Retailing Techniques For China SESSION #05 Marketing Department Course MKG573 Retailing Techniques For China SESSION #05

Course Outline Part I: Introduction Retailing in the Value Chain Part II: Retailing Strategies From Integration to Delegation Retailing and the Nature of Customers Multi-Channel Retailing Designing Customer Experience Developing Business: The Appointment of Dealers Appointing Dealers: Contractual Issues Attracting Dealers: The Business Models of Retailing Appointing and Dismissing Dealers: Turnover and Loyalty Implementing Brand Standards Demand Forecast and Inventory Management Retailing on the Web Retailtainment Retailing and Business Development 2

Session 05 Agenda Session 05 – Designing Customer Experience Offering customers "moments of truth" to support the positioning of the company. This lecture is inspired by the theoretical frame of Experiential Marketing. Definition of ‘Experiential Marketing’ What (Chinese) Consumers are looking for Designing Engagement Marketing Designing Engagement Marketing for online retail 3

Session 05 Agenda Session 05 – Designing Customer Experience Offering customers "moments of truth" to support the positioning of the company. This lecture is inspired by the theoretical frame of Experiential Marketing. Definition of ‘Experiential Marketing’ What (Chinese) Consumers are looking for Designing Engagement Marketing Designing Engagement Marketing for online retail 4

Definition of Experiential Marketing Engagement marketing, sometimes called "experiential marketing“, "event marketing," "on-ground marketing“, "live marketing“, or "participation marketing" is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. 5

Definition of Experiential Marketing Engagement marketing, sometimes called "experiential marketing“, "event marketing," "on-ground marketing“, "live marketing“, or "participation marketing" is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. The combination of classical marketing communications, brand design, online/offline product presentation/shelf-design and engagement marketing is called „integrated marketing“ 6

Definition of Experiential Marketing Engagement marketing, sometimes called "experiential marketing“, "event marketing," "on-ground marketing“, "live marketing“, or "participation marketing" is a marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. The combination of classical marketing communications, brand design, online/offline product presentation/shelf-design and engagement marketing is called „integrated marketing“ 7

Engagement Marketing is the opposite of Traditional Sales Think of a salesperson who walks up to you in a store. You tell him thanks, you’re okay, you’re just looking. But he hovers and looms, finds ways to insert himself into your activity, and is a general annoyance. That’s what typical marketing feels like: intrusive and disruptive. Engagement Marketing is the opposite. It’s a salesperson who hangs back and engages you if/when you need help. Who can sense what you want to do, and help you arrive at that decision. Who will contact you directly with exclusive sales information, if — and only if — you request it. Engagement Marketing, done well, means connecting with audiences who want to hear from you, in relevant, meaningful, interesting ways. 8

How can we “engage” consumers Plenary Discussion 9

Common offline engagement marketing tools Street marketing, also known as street teams Youth marketing, also known as entertainment marketing Event management, also known as event marketing Mobile marketing tours: often, brands will utilize custom-branded RV's, Buses, and Motor Coaches to draw attention to their offering, serving as mobile billboards as well as mobile centers to create brand experiences on-site in retail parking lots or at larger events. Marketing through amenities: companies promote their brands through interactive marketing via amenities such as charging stations. IOT Device connected to social platforms that display the numbers of fans and personalized messages to the off line customers. 10

Common online engagement marketing tools Blogs: For engagement marketing purposes, companies can share content on their own blogs and participate as a commenter or content provider on relevant external blogs. Social networking sites: Social networking sites (such as Facebook, LinkedIn, and Twitter) are ideal for engagement marketing because they provide a way for people to interact with brands and create a two-way dialogue between customers and companies. Webcasts: Differing from internal webcast meetings with a small, specific invitation list, engagement marketing online events are aimed at a much larger and public audience. Email campaigns: One of the earliest online engagement marketing tools, email marketing requires target audiences to opt-in to directly receive a marketer’s emails. Crowdsourcing: Crowdsourcing sites offer engagement marketing opportunities through their open media contests. 11

Session 05 Agenda Session 05 – Designing Customer Experience Offering customers "moments of truth" to support the positioning of the company. This lecture is inspired by the theoretical frame of Experiential Marketing. Definition of ‘Experiential Marketing’ What (Chinese) Consumers are looking for Designing Engagement Marketing Designing Engagement Marketing for online retail 12

Chinese Internet Users 13

Chinese Internet Users 14

Chinese Internet Users BBS: What motivates Chinese internet users to participate? Motivation for Participating on BBS Topic Poster Reply/ View Latest Reply 15

Chinese Internet Users The Chinese internet community is by far more active, and more vibrant than in the West “I have expressed personal opinions and/or written about myself online”(1) “Online I feel free to say and do things I wouldn’t do or say offline”(1) User-generated content (consumer reviews/rating sites, forum/discussion boards, etc.) influences purchase decisions(2) Percentage broadband users commenting blog, chat room, listserv or forum(2) 56% 72% 32% 73% 19% 58% 28% 47% 16

What (Chinese) consumers are looking for Personalized communication with brand Variety of products from everywhere Seek information about brands and products via search engines and social media platforms to make informed purchasing decisions Trust more in comments and opinions that they find on social platforms 17

Session 05 Agenda Session 05 – Designing Customer Experience Offering customers "moments of truth" to support the positioning of the company. This lecture is inspired by the theoretical frame of Experiential Marketing. Definition of ‘Experiential Marketing’ What (Chinese) Consumers are looking for Designing Engagement Marketing Designing Engagement Marketing for online retail 18

Designing Engagement Marketing for offline retail 19

Session 05 Agenda Session 05 – Designing Customer Experience Offering customers "moments of truth" to support the positioning of the company. This lecture is inspired by the theoretical frame of Experiential Marketing. Definition of ‘Experiential Marketing’ What (Chinese) Consumers are looking for Designing Engagement Marketing Designing Engagement Marketing for online retail 20

Designing Engagement Marketing for online retail First ever video greeting card Managed client relationship with EppyBird – Viral Video producer Coca -Cola Facebook Fan Page Virtual environment marketing campaign Co-create 1st real time mobile game 21