PSUBA311 Summer, 02

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Multichannel Marketing August 6

• BA 311
• Summer, 2002
• Nelson Pratt

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Multichannel Marketing

• The blending of different communications and
  delivery channels that are mutually reinforcing
  in attracting, retaining, and building
  relationships with customers.Assumes customers
  will buy when and where they want, and these will
  differ over time

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CREATING CUSTOMER VALUE RELATIONSHIPSIN THE NEW
MARKETSPACE

• Growth of e-commerce is exponential

FIGURE 21-1 The 10-year trend in Internet/Web
users and online retail sales revenue in the
United States
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CREATING CUSTOMER VALUE RELATIONSHIPS IN THE
NEW MARKETSPACE

• Interactivity, Individuality, and Customer
  Relationships
• Colaborative filtering
• The process of monitoring web buying habits
• Predicting what a given type of shopper wants
  based on past behavior
• Personalization
• Permission marketing

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FIGURE 21-2 Website design elements that drive
customer experience
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Website looks like familiar print advertising
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ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE

• Why Consumers Shop and Buy Online
• Convenience
• Choice
• Customization
• Communication
• Cost
• Control
• Together these are the On-line Customer
  Experience

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On-line Customer Experience

• The sum total of interactions that a customer has
  with a company or organization THROUGH THE
  ORGANIZATIONS WEBSITE
• Total Customer Experience is the sum total of ALL
  interaction a customer has with an organization
  on-line and off-line

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JC Penney CustomersThe multichannel marketing
mutiplier
By using multichannel marketing, JC Penny is
more available to customers.Customers who
take advantage of all channels are 9x more
valuable.
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Transactional vs Promotional Websites

• Transactional is designed to SELL and market
• Promotional is designed to MARKET (and maybe
  sell)
• May solicit permission to market further
• Ask for e-mail address
• Opt-in newsletter of other promotion
• Ask to refer you to a retailer

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Montblancs site markets the brand
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FIGURE 21-6 Implementing multichannel marketing
with promotional websites
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Key Terms Concepts

• Personalization
• The consumer-initiated practice of generating
  content on a marketers website that is custom
  tailored to an individuals specific needs and
  preferences

• Six reasons to shop and buy on-line
• Convenience
• Cost
• Choice
• Customization
• Communication
• Control

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Key Terms Concepts

• Transactional Website
• Sells product or service on-line
• Potential to cause channel conflict given that
  manufacturer is also a retailer

• Promotional Website
• Promotes brand and/or products on-line does not
  sell
• Likely to include pointers to retailers
  websites

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Key Terms Concepts

• Permission marketing
• The solicitation of a consumers consent (called
  opt-in) to receive e-mail and advertising based
  on personal data supplied by the consumer.

• Spam
• Junk e-mail
• No one asks permission to send you this.