Marketing chapter 21

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Marketing chapter 21
2010-12-01 16:20:03
Marketing chapter

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  1. Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences. (LO1)
    • Interactive marketing involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
    • It creates customer value by providing time, place, form, and possession utility for consumers.
    • Customer relationships are created and sustained through two unique capabilities of Internet technology: interactivity and individuality.
    • From an interactive marketing perspective, customer experience represents the sum total of the interactions that a customer has with a company's Web site, from the initial look at a home page through the entire purchase decision process.
    • Companies produce a customer experience through seven Web site design elements: context, content, community, customization, communication, connection, and commerce.
  2. Choiceboards and Personalization
    • Choiceboard: 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.
    • - companies collect precise info about preferences and behavior of individual buyers (better anticipate and fulfill customer's needs)
    • - marketer-initiated efforts
    • - collaborative filtering: process that automatically groups people with similar buying intentions, preferences, behaviors and predicts future purchases
    • Personalization: consumer-initiated practice of generating content on a marketer's Website that is custom tailored to an individual's specific needs and preferences
    • - personalizing MyYahoo! pages
    • - permission marketing: solicitation of a consumer's consent (opt-in) to receive email and advertising based on personal data supplied by the consumer
    • - adhere to three rules:
    • - (1) make sure opt-in customers receive only information that is relevant and meaningful to them
    • - (2) customers are given option to opt-out, or change the kind, amount, or timing of info sent to them
    • - (3) customers are assured that name and buyer profile data will not be sold or shared with others
  3. Creating customer experience
    • Context: refers to Web site's aesthetic appeal and functional look and feel reflected in site layout and visual design
    • - focuses on company's offerings (products, services, information)
    • - attempts to convey the core consumer benefit provided
    • Content: applies to all digital information on a Web site, including the presentation form (text, video, audio, and graphics)
    • - content quality and presentation + context dimensions = platform for other elements
    • Customization: ability of a site to modify itself to, or be modified by, each individual user
    • Connection: network of linkages between a company's site and other sites (embedded in Web site)
    • Communication: dialogue that unfolds between the Web site and its users
    • - customer representatives while shopping, user-to-user communications
    • Community: user-to-user communications hosted by the company to create virtual communities
    • Commerce: Web site's ability to conduct sales transactions for products and services
  4. Identify the demographic and lifestyle profile of online consumers. (LO2)
    • As a group, online consumers are more likely to be women than men and tend to be better educated, younger, and more affluent than the general U.S. population
    • Women tend to purchase more goods and services online than men
    • Lifestyle profile of online consumers reflects the different kinds of online experiences they seek
    • Six lifestyle segments have been identified:
    • (1) click-and-mortar segment consists of women who browse retailer Web sites but actually buy products at retail outlets
    • (2) hunger-gatherers use Internet like a consumer magazine to gather information and compare products and services
    • (3) brand loyalists regularly visit their favorite bookmarked Web sites and spend the most money online
    • (4) time-sensitive materialists regard the Internet as a convenient tool for buying
    • (5) hooked, online, and single segment spends more time online than any segment
    • (6) ebivalent newbies are relative newcomers to the Internet who rarely spend money online, but seek product information
  5. Explain why certain types of products and services are particularly suited for interactive marketing. (LO3)
    • (Six general product and service categories dominate online consumer buying)
    • Items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical
    • Items for which audio or video demonstration is important
    • Items that can be digitally delivered
    • Items that are unique
    • Items that are regularly purchased and where convenience is very important
    • Highly standardized items for which information about price is important
  6. Describe why consumers shop and buy online and how marketers influence online purchasing behavior. (LO4)
    • Six reasons consumers shop and buy online: convenience, choice, customization, communication, cost, and control
    • Marketers have capitalized on these reasons through a variety of means
    • ie: provide choice assistance using choiceboard and collborative filtering technology, which also provides opportunities for customization
    • Company-hosted Web communities and viral marketing practices capitalize on the communications dimensions of Internet-enabled technologies
    • Dynamic pricing provides real-time responses to supply and demand conditions, often resulting in lower prices to consumers
    • Permission marketing is popular given consumer interest in control
  7. Define cross-channel shoppers and the role of transactional and promotional Web sites in reaching these shoppers. (LO5)
    • A cross-channel shopper is an online consumer who researches products online and then purchases them at a retail store
    • These shoppers are reached through multichannel marketing
    • Websites play a multifaceted role in multichannel marketing because they can serve as either a delivery or communication channel
    • Transactional Websites are essentially electronic storefronts
    • They focus principally on converting an online browser into an online, catalog, or in-store buyer using the Web site design elements described earlier
    • On the other hand, promotional Web sites serve to advertise and promote a company's products and services and provide information on how items can be purchased and where they can be purchased