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CHAPTER
IMPLEMENTING
INTERACTIVE
AND
MULTICHANNEL
MARKETING
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-1
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Describe what interactive marketing is
and how it creates customer value,
customer relationships, and customer
experiences.
2. Explain why certain types of products
and services are particularly suited for
interactive marketing.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-2
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
3. Describe why consumers shop and buy
online and how marketers influence
online purchasing behavior.
4. Define multichannel marketing and the
role of transactional and promotional
websites in reaching online consumers.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-3
ONE BIKE: YOURS
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-4
CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN MARKETSPACE
• Marketplace
• Marketspace
• Customer Value Creation in Marketspace
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-5
FIGURE 18-1 Trend in online shoppers and
online retail sales revenue in the United
States
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-6
FIGURE 18-1A Online shoppers in the
United States
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-7
FIGURE 18-1B Online retail sales revenue in
the United States
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-8
Godiva Chocolatier
What utility is created by its website?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-9
CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN MARKETSPACE
• Interactivity, Individuality, and
Customer Relationships in Marketspace
 Interactivity
 Interactive Marketing
 Choiceboards
• Collaborative Filtering
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-10
Nike iD
What is a choiceboard?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-11
CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN MARKETSPACE
• Interactivity, Individuality, and
Customer Relationships in Marketspace
 Personalization
 Permission Marketing
• Opt-In
• Opt-Out
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-12
CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN MARKETSPACE
• Creating an Online Customer Experience
 Context
 Communication
 Content
 Community
 Customization
 Commerce
 Connection
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-13
FIGURE 18-2 Website design elements that
drive customer experience
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-14
Harley-Davidson
What customer experience is created
by its website?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-15
Concept Check
1. The greatest marketspace opportunity
for marketers lies in the creation of
what kind of utility?
A: form utility
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-16
Concept Check
2. Companies produce a customer
experience through what seven
website design elements?
A: These design elements are: context,
content, community, customization,
communication, connection, and
commerce.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-17
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• Who is the Online Consumer
• What Online Consumers Buy
 Product Information
 Unique Items
 Audio/Video Demos
 Convenience Items
 Digital Items
 Standardized Items
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-18
FIGURE 18-3 Estimated online retail sales
by product/service category: 2003 and 2008
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-19
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• Why Consumers Shop and Buy Online
 Convenience
• Bots
 Choice
 Customization
• Customerization
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-20
FIGURE 18-4 Why consumers shop and buy
online
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-21
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• Why Consumers Shop and Buy Online
 Communication
• Marketer-to-Consumer
• Consumer-to-Marketer
• Consumer-to-Consumer
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-22
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• Why Consumers Shop and Buy Online
 Communication
• Web Communities
• Blog
• Spam
• Buzz
• Viral Marketing
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-23
De Beers and Physique
How did these firms apply viral marketing?
De Beers
Physique
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-24
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• Why Consumers Shop and Buy Online
 Cost
• Dynamic Pricing
 Control
• Portals
• Cookies
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-25
ONLINE CONSUMER BEHAVIOR
AND MARKETING PRACTICE
IN MARKETSPACE
• When and Where Online Consumers
Shop and Buy
 Monday - Friday
 Normal Work Hours
 Browse Rather Than Buy
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-26
Concept Check
1. What is viral marketing?
A: Viral marketing is an Internetenabled promotional strategy that
encourages individuals to forward
marketer-initiated messages to others
via e-mail.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-27
Concept Check
2. What are the six reasons consumers
prefer to shop and buy online?
A: convenience, choice, customization,
communication, cost, and control
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-28
MULTICHANNEL MARKETING
TO THE ONLINE CONSUMER
• Integrating and Leveraging Multiple
Channels with Multichannel Marketing
 Dual Distribution
 Multichannel Retailers
 Multichannel Marketing
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-29
MULTICHANNEL MARKETING
TO THE ONLINE CONSUMER
• Implementing Multichannel Marketing
 Multichannel Marketing with
Transactional Websites
• Channel Conflict
 Multichannel Marketing with
Promotional Websites
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-30
FIGURE 18-5 Implementing multichannel
marketing with promotional websites
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-31
Concept Check
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
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-32
Concept Check
2. Channel conflict between
manufacturers and retailers is likely
to arise when manufacturers use
transactional
__________ websites.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-33
GOING ONLINE
TRACKING TRENDS IN
INTERACTIVE MARKETING
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-34
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-35
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?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-36
VIDEO CASE 18
McFARLANE TOYS:
THE BEST OF INTERACTIVE
MARKETING
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-37
VIDEO CASE 18
McFarlane Toys
FIGURE 1 Toy category sales in the United
States (listed alphabetically)
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-38
VIDEO CASE 18
McFarlane Toys
1. Describe the channels of distribution
McFarlane Toys uses to reach its
action figure customers.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-39
VIDEO CASE 18
McFarlane Toys
2. Why have interactive marketing
strategies been successful for
McFarlane Toys? What unique
elements are part of its online
experience?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-40
VIDEO CASE 18
McFarlane Toys
3. How does McFarlane Toys address
each of the six C’s consumers
consider when shopping and buying
online?
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-41
SUPPLEMENTAL
LECTURE NOTE 18-1
JUST LOOKING, THANKS:
WHY E-SHOPPERS ABANDON
THEIR SHOPPING CARTS
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-42
IN-CLASS ACTIVITY 18-1
BUYING A
BMW Z4 ROADSTER:
MARKETPLACE VS.
MARKETSPACE (PART 1)
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-43
BMW Z4 Roadster Views
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-44
BMW Z4 Roadster TV Ad
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-45
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-46
BMW Z4 Roadster Promotional E-Mail
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-47
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-48
IN-CLASS ACTIVITY 18-2
BUYING A
BMW Z4 ROADSTER:
BUILD YOUR BMW (PART 2)
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-49
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-50
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-51
Collaborative Filtering
Collaborative filtering is a process that
automatically groups people with similar
buying intentions, preferences, and
behaviors and predicts future purchases.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-52
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-53
Permission Marketing
Permission marketing is the solicitation
of a consumer’s consent (called “opt-in”)
to receive e-mail and advertising based on
personal data supplied by the consumer.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-54
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-55
Bots
Bots are electronic shopping agents or
robots that comb websites to compare
prices and product or service features.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-56
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-57
Web Communities
Web communities are websites that
allow people to congregate online and
exchange views on topics of common
interest.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-58
Spam
Spam is communications that take the
form of electronic junk mail or
unsolicited e-mail.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-59
Viral Marketing
Viral marketing is an Internet-enabled
promotional strategy that encourages
individuals to forward marketer-initiated
messages to others via e-mail.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-60
Dynamic Pricing
Dynamic pricing is the practice of
changing prices for products and services
in real time in response to supply and
demand conditions.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-61
Portals
Portals are electronic gateways to the
Internet that supply a broad array of news
and entertainment, information resources,
and shopping services.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-62
Cookies
Cookies are computer files that a
marketer can download onto the computer
of an online shopper who visits the
marketer’s website.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-63
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.
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Slide 18-64