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Management & Engineering 04 (2011) 1838-5745 Contents lists available at SEI Management & Engineering Journal Homepage: www.seiofbluemountain.com Research on Experiential Marketing Strategy in Corporate Websites Yu XIAO Business School of Hohai University, Nanjing 210098, P.R.China KEYWORDS ABSTRACT Experiential Marketing, Corporate Websites, Countermeasure Experiential marketing is a popular marketing model for modern economics, which is also a useful tool for corporate website construction. Corporate websites are portal for internet marketing. However, nowadays there are many problems such as lack of website traffic, unsatisfied effect existing in majority of them. The paper analyzes key issues of these problems, which are overlooking users’ demands and constructing websites without proper marketing theory. The paper provides a series of countermeasures to solve problems according to consumer demand-oriented concept and experiential marketing theory. © ST. PLUM-BLOSSOM PRESS PTY LTD 1 Introduction With the development of enterprise informatization, more and more domestic enterprises consider the website as an important sign of modern enterprise informatization. In recent years, a website is regarded as an essential part of modern business because online sources provide tremendous resources/services for targeted customers. A website is not only a tool of the dissemination of corporate identity, but also the platform of carrying on internet marketing. But at the present stage a majority of corporate websites have vital problems to be solved quickly. 2 Problems and Causes Today, a large proportion of enterprises are complaining lack of website traffic and unsatisfied effect internet marketing. These problems are vital to small and medium-sized enterprises websites. One of the direct serious results is that many enterprises lost their confidence in internet marketing and cut investment in website construction. The major problems are as following: 2.1 Ambiguous goal and misunderstanding of customer demands The ubiquitous phenomenon is that enterprises simply imitate websites of other corporations. These enterprises don’t have comprehensive strategic target. For instance, there are many websites that only display photos of their leaders, internal news, Corresponding author. E-mail address: [email protected] English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD DOI: 10. 5503/J. ME. 2011. 04. 004 24 brochures, corporate culture, and so on. These companies do not care who will visit their websites and what visitors’ demands will be. These enterprises do not have an unambiguous goal for website construction. They never realize the importance of understanding what information/service the visitors need and never research what websites should be provided to visitors. What the companies post on their websites are the information they could simply offer. In general, the designs of websites are not customer demand-oriented or cyber-marketing-oriented. 2.2 Lack of scientific planning and timely updating, and losing the function of brand communication Most of domestic enterprises list all information about themselves on websites to assist visitors to find corporate information conveniently. However, without scientific planning, the websites often have such problems as unnecessary several web columns, excessive long homepages, which extend two to three computer screens, and imperfect information navigation map. The focuses of users are not only the corporate information,but also material of product, information of purchasing, and consumer consultation service. If users cannot quickly find information they need, their degree of satisfaction, as well as degree of enterprise satisfaction will decrease by visiting less frequently. Enterprise's network brand prestige will also be negatively affected. Meanwhile, some companies consider constructions of websites one-shot investments so they hardly update their sites. In some extreme examples, telephone numbers are useless, link URL addresses lead to blank web pages, and the information about new products is never provided. The negative externality of their websites is far outweighing the positive effect. For an enterprise, the website is not only an electric brochure, but also a valuable multi-purpose marketing platform. Moreover, the website is a virtual storefront as well as an essential tool for attracting customers and for spreading corporate identity. 2.3 Overemphasizing technique Some enterprises place lots of music, pictures, animations and videos on their sites in order to decorate richly websites to attract users. For the similar reason, those corporations apply unnecessary complex page structure and gorgeous color on web design. Overabundant decoration, however, is not only reducing network transmission speed, but also disturbing subject of websites. Overdeveloped websites affect seriously visit speed and prolong greatly the process time of finding information. 2.4 Low visit frequency For some users, the only reason that they visit a corporate website is to solve a specific problem. They will be offline as soon as the problem is solved. Next visit of the website can be triggered only by facing another problem. If no more new problem surfaces the boat, the probability to visit the website is zero. Hence, website is just a tool to solve problems for this kind of users. However, it is more important for a corporate website to retain visitors. There are two reasons to cause above problems besides technical factors: 1) the planning of website is not based on users' demands; the content and style of website are not suitable for users' demands; 2) website construction is not guided by experiential marketing theory; websites ignore users' experience so that they give users unpleasant experience and reduce the possibility of re-visiting. For companies, it is vital to carry out internet marketing function on websites, such as to spread brand image, to attract users to get more attention about the development of company, and to renew products/services. It is impossible to achieve these goals without high user access frequency. How to improve web traffic and access frequency? One way is to consider carefully users’ demands; another way is to introduce the concept of experiential marketing into website construction. 3 Website Construction Based on Users’ Demands Website construction is system engineering, which is one part of corporate strategy. The vital factors are what company will do through it and which goal company will try to reach. Different companies have totally different construction goals. Therefore, the content,style and form of websites are totally different too. For the competitors, it is more necessary to design their special websites to gain competitive advantage. For example, Pepsi-Cola and Coca-Cola Company have completely different styles on their websites. Enterprise LOGO is placed on Coca-Cola homepage; on the contrary, business activities and promotions occupy full-hot-position on Pepsi-Cola homepage. Although website construction is significantly different, the core goal is on the same spot, serving users. Company should understand that different users have different demands and users can be divided into consumer, stockholder, supplier, distributor, and employee. Website is a convenient communication platform between company and all kinds of outside users. When users log in, they want to search information of products/services, to achieve warranty/maintenance services, to get general information about company, to get financial information for investment and credit guarantee decision, to get information of employees and departments, to get promotion information; purchase products/services and so on. Different users have different ability/proficiency of surfing on Internet. Meanwhile, they expect to gain different content when they visit websites. Companies should understand profoundly users’ demands so that to establish websites for users. Of course, it is hard to meet every kind of consumers’ demands through one single website. Hence, sometimes, company could establish a few different types of websites for different kind of users. For instance, Haier Group has established three websites respectively for supplies, customers and others. All different users’ demands can be satisfied rapidly. Therefore, companies should determine core goal and 25 functions corresponding to users’ demands, which could enhance the notability and the usability of websites; achieve the goal of internet marketing. 4 Experiential Economy and Experiential Marketing 4.1 Experiential economy and four realms of experience Experiential Economy is characterized as that the consumption is only a process; the memory of experience will be preserved in the minds of consumers permanently at the end of the process. Pine II and Gilmore (1998) indicate it as: “goods and services become commoditized; customer experiences that companies create will matter most”. The prerogative can lead companies and customers to Experience Economy. Nowadays, the economies of scale, which come from the large-scale production of products/services, induce the difficulties to achieve the goal of cost savings, low-cost competitive of products and value-added services. PINE II and GILMORE (1998) defined experiences from two dimensions. The first dimension describes passive participation or active participation. Passive participation means that customers don’t affect the performance at all; such participants experience events as observers or listeners. Active participation means that customers act as key roles in creating performance or event which leads experience. The second dimension describes connection or environmental relationship, which connects customers with event or performance. We can divide experiences into four categories according to where they are. They are named as Entertainment, Educational, Escapist, and Esthetic. Educational events spread to involve more active participation, but students are still more outside the event than immersed in the action. Escapist experiences can teach just as well as educational events can, or amuse just as well as entertainment, but they involve greater customer immersion. Acting in a play, playing in an orchestra or an African safari involves both active participation and immersion in the experience. If you minimize the customers’ active participation, however, an escapist event becomes an experience of the third kind – the Esthetic. Here customers or participants are immersed in an activity or environment, but they themselves have little or no effect on it. The Entertainment experiences are related to the ones that just entertain the costumer, with no active participation but some absorption. (Pine II and Gilmore, 1999, pages 21~31) 4.2 Experiential marketing Experiential marketing is the operator standing on consumer's point of view. Let consumers experience concept of the purchase and process of the purchase, thoughts of purchase and driving force of the purchase. Meanwhile, from a consumer's senses, feelings, thinking, action and connection are four aspects about marketing. The essence of experiential marketing is the experience, which enables customers to experience and become directly involved as the main body. Through providing various ways such as product design experience, promotion experience, emotion experience, culture experience, brand experience to customers, company can induce customers to take part in more activities happily and enjoy satisfaction from their achievements. 5 Countermeasure of Experiential Marketing 5.1 Emphasize communication with online users to improve customer satisfaction One of main characteristics about network media is interactivity, which can communicate with users conveniently, provide pleasant and educational experience to users, and help them to retrieve valuable information rapidly and response users with corresponding services timely. The common characteristic of websites, which pay no attention to communication within users, is that these websites always provide one email (or Tel/fax) address link at the bottom of their homepage. There is no alternative way. No channel to reflect and r esolve problems can make users disappointment and cause them dissatisfied. The kind of websites should pay more attention to interaction of network media and apply it effectively. Interactivity means:1) Provide more communication channel for visitors and business partners,such as online communication platform, instant messaging and Internet chat rooms. It can provide one-to-one communication between website and users, solve users’ problems timely. Of course, it is also necessary for websites to provide traditional ways like telephone number, fax and email. In this way, users can contact with company and obtain satisfaction services, which can promote customer satisfaction.2) Provide special communication space among users by forum and message board. Sometimes communication among users is more effective than communication between company and users. Accompanied by other users friendly, users can get more pleasant. Meanwhile, companies can also create special topics about relevant products, technical service, so as to catch the user interests and hobbies, and then adjust their products/services promptly. 5.2 Provide opportunities for users involvement of design and manufacturing With virtual products/services on Net, company can encourage customers to participate in company activities. Virtual environment similar to offline shop can give users visual impression of products/ service. Hence, they will accept real products and services 26 quickly. It can improve experience of entertainment and experience of education, win user loyalty. For the purpose, enterprise should list product catalogue, product introduction in detail, and express other customers’ successful experience. This spiritual world can identify potential customers; stimulate psychological need of customers and desirability of customers. Therefore, it will improve the pleasure and increase the number of visit. Some enterprises provide opportunities for customers to participate in product manufacturing. For instance, General Motor sets up a car manufacturing space on its website, give chance to users to taste automobile manufacturing process, enjoy happiness of car making. Some other enterprises provide opportunities for customers to participate in product design, such as some individual making T-shirt websites and software development websites etc. Customers take part in manufacturing and design, enjoy happiness during the process. Some customers can even gain the real products designed by customers themselves. The kind of activities has great temptation to those who like highly individualistic consumption. Enterprise also has more opportunities to share customers’ creativity which can provide helpful ideas for product design. Such pleasant experience of design and manufacturing would foster customer loyalty, improve website traffic and access frequency, make corporate website carry out internet marketing function comprehensively. 5.3 Superior service experience Good service can make customers feel pleasant and satisfied, so they would more likely to purchase products/services that enterprises provided. Good service should be active. It means providing services from consumers’ point of view, helping consumers to finish shopping quickly by sufficient information and tools, and solving customers’ problem by online self-service. Meanwhile, layout of websites should follow visitors’ demands so that visitors can retrieve information rapidly and expediently. Updating website and managing back files periodically are also necessary to attract visitors. Websites should offer full text retrieval function to make users search content easily. Websites should introduce historical evolution related to products, product usage, maintenance services and FAQ, etc. The cultural connotation can bring users education and culture experience. Websites should also provide intelligent guide functions, provide customize consumption solutions according to users’ status step by step. After confirmation of online transactions, websites should contact customers by telephone, fax or SMS timely, or inform customers the process phase of their orders through formal email. It can foster loyal customers by avoiding impatient standby without any news. User-centered personalized information service make visitors feel pleasant and enjoy easily all kind of services provided by websites. 5.4 Designning attractive tools/games, catering to users’ aesthetic intention Enterprise should develop some related tools and games about products/services, tools and games teaching and helping customers to perceive their potential demands. Meanwhile, games can be applied to encourage customers to join research or promotion activities of products/services. Hence, customers can gain services and join activities when they enjoy entertainment provided by company. In this way, customers can acquaint further products and corporate culture. For example, Kodak website developed software about learning photography skills, Olay website designed software about skin test, etc. Both of software is popular with consumers. These attractive tools make customers to gain information, know products deeply and harvest pleasant experience. Websites can arouse consumers’ interest in products/services and increase additional value of products through catering to users’ aesthetic intention on color, picture, music, and so on. 6 Summary The paper summarizes the problems running through corporate website construction, identifies and analyzes the causes of the problems, provides suggestions corporate could adopt to solve problems, and offers user’s demand-oriented concept and experiential marketing theory for the corporations to build their websites. Meanwhile, enterprises should also notice two points. First point is that these methods are easily replicated by competitors. The other point is that failing to provide new experience will cause users dissatisfied. Websites should always provide new experience to users in order to attract them and foster their loyalty. References [1]. PINE II, B. J. and GILMORE, J. H. The Experience Economy: work is theatre & every business a stage: goods & services are no longer enough. Harvard Business School Press, 1999: 21~31 [2]. SCHMITT, B. H. Experiential Marketing: How to get costumers to sense, feel, think, act, relate to your company and brands. The Free Press, 1st Edition, 1999. [3]. Du Xiaojing, Shen Zhanbo. The Application of Experiential Marketing in Car Website. Enterprise Vitality, 2008 (5):42~43 (in Chinese). [4]. Liyan. Research on Website Construction based on Cyber-Marketing orientation. Modern Economic Information, 2008 (4): 80~81 (in Chinese). 27