1. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING

2. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 10-year trend in Internet/Web users and online retail sales revenue in the United States

3. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customer Value Creation in Market- space Interactivity, Individuality, and Customer Relationships in Marketspace Choiceboard  Collaborative filtering Collaborative filtering Personalization  Permission marketing Permission marketing CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN THE NEW MARKETSPACE

4. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Creating an Online Customer ExperienceCustomer Experience CREATING CUSTOMER VALUE, RELATIONSHIPS, AND EXPERIENCES IN THE NEW MARKETSPACE

5. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Website design elements that drive customer experience

6. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Online ConsumerOnline Consumer Profiling the Online Consumer ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE

7. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Internet web access at home among U.S. households

8. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Online consumer sales by product/service category: 2001 and 2005

9. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Why consumers shop and buy online

10. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Why Consumers Shop and Buy Online Convenience  Bots Bots  Eight-second rule Eight-second rule Choice Customization  Customerization Customerization ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE

11. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Why Consumers Shop and Buy Online Communication  Web communities Web communities  Spam Spam  Viral marketing Viral marketing ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE

12. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Why Consumers Shop and Buy Online Cost  Dynamic pricing Dynamic pricing Control  Portals Portals  Cookies Cookies ONLINE CONSUMER BEHAVIOR AND MARKETING PRACTICE IN MARKETSPACE

13. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Integrating and Leveraging Multiple Channels with Multichannel MarketingMultichannel Marketing Implementing Multichannel Marketing Multichannel Marketing with Transactional Websites Multichannel Marketing with Promotional Websites MULTICHANNEL MARKETING TO THE ONLINE CONSUMER

14. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin JC Penney Customers The multichannel marketing mutiplier

15. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Implementing multichannel marketing with promotional websites

16. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Two-way buyer-seller electronic communications in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. Interactive Marketing

17. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An interactive, Internet/Web-enabled system that allows individual customers to design their own products and services. Choiceboard

18. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. Collaborative Filtering

19. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences. Personalization

20. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer. Permission Marketing

21. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The sum total of interactions that a customer has with a company’s website. Customer Experience

22. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The subsegment of all Internet/Web users who employ this technology to research products and services and make purchases. Online Consumers

23. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Electronic shopping agents or robots that comb websites to compare prices and product or service features. Bots

24. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. Eight-second rule

25. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The growing practice of customizing not only a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. Customerization

26. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Websites that allow people to congregate online and exchange views on topics of common interest. Web Communities

27. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Electronic junk mail or unsolicited e-mail. Spam

28. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An Internet/Web-enabled promotional strategy that encourages users to forward marketer-initiated messages to others via e-mail. Viral Marketing

29. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The practice of changing prices for products and services in real time in response to supply and demand conditions. Dynamic Pricing

30. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Electronic gateways to the World Wide Web that supply a broad array of news and entertainment, information resources, and shopping services. Portals

31. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Computer files that a market can download onto the computer of an online shopper who visits the marketer’s website. Cookies

32. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The blending of different communications and delivery channels that are usually reinforcing in attracting, retaining, and building relationships with customers. Multichannel Marketing