Download ch21 - Cal State LA - Instructional Web Server

McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO:
LO1
LO2
LO3
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.
21-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO:
LO4
LO5
Describe why consumers shop and
buy online and how marketers
influence online purchasing behavior.
Define cross-channel shoppers and the
role of transactional and promotional
websites in reaching these shoppers.
21-3
SEVEN CYCLES: ONE BIKE, YOURS
21-4
CREATING CUSTOMER VALUE, RELATIONSHIPS,
LO1
AND EXPERIENCES IN MARKETSPACE
CUSTOMER VALUE CREATION IN MARKETSPACE

Marketplace

Marketspace
• Possession Utility
• Form Utility
21-5
FIGURE 21-1 Trend in online shoppers and
online retail sales revenue in the U.S.
21-6
FIGURE 21-1A Trend in online shoppers in
the U.S.
21-7
FIGURE 21-1B Trend in online retail sales
revenue in the U.S.
21-8
CREATING CUSTOMER VALUE, RELATIONSHIPS,
LO1
AND EXPERIENCES IN MARKETSPACE
INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE

Interactivity

Individuality

Interactive Marketing

Choiceboard
• Collaborative Filtering
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CREATING CUSTOMER VALUE, RELATIONSHIPS,
LO1
AND EXPERIENCES IN MARKETSPACE
INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE

Personalization

Permission Marketing
• Opt-In
• Opt-Out
21-10
FIGURE 21-2 Seven website design
elements that drive customer experience
21-11
CREATING CUSTOMER VALUE, RELATIONSHIPS,
LO1
AND EXPERIENCES IN MARKETSPACE
CREATING AN ONLINE EXPERIENCE

Customer Experience
• Context
 Functional
 Aesthetic
• Content
• Customization
21-12
CREATING CUSTOMER VALUE, RELATIONSHIPS,
LO1
AND EXPERIENCES IN MARKETSPACE
CREATING AN ONLINE EXPERIENCE

Customer Experience
• Connection
• Communication
• Community
• Commerce
21-13
USING MARKETING DASHBOARDS
Sizing Up Site Stickiness at
Sewell Automotive Companies
Average Time Spent per Unique Visitor
=
×
21-14
LO2
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Online Consumer Profile

Online Consumer
Lifestyle Segmentation
• Click-and-Mortar
• Time-Sensitive Materialists
• Hunter-Gatherers
• Hooked, Online, and Single
• Brand Loyalists
• Ebivalent Newbies
21-15
FIGURE 21-3 Internet usage in the U.S.
varies by age, racial/ethnic group,
education, and household income
21-16
FIGURE 21-3A Internet usage in the U.S.:
age
21-17
FIGURE 21-3B Internet usage in the U.S.:
racial/ethnic group
21-18
FIGURE 21-3C Internet usage in the U.S.:
education
21-19
FIGURE 21-3D Internet usage in the U.S.:
household income
21-20
MARKETING MATTERS
Meet Today’s Internet Mom—All 31 Million!
21-21
LO3
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
21-22
FIGURE 21-4 Estimated percentage of
online retail sales by product/service
category: 2007 and 2012
21-23
FIGURE 21-5 Why consumers shop and
buy online
21-24
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Why Consumers Shop and Buy Online
• Convenience
 Bots
 Eight-Second Rule
• Choice
 Product/Service
Selection
 Assistance
21-25
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Why Consumers Shop and Buy Online
• Customization
 Customerization
21-26
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Why Consumers Shop and Buy Online
• Communication
 Marketer-to-Consumer E-mails
 Consumer-to-Marketer Requests
 Consumer-to-Consumer Chat Rooms and
Instant Messaging
21-27
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Why Consumers Shop and Buy Online
• Communication
 Web Communities
 Buzz
 Blog
 Viral Marketing
 Spam
 Spam
21-28
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

Why Consumers Shop and Buy Online
• Cost
• Control
 Dynamic Pricing
 Cookies
 Cost of Offering
 Cost of Time Searching
21-29
MAKING RESPONSIBLE DECISIONS
Let the E-Buyer Beware
21-30
LO4
ONLINE CONSUMER BEHAVIOR AND
MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?

When and Where Online
Consumers Shop and Buy
• Monday - Friday
• 8:00 AM - 5:00 PM
21-31
LO5
CROSS-CHANNEL SHOPPERS AND
MULTICHANNEL MARKETING
WHO IS THE CROSS-CHANNEL SHOPPER?

Cross-Channel Shopper
• Compare Products Among Retailers
• Obtain Information Not in Stores
• Reduce Trips to Multiple Retail Locations
21-32
LO5
CROSS-CHANNEL SHOPPERS AND
MULTICHANNEL MARKETING
IMPLEMENTING MULTICHANNEL MARKETING

Transactional Websites
• Cannibalization
• Channel Conflict
21-33
LO5
CROSS-CHANNEL SHOPPERS AND
MULTICHANNEL MARKETING
IMPLEMENTING MULTICHANNEL MARKETING

Promotional Websites
• Interactive Experiences
• Separate Websites for Each Brand
• Support Traditional Marketing Channel
21-34
FIGURE 21-6 Implementing multichannel
marketing with promotional websites
21-35
VIDEO CASE 21
MCFARLANE TOYS: THE BEST OF
INTERACTIVE MARKETING
FIGURE 1 Toy category sales in the U.S.
21-36
VIDEO CASE 21
MCFARLANE TOYS
1. Describe the channels of
distribution McFarlane Toys uses
to reach its action figure
customers.
21-37
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?
21-38
VIDEO CASE 21
MCFARLANE TOYS
3. How does McFarlane Toys
address each of the six C’s
consumers consider when
shopping and buying online?
21-39
SUPPLEMENTAL
LECTURE NOTE 21-1
JUST LOOKING, THANKS:
WHY E-SHOPPERS ABANDON
THEIR SHOPPING CARTS
21-40
SUPPLEMENTAL
LECTURE NOTE 21-2
CLICK AND DRIVE:
LEVERAGING MULTICHANNEL
MARKETING
21-41
IN-CLASS ACTIVITY 21-1
BUYING AN AUTOMOBILE:
MARKETPLACE VS.
MARKETSPACE (PART 1)
21-42
BMW Z4 Roadster TV Ad
QuickTime™ and a
YUV420 codec decompressor
are needed to see this picture.
21-43
21-44
IN-CLASS ACTIVITY 21-2
BUILDING YOUR
AUTOMOBILE (PART 2)
21-45
21-46
Interactive Marketing
Interactive Marketing is the
two-way buyer-seller electronic
communication in a computermediated environment in which
the buyer controls the kind and
amount of information received
from the seller.
21-47
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.
21-48
Collaborative Filtering
Collaborative filtering is a
process that automatically
groups people with similar
buying intentions, preferences,
and behaviors and predicts
future purchases.
21-49
Personalization
Personalization is the consumerinitiated practice of generating
content on a marketer’s website
that is custom tailored to an
individual’s specific needs and
preferences.
21-50
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.
21-51
Online Consumers
Online consumers are the
subsegment of all Internet users
who employ Internet-enabled
technology to research products
and services and make
purchases.
21-52
Bots
Bots are electronic shopping
agents or robots that comb
websites to compare prices
and product or service features.
21-53
Eight-Second Rule
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.
21-54
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.
21-55
Web Communities
Web communities are websites
that allow people to congregate
online and exchange views on
topics of common interest.
21-56
Blog
A blog is a webpage that serves
as a publicly accessible personal
journal for an individual or
organization.
21-57
Spam
Spam consists of communications
that take the form of electronic
junk mail or unsolicited e-mail.
21-58
Viral Marketing
Viral marketing is an Internetenabled promotional strategy
that encourages individuals to
forward marketer-initiated
messages to others via e-mail.
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Dynamic Pricing
Dynamic pricing is the practice
of changing prices for products
and services in real time in
response to supply and demand
conditions.
21-60
Cookies
Cookies are computer files that
a marketer can download onto
the computer of an online shopper
who visits the marketer’s website.
21-61
Cross-Channel Shopper
A cross-channel shopper is
a consumer who researches
offerings online and then
purchases them at retail stores.
21-62