Chapter 17: Implementing Interactive and Multichannel Marketing

Two dimensions of choice

-choice exists in the product or service selection offered to consumers -choice assistance

Reasons why consumers shop and buy online

-convenience -choice -customization -communication -cost -control

What a company's success in achieving a meaningful marketplace presence hinges largely on

-its ability to design and execute a marketing program that capitalizes on the unique value creation -the relationship-building capabilities of digital technology in delivering a favorable customer experience

Utilities creating customer value in a digital environment

-time utility -place utility -form utility -possession utility

Three forms of communication

1 marketer-to consumer email notification 2 consumer-to-marketer buying and service requests 3 consumer to consumer chat rooms and instant messaging

Cross-channel consumers

A consumer who shops online but buys offline, or shops offline but buys online

Digital marketplace

A digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings

viral marketing

A digitally enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs

Context

A website's aesthetic appeal and the functional look and feel of the site's layout and visual design

Saturday

Most popular shopping day

Communication

The dialogue that unfolds between the website and its users; the ways the site enables site-to-user, or two-way communication

Subscription commerce

The payment of a fee to have products and services delivered on a recurring schedule (Amazon Prime for example); now accounts for 10% of total US online sales

Marketing attribution

The practice and techniques used to credit or value a particular channel and consumer touchpoint

Apparel and accessories

The product/service category that accounts for the highest percentage of online purchases

health and personal care

The product/service category that accounts for the lowest percentage of online purchases

Buzz

a popular term for marketplace word-of-mouth behavior

Collaborative filtering

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

Eight-second rule

a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds (part of convenience)

Blog

a web page that serves as a publicly accessible personal journal and online forum for an individual or organization

Permission marketing

The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer.

Social commerce

The use of social networks for browsing and buying

Community

The ways that the site enables user-to-user communication

choiceboard

an interactive, digitally-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

Content

applies to all digital information on a website, including the presentation form—text, video, audio, and graphics

Marketplace

buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and 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 (allow the 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

two-way buyer-seller electronic communication in which the buyer controls the kind and amount of information received from the seller

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

Web communities

websites that allow people to congregate online and exchange views on topics of common interest

During the week (Monday-Friday)

When 80% of online buying occurs

Two major reasons for the popularity of online shopping and buying among women

1. Greater shopping convenience 2. Lower external search costs

Three steps to implement multichannel marketing

1. It is necessary to document cross-channel consumer behavior 2. Marketers should employ communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with their current and potential consumers 3. Companies should monitor and measure multichannel marketing performance

Three approaches to viral marketing

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 (discounts, sweepstakes, or free merchandise)

Two reasons why it is difficult to monitor and measure multichannel marketing performance

1. The magnitude of data corresponding to which channel(s) each consumer accesses during each stage in the purchase decision process has made data difficult to assemble and integrate 2. The task of assigning the proportional credit to each channel and consumer touchpoint across all online and offline channels for a desired consumer action is extremely complex

Three insights that can be gained from a generic cross-channel consumer journey map

1. The map identifies the communication and delivery channels engaged by cross-channel consumers 2. The map shows the links between communication and delivery channels across the prepurchase, purchase, and post purchase phases of the consumer purchase decision process 3. The map highlights consumer touchpoints that are outside the control of the company, such as comparison websites and social media

three rules of permission marketing

1. They 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, or timing of information sent to them 3. Their customers are assured that their name or buyer profile data will not be sold or shared with others

7 website design elements that drive customer experience

1. context 2. content 3. customization 4. connection 5. communication 6. community 7. commerce

Customization

Arises from digital capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers

Wednesday

Busiest online shopping day

spam

Communications that take the form of electronic junk mail or unsolicited e-mail (account for 67% of email messages)

Digital natives

Companies that are challenged to continually refine, broaden, and deepen their marketplace presence; they must consider what role, if any, the traditional marketplace will play in their future (Amazon, Google, eBAy, E*Trade)

Legacy companies

Companies that are continually challenged to define the nature and scope of their marketplace presence; these companies consistently refine the role of digital technology in attracting, retaining, and building consumer relationships to improve their competitive positions in the traditional marketplace while also bolstering their marketplace presence (P&G, Walmart, GM); originated as brick-and-mortar stores in the traditional marketplace though they operate online today

Two unique capabilities of digital technology that promote and sustain customer relationships.

Interactivity and individuality

Exclusive offline consumer

Offline consumer buying and offline consumer shopping

Cross-channel consumer "showrooming"

Offline consumer buying and online consumer shopping

Cross-channel consumer "webrooming"

Online consumer buying and offline consumer shopping

Exclusive online consumer

Online consumer buying and online consumer shopping

Chatbots

Sophisticated computer programs that mimic human conversation using artificial intelligence

Bots

electronic shopping agents or robots that comb websites to compare prices and product or service features (part of convenience)

customization

the ability of a site to modify itself to, or be modified by and for, each individual user

stickiness

the amount of time per month visitors spend on their website; used to gauge customer experience and assess website performance

Multichannel marketing

the 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 the digital market space

Personalization

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

Customerization

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 (combines choiceboard and personalization systems to expand the exchange environment beyond a transaction and makes shopping and buying an enjoyable, personal experience)

Connection

the network of linkages between a company's site and other sites

dynamic pricing

the practice of changing prices for products and services in real time in response to supply and demand conditions (form of flexible pricing and can often result in lower prices)

Showrooming

the practice of examining products in a store and then buying them online for a cheaper price

Webrooming

the practice of examining products online and then buying them in a store

Online consumers

the subsegment of all Internet users who employ this technology to research products and services and make purchases

Customer experience

the sum total of the interactions that a customer has with a company's website, from the initial look at a home page through the entire purchase decision process

Commerce

the website's ability to conduct sales transactions for products and services (online transactions are quick and simple in well-designed websites)