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LEARNING OBJECTIVES (LO) After reading Chapter 21, you should be able to: Describe what interactive marketing is and LO 1 how it creates customer value, customer relationships, and customer experiences. Identify the demographic and lifestyle LO 2 profile of online consumers. LO 3 Explain why certain types of products and services are particularly suited for interactive marketing. 1 -2 Implementing Interactive & Multichannel Marketing
LEARNING OBJECTIVES (LO) After reading Chapter 21, you should be able to: Describe why consumers shop and buy LO 4 online and how marketers influence online purchasing behavior. Define cross-channel shoppers and the role LO 5 of transactional and promotional websites in reaching these shoppers. 1 -3 Implementing Interactive & Multichannel Marketing
Seven Cycles One Bike. Yours. 1 -4 Seven Cycles Inc.
Customer Value Creation Interactive Marketing LO 1 Marketplace Marketspace 1 -5 Interactive Marketing creates Customer Value, Relationships, & Experiences
Customer Value Creation Interactive Marketing • Possession Utility • Form Utility LO 1 1 -6 Interactive Marketing creates Customer Value, Relationships, & Experiences
FIGURE 21 -1 Growth in online buyers and shopping expenditure for APAC & Selected countries LO 1 1 -7 Interactive Marketing creates Customer Value, Relationships, & Experiences
Customer Value Creation Interactivity & Individuality Interactivity Individuality Interactive Marketing Choiceboard • Collaborative Filtering LO 1 1 -8 Interactive Marketing creates Customer Value, Relationships, & Experiences
Customer Value Creation Interactivity & Individuality Personalization Permission Marketing • Opt-In • Opt-Out LO 1 1 -9 Interactive Marketing creates Customer Value, Relationships, & Experiences
FIGURE 21 -2 Seven website design elements that drive customer experience LO 1 1 -10 Interactive Marketing creates Customer Value, Relationships, & Experiences
Customer Value Creation Creating an Online Experience Customer Experience • Context § Functional § Aesthetic • Content • Customization LO 1 1 -11 Interactive Marketing creates Customer Value, Relationships, & Experiences
Customer Value Creation Creating an Online Experience Customer Experience • Connection • Communication LO 1 • Community • Commerce 1 -12 Interactive Marketing creates Customer Value, Relationships, & Experiences
Using Marketing Dashboards Sizing up Site Stickiness at Sewell Automotive Companies Average Time Spent per Unique Visitor = LO 1 × 1 -13 Interactive Marketing creates Customer Value, Relationships, & Experiences
Who is the Online Consumer? Online Consumer Profile Online Consumer Lifestyle Segmentation • Click-and-Mortar • Hunter-Gatherers • Hooked, Online, and Single • Brand Loyalists LO 2 • Time-Sensitive Materialists • Ebivalent Newbies 1 -14 Demographics & Lifestyle Profile of Online Customers
FIGURE 21 -3 A Number of internet users in the Asia Pacific & selected countries LO 2 1 -15 Demographics & Lifestyle Profile of Online Customers
FIGURE 21 -3 B Number of broadband subscribers in the Asia Pacific & selected countries LO 2 1 -16 Demographics & Lifestyle Profile of Online Customers
FIGURE 21 -3 C Number of mobile phone subscribers in the Asia Pacific & selected countries LO 2 1 -17 Demographics & Lifestyle Profile of Online Customers
FIGURE 21 -4 Internet purchasers Top 10 countries LO 2 1 -18 Demographics & Lifestyle Profile of Online Customers
Who is the Online Consumer? Online Consumer Behaviour What Online Consumers Buy • Product Information • Audio/Video Demos • Convenience Items • Digital Items LO 3 • Unique Items • Standardized Items 1 -19 Certain Products & Services are Suited to Interactive Marketing
FIGURE 21 -5 Estimated percentage of online retail sales by product/service category: 2010 and 2015 LO 2 1 -20 Demographics & Lifestyle Profile of Online Customers
FIGURE 21 -6 Why consumers shop and buy online LO 4 1 -21 Online Purchasing Behaviour
Who is the Online Consumer? Online Consumer Behaviour Why Consumers Shop and Buy Online • Convenience § Bots § Eight-Second Rule • Choice § Product/Service Selection LO 4 § Assistance 1 -22 Online Purchasing Behaviour
Who is the Online Consumer? Online Consumer Behaviour Why Consumers Shop and Buy Online • Customization § Customerization LO 4 1 -23 Online Purchasing Behaviour
Who is the Online Consumer? Online Consumer Behaviour Why Consumers Shop and Buy Online • Communication § Marketer-to-Consumer E-mails § Consumer-to-Marketer Requests § Consumer-to-Consumer Chat Rooms and Instant Messaging LO 4 1 -24 Online Purchasing Behaviour
Who is the Online Consumer? Online Consumer Behaviour Why Consumers Shop and Buy Online • Communication § Web Communities § Blog § Viral Marketing § Spam LO 4 § Buzz § Spam 1 -25 Online Purchasing Behaviour
Viral Marketing How did De Beers and P&G do it? LO 4 1 -26 Online Purchasing Behaviour
Making Responsible Decisions Privacy & Security: Two Key Concerns of Online Shoppers LO 4 1 -27 Online Purchasing Behaviour
Who is the Online Consumer? Marketing in the Marketspace When and Where Online Consumers Shop and Buy • Monday – Friday (85% of consumers) • 8: 00 AM - 5: 00 PM (40% of consumers) LO 4 1 -28 Online Purchasing Behaviour
Who is the Cross-Channel Shopper? Multi-Channel Marketing Cross-Channel Shopper • Compare Products Among Retailers • Obtain Information Not in Stores • Reduce Trips to Multiple Retail Locations LO 5 1 -29 Reaching Cross-Channel Shoppers With Websites
Who is the Cross-Channel Shopper? Implementing Multi-Channel Marketing Transactional Websites • Cannibalization • Channel Conflict LO 5 1 -30 Reaching Cross-Channel Shoppers With Websites
Who is the Cross-Channel Shopper? Implementing Multi-Channel Marketing Promotional Websites • Interactive Experiences • Separate Websites for Each Brand • Support Traditional Marketing Channel LO 5 1 -31 Reaching Cross-Channel Shoppers With Websites
FIGURE 21 -7 Implementing multichannel marketing with promotional websites LO 5 1 -32 Reaching Cross-Channel Shoppers With Websites
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