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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO: LO 21-1 Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences. LO 21-2 Identify the demographic and lifestyle profile of online consumers. LO 21-3 Explain why certain types of products and services are particularly suited for interactive marketing. 21-2

LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 21, YOU SHOULD BE ABLE TO: LO 21-4 Describe why consumers shop and buy online and how marketers influence online purchasing behavior. LO 21-5 Define cross-channel shoppers and the role of transactional and promotional websites in reaching these shoppers. 21-3

SEVEN CYCLES DELIVERS JUST ONE BIKE. YOURS. 21-4

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE CUSTOMER VALUE CREATION IN MARKETSPACE LO 21-1  Marketplace  Marketspace Form Utility Possession Utility Time Utility 21-5

FIGURE 21-1 FIGURE 21-1 Trends in online shoppers and online retail sales in the United States 21-6

FIGURE 21-1A FIGURE 21-1A Trend in online shoppers in the United States 21-7

FIGURE 21-1B FIGURE 21-1B Trend in online retail sales revenue in the United States 21-8

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE LO 21-1  Interactivity  Individuality Collaborative Filtering  Interactive Marketing  Choiceboard M&Ms 21-9

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE LO 21-1  Personalization  Permission Marketing Opt-Out Opt-In 21-10

FIGURE 21-2 FIGURE 21-2 Seven website design elements that drive customer experience 21-11

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE CREATING AN ONLINE EXPERIENCE LO 21-1  Customer Experience Content Context  Functional  Aesthetic Customization 21-12

CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE CREATING AN ONLINE EXPERIENCE LO 21-1  Customer Experience Communication Commerce Community Connection 21-13

USING MARKETING DASHBOARDS Sizing Up Site Stickiness at Sewell Automotive Companies LO 21-1 Average Time Spent per Unique Monthly Visitor = × Average Time Spent per Unique Monthly Visitor (minutes) Average Visits per Unique Monthly Visitor Average Time Spent per Visit (minutes) 21-14

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHO IS THE ONLINE CONSUMER? LO 21-2  Online Consumers  Online Consumer Lifestyle Segmentation Click-and-Mortar Hunter-Gatherers Brand Loyalists Time-Sensitive Materialists Hooked, Online, and Single Ebivalent Newbies 21-15

MARKETING INSITE Are You a Roving Node, a Mobile Newbie, or a Drifting Surfer? LO

MARKETING MATTERS Meet Today’s Internet Mom on a Mission LO

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHAT ONLINE CONSUMERS BUY LO 21-3  Product Information  Audio/Video Demos  Digital Items  Unique Items  Convenience Items  Standardized Items 21-18

FIGURE 21-3 FIGURE 21-3 Five product categories account for about two-thirds of online retail sales today—a trend projected to occur in the future 21-19

FIGURE 21-4 FIGURE 21-4 Why consumers shop and buy online 21-20

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE LO 21-4 Bots Offering Selection  Choice Choice Assistance Eight-Second Rule  Convenience 21-21

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE LO 21-4  Communication Chat Rooms, Messaging, Social Networks  Customization Customerization Marketer-to-Consumer s Consumer-to-Marketer Requests 21-22

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE LO 21-4 Blog Spam CAN-SPAM Act Web Communities  Communication 21-23

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE LO 21-4  Communication Buzz Viral Marketing  Embed a Message  Create Compelling Content  Offer Incentives Frito-Lay 21-24

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHY CONSUMERS SHOP AND BUY ONLINE LO 21-4  Communication Showrooming Dynamic Pricing Cookies  Control Behavioral Targeting 21-25

MAKING RESPONSIBLE DECISIONS Who is Responsible for Internet Privacy and Security? LO

ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE WHEN AND WHERE ONLINE CONSUMERS SHOP AND BUY LO 21-4  Monday - Friday  8:00 AMto 5:00 PM 21-27

CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING WHO IS THE CROSS-CHANNEL SHOPPER? LO 21-5  Cross-Channel Shopper Compare Products Among Retailers Obtain Information Not in Stores Reduce Trips to Multiple Retail Locations 21-28

CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING LO 21-5  Transactional Websites Cannibalization Channel Conflict  Multichannel Marketing 21-29

CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING IMPLEMENTING MULTICHANNEL MARKETING LO 21-5 Interactive Experiences  Promotional Websites Separate Websites for Each Brand Support Traditional Marketing Channel Pampers 21-30

FIGURE 21-5 FIGURE 21-5 Implementing multichannel marketing with promotional websites 21-31

PIZZA HUT AND IMC 2 : BECOMING A MULTICHANNEL MARKETER VIDEO CASE

PIZZA HUT AND IMC 2 : BECOMING A MULTICHANNEL MARKETER VIDEO CASE 21 FIGURE 1 FIGURE 1 IMC 2 Brand Sustainability Map ™ 21-33