This chapter 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; identify the demographic and lifestyle profile of online consumers; describe why consumers shop and buy online and how marketers influence online purchasing behavior.
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved 21-1 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO: LO1 Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences LO2 Identify the demographic and lifestyle profile of online consumers LO3 Explain why certain types of products and services are particularly suited for interactive marketing 21-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO: LO4 Describe why consumers shop and buy online and how marketers influence online purchasing behavior LO5 Define cross-channel shoppers and the role of transactional and promotional websites in reaching these shoppers 21-3 SEVEN CYCLES ONE BIKE YOURS 21-4 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE CUSTOMER VALUE CREATION IN MARKETSPACE Marketplace Marketspace • Time Utility • Possession Utility • Form Utility 21-5 FIGURE 21-1 Trend in online shoppers and online retail sales revenue in the U.S 21-6 FIGURE 21-1A Trend in online shoppers in the U.S 21-7 FIGURE 21-1B Trend in online retail sales revenue in the U.S 21-8 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE Interactivity Individuality Interactive Marketing Choiceboard M&Ms • Collaborative Filtering 21-9 LO1 CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE Personalization Permission Marketing • Opt-In • Opt-Out 21-10 Choiceboard A choiceboard is an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options 21-38 Collaborative Filtering Collaborative filtering is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases 21-39 Personalization Personalization is the consumerinitiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences 21-40 Permission Marketing Permission marketing is the solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer 21-41 Online Consumers Online consumers are the subsegment of all Internet users who employ this technology to research products and services and make purchases 21-42 Bots Bots are electronic shopping agents or robots that comb websites to compare prices and product or service features 21-43 Eight-Second Rule 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 21-44 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 21-45 Web Communities Web communities are websites that allow people to congregate online and exchange views on topics of common interest 21-46 Spam Spam consists of communications that take the form of electronic junk mail or unsolicited e-mail 21-47 Viral Marketing Viral marketing is an Internetenabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs 21-48 Dynamic Pricing Dynamic pricing is the practice of changing prices for products and services in real time in response to supply and demand conditions 21-49 Cookies Cookies are computer files that a marketer can download onto the computer or mobile phone of an online shopper who visits the marketer’s website 21-50 Behavioral Targeting Behavioral targeting uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising 21-51 Cross-Channel Shopper A cross-channel shopper is an online consumer who researches offerings online and then purchases them at a retail store 21-52 ... Utility • Form Utility 21- 5 FIGURE 21- 1 Trend in online shoppers and online retail sales revenue in the U.S 21- 6 FIGURE 21- 1A Trend in online shoppers in the U.S 21- 7 FIGURE 21- 1B Trend in online... Ebivalent Newbies 21- 15 LO2 GOING ONLINE Are You a Roving Node or a Drifting Surfer? 21- 16 LO2 MARKETING MATTERS Meet Today’s Internet Mom 21- 17 LO3 ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE... Standardized Items 21- 18 FIGURE 21- 3 Estimated percentage of online retail sales by product/service category: 2010 and 2015 21- 19 FIGURE 21- 4 Why consumers shop and buy online 21- 20 LO4 ONLINE