IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING

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CHAPTER
IMPLEMENTING INTERACTIVE AND MULTICHANNEL
MARKETING
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AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO

1. Describe what interactive marketing is and how it
   creates customer value, customer relationships,
   and customer experiences.

1. Identify the demographic and lifestyle profile of
   online consumers.

1. Explain why certain types of products and
   services are particularly suited for interactive
   marketing.

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AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO

1. Describe why consumers shop and buy online and
   how marketers influence online purchasing
   behavior.

1. Define multichannel marketing and the role of
   transactional and promotional websites in
   reaching online consumers.

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CREATING CUSTOMER VALUE, RELATIONSHIPS, AND
EXPERIENCES IN MARKETSPACE

• Marketplace

• Marketspace

• Customer Value Creation in Marketspace

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FIGURE 21-1 Trend in online shoppers and online
retail sales revenue in the United States
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FIGURE 21-1A Online shoppers in the United States
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FIGURE 21-1B Online retail sales revenue in the
United States
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CREATING CUSTOMER VALUE, RELATIONSHIPS, AND
EXPERIENCES IN MARKETSPACE

• Interactivity, Individuality, and Customer
  Relationships in Marketspace

• Interactivity

• Interactive Marketing

• Choiceboards

• Collaborative Filtering

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CREATING CUSTOMER VALUE, RELATIONSHIPS, AND
EXPERIENCES IN MARKETSPACE

• Interactivity, Individuality, and Customer
  Relationships in Marketspace

• Personalization

• Permission Marketing

• Opt-In

• Opt-Out

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CREATING CUSTOMER VALUE, RELATIONSHIPS, AND
EXPERIENCES IN MARKETSPACE

• Creating an Online Customer Experience

• Context

• Communication

• Content

• Community

• Customization

• Commerce

• Connection

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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 marketers website that is custom
tailored to an individuals 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 These design elements are context, content,
community, customization, communication,
connection, and commerce.
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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Profiling the Online Consumer

• Online Consumer Lifestyle Segmentation

• Click-and-Mortar

• Time-Sensitive Materialists

• Hunter-Gatherers

• Hooked, Online, Single

• Brand Loyalists

• Ebivalent Newbies

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FIGURE 21-3 Internet access at home among U.S.
households
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FIGURE 21-3A Internet access at home among U.S.
households
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FIGURE 21-3B Internet access at home among U.S.
households
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FIGURE 21-3C Internet access at home among U.S.
households
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FIGURE 21-3D Internet access at home among U.S.
households
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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• What Online Consumers Buy

• Product Information

• Unique Items

• Audio/Video Demos

• Regular Convenient Items

• Delivered Digitally

• Standard Items/Price

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FIGURE 21-4 Online consumer retail sales by
product/service category 2003 and 2007
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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Why Consumers Shop and Buy Online

• Convenience

• Bots

• Eight-Second Rule

• Choice

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FIGURE 21-5 Why consumers shop and buy online
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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Why Consumers Shop and Buy Online

• Customization

• Customization

• Customerization

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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Why Consumers Shop and Buy Online

• Communication

• Marketer-to-Consumer

• Consumer-to-Marketer

• Consumer-to-Consumer

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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Why Consumers Shop and Buy Online

• Communication

• Web Communities

• Blog

• Spam

• Buzz

• Viral Marketing

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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• Why Consumers Shop and Buy Online

• Cost

• Dynamic Pricing

• Control

• Portals

• Cookies

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ONLINE CONSUMER BEHAVIORAND MARKETING
PRACTICEIN MARKETSPACE

• The Online Consumer

• When and Where Consumers Shop and Buy Online

• Monday - Friday

• Normal Work Hours

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Concept Check
1. What is the eight-second rule?
A The eight-second rule is a view that 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 The brand loyalists segment spends the most
money online whereas the hooked, online, and
single segment spends more time online.
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Concept Check
3. What are the six reasons consumers prefer to
shop and buy online?
A convenience, choice, customization,
communication, cost, and control
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MULTICHANNEL MARKETINGTO THE ONLINE CONSUMER

• Integrating and Leveraging Multiple Channels with
  Multichannel Marketing

• Dual Distribution

• Multichannel Retailers

• Multichannel Marketing

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MARKETING NEWSNET
The Multichannel Marketing Multiplier
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MULTICHANNEL MARKETINGTO THE ONLINE CONSUMER

• Implementing Multichannel Marketing

• Multichannel Marketing with Transactional
  Websites

• Channel Conflict

• Multichannel Marketing with Promotional
  Websites

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FIGURE 21-6 Implementing multichannel marketing
with promotional websites
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Concept Check
1. Multichannel marketing is _______.
the blending of different communi-cation and
delivery channels that aremutually reinforcing
in attracting,retaining, and building
relationshipswith consumers who shop and buy
inthe traditional marketplace andmarketspace
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Concept Check
2. Channel conflict between manufacturers and
retailers is likely to arise when manufacturers
use __________ websites.
transactional
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TRACKING TRENDS IN INTERACTIVE MARKETING
GOING ONLINE
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Going Online
1. Visit the Clickz website, then click the
Stats link. Your assignment is as
followsChoose a topic covered in the chapter
that interests you, such as the demographics of
Internet users. Compare and contrast the most
recent research published in Clickz.com with
information contained in the chapter. Dont be
surprised if you find differences.
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Going Online
2. Choose two regions of the world,such as
North America and Europe. How do Internet usage
and interactive marketing differ between the two
regions based on the most recent research?
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JUST LOOKING, THANKS WHY E-SHOPPERS ABANDON
THEIR SHOPPING CARTS
SUPPLEMENTALLECTURE NOTE 21-1
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CLICK AND DRIVE LEVERAGING MULTICHANNEL
MARKETING
SUPPLEMENTALLECTURE NOTE 21-2
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McFARLANE TOYSTHE BEST OF INTERACTIVE MARKETING
VIDEO CASE 21
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VIDEO CASE 21 McFarlane Toys
FIGURE 1 Toy category sales in the United States
(listed alphabetically)
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VIDEO CASE 21 McFarlane Toys
1. Describe the channels of distribution
McFarlane Toys uses to reach its action figure
customers.
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VIDEO CASE 21 McFarlane Toys
2. Why have interactive marketing strategies been
successful for McFarlane Toys? What unique
elements are part of its online experience?
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VIDEO CASE 21 McFarlane Toys
3. How does McFarlane Toys address each of the
six Cs consumers consider when shopping and
buying online?
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CRATE AND BARRELMULTICHANNEL MARKETING
APPENDIX D CASE D-21
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APPENDIX D CASE D-21 Crate and Barrel
1. How does Crate and Barrel facilitate consumer
purchases with its multichannel strategy?
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APPENDIX D CASE D-21 Crate and Barrel
2. What are the six Cs of e-commerce, and how
does Crate and Barrel address each of these?
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APPENDIX D CASE D-21 Crate and Barrel
3. Given that all of its major competitors also
attempt to utilize multiple channels, in what
ways could Crate and Barrel create a competitive
advantage for itself with its multichannel
strategy?
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Interactive Marketing
Interactive marketing involvestwo-way
buyer-seller electronic communication in a
computer-mediated environment in which the buyer
controls the kind and amount of information
received from the seller.
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Choiceboard
A choiceboard is an interactive,Internet-enabled
system that allows individual customers to design
theirown products and services by answeringa
few questions and choosing from a menu of product
or service attributes(or components), prices,
and delivery options.
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Collaborative Filtering
Collaborative filtering is a process that
automatically groups people with similar buying
intentions, preferences, and behaviors and
predicts future purchases.
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Personalization
Personalization is the consumer-initiated
practice of generating content on a marketers
website that is custom tailored to an
individuals specific needs and preferences.
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Permission Marketing
Permission marketing is the solicitation of a
consumers consent (called opt-in) to receive
e-mail and advertising based on personal data
supplied by the consumer.
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Customer Experience
Customer experience is the sum total of the
interactions that a customer has witha companys
website, from the initial look at a home page
through the entire purchase decision process.
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Online Consumers
Online consumers are the subsegmentof all
Internet users who employ this technology to
research products and services and make purchases.
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Bots
Bots are electronic shopping agents or robots
that comb websites to compare prices and product
or service features.
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Eight-Second Rule
The eight-second rule a view that customers will
abandon their efforts to enter and navigate a
website if download time exceeds eight seconds.
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Customerization
Customerization is the growing practice of not
only customizing a product or service but also
personalizing the marketing and overall shopping
and buying interaction for each customer.
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Web Communities
Web communities are websites that allow people to
congregate online and exchange views on topics of
common interest.
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Blog
A blog is a webpage that serves as a publicly
accessible personal journal foran individual.
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Spam
Spam is communications that take the form of
electronic junk mail or unsolicited e-mail.
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Viral Marketing
Viral marketing is an Internet-enabled
promotional strategy that encourages individuals
to forward marketer-initiated messages to others
via e-mail.
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Dynamic Pricing
Dynamic pricing is the practice of changing
prices for products and services in real time in
response to supply and demand conditions.
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Portals
Portals are electronic gateways to the Internet
that supply a broad array of news and
entertainment, information resources, and
shopping services.
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Cookies
Cookies are computer files that a marketer can
download onto the computer of an online shopper
who visits the marketers website.
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Multichannel Marketing
Multichannel marketing consists ofthe blending
of different communication and delivery channels
that are mutually reinforcing in attracting,
retaining, and building relationships with
consumers who shop and buy in the traditional
marketplace and marketspace.
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