Download Lecture 4 Interactive Marketing

Marketing II
The Chang School-Ryerson University
Continuing Education
CMKT 200 Fall 2005
Instructor: Armand Gervais
Email: [email protected] preferred
Web: www.ryerson.ca/~agervais
Office: Bus 308
Phone: 416-979-5000 Ext 4215
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Lecture Agenda
 Don’t Forget Name Tags
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Interactive Marketing
Video Ebay
Break
Simulation
To Do’s for next weeks class
Time to work in Groups
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CHAPTER
IMPLEMENTING
INTERACTIVE AND
MULTICHANNEL
MARKETING
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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 marketplace.
 Identify the online consumer, their
profiles, and their purchasing
behaviours.
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
 Recognize why certain types of
products and services are particularly
suited for interactive marketing.
 Distinguish between multiple channels
and multi-channel marketing in reaching
online customers.
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
 Understand the differences between
transactional Websites and promotional
Websites in multichannel marketing.
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IMPLEMENTING INTERACTIVE AND
MULTICHANNEL MARKETING
ANYTIME, ANYWHERE, ANYWAY:
THE NEW MARKETING MANTRA
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CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN THE NEW MARKETSPACE
 Customer Value Creation in Market-space
 Interactivity, Individuality, and Customer
Relationships in Marketspace
 eCRM
 Interactive marketing
– Choiceboards DELL
 Collaborative filtering Chapters.ca
– Personalization Yahoo.ca
 Permission marketing
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CREATING CUSTOMER VALUE,
RELATIONSHIPS, AND EXPERIENCES
IN THE NEW MARKETSPACE
 Creating an Online Customer
Experience
 Consistent message and service across
channels?
 Chapters vs. Future Shop
 Channel conflict
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FIGURE 21-2 Website design elements that drive customer
experience
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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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Concept Check
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
_____________.
personalization
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Concept Check
3. Companies produce a customer
experience through what seven Website
design elements?
A: The seven design elements are
context, content, community,
customization, communication,
connection, and commerce.
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 The Online Consumer
– Profiling the Online Consumer
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Online Segments
 The largest online consumer lifestyle segment, called click-and-mortar,
consists of female homemakers who tend to browse retailer Websites
but actually buy products in traditional retail outlets. They make up 23
percent of online consumers and represent an important segment for
multichannel retailers that also feature catalogue and store operations,
such as J. Crew and JCPenney.
 Twenty percent of online consumers are hunter-gatherers—married
baby boomers with children at home who use the Internet like a
consumer magazine to compare products and prices. They can be
found visiting comparison shopping Websites such as Dealcatcher.com
and Mysimon.com on a regular basis.
 Nineteen percent of online consumers are brand loyalists who regularly
visit their favourite bookmarked Websites and spend the most money
online. They are better-educated and more-affluent Internet/Web users
who effortlessly navigate familiar and trusted Websites and enjoy the
online browsing and buying experience..
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Online Segments Con’t
 Next there are time-sensitive materialists who regard the Internet as a
convenience tool for buying music, books, and compute software and
electronics. They account for 17 percent of online consumers and c be
found visiting Amazon.com, Dell.com, Sony.com, and BMG.com
 The hooka online, and single segment consists of young, affluent, and
single online consume! who bank, play games, and spend more time
online than any other segment a documented in the accompanying
Web Link. They make up 16 percent of online consumers, enjoy
auction Websites such as eBay, and visit game Websites lil iWon.com,
ea.com, and games.yahoo.com.
 Five percent of online consumers are the ebivalent newbies—
newcomers to the Internet who rarely spend money online, bii seek
product information.
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FIGURE 21-3 Profiles of Canadian online users
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Canadians Online
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Canadian Online Retailing
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 The Online Consumer (cont)
– Online Consumer Lifestyle Segmentation
 What Online Consumers Buy
 What have you purchased online?
 What would you not purchase and why?
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FIGURE 21-4 Online consumer sales by product/service
category: 2001 and 2005
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U.S. Internet Users
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 Why Do Consumers Shop and Buy
Online?
 What are the advantages and
disadvantages?
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FIGURE 21-5 Why consumers shop and buy online
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 Why Consumers Shop and Buy Online
(cont)
– Convenience
 Bots Bizrate.com
 Eight-second rule
– Choice
– Customization
 Customerization
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 Why Consumers Shop and Buy Online
(cont)
– Communication
 Web communities
 Spam
 Viral marketing
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 Why Consumers Shop and Buy Online (cont)
– Cost
 Dynamic pricing
– Control
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Portals 80% regularly use portals and search engines
Google.com yahoo.ca canoe.ca
Cookies Advantages and Disadvantages?
SPAM
Permission based marketing
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ONLINE CONSUMER BEHAVIOUR
AND MARKETING PRACTICE IN
CYBERSPACE
 When and Where Online Consumers
Shop and Buy
 80% of online sales occur during the
week during normal working hours
 40% shop online from work
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Concept Check
1. What is the eight-second rule?
The worst Flash intros
http://www.natterjackpr.com/Flash/hall_of_fame.html
A: Customers will abandon their efforts to
enter and navigate a Website if download
time exceeds eight seconds.
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Concept Check
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.
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Concept Check
3. What are the six reasons consumers
prefer to shop and buy online?
A: The six reasons are
convenience, cost, choice,
customization, communication,
and control.
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© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson
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
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FIGURE 21-6 Implementing multichannel marketing
with promotional Websites
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To Do’s for Next Class
– Next week Chapter 10
– Work on Simulation
– Study for exam
– www.marketplace6.com
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© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson