online Consumer Lifestyle Segmentation
Click-and-Mortar
Time-Sensitive Materialists
Hunter-Gatherers
Hooked, Online, & Single
Brand Loyalists
Ebivalent Newbies
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21. FIGURE 21-3 Internet access at home among U.S. households
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22. FIGURE 21-3A Internet access at home among U.S. households
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23. FIGURE 21-3B Internet access at home among U.S. households
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24. FIGURE 21-3C Internet access at home among U.S. households
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25. FIGURE 21-3D Internet access at home among U.S. households
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26. Meet Today’s Internet Mom— All 31 Million!
MARKETING NEWSNET
Meet Today’s Internet Mom— All 31 Million!
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27. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
What Online Consumers Buy
Product Information
Unique Items
Audio/Video Demos
Regular & Convenient Items
Delivered Digitally
Standard Items/Price
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28. FIGURE 21-4 Online consumer retail sales by product/service category: 2003 and 2007
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29. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Why Consumers Shop and Buy Online
Convenience
Bots
Eight-Second Rule
Choice
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30. FIGURE 21-5 Why consumers shop and buy online
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31. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Why Consumers Shop and Buy Online
Customization
Customization
Customerization
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32. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Why Consumers Shop and Buy Online
Communication
Marketer-to-Consumer
Consumer-to-Marketer
Consumer-to-Consumer
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33. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Why Consumers Shop and Buy Online
Communication
Web Communities
Blog
Spam
Buzz
Viral Marketing
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34. De Beers How did these firms apply viral marketing?
Physique
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35. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
Why Consumers Shop and Buy Online
Cost
Dynamic Pricing
Control
Portals
Cookies
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36. ETHICS AND SOCIAL RESPONSIBILITY ALERT
Sweet and Sour Cookies in the New Marketspace
Privacy Alliance
TRUSTe
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37. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
The Online Consumer
When and Where Consumers Shop and Buy Online
Monday - Friday
Normal Work Hours
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38. 1. What is the eight-second rule?
Concept Check
1. What is the eight-second rule?
A: The eight-second rule is a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
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39. Concept Check
2. Which online consumer lifestyle segment spends the most money online and which spends the most time online?
A: The “brand loyalists” segment spends the most money online whereas the “hooked, online, and single” segment spends more time online.
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40. 3. What are the six reasons consumers prefer to shop and buy online?
Concept Check
3. What are the six reasons consumers prefer to shop and buy online?
A: convenience, choice, customization, communication, cost, and control
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41. MULTICHANNEL MARKETING TO THE ONLINE CONSUMER
Integrating and Leveraging Multiple Channels with Multichannel Marketing
Dual Distribution
Multichannel Retailers
Multichannel Marketing
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42. The Multichannel Marketing Multiplier
MARKETING NEWSNET
The Multichannel Marketing Multiplier
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43. MULTICHANNEL MARKETING TO THE ONLINE CONSUMER
Implementing Multichannel Marketing
Multichannel Marketing with Transactional Websites
Channel Conflict
Multichannel Marketing with Promotional Websites
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44. FIGURE 21-6 Implementing multichannel marketing with promotional websites
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45. 1. Multichannel marketing is _______.
Concept Check
1. Multichannel marketing is _______.
the blending of different communi- cation 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
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46. Concept Check
2. Channel conflict between manufacturers and retailers is likely to arise when manufacturers use __________ websites.
transactional
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47. TRACKING TRENDS IN INTERACTIVE MARKETING
GOING ONLINE
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48. Going Online
1. Visit the Clickz website, then click the “Stats” link. Your assignment is as follows: Choose a topic covered in the chapter that interests you, such as the demographics of Internet users. Compare and contrast the most recent research published in Clickz.com with information contained in the chapter. Don’t be surprised if you find differences.
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49. Going Online
2. Choose two regions of the world, such as North America and Europe. How do Internet usage and interactive marketing differ between the two regions based on the most recent research?
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50. SUPPLEMENTAL LECTURE NOTE 21-1
JUST LOOKING, THANKS: WHY E-SHOPPERS ABANDON THEIR SHOPPING CARTS
SUPPLEMENTAL LECTURE NOTE 21-1
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51. SUPPLEMENTAL LECTURE NOTE 21-2
CLICK AND DRIVE: LEVERAGING MULTICHANNEL MARKETING
SUPPLEMENTAL LECTURE NOTE 21-2
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52. McFARLANE TOYS: THE BEST OF INTERACTIVE MARKETING
VIDEO CASE 21
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53. VIDEO CASE 21 McFarlane Toys
FIGURE 1 Toy category sales in the United States (listed alphabetically)
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54. VIDEO CASE 21
McFarlane Toys
1. Describe the channels of distribution McFarlane Toys uses to reach its action figure customers.
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55. VIDEO CASE 21
McFarlane Toys
2. Why have interactive marketing strategies been successful for McFarlane Toys? What unique elements are part of its online experience?
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56. VIDEO CASE 21
McFarlane Toys
3. How does McFarlane Toys address each of the six C’s consumers consider when shopping and buying online?
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57. CRATE AND BARREL: MULTICHANNEL MARKETING
APPENDIX D CASE D-21
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58. APPENDIX D CASE D-21
Crate and Barrel
1. How does Crate and Barrel facilitate consumer purchases with its multichannel strategy?
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59. APPENDIX D CASE D-21
Crate and Barrel
2. What are the six Cs of e-commerce, and how does Crate and Barrel address each of these?
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60. APPENDIX D CASE D-21
Crate and Barrel
3. Given that all of its major competitors also attempt to utilize multiple channels, in what ways could Crate and Barrel create a competitive advantage for itself with its multichannel strategy?
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61. Interactive Marketing
Interactive marketing involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
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62. Choiceboard
A choiceboard is an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options.
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63. Collaborative Filtering
Collaborative filtering is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
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64. Personalization
Personalization is the consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences.
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65. Permission Marketing
Permission marketing is the solicitation of a consumer’s consent (called “opt-in”) to receive and advertising based on personal data supplied by the consumer.
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66. Customer Experience
Customer experience is the sum total of the interactions that a customer has with a company’s website, from the initial look at a home page through the entire purchase decision process.
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67. Online Consumers
Online consumers are the subsegment of all Internet users who employ this technology to research products and services and make purchases.
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68. Bots
Bots are electronic shopping agents or robots that comb websites to compare prices and product or service features.
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69. Eight-Second Rule
The eight-second rule a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
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70. Customerization
Customerization is the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.
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71. Web Communities
Web communities are websites that allow people to congregate online and exchange views on topics of common interest.
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72. Blog
A blog is a webpage that serves as a publicly accessible personal journal for an individual.
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73. Spam
Spam is communications that take the form of electronic junk mail or unsolicited .
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74. Viral Marketing
Viral marketing is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via .
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75. Dynamic Pricing
Dynamic pricing is the practice of changing prices for products and services in real time in response to supply and demand conditions.
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76. Portals
Portals are electronic gateways to the Internet that supply a broad array of news and entertainment, information resources, and shopping services.
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77. Cookies
Cookies are computer files that a marketer can download onto the computer of an online shopper who visits the marketer’s website.
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78. Multichannel Marketing
Multichannel marketing consists of 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.
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