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ELC 310
Day 26
Agenda
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Questions?
Exam # 4 on Friday, December 8
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10 Short essays
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3 A’s, 2 B +’s and 1 B
Did use student grading even though some of the input was flawed
Eliminated bad inputs
Student prepared Case Studies
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Entire class period
Albert Chapters 1-14
Case study Analysis
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Plus one extra credit essay
16% of Overall Grade
Written due December 14, email in WebCT
Presentation due December 14 at 1-3 PM, email in WebCT prior to 1
PM
Lecture/Discuss Evaluation Methodology and Research in ECommerce
Schedule for last days of class
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Today
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December 8
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Quiz 4
December 14, 1 – 3 PM
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Albert Chap 13 & 14
Written Case study & presentations Due
Please send me your PowerPoint's prior to
any presentation so I may load them up on
the web server
Case Study Recap
Case Industry
Marketing Challenge
1
Insulation Manufacturer
Integrated marketing
Communications
2
Steel Mill
Pricing Decision Process
3
Hardware Distributor
Business Strength matrix
4
Utility Company
Branded Customer experience
5
Not for Profit
Branding Strategies
6
Consumer packaged
goods
Service Marketing Model
7
Insurance Company
Disintermediation Reintermediation
8
Financial Service
New Product Development
Chapter 13
Customerization--a future online
opportunity
What is “Customer”ization?
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Customerization defines the exchange
process of marketing in the context of
complete customer-control.
Natural fit with the electronic
environment
Entices customers to remain loyal
Overview of the Model
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Customerization is a buyer or
customer-centric marketing model.
Develops a relationship between:
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One-to-one marketing
Mass customization
Internal operations must have the
capability to customize
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“Build to order process”
Characteristics
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Flexible
Requires database integration,
operations, and production for success
Relies on a number marketing
approaches:
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traditional
mass marketing
targeted
direct marketing
8 Enhanced Marketing Outcomes
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6.
7.
8.
Develop/Deepen Customer Relationship
Transitioning Experienced-Based
Decision
Customizing the Interaction
Co-develop Products and Services
Premium Pricing Acceptance
Interactive Information Exchange
Distribution Channel Choice
Personal Brands
I. Developing/Deepening Customer
Relationship
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Capitalizes on relationship building
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E-business component demonstrated :
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CRM
Value Bubble Steps involved:
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Attract, Engage, Retain, Learn, Relate
II. Transitioning Experienced-Based
Decisions
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“Design and Discover Process”
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E-business component
demonstrated :
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allows user to see the outcome
provides the experience that is
necessary to make purchase decision
CRM and SCM
Value Bubble Steps involved:
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Engage, Retain
III. Customizing the Interaction
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Relies on accurate databases that
integrate all customer information a
firm possesses.
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E-business component demonstrated:
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Segmentation and Microsegmentation
CRM and BI
Value Bubble Steps involved:
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Learn and Relate
IV. Co-Develop Products and
Services
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Collaborate with customers to develop
a new product or service
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E-business component demonstrated:
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part of market research and NPD
BI, CRM
Value Bubble Steps involved:
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Engage
V. Premium Pricing Acceptance
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Increases value beyond competition
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E-business component demonstrated :
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creates customer satisfaction and loyalty
E-Commerce or the transaction
Value Bubble Steps involved:
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Learn and Relate
VI. Interactive Information Exchange
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Leverages information about the
products and services it provides
E-business component demonstrated:
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CRM
Value Bubble Steps involved:
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Engage and Retain
VIII. Personal Brands
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Transfers the brand from the company
to the customer
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E-business component demonstrated:
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allows for total customer empowerment
CRM
Value Bubble Steps involved:
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Engage and Retain
Original Article
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Evolution
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mass customization
personalization
1:1 marketing
Customerization
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buyer-centric
mass customization with customized
marketing
1:1 and Personalized
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“Know thy customer”
Controlled by the firm
Customerization
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more than customized
products/services
internal processes
supply chain partnerships
what if significant costs are involved?
Customerization
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Why?
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Changing customer
ability/competency to co-produce
technological and operational
capabilities
Customer-centric
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active participant
drive process
building/solidifying relationships
Potential Benefits
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Customer
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better meet needs
worth premium price
higher satisfaction
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Firm
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reductions in inventory
enhance loyalty
avoid commoditization
better channel mgmt.
Online environment: reconfigurable, and easier identification of
preferences
Company Examples
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Dell (build to order)
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inventory = $273 million/sales of $18.2
billion (1.5%)
Compaq (build to stock)
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inventory = $2 billion/ sales of $38.5
billion (5.2%)
1999 figures
Marketing Implications
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Relationship Marketing
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Focusing on Unarticulated Needs
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passive to active participants
“What can you do with us?”
adoption of MP3 by music industry
guides customer through design & discovery
product use experiences (search vs. experience)
Andersen Windows
Tailoring the offer
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only relevant options (db, software, ask)
Marketing Implications
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New Products
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interactive process (no longer laboratory only)
Acumin
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company no longer manufacturer but service provider
Customized vitamin packs
TI specs for new calculator
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high school teachers’ web reviews
pre-sold
copycat product from competitor reaction
Marketing Implications
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Price is Negotiable: Global Bazaar
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more fluid
tailored to specific users based on elasticity
customer acceptance issues
dynamic pricing evolves
 prices don’t go down
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value-added services
price becomes less important
Interactive Edu-tainment
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mix what you know with what you offer
DuPont
customer selects information
Marketing Implications
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Distribution off-the-shelf
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direct channel
channel conflict
customer has choice
reverse portals
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aggregate and coordinate final distribution
Marketing Implications
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Competitive Advantage: Power of
Finesse
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instead of brute strength
high customer value wins
levels playing field
street likes finesse and flexibility
 “big will not eat the small…the fast will eat
the slow”
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E-volve-or-Die.Com
Marketing Strategies/Implications
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Customerization--additional strategy
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determine optimal portfolio
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E-businesses have advantage
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mass marketing
direct marketing to target segments
interactive customized marketing
Amazon vs. General Motors
Technology is easy
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strategic and organizational decisions more complex and
expensive.
Researching E-Business
Chapter 14
E-business Market Research
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Business Intelligence
Web Site Focus
Results impact
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E-Commerce
Customer relationship management
Supply chain management
Enterprise resource planning
Traditional Marketing Research
Process
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5 steps
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Define the issue or challenge
Develop the research plan
Collect information
Analyze the information
Actions
Defining the issue or challenge
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Indicators
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Declining market share
Sales reduction
Profits
Order reduction
Increased complaints
Competitive actions
Develop research objectives
Developing the Research Plan
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5 Steps (for step two)
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Deciding on the research design
Determining the types of information
needed and sources
Evaluating different data Collections
options
Developing the data collection device
Deciding who and how many will
participate
Research Design
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Exploratory research
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Look for connections
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Experimental group
Control group
Data sources
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Independent variables (cause)
Dependant variables (effect)
Multivariate analysis
Experimental research
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Devine patterns
Primary
Secondary
Skewed Populations
Collecting the Information
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Face-to-Face
Telephone
On-line
Representative samples?
Analyzing the Data
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Begin with research objectives
Address the issue, opportunity or
challenge
Analysis leads to
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Recommendations
Actions
Must be supported by quantifiable
evidence
3 Strategies for an Initial Web Launch
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Setup Strategies
Maintenance strategies
Evaluation Strategies
Setup Strategies
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Attract customers applicable to
offerings
3 components
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Web Site Quality
Frequency of updates
Speed
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56K—10 secs
Value bubble
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Attract, Engage & Retain
Maintenance Strategies
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Create Site Loyalty and Facilitate Sales
GIST
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Gather
Infer
Segment
Track
Measure Sales
Value bubble
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Learn & Relate
Evaluation Strategies
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Site-Centric (automated)
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Daily, weekly and monthly reports (hits)
Length of time spent (stickiness)
Frequency of visits for each page and/or
sections
Customer-Centric (still new)
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Clickstreams
Core Services aspects
Recovery aspects