Lecture Marketing: The core (5/e): Chapter 18 – Kerin, Hartley, Rudelius

Chapter 18: Implementing interactive and multichannel marketing. After reading this chapter you should be able to: Describe what interactive marketingis and how it creates customer value, customer relationships, and customer experiences; explain why certain types of products and services are particularly suitedfor interactive marketing;...

                            McGraw­Hill/Irwin                                                                                             Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO: LO1 LO2 Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences Explain why certain types of products and services are particularly suited for interactive marketing 18­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO: LO3 Describe why consumers shop and buy online and how marketers influence online purchasing behavior LO4 Define cross-channel shoppers and the role of transactional and promotional websites in reaching these shoppers 18­3 SEVEN CYCLES ONE BIKE YOURS 18­4 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE CUSTOMER VALUE IN MARKETSPACE  Marketplace  Marketspace • Time Utility • Possession Utility • Form Utility 18­5 FIGURE 18-1 Trend in online shoppers and online retail sales revenue in the U.S 18­6 FIGURE 18-1A Trend in online shoppers in the U.S 18­7 FIGURE 18-1B Trend in online retail sales revenue in the U.S 18­8 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE  Interactivity  Individuality  Interactive Marketing  Choiceboard M&Ms • Collaborative Filtering 18­9 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE  Personalization  Permission Marketing • Opt-In • Opt-Out 18­10 LO2 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHO IS THE ONLINE CONSUMER?  Online Consumers  Seek Product Information  • Educated • Affluent • Young • Diverse 20% of Those Who Spend $1,000+ per Year Online = 87% of Sales! 18­15 LO2 MARKETING MATTERS Meet Today’s Internet Mom on a Mission 18­16 LO3 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 18­17 FIGURE 18-3 Why consumers shop and buy online 18­18 LO4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE  Convenience • Bots • Eight-Second Rule  Choice • Offering Selection • Choice Assistance 18­19 LO4 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 18­20 LO4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE  Communication • Web Communities • Blog • Spam • CAN-SPAM Act 18­21 LO4 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 18­22 LO4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE  Cost • Dynamic Pricing  Control • Cookies • Behavioral Targeting 18­23 LO4 MAKING RESPONSIBLE DECISIONS Who is Responsible for Internet Privacy and Security? Truste 18­24 LO4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHEN ONLINE CONSUMERS SHOP AND BUY  Monday - Friday  8:00 AM to 5:00 PM 18­25 LO4 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 18­26 LO4 CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING  Multichannel Marketing  Transactional Websites • Cannibalization • Channel Conflict 18­27 LO4 CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING  Promotional Websites Pampers • Interactive Experiences • Separate Websites for Each Brand • Support Traditional Marketing Channel 18­28 FIGURE 18-4 Implementing multichannel marketing with promotional websites 18­29 ... Utility • Form Utility 18 5 FIGURE 18- 1 Trend in online shoppers and online retail sales revenue in the U.S 18 6 FIGURE 18- 1A Trend in online shoppers in the U.S 18 7 FIGURE 18- 1B Trend in online... behavior LO4 Define cross-channel shoppers and the role of transactional and promotional websites in reaching these shoppers 18 3 SEVEN CYCLES ONE BIKE YOURS 18 4 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS,... Digital Items  Unique Items  Convenience Items  Standardized Items 18 17 FIGURE 18- 3 Why consumers shop and buy online 18 18 LO4 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE