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53 Cards in this Set

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  • Back
marketplace
the traditional market environment where 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.
marketspace
an internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings
Creating Customer Value in Marketspace
challenge for companies to serve both the marketplace and marketspace.
- traditional marketplace stores trying to define themselves online
- marketspace companies trying to broaden and define themselves in the traditional marketplace
Customer Value Creation in marketspace
- small economic significance but possibility to create more customer value
-on demand info. "anyplace at anytime" because there are no operating hour or geographical constraints (Possession and Time Utility)
- FORM utility: mass customization
interactivity and
individuality
unique capabilities of internet technology
- companies interact with customers by listening and responding to their needs
- treat customers as individuals
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 by the seller
-has sophisticated choiceboard and personalization systems to that transform info. supplied by customers into customized responses.
Choiceboard
an interactive, Internet-enabled system that allows customers to design their own products and services by answering a few questions and choosing from a menu of product and service attributes( or components), prices, and delivery options.
- usually just transaction devices, but sometimes collaborative filtering
-marketer initiated effort
Collaborative Filtering
A process that automatically groups people with similar buying preferences, and behaviors and predicts future purchases.
*Gives marketers the ability to make dead-on sales recommendations in "real time"
-marketer initiated effort
Personalization
- a consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
- buyer has willingness to have tailored communications brought to his or her attention
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
Rules: 1) only relevant and meaningful info. 2) ability to change info. and opt-out option 3) customer info not sold or shared
Customer Experience (from Interactive Mark. Perspective)
the sum of the total interactions that a customer has with a company's website, form the initial look at the homepage through the entire purchase decision process
- Quality experience is the standard by which meaningful marketspace presence is measured
- 7 design elements
7 design elements of website that create Customer Experience
(7 C's)
Context
Content
Community
Customization
Communication
Connection
Commerce
*Dont have to have all. Must have Context and Content. Others vary w/purpose.
a. context

b. content
a. Site's layout and visual design. Aesthetic appeal and functionality. Functional- focus on company offerings.
Goal: convey core benefit

b. Text, pictures, sound, and video that the website contains
Goal: Engage a website viewer and provide platform for other elements
c. connection

d. customization
c. degree that site is linked to other sites. "Links" in informational websites

d. site's ability to tailor itself to different users or to allow users to personalize the site
e. communication

f. community
e. the ways the site enables site-to-user, user-to-site, or two-way communication/dialogue. Should be interactive and individualized in real-time.

f. the ways a site enables user-to-user communication. Enhances the customer experience and builds buyer-seller relationships .
g. commerce
the site's ability to enable commercial transactions of products and services. Should be quick and simple.
EX. Amazon's "one-click" shopping
Online Consumer Behavior and Marketing
Who are they? What do they buy? Why the marketspace instead of marketplace?

Consumers are- NOT a homogeneous segment of the population
Profiling the online Customer
MAIN ASPECT- they all own or have access to a computer or an internet-enabled device.
-evenly split b/w men and women and tend to be better educated, younger, and more affluent. Women tend to purchase more online than men.
Online Consumer
the subsegment of all Internet users that employ this technology to research products and services and make purchases.
-80% of adults have sought product info.
Online Consumer Lifestyle Segmentation
online consumers are diverse and represent different different kinds of people seeking different kinds of online experiences.
-6 Segments
6 Online consumer segments:

a. click-and-mortar(23%)

b. hunter gatherers (20%)
a. women who tend to browse retailer websites but actually buy products in traditional outlets. LARGEST online consumer lifestyle segment.

b. married couples with children at home who use the internet like a consumer magazine to gather information and compare products and prices. Visit comparison shopping websites.
c. brand loyalists (19%)

d. time-sensitive materialists (17%)
c. regularly visit their favorite bookmarked websites and spend THE MOST MONEY online. Better educated and more affluent. Enjoy online buying experience.

d. regard the internet as a convenience tool buying music, books, consumer software and electronics. Amazon and dell.com
e. hooked, online, and single (16%)

f. ebivalent newbies (5%)
young, affluent, and single online customers that bank, play games, and spend MORE TIME ONLINE than any other segment.

f. relative newcomers to the Internet who rarely spend money online but seek product information.
Online Consumer Purchase Behavior
-not only most frequently purchased products/services, but also why they are popular.
6 Product/Service categories that dominate online buying
1)INFO. IMPORTANT/TRIAL NOT IMPORTANT
Computer hardware and consumer electronics
Media(software, books)
2) AUDIO/VIDEO DEMONSTRATION
music, videos
3)ITEMS THAT CAN BE DELIVERED DIGITALLY
Travel Reservations, computer software, financial brokerage
6 Product/Service categories that dominate online buying
4) UNIQUE ITEMS
collectables, specialty goods
5) REGULARLY PURCHASED- CONVENIENCE ITEMS
consumer packaged goods, grocery items
6) HIGHLY STANDARDIZED PRODUCTS, INFORMATION IMPORTANT
Clothing and Accessories
Automobiles and Accessories
Housewares and Household goods/insurance
Why Consumers shop and buy online (6 Cs)

*dont confuse w/ 7Cs of Website Design
Convenience
Choice
Customization
Communication
Cost
Control
a. Conveninece
online buying is convenient. Don't have to fight traffic, walk through long aisles, stand in lines.
-websites must be easy to locate and navigate, and image downloads must be fast
Bots
Online shopping agents or robots that comb websites to compare prices and product or servicee features.
Eight second rule
Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds

Also- more clicks to access info. and make a purchase= more likely to exit
b. Choice
two dimensions
1) Choice exists in the product or service selection offered to customers. Many websites. Individual manufacturers and General Merchants

2)Choice assistance- interactive capabilities invite customers to engage in electronic dialogues w/marketers for the purpose of making informed CHOICES. EX. Land's End Body shape input
c. Customization
- fills need of some customers to have one-of-a-kind items. Arises from capabilities that make possible a highly interactive and individualized info. and exchange environment for shoppers and buyers
Customerization
the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and interaction for each customer.
- more than just offer the right product, time, and place but combine choiceboard and personalization to expand the exchange environment beyond a transaction to an enjoyable experience
d. Communication
3 forms:
1) Marketer to consumer e-mail notification 2)consumer to marketer buying and service requests 3) consumer-to-consumer chat rooms
- Increases consumer convenience, reduces information search costs, and makes choice assistance and customization possible; web communities
-BUT can be unwanted junk mail/spam
Web Communities
websites that allow people to congregate online and exchange views on topics of common interest.

iVillage.com
Blogs
a web page that serves to as a publicly accessible personal journal for an individual. Provide an online forum for a wide variety of subjects.
Spam
electronic junk mail/unsolicited e-mail
buzz
communication capabilities of the internet foster word of mouth behavior in marketspace
Viral Marketing
an internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via email.
- embed message in product/service so people don't realize they are passing it
- make compelling content that people want to pass on
- or offer incentives for referrals
e. Cost
many popular items bought online can be bought at the same price or cheaper than in retail stores.
- low prices result from software that permits dynamic pricing
- reduced cost from decreased external search, time spent, and hassle
Dynamic Pricing
the practice of changing prices for products and services in real time in response to supply and demand conditions.
- flexible; results in lower prices
f. Control
sixth reason consumers prefer to shop online- Empowerment. IT can be used to seek info., eval. alternatives, and make decisions on own time, terms, and conditions.
-use portals and search engines
Portals
electronic gateways to the internet that supply a broad array of news and entertainment, information resources, and shopping services. EX. AOL, Yahoo
** seventh C- Reason for NOT buying

Cookies
computer files that a marketer can download onto the computer of an online shopper who visits the marketer's website
- they make possible tha customization content of online shoppers BUT they may represent a potential LOSS OF PRIVACY
When and Where Consumers Shop and Buy
80% Mon-FRi; from work
-event tickets, auctions, periodical subscriptions, gifts, etc. bought form work
- beauty, apparel accessories bought from home
- most consumers browse, not buy
Multichannel Marketing
most companies maintain presence in bot marketspace and marketplace
*dual distribution
practice of reaching different consumers through different marketing channels
Multichannel Marketing
a BLENDING of different communication and delivery channels that are MUTUALLY REINFORCING in attracting, retaining and building relationships with customers who shop and buy in the traditional marketplace and marketspace
-only similar to dual distribution in that it uses different communication and delivery channels
- integrate the firm's communication and delivery channels, NOT differentiate
EX. Eddie Baure website, catalog, and store provide same service
- each channel adds more value to others
multichannel retailers
retailers who employ two or more channels ( kiosks, catalogs, retail stores, etc.)
Implementing Multichannel Marketing
websites serve as either a communication or delivery channel
Application based on purpose:
1) Transactional website
2) Promotional websites
transactional websites
essentially electronic storefronts
Focus: convert browser to online, catalog, or in-store buyer using 7 design elements.
EX. the Gap.com website
-some cannibalization, but attract customers
-usually not used alone by manufacturers: conflict
channel conflict
potential harm to trade relationships w/ retailing intermediaries that can arise from use of websites by manufacturers
-retailers may feel cheated
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
-use interactive tools
- generate interest in and trial of a company's products and services
EX. Car companies
ALSO
- can be used to support a traditional marketing channel and build customer relationships