Mktg Ch. 18

Front 1

Traditional Marketplace
Marketspace

Back 1

Traditional Marketplace: Here 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: Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings.

Front 2

Creating Customer Value in Marketspace

Back 2

the provision of direct, on-demand information is possible from marketers anywhere to customers anywhere, at any time....Operating hours and geographical constraints do not exist in marketspace.

greatest marketspace opportunity for marketers, however, lies in its potential for creating form utility. Interactive two-way Internet-enabled communication capabilities in marketspace invite consumers to tell marketers specifically what their requirements are, making customization of a product or service to fit their exact needs possible.

Front 3

Interactivity
Individuality
Customer Relationships in Marketspace

Back 3

Companies need to interact with their customers by listening and responding to their needs. Marketers must also treat customers as individuals and empower them to (1) influence the timing and extent of the buyer–seller interaction and (2) have a say in the kind of products and services they buy, the information they receive, and in some cases, the prices they pay.

Interactive Marketing: 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. Interactive marketing is characterized by sophisticated choiceboard and personalization systems that transform information supplied by customers into customized responses to their individual needs.

Front 4

Choiceboards

Back 4

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 (or components), prices, and delivery options
....Because choiceboards collect precise information about the preferences and behavior of individual buyers, a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer's needs

Collaborative Filtering: process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.

Front 5

Personalization

Back 5

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

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. ....Permission marketing is a proven vehicle for building and maintaining customer relationships, provided it is properly used.

Adhere to 3 rules:
First, they make sure opt-in customers receive only information that is relevant and meaningful to them. Second, their customers are given the option to opt-out, or change the kind, amount, or timing of information sent to them. Finally, their customers are assured that their name or buyer profile data will not be sold or shared with others. This assurance is important because a majority of adult Internet users express concern about the privacy of their personal information.

Front 6

Creating an Online Customer Experience

Back 6

Customer Experience: defined as 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.
7 Website Design Elements:
1. context: refers to a website's aesthetic appeal and functional look and feel reflected in site layout and visual design.
A: context attempts to convey the core consumer benefit provided by the company's offerings.
2. Content: applies to all digital information on a website, including the presentation form—text, video, audio, and graphics.
A: Content quality and presentation along with context dimensions combine to engage a website visitor and provide a platform for the five remaining design elements.
3. Customization: ability of a site to modify itself to, or be modified by, each individual user.
4. Connection: 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 a user to effortlessly visit other sites with a mouse click.
5. Communication: refers to the dialogue that unfolds between the website and its users.
A:Consumers—particularly those who have registered at a website—expect that communication to be interactive and individualized in real time much like a personal conversation
6. Community: an increasing number of company websites encourage user-to-user communications hosted by the company to create virtual communities, or simply, community. This design element is popular because it has been shown to enhance customer experience and build favorable buyer–seller relationships.
7. Commerce: website's ability to conduct sales transactions for products and services with a mouse click. Online transactions are quick and simple in well-designed websites.
A: Only websites that emphasize the actual sale of products and services include the commerce element
.....Websites that are used primarily for advertising and promotion purposes emphasize the communication element.
B: Companies use a broad array of measures to assess website performance....the amount of time per month visitors spend on their website, or “stickiness,” is used to gauge customer experience

Front 7

Online Consumer

Back 7

Subsegment of all Internet users who employ this technology to research products and services and make purchases...online consumers are equally likely to be women and men and tend to be better educated, younger, and more affluent than the general U.S. population....This makes them an attractive market.

Front 8

What Online Consumers Buy

Back 8

6 general product and service categories account for over 80 percent of online consumer buying today and for the foreseeable future.:
1. items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical. (computers)
2. items for which audio or video demonstration is important (DVDs)
3. items that can be delivered digitally (computer software, music)
4. Unique items, such as specialty products, foods, beverages, and gifts (food and gift merchants)
5. items that are regularly purchased and where convenience is very important. (grocery products, personal health)
6. highly standardized products and services for which information about price is important. (home improvement, casual apparel)

Front 9

Why consumers shop and buy online?

Back 9

6 reasons they shop and buy online:
1. Convenience: websites must be easy to locate and navigate, and image downloads must be fast.
A: bots: electronic shopping agents or robots that comb websites to compare prices and product or service features
B: 8 Second Rule: Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds
2. Choice: choice exists in the product or service selection offered to consumers. Buyers desiring selection can avail themselves of numerous websites for almost anything they want..... interactive capabilities of Internet-enabled technologies invite customers to engage in an electronic dialogue with marketers for the purpose of making informed choices
3. Customization: arises from Internet-enabled capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers.
A: Customerization: growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. seeks to do more than offer consumers the right product, at the right time, and at the right price.... It combines choiceboard and personalization systems to expand the exchange environment beyond a transaction and makes shopping and buying an enjoyable, personal experience.
4. Communication: 3 forms:
1. marketer-to-consumer e-mail notification
2. consumer-to-marketer buying and service requests
3. consumer-to-consumer chat rooms and instant messaging, plus social networking websites such as Twitter and fb
..interactive communication capabilities of Internet-enabled technologies increase consumer convenience, reduce information search costs, and make choice assistance and customization possible. Communication also promotes the development of company-hosted and independent web communities—websites that allow people to congregate online and exchange views on topics of common interest
B: Spam: form of electronic junk mail or unsolicited e-mail
C: Buzz: a popular term for word-of-mouth behavior in marketspace
D: Viral Marketing: Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
3 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

5. Cost: Many popular items bought online can be purchased at the same price or cheaper than in retail stores
A: Dynamic Pricing: 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.
B: consumer's cost of external information search, including time spent and often the hassle of shopping, is also reduced.
6: Control: control it gives them over their shopping and purchase decision process.
A: 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 the marketer's website to record a user's visit, track visits to other websites, and store and retrieve this information in the future. Cookies also contain visitor information such as expressed product preferences, personal data, passwords, and credit card numbers.
B: 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.

Front 10

Cross Channel Shopper

Back 10

online consumer who researches products online and then purchases them at a retail store.
..Recent research shows that 51 percent of U.S. online consumers are cross-channel shoppers.

A: want the right product at the best price, and they don't want to wait several days for delivery.

The top reasons these shoppers research items online before buying in stores include (1) the desire to compare products among different retailers; (2) the need for more information than is available in stores; and (3) the ease of comparing their options without having to trek to multiple retail locations.

Research shows that sales arising from cross-channel shoppers dwarf exclusive online retail sales

Front 11

Multichannel Marketing

Back 11

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 online—the cross-channel shopper.

Websites play a multifaceted role in multichannel marketing because they can serve as either a communication or delivery channel.
Two general applications of websites exist based on their intended purpose:
1. Transactional Websites: are essentially electronic storefronts....focus principally on converting an online browser into an online, catalog, or in-store buyer using the website design elements described earlier. Transactional websites are most common among store and catalog retailers and direct selling companies
A: used less frequently by manufacturers of consumer products...channel conflict and the potential harm to trade relationships with their retailing intermediaries.

2. 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 and other gifts as prizes
A: can be used to support a company's traditional marketing channel and build customer relationships.