ELC 310 Day 22

Agenda Questions? Assignment 3 Corrected –2–2 A’s, 1 B and 1 non-submit Two major assignments Left –C–Case study analysis of an existing case Choice of Case? –C–Creation of a case study Last week of the semester Case Study Proposals Due Nov 23 –L–Less than one page on the company you will be writing a case study on and where you will be getting the research. –N–No class meeting on this day –U–Use the time to get your case studies started and to read the 8 cases in the book Today we will be in the text ebusiness.marketing –F–Friday, Nov 20 Chap 3 & 4

Chapter Three The Value Bubble

Overview Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations

McKinsey Model A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model – lower cost of providing services – relationship building – redefine channel intermediation

Five Steps Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14) Most companies falter in last 2 steps

Figure One Attract (Building Traffic)

“Formula to Attract” Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement

Technology Attraction Flash Graphics – dancing baloney Jakob Nielsen’s work – Useability – BI component

Figure Two Engage--Building Loyalty

Engage Strategies Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM

Figure Three Retain--Strengthening the Relationship

Retaining Strategies Repeat Visits--site is the firm E-Service Quality Model – Purchase – Loyalty – WoM Web features and attributes – e-service quality dimension Core Service Recovery CLV precision Cookies

Figure Four Learn--Building the Database

Learning Strategies Integrated databases – offline and online Log files Clickstreams GIST model – Gather – Infer – Segment – Track

Figure Five Relate--Data-driven Interactions

Relating Strategies Segments of one Privacy (the paradox) Targeted communication – s Competitive edge

Business-to-Business Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”) – extrinsic – SCM, ERP leading to CRM – more obvious than B2C Organic solidarity

Chapter Four Communication Research & Web Site Storyboarding

Objectives The Communication Process Model The Adapted Communication Model for E-Business Marketing Message Research Model – PACT Principle 1 – PACT Principle 2 – PACT Principle 3 – PACT Principle 4 – PACT Principle 5 – PACT Principle 6 – PACT Principle 7 – PACT Principle 8

Communication Process (one way - two way) Sender Encoding Message Media Receiver Decoding Response Noise Feedback Comparison between the offline and online process

Types of Communication Personal – Face to face – High interactivity Non-Personal – Broadcast, print – Little to no interactivity Hybrid – Internet – Receiver controls level of interactivity

Involvement Role in the Communication Process High, Low and No involvement – Think feel do – Think do feel – Do think feel Web is Low

Prefinished Formats tested Storyboards – drawings Animatics – Frames or cells Photomatics – photographs Ripamatics – Existing commercials reedited Livematics – Condensed version of the actual commercial

Commercials can be tested in animatic form

Message Research Communication Process + Involvement Need to measure effectiveness

Using EyeTracking to test ads

Positioning Advertising Copytesting (PACT) PACT 1: measure communication objectives – Broader in the online environment PACT 2: agreement on the use of research – Similar in online environment (marketing, IT, research, web design) PACT 3: Multiple measurements – similar in online environment. Easier to gather and interpret

PACT 4: Response to hierarchical models – electronic environment is low involvement – understanding the critical factors PACT 5: Number of exposures – investment decision – importance of the attract phase PACT 6: Effective form to test – storyboarding – issues of self-reporting Positioning Advertising Copytesting (PACT)

PACT 7: Use a “true” environment – Nielsen’s useability – provide an exit PACT 8: Test with a target audience – Mountain Sobek or Patagonia versus Amazon Mountain Sobek PatagoniaAmazon – microsegments to nano-segments – cultural preferences/differences PACT 9: Reliable and valid – PACT 6, 7, and 8 effects Positioning Advertising Copytesting (PACT)

Positioning Advertising Copy (PACT) Testing Principles 1. Provide measurements relevant to objectives of advertising 2. Require agreement on how results will be used before each test 3. Provide multiple measures (Single measures aren't adequate) 4. Be based on a model of human response to communications 5. Consider multiple versus single exposure to the stimulus 6. Require alternative executions to have the same degree of finish 7. Provide controls to avoid the biasing effects of exposure context 8. Take into account basic considerations of sample definition 9. Demonstrate reliability and validity

StoryBoarding Online methodology – address all PACT principles Review & discussion of process on page 60

Case Study Analysis Methodology – Critical analysis Individual Case Collective over all cases – Format Format Grading – Student and Instructor – Rubric Rubric Author’s PowerPoints available – Need work