11© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson

Marketing II Marketing II The Chang School-Ryerson UniversityThe Chang School-Ryerson University

Continuing EducationContinuing Education

Email:Email: agervais@ryerson.caagervais@ryerson.ca preferred preferredWeb: Web: www.ryerson.ca/~agervaiswww.ryerson.ca/~agervais

Office: Bus 308Office: Bus 308Phone: 416-979-5000 Ext 4215Phone: 416-979-5000 Ext 4215

CMKT 200 Fall 2005Instructor: Armand Gervais

22© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson

Lecture AgendaLecture Agenda

Don’t Forget Name TagsDon’t Forget Name Tags

Interactive MarketingInteractive Marketing Video EbayVideo Ebay BreakBreak SimulationSimulation To Do’s for next weeks classTo Do’s for next weeks class Time to work in GroupsTime to work in Groups

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IMPLEMENTING INTERACTIVE AND

MULTICHANNEL MARKETING

CHAPTER

21212121

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Understand what interactive marketing Understand what interactive marketing is and how it creates customer value, is and how it creates customer value, customer relationships, and customer customer relationships, and customer experiences in the new marketplace.experiences in the new marketplace.

Identify the online consumer, their Identify the online consumer, their profiles, and their purchasing profiles, and their purchasing behaviours.behaviours.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

55© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson

Recognize why certain types of Recognize why certain types of products and services are particularly products and services are particularly suited for interactive marketing.suited for interactive marketing.

Distinguish between multiple channels Distinguish between multiple channels and multi-channel marketing in reaching and multi-channel marketing in reaching online customers.online customers.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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Understand the differences between Understand the differences between transactional Websites and promotional transactional Websites and promotional Websites in multichannel marketing.Websites in multichannel marketing.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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ANYTIME, ANYWHERE, ANYWAY:ANYTIME, ANYWHERE, ANYWAY:

THE NEW MARKETING MANTRATHE NEW MARKETING MANTRA

IMPLEMENTING INTERACTIVE AND IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETINGMULTICHANNEL MARKETING

88© 2003 McGraw-Hill Companies, Inc. McGraw-Hill Ryerson

Customer Value Creation in Market-spaceCustomer Value Creation in Market-space Interactivity, Individuality, and Customer Interactivity, Individuality, and Customer

Relationships in MarketspaceRelationships in Marketspace eCRMeCRM Interactive marketingInteractive marketing

– Choiceboards Choiceboards DELL DELL Collaborative filtering Collaborative filtering Chapters.caChapters.ca

– Personalization Yahoo.caPersonalization Yahoo.ca Permission marketingPermission marketing

CREATING CUSTOMER VALUE, CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES RELATIONSHIPS, AND EXPERIENCES

IN THE NEW MARKETSPACEIN THE NEW MARKETSPACE

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Creating an Online Customer Creating an Online Customer ExperienceExperience

Consistent message and service across Consistent message and service across channels?channels?

Chapters vs. Future Shop Chapters vs. Future Shop Channel conflictChannel conflict

CREATING CUSTOMER VALUE, CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES RELATIONSHIPS, AND EXPERIENCES

IN THE NEW MARKETSPACEIN THE NEW MARKETSPACE

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FIGURE 21-2 FIGURE 21-2 Website design elements that drive customer Website design elements that drive customer experienceexperience

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Concept Check

1. The greatest marketspace opportunity for marketers lies in the creation of what kind of utility?

A: Form utilityA: Form utility

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2. The consumer-initiated practice of generating content on a marketer’s Website that is customer tailored to an individual’s specific needs and preferences is called _____________.personalizationpersonalization

Concept Check

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Concept Check

3. Companies produce a customer experience through what seven Website design elements?

A: The seven design elements are A: The seven design elements are context, content, community, context, content, community, customization, communication, customization, communication, connection, and commerce.connection, and commerce.

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The Online ConsumerThe Online Consumer– Profiling the Online ConsumerProfiling the Online Consumer

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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Online SegmentsOnline Segments The largest online consumer lifestyle segment, called The largest online consumer lifestyle segment, called clclick-and-mortarick-and-mortar, ,

consists of female homemakers who tend to browse retailer Websites consists of female homemakers who tend to browse retailer Websites but actually buy products in traditional retail outlets. They make up 23 but actually buy products in traditional retail outlets. They make up 23 percent of online consumers and represent an important segment for percent of online consumers and represent an important segment for multichannel retailers that also feature catalogue and store operations, multichannel retailers that also feature catalogue and store operations, such as J. Crew and JCPenney. such as J. Crew and JCPenney.

Twenty percent of online consumers are Twenty percent of online consumers are hunter-gatherershunter-gatherers——married married baby boomers with children at home who use the Internet like a baby boomers with children at home who use the Internet like a consumer magazine to compare products and prices. They can be consumer magazine to compare products and prices. They can be found visiting comparison shopping Websites such as found visiting comparison shopping Websites such as Dealcatcher.com and Mysimon.com on a regular basis.Dealcatcher.com and Mysimon.com on a regular basis.

Nineteen percent of online consumers are Nineteen percent of online consumers are brand loyalistsbrand loyalists who regularly who regularly visit their favourite bookmarked Websites and spend the most money visit their favourite bookmarked Websites and spend the most money online. They are better-educated and more-affluent Internet/Web users online. They are better-educated and more-affluent Internet/Web users who effortlessly navigate familiar and trusted Websites and enjoy the who effortlessly navigate familiar and trusted Websites and enjoy the online browsing and buying experience.. online browsing and buying experience..

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Online Segments Con’tOnline Segments Con’t Next there are Next there are time-sensitive materialiststime-sensitive materialists who regard the Internet as a who regard the Internet as a

convenience tool for buying music, books, and compute software and convenience tool for buying music, books, and compute software and electronics. They account for 17 percent of online consumers and c be electronics. They account for 17 percent of online consumers and c be found visiting Amazon.com, Dell.com, Sony.com, and BMG.com found visiting Amazon.com, Dell.com, Sony.com, and BMG.com

The The hooka onlinehooka online, and single , and single segment consists of young, affluent, and segment consists of young, affluent, and single online consume! who bank, play games, and spend more time single online consume! who bank, play games, and spend more time online than any other segment a documented in the accompanying online than any other segment a documented in the accompanying Web Link. They make up 16 percent of online consumers, enjoy Web Link. They make up 16 percent of online consumers, enjoy auction Websites such as eBay, and visit game Websites lil iWon.com, auction Websites such as eBay, and visit game Websites lil iWon.com, ea.com, and games.yahoo.com.ea.com, and games.yahoo.com.

Five percent of online consumers are the Five percent of online consumers are the ebivalent newbies—ebivalent newbies—newcomersnewcomers to the Internet who rarely spend money online, bii seek to the Internet who rarely spend money online, bii seek product information. product information.

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FIGURE 21-3 FIGURE 21-3 Profiles of Canadian online usersProfiles of Canadian online users

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Canadians OnlineCanadians Online

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Canadian Online RetailingCanadian Online Retailing

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The Online Consumer (cont)The Online Consumer (cont)– Online Consumer Lifestyle SegmentationOnline Consumer Lifestyle Segmentation

What Online Consumers BuyWhat Online Consumers Buy What have you purchased online?What have you purchased online? What would you not purchase and why?What would you not purchase and why?

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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FIGURE 21-4 FIGURE 21-4 Online consumer sales by product/service Online consumer sales by product/service category: 2001 and 2005category: 2001 and 2005

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U.S. Internet UsersU.S. Internet Users

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Why Do Consumers Shop and Buy Why Do Consumers Shop and Buy Online?Online?

What are the advantages and What are the advantages and disadvantages? disadvantages?

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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FIGURE 21-5 FIGURE 21-5 Why consumers shop and buy onlineWhy consumers shop and buy online

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Why Consumers Shop and Buy Online Why Consumers Shop and Buy Online (cont)(cont)– ConvenienceConvenience

Bots Bots Bizrate.comBizrate.com Eight-second rule Eight-second rule

– ChoiceChoice– CustomizationCustomization

CustomerizationCustomerization

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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Why Consumers Shop and Buy Online Why Consumers Shop and Buy Online (cont)(cont)– CommunicationCommunication

Web communitiesWeb communities SpamSpam Viral marketingViral marketing

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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Why Consumers Shop and Buy Online (cont)Why Consumers Shop and Buy Online (cont)– CostCost

Dynamic pricingDynamic pricing

– Control Control Portals 80% regularly use portals and search enginesPortals 80% regularly use portals and search engines Google.com yahoo.ca canoe.ca Google.com yahoo.ca canoe.ca Cookies Advantages and Disadvantages?Cookies Advantages and Disadvantages? SPAM SPAM Permission based marketingPermission based marketing

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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When and Where Online Consumers When and Where Online Consumers Shop and BuyShop and Buy

80% of online sales occur during the 80% of online sales occur during the week during normal working hoursweek during normal working hours

40% shop online from work40% shop online from work

ONLINE CONSUMER BEHAVIOUR ONLINE CONSUMER BEHAVIOUR AND MARKETING PRACTICE IN AND MARKETING PRACTICE IN

CYBERSPACECYBERSPACE

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The worst Flash intros http://

www.natterjackpr.com/Flash/hall_of_fame.html

Concept Check

1. What is the eight-second rule?

A: Customers will abandon their efforts to enter and navigate a A: Customers will abandon their efforts to enter and navigate a Website if download time exceeds eight seconds.Website if download time exceeds eight seconds.

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Concept Check

2. Which online consumer lifestyle segment spends the most money online and which spends the most time online?

A: Brand loyalists spend the most A: Brand loyalists spend the most money online. The hooked, money online. The hooked, online, and single segment online, and single segment spends the most time online.spends the most time online.

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Concept Check

3. What are the six reasons consumers prefer to shop and buy online?

A: The six reasons are A: The six reasons are convenience, cost, choice, convenience, cost, choice, customization, communication, customization, communication, and control.and control.

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Integrating and Leveraging Multiple Integrating and Leveraging Multiple Channels with Multichannel MarketingChannels with Multichannel Marketing

Implementing Multichannel MarketingImplementing Multichannel Marketing– Multichannel Marketing with Transactional Multichannel Marketing with Transactional

WebsitesWebsites– Multichannel Marketing with Promotional Multichannel Marketing with Promotional

WebsitesWebsites

MULTICHANNEL MARKETING MULTICHANNEL MARKETING TO THE ONLINE CONSUMERTO THE ONLINE CONSUMER

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FIGURE 21-6 FIGURE 21-6 Implementing multichannel marketing Implementing multichannel marketing with promotional Websiteswith promotional Websites

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To Do’s for Next ClassTo Do’s for Next Class

– Next week Chapter 10 Next week Chapter 10 – Work on SimulationWork on Simulation– Study for exam Study for exam

– www.marketplace6.comwww.marketplace6.com