1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
Describe what interactive marketing is and how it creates customer value, customer relationships, and customer experiences.
LO1
Explain why certain types of products and services are particularly suited for interactive marketing.
LO2
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3. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
Describe why consumers shop and buy online and how marketers influence online purchasing behavior.
LO3
Define cross-channel shoppers and the role of transactional and promotional websites in reaching these shoppers.
LO4
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4. SEVEN CYCLES. ONE BIKE. YOURS.
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5. Marketplace Marketspace Time Utility Possession Utility Form Utility
CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
CUSTOMER VALUE IN MARKETSPACE
LO1
Marketplace
Marketspace
Time Utility
Possession Utility
Form Utility
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6. FIGURE 18-1 Trend in online shoppers and online retail sales revenue in the U.S.
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7. FIGURE 18-1A Trend in online shoppers in the U.S.
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8. FIGURE 18-1B Trend in online retail sales revenue in the U.S.
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9. Interactive Marketing
CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE
LO1
Interactivity
M&Ms
Individuality
Interactive Marketing
Choiceboard
Collaborative Filtering
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10. Personalization Permission Marketing Opt-In Opt-Out
CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
INTERACTIVITY AND INDIVIDUALITY IN MARKETSPACE
LO1
Personalization
Permission Marketing
Opt-In
Opt-Out
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11. FIGURE 18-2 Seven website design elements that drive customer experience
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12. Customer Experience Context Content Customization
CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
CREATING AN ONLINE EXPERIENCE
LO1
Customer Experience
Context
Functional
Aesthetic
Content
Customization
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13. Customer Experience Connection Communication Community Commerce
CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN MARKETSPACE
CREATING AN ONLINE EXPERIENCE
LO1
Customer Experience
Connection
Communication
Community
Commerce
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14. USING MARKETING DASHBOARDS Sizing Up Site Stickiness at Sewell Automotive Companies
LO1
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)
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15. Seek Product Information
ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHO IS THE ONLINE CONSUMER?
LO2
Online Consumers
Seek Product Information
Educated
Affluent
Young
Diverse
20% of Those Who Spend $1,000+ per Year Online = 87% of Sales!
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16. MARKETING MATTERS Meet Today’s Internet Mom on a Mission
LO2
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17. Product Information Audio/Video Demos Digital Items Unique Items
ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHAT ONLINE CONSUMERS BUY
LO3
Product Information
Audio/Video Demos
Digital Items
Unique Items
Convenience Items
Standardized Items
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18. FIGURE 18-3 Why consumers shop and buy online
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19. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHY CONSUMERS SHOP AND BUY ONLINE
LO4
Convenience
Bots
Eight-Second Rule
Choice
Offering Selection
Choice Assistance
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20. Customization Communication
ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHY CONSUMERS SHOP AND BUY ONLINE
LO4
Customization
Customerization
Communication
Marketer-to-Consumer s
Consumer-to-Marketer Requests
Chat Rooms, Messaging, Social Networks
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21. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHY CONSUMERS SHOP AND BUY ONLINE
LO4
Communication
Web Communities
Blog
Spam
CAN-SPAM Act
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22. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHY CONSUMERS SHOP AND BUY ONLINE
LO4
Communication
Buzz
Viral Marketing
Frito-Lay
Embed a Message
Create Compelling Content
Offer Incentives
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23. ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHY CONSUMERS SHOP AND BUY ONLINE
LO4
Cost
Dynamic Pricing
Control
Cookies
Behavioral Targeting
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24. MAKING RESPONSIBLE DECISIONS Who is Responsible for Internet Privacy and Security?
LO4
Truste
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25. Monday - Friday 8:00 AM to 5:00 PM
ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE
WHEN ONLINE CONSUMERS SHOP AND BUY
LO4
Monday - Friday
8:00 AM to
5:00 PM
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26. CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING
WHO IS THE CROSS-CHANNEL SHOPPER?
LO4
Cross-Channel Shopper
Compare Products Among Retailers
Obtain Information Not in Stores
Reduce Trips to Multiple Retail Locations
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27. CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING
IMPLEMENTING MULTICHANNEL MARKETING
LO4
Multichannel Marketing
Transactional Websites
Cannibalization
Channel Conflict
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28. CROSS-CHANNEL SHOPPERS AND MULTICHANNEL MARKETING
IMPLEMENTING MULTICHANNEL MARKETING
LO4
Promotional Websites
Pampers
Interactive Experiences
Separate Websites for Each Brand
Support Traditional Marketing Channel
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29. FIGURE 18-4 Implementing multichannel marketing with promotional websites
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30. PIZZA HUT AND IMC2: BECOMING A MULTICHANNEL MARKETER
VIDEO CASE 18
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31. PIZZA HUT AND IMC2: BECOMING A MULTICHANNEL MARKETER
VIDEO CASE 18
FIGURE 1 IMC2 Brand Sustainability Map™
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32. 1. What kind of website is PizzaHut.com?
VIDEO CASE 18
PIZZA HUT & IMC2
1. What kind of website is PizzaHut.com?
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33. VIDEO CASE 18
PIZZA HUT & IMC2
2. How does PizzaHut.com incorporate the seven website design elements?
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34. VIDEO CASE 18
PIZZA HUT & IMC2
3. How are choiceboard and personalization systems used in the PizzaHut.com website?
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35. Interactive Marketing
Interactive marketing is the 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.
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36. Choiceboard
A choiceboard is an 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.
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37. Collaborative Filtering
Collaborative filtering is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
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38. Personalization
Personalization is the consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences.
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39. Permission Marketing
Permission marketing is the solicitation of a consumer’s consent (called “opt-in”) to receive and advertising based on personal data supplied by the consumer.
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40. Bots
Bots are electronic shopping agents or robots that comb websites to compare prices and product or service features.
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41. Eight-Second Rule
The eight-second rule is a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
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42. Customerization
Customerization is the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.
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43. Web Communities
Web communities are websites that allow people to congregate online and exchange views on topics of common interest.
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44. Spam
Spam consists of communications that take the form of electronic junk mail or unsolicited .
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45. Viral Marketing
Viral marketing is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via , social networking websites, and blogs.
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46. Dynamic Pricing
Dynamic pricing is the practice of changing prices for products and services in real time in response to supply and demand conditions.
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47. Cookies
Cookies are computer files that a marketer can download onto the computer or mobile phone of an online shopper who visits the marketer’s website.
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48. Behavioral Targeting
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.
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49. Cross-Channel Shopper
A cross-channel shopper is an online consumer who researches offerings online and then purchases them at a retail store.
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