Jose F. Andrade

The 2Is: WHy the web is Unique at creating Customer Relationships

Power Point and use the note section to explain powerpoint 20-30 Slides

Which Lever should be used?

• Choose levers to Effect a change
• Determine which levers Have the most leverage
• Consider barriers to advancement
• Consider the medium’s effect on desired behavior
• Level of involvement matters
• Understand consumer learning trends
• Credibility of the channel matters
• The choice of levers must be consistent with positioning choice
• The medium can be the message – or the product
• Matrix design must be adaptive

eBay’s Application of the Marketspace Matrix (1998-99)

• Once eBay had advanced a significant number of users into the exploration/ expansion phase, the firm needed to focus on sustaining commitment.
• As the firm’s needs changed, so did its Marketspace Matrix

Awareness

• Began first major advertising campaign in late 1998
• Radio and print campaign with “You might not just find it on eBay” slogan
• Strategic alliances with  AOL.com and the now defunct Go.com
• Sponsored auction of famous memorability for free media exposure

Exploration/ Expansion

• Added new attributes and features
• Offered complementary services
• Improved existing services
• Improved ecxisting services
• Unbalanced community offerings
• Forums where verteran

Commitment

• Community enabling remains a constant product lever to advance user to and sustain commitment
• Loyalty program where seller can earn “Power Seller”

Dissolution

1. Post articles in the three different categories of Prof. W blog’s

Nike distribution channels

Indirect

Direct

Direct Niva niketown in major metropolitan areas

Indirect via offline retailer

Customers

Nike

What is a brand?

 
According to the American marketing association, a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition.”

Class 19: Designing a Marketspace Matrix – 11/12

Lecture (Notes posted on web)

Session Overview: This lecture ties all of the marketing levers (product, pricing, communication, community and distribution) into the Marketspace Matrix, and shows how students can use the Marketspace Matrix to design a marketing plan.

Class Preparation Questions:

1. What is a buyer-seller relationship? How can it vary?
2. Why is integrated lever selection important in a marketing plan?
3. How did eBay’s application of the Marketspace Matrix change over time?
4. What are the four categories of principles for lever selection?

What the key principles for lever selection within the Marketspace Matrix?

1. Interactive TV. It could open doors for marketers to sell tv certain products.

 

 

 

Movie revenue sources

 

2. Tickets
3. Advertising
4. Video (DVDs)
5. If the technology to sell on movie is made available, this could also be an additional source of revenue.

 

 

 

What do you need for a community online?

 

6. Volume
7. Interactivity
   • You need topics that interest people
   • Create some sort of passion (motivation)

 

 

 

The Community Application Model

 

 

Purpose

Community

Creation

Consumer Attributes

Product Attributes

Consumer attributes are behavioral

Product attributes are emotional

Interactivity makes internet different than traditional marketing media.

In an online community the user is the one that creates the content.  The more things that the user do, the less thing that a company has to do.

_____________________________________________________________________________________

Distribution

 

 

The internet and distribution

 

How has it changed the world?

 

Coordination costs has been reduced tremendously

 

 

Historically information flowed from the company to the customer. Today information can flow easily both ways.

 

What is distribution?

 

Getting products to consumers

 

 

 

1. Flows of goods

 

2. Flows of funds

 

3. Flows of information

 

 

Session Overview: This lecture focuses on how the 2is and the Internet have influenced distribution. The lecture concludes by showing how various distribution levers fit into the Marketspace Matrix.

Class Preparation Questions:

1. Is the Internet a distribution channel?
2. What are the functions of channel intermediaries?
3. What is disintermediation and what are its implications for channel intermediaries and customers?
4. What are the distribution levers and how do they affect relationships between intermediaries and buyers and sellers?

Group Project

 

Options

 

1. Pick a particular product
   1. Product
   2. Price
   3. Awareness
   4. Commitment

 

2. Take an exiting case
   1. Google.com
   2. Toyota
   3. Yahoo
   4. Mercadolibre.com

 

 

 

 

 

 

 

 

Blog posting

 

 

I need a total of three – choose diferent catagories

 

 

Marketspace Matrix

 

 

0	Awareness	Exploration	Commitment	Dissolution
Product
Price
Communication
Community

What is community?

A set of interwoven relationships built on shared interests, which satisfies members’ needs otherwise unattainable individuality.

Community Criteria

People Criteria > Process Criteria > Culture criteria > Technology

1.  
   1. What is the definition of community?
   2. What are the criteria that define successful community?
   3. What are the different types of interests that form the foundations of community?
   4. What are the different ways in which communities function?
   5. What are the three primary ways in which value is created within a community?
   6. What are the benefits that community can generate for a parent firm?
   7. What are the different levels of community?

Class 17: Community 11/5

Lecture (Notes posted on web)

Session Overview: This lecture focuses on how firms can encourage and profit from community, and how various community levers fit into the Marketspace Matrix.

 

Class Preparation Questions:

 

 

 

Google – Comparison Chart           Public Service

 

 

Facebook

 

Youtube Hits – Sara Palin (Saturday night) – 50 million hits

 

Ultimately you want two things from people (for Political ads)

2. Donations
3. Votes

 

Anytime you have interaction you have communication

 

 

Banner ads generate awareness

 

If you click on it you enter into Exploration

 

Commitment – No commitment

 

 

Who controls the communication flow on the internet?

 

The user

 

What do user wants?

 

They want relevant and targeted communication

 

Importance of integrated communication

 

4. Goal of marketing and communication is to convey relevant messages to the right consumers at the right time.
5. Synergy between messages is integrated communications
6. Traditional and interactive marketing methods are converging

 

 

Communication Process

 

7. Identifying the target audience
8. Determining the communication objective
9. Developing the media plan
10. Creating the message
11. Executing the campaign
12. Evaluating the effectiveness of the campaign

 

 

Augmented Product

Development Levers

 

8 Customer Service Programs

Postsales support, customer care, & customer relationship management.

8 Loyalty programs and privileges

8 Availability of complementary products

8 Upgrades

8 Enabling community

8 Additional functionality

8 Fulfillment capabilities

 

 

 

 

 

 

 

 

• Relationships – a bond between two parties
• Pricing
• Communication

Why do firms want relationships with customers?

• Word of mouth
• Trust

Pricing type open up by the internet

Auction -> Dynamic pricing

Class 8: Customer Interface 9/24

Lecture (Notes posted on web)

Session Overview: This lecture introduces the concept of a technology-mediated customer interface. This lecture introduces the 7Cs, a framework to help firms design the look and feel or context of a site.

1. What are the seven design elements of the customer interface?

Context, Content, Community, Communication, Connection, Commerce

1. What determines the look-and-feel of the site?

The context. The sites layout, design, and colors are that determine the look-and-feel of the site

1. What are the dimensions of content?

• Content refers to any digital information included on a website, e.g. audio, video, images and text.
• Dimensions of Content:
  • Offering Mix
  • Appeal Mix
  • Multimedia Mix
  • Content Type

1. Why be concerned with community?

• Sense of community can encourage customers to return to a website primarily because:
  • Community can create attractive content
  • Community can make certain activities possible or easier, thus satisfying needs not attainable individually.

1. What are the levers used to customize a site?

Customization: To better address individual needs, a site can be altered by the user or by the organization.

Dimensions of Customization: Personalization and Tailoring

Personalization: Login registration, cookies, personalized email account, content and layout configurations, storage and agents.

Tailoring: based on past behavior or behavior of other users with similar preferences.

1. What types of communication can a firm maintain with its customer base?

• Communication refers to the dialogue that is initiated by the firm.
• Dimensions of Communication:

Broadcast

• Mass mailings, FAQs, email newsletters, content update notifications, broadcast events

Interactive

• E-commerce dialogue, customer service, user input

Hybrid

• Combination of broadcast and interactive

1. How does a firm connect with other businesses?

• Connection is the degree to which a given site is able to “link” to other sites through a hypertext jump, or hyperlink, from one webpage to another.
• Dimensions of Connection:
  • Links to Sites
  • Homesite Background
  • Outsourced Content
  • Percentage of Homesite Content

Pathway of Connection

1. What are the main features of commerce that support the various aspects of trading transactions?

• Commerce capabilities are those features of the customer interface that support the various aspects of trading transactions.
• Dimensions of Commerce:
  • Registration
  • Shopping Cart
  • Security
  • Credit Card Approval;
  • One-click Shopping
  • Orders Through Affiliates
  • Configuration Technology
  • Order Tracking
  • Delivery Options

Internet Marketing Event

 

Friday, November 14th, 2008

8:00 AM – 1:00 PM

Cost: $10

 

For the seven c’s project you need to describe the 7 c’s and how they relate to the value proposition of the business.

 

We discussed the following three websites

 

 

1. Offering mix
2. Appeal mix
3. Multimedia mix
4. Content tyep

 

Why community?

 

5. Sense of community can encourage customers to return to a website primarily because:
   • Community can create attractive content
   • Community can make certain activities possible or easier, thus satisfying needs not attainable individually.

 

 

How does a firm connect with other businesses?

 

6. Connection is the degree to which a given site is able to “link” to other sites through a hypertext jum, or hyperlink, from one webpage to another.
7. Dimensions of connection:
   • Links to sites
   • Homesite background
   • Outsourced content
   • Percentage of homesite content
   • Pathway of connection

 

 

Class 7: Customer Acquisition 9/22

Chapter 7 – Roberts

• What is meant by permission marketing? Do you think it is an important concept to email marketers?

Permission marketing deals with how a prospect interacts with a marketing campaign and whether or not he has control over his exposure to marketing message. There are four levels of customer permission:

Opt-out – communication that has been passively requested by the internet user.

Opt-in – cimmunication that has been actively requested by the internet user.

It becomes Double opt-in when the marketer sends an e-mail that requires the user to confirm request before it is activated;

And it becomes confirmed opt-in when the visitor actively acquiesces to receiving email, again probably by checking a box.

• Think about email communications from marketers, perhaps some that you receive yourself. What makes them interesting and worth your time to open and read? Do you ever take any action as a result of the emails? Why or why not?

I rarely look at e-mails that are selling me something, unless they are offering something that I am looking for. I usually take a look at things that I have requested, but when I get things that I did not request I mark those e-mails as junk.

Women gamers, increasing at a faster rate than me.

 

What type of game interest women?

 

Puzzle games

 

Testing process

 

Reasons for conducting a test

1. Standard practice (test all mkt programs)
2. Strategic question (reactivate lapsed customers)
3. Tactical questions (which incentive to use)

 

Design a test

4. What mkt variable (prices, tc)
5. Type of test (a/b. control/A)
6. Sample (pop, size)

 

 

Establish Test Metrics

7. Significance
8. Cut off date

 

Execute & Monitor results

 

Analyze and report test results

 

Make marketing decision

 

Where do companies get data from?

 

1. Purchase
2. Census
3. Associations
4. Research firms
5. Purchase date
6. Survey
7. Interviews
8. Websites

Data Mining?

A set of statistical routines that permit pattern detection in large data sets

We talked about the problem of large amount of data being analyzed and useful to marketers

Hierarchy of customer-focused marketing strategies

Customization

Personalization

Transaction

Interaction

Information

Complex role of search

 

According to a 2004 study:

 

1. Search played a role in 1/2 of purchases
2. Early searches used generic keywords, not brands
3. Closer to purchase, used brand names
4. Most concluded search well before purchases

 

 

 

 

Word of mouth

 

Customer satisfaction – it is measure by CLV (customer lifetime value)

 

 

 

 

Segments of internet users

 

5. Rural residents are less likely to be online
6. Teenagers are heavy communicators.
   • Frecuent social networking and gaming sites
7. Seniors are less likely to be online
8. Usage segments include connectors, simplifiers, routiners, surfers, bargainers, and sportsters
9. Broadband access in the home is key to behavioral segmentation

 

 

Chapter 5 – Roberts

• What are the stages of Internet consumer behavior? What is the importance of the stages that come after “Purchase?”

The stages are as follows:

Awareness > Search behavior (goal-oriented, entertainment/experience oriented) > Task completion (content/information acquisition, purchase, abandoment) Repeat visit (occasional, frequent), Use/Consumption Behavior > Loyalty

The important of the other stages repeat visit, use/comsumption behavior, and loyalty is that customers on these stages will be the ones generating the most revenue for the companies because they will remain coming back.

• What are some specific dimensions on which the global demographics of the Internet are changing? How do you expect these changes to affect use of the Internet?

More and more people have access to internet and this has narrowed the gap between the rich and the poor, the educated and the uneducated. It is g

• What is consumer interactions data and why is it important to understanding and serving Internet consumers better?

This is data that company obtain about how customers interact online with each others. It is important for companies to understand how they interact so they can provide a better service to them.

• .What is the difference between online marketing research and online data capture? Be prepared to give an example of each.

Online marketing research deals with doing research online to find out about the behaviors or characterics of a certain segment or busienss model. Online data capture does not deal with these but rather with the capturing of information about customer behavior. Everytime a person clicks on a certain link there should be something monitoring this and this is what online data captures does.

Prep: read chapter 5 and read Tech. news

Amazon Business Model

Amazon       aggregation                 ecommerce     advertising

Different Business Models

Amazon – aggregator

NYT – content providers

Red Cross – fund raiser

eBay – Marketplace

Staples – multichannel

Kazaa – Open source

Revenue Models

• Internet access

• Advertising

What makes the internet unique?

Interactive

Information-based

Entertainment

Involvement in the process

What do you want to do with customers?

Acquire

Turn

Retain

How to get customers?

Testimonials

Critical Strategy Elements From Direct-Response Perspective

The Offer – a call to action

The e-mail list -

The Service & Support

The Creative Execution

The Media

Front End Vs. Back end

Customer lifetime Value – loyalty,

Switching costs -

Important chart for texting – “The Testing Process”  table 4.4que s