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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO: LO 21-1 LO 21-2 LO 21-3 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: LO 21-4 LO 21-5 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 DELIVERS JUST ONE BIKE. YOURS. 21-4 CREATING CUSTOMER VALUE, RELATIONSHIPS, LO 21-1 AND EXPERIENCES IN MARKETSPACE CUSTOMER VALUE CREATION IN MARKETSPACE Marketplace Marketspace • Time Utility • Possession Utility • Form Utility 21-5 FIGURE 21-1 Trends in online shoppers and online retail sales in the United States 21-6 FIGURE 21-1A Trend in online shoppers in the United States 21-7 FIGURE 21-1B Trend in online retail sales revenue in the United States 21-8 CREATING CUSTOMER VALUE, RELATIONSHIPS, LO 21-1 AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE Interactivity Individuality Interactive Marketing Choiceboard M&Ms • Collaborative Filtering 21-9 CREATING CUSTOMER VALUE, RELATIONSHIPS, LO 21-1 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, LO 21-1 AND EXPERIENCES IN MARKETSPACE CREATING AN ONLINE EXPERIENCE Customer Experience • Context Functional Aesthetic • Content • Customization 21-12 CREATING CUSTOMER VALUE, RELATIONSHIPS, LO 21-1 AND EXPERIENCES IN MARKETSPACE CREATING AN ONLINE EXPERIENCE Customer Experience • Connection • Communication • Community • Commerce 21-13 USING MARKETING DASHBOARDS LO 21-1 Sizing Up Site Stickiness at Sewell Automotive Companies Average Time Spent per Unique Monthly Visitor × = Average Time Spent per Unique Monthly Visitor (minutes) Average Visits per Unique Monthly Visitor Average Time Spent per Visit (minutes) 21-14 LO 21-2 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHO IS THE ONLINE CONSUMER? Online Consumers Online Consumer Lifestyle Segmentation • Click-and-Mortar • Time-Sensitive Materialists • Hunter-Gatherers • Hooked, Online, and Single • Brand Loyalists • Ebivalent Newbies 21-15 MARKETING INSITE LO 21-2 Are You a Roving Node, a Mobile Newbie, or a Drifting Surfer? 21-16 LO 21-2 MARKETING MATTERS Meet Today’s Internet Mom on a Mission 21-17 LO 21-3 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHAT ONLINE CONSUMERS BUY Product Information Audio/Video Demos Digital Items Unique Items Convenience Items Standardized Items 21-18 FIGURE 21-3 Five product categories account for about two-thirds of online retail sales today—a trend projected to occur in the future 21-19 FIGURE 21-4 Why consumers shop and buy online 21-20 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE Convenience • Bots • Eight-Second Rule Choice • Offering Selection • Choice Assistance 21-21 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE Customization • Customerization Communication • Marketer-to-Consumer E-mails • Consumer-to-Marketer Requests • Chat Rooms, Messaging, Social Networks 21-22 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE Communication • Web Communities • Blog • Spam • CAN-SPAM Act 21-23 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE Communication • Buzz • Viral Marketing Frito-Lay Embed a Message Create Compelling Content Offer Incentives 21-24 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE Communication • Showrooming • Dynamic Pricing Control • Cookies • Behavioral Targeting 21-25 LO 21-4 MAKING RESPONSIBLE DECISIONS Who is Responsible for Internet Privacy and Security? 21-26 LO 21-4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHEN AND WHERE ONLINE CONSUMERS SHOP AND BUY Monday - Friday 8:00 AM to 5:00 PM 21-27 LO 21-5 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 21-28 LO 21-5 CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING Multichannel Marketing Transactional Websites • Cannibalization • Channel Conflict 21-29 LO 21-5 CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING Promotional Websites Pampers • Interactive Experiences • Separate Websites for Each Brand • Support Traditional Marketing Channel 21-30 FIGURE 21-5 Implementing multichannel marketing with promotional websites 21-31 VIDEO CASE 21 PIZZA HUT AND IMC2: BECOMING A MULTICHANNEL MARKETER 21-32 VIDEO CASE 21 PIZZA HUT AND IMC2: BECOMING A MULTICHANNEL MARKETER FIGURE 1 IMC2 Brand Sustainability Map™ 21-33