Chapter 21 Implementing Interactive and Multichannel Marketing

brand loyalists

-19% of online consumer -who regularly visit their favorite bookmarked websites and spend the most money online -they are better-educated and more affluent internet users who effortlessly navigate familiar and trusted websites and enjoy the online browsing and buying experience

hunter-gatherers

-20% of online consumers -married couples with children at home who use the internet like a consumer magazine to gather information and compare products and prices

7 C's of online customer experience

-context -content -community -customization -connection -communication -commerce

click-and-mortar

-the largest online consumer lifestyle segment -consists of women who tend to browse retailer websites but actually buy products in traditional retail outlets

buzz

a popular term for word-of-mouth behavior in market space

when and where online consumers shop and buy

about 80% of online retail sales occur Monday through Friday favorite websites for workday shopping and buying include those featuring event tickets, auctions, online periodical subscriptions, flowers, and gifts, consumer electronics, and travel

promotional websites

advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased. often engage the visitor in an interactive experience involving games, contests, and quizzes with electronic coupons with electronic coupons and other gifts as prizes are effective in generating interest in and trial of a company's products

content

all digital info on website including presentation form

choice-board

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, prices, and delivery options. most choice-boards are essentially transaction devices

market space

an internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings

cross-channel shopper

an online consumer who researches products online and then purchases them at a retail store slightly younger than online consumers likely to accept technology in their lives more than those who don't cross channel shop research shows that sales arising from cross-channel shoppers dwarf (shrink) exclusive online retail sales

traditional marketplace

buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (store or offices) and mostly tangible objects

cookies

computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website -cookies allow marketer's website to record a user's visit, track visits to other websites, and store and retrieve this information in the future

interactive marketing

computer-mediated environment in which the buyer controls the kind and amount of information received from the seller with: choiceboard and personalization

hooked, online, and single segment

consists of young, affluent, and single online consumers who bank, play games, and spend more time online than any other segment -16% of online consumers -enjoy auction websites such as eBay, and visit game websites like Slingo.com

personalization

consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences

eight-second rule

customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds

transactional websites

essentially electronic storefronts. they focus principally on converting an online browser into an online, catalog, or in-store buyer using the website design elements described earlier -used by direct selling companies e.g. tupperware, victoria's secret cannibalize on store and catalog, but attract new customers and influence sales manufacturers tend not to use this bc threats of channel conflict

possession utility

getting a product or service to consumers accelerated

place and time utility

in market space, information available to customers anywhere, anytime

viral marketing

internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages Three approaches 1. marketers can embed a message in the product or service so that customers hardly realize they are passing it along 2. marketers can make the website content so compelling that viewers want to share it with others 3. marketers can offer incentives such as discounts, sweepstakes, or free merchandise

collaborative filtering

is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases

connection

is the network of linkages between a company's site and other sites. these links are embedded in the website; appear as highlighted words, a picture, or graphic; and allow user to effortlessly visit other sites with a mouse click

customization

not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customers

community

user-to-user relationships this design element is popular because it has been shown to enhance customer experience and build favorable buyer-seller relationships

behavioral targeting

uses infor from cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising

customization (1)

website customization is the ability of a site to modify itself to, or be modified by and for, each individual users.

context

website's aesthetic appeal and functionality can be functionally oriented, aesthetically oriented

time-sensitive materialists

who regard the internet as a convenience tool for buying music, books, computer software, and electronics

choice

- choice exists in the product or service selection offered to consumers -choice assistance: online dialogue w marketers to make informed decisions

what online consumers buy

- general product and service categories 1. Items which needs product information beforehand, but prepurchase trial not needed, e.g. computers & consumer electronics 2. Items to which audio or video demonstration important, e.g. apparel & accessories 3. Items delivered digitally, e.g. books, music & video 4. unique items, e.g. specialty products, food, beverages, gifts 5. items regularly purchased, convenience important, e.g. consumer packaged goods 6. Highly standardized products and services where price info important, e.g. automobile & auto parts

6 online consumer lifestyle segments

1. click and mortar 2. hunter gatherers 3. brand loyalists 4. time-sensitive materialists 5. hooked, online, and single 6. e-bivalent newbies

capabilities of internet

1. interactivity - customers can influence timing and extent of buyer-seller interaction 2. individuality - consumers decide what kind of products and services they buy, info they receive, prices they pay

communication (reason)

1. marketer-to-consumer e-mail notification 2. consumer-to-marketer buying and service requests 3. consumer-to-consumer chat rooms and instant messaging, in addition to social networking such as Twitter and Facebook

form utility

customization for exact needs possible w forms and built to order products

communication

dialogue between the website and its users. consumers expect that communication to be interactive and individualized in real time much like a personal conversation

spam

electronic junk mail or unsolicited e-mail

customer value creation in marketspace

place and time utility possession utility form utility

e-bivalent newbies

relative newcomers to the internet who rarely spend money online but seek product information

why consumers shop and buy online

six reasons: 1. convenience 2. choice 3. customization 4. communication 5. cost 6. control

multichannel marketing

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with the cross-channel shopper websites play a multifaceted role in multichannel marketing because they can serve as either a communication or delivery channel 1. transactional websites 2. promotional websites

show-rooming

the likelihood of lower online prices has given rise to a consumer practice recall a show-rooming is when a shopper visits a retail store to inspect merchandise but then purchases the merchandise online

dynamic pricing

the practice of changing prices for products and services in real time in response to supply and demand conditions

permission marketing

the solicitation of a consumer's content (called opt-in) to receive e-mail and advertising based on personal data supplied by the consumer. permission marketing is a proven vehicle for building and maintaining customer relationship, provided it is properly used permission marketing adhere to three rules: 1. make sure opt-in customers receive only information that is relevant and meaningful to them 2. their customers are given the option to opt-out, or change the kind, amount, of timing of information sent to them 3. customers are assured that their name or buyer profile data will not be sold or share with others

commerce

the website's ability to conduct sales transactions for products and services. should be quick and simple