server log: record kept at the server level that records each file requested from a website.

panel data: the process for using panel data to generate site effectiveness data is the same as using panel in the general marketing research process.

coded pages: the use of coded pages is a new method of collecting data.

we talked about anticipatory customer service. they need to be proactive and not wait until customer requires something.

and then we talked about their role in successful customer service delivery.

Companies wants to provide the best possible customer service but as cheaply as possible.

Customer Service Themes

1. Customer service orientation must provide all departments of an enterprise.
2. Technology can help improve customer service
3. Customer want multiple service channels
4. Customer want the option of human contact
5. Improve the overall customer experience

• Customer care is a key marketing discipline. Customer satisfaction/loyalty, and enterprise profit.
• Develop service strategies based on CLV.
• Customer want choice in how to access service.

Chapter 13: Marketing Automation

“the future belongs to markets who best” 1) capture 2) analyze and mine 3) USE

Role of Knowledge In Marketing

• To enable human agents to work: Better, Faster, and With more customer satisfying results.
• To create automated system, as good as the best human agent.

Questions:

1. What do you think the future holds in terms of knowledge management and use in marketing applications?
2. Think about your own Internet experience, can you think of a specific encounter in which information or knowledge clearly improved your interaction with a human agent? Can you think of an encounter in which the human agent lacked the information or knowledge to make your experience satisfactory? Be prepared to discuss both positive and negative experiences and what could have transformed a negative encounter into a positive one.

Nike can distribute directly to the consumer through the internet.

1. Is the Internet a distribution channel?

Internet is a distribution channel. It’s a substitute for the other forms of communication, has changed buyer-seller relationships, changed the shopping experience, and increased the power of consumers.

2. What are the functions of channel intermediaries?

The functions of the channel intermediaries are to be have Efficiency and Effectiveness.

• Efficiency: distribution costs are reduced only if if the retailers can perform the required functions more efficiently than the manufacturer could in the direct channel
• Effectiveness: the ability of the channel to perform functions that create value for the customers.

3. What is disintermediation and what are its implications for channel intermediaries and customers?

• A strategy that involves the elimination of the channel intermediary.
• The internet creates disintermediation, but the results of this is positive since it creates value for customers.

4. What are the distribution levers and how do they affect relationships between intermediaries and buyers and sellers?

Intermediary Type:

• Direct, Traditional Retailers, Virtual Shopping Malls, and Internet Exchange

Number of Intermediaries:

• Exclusive Distribution, Intensive Distribution, and Selective Distribution

Number of Channels:

• Single mode vs Mixed-Mode

Degree of Channel Integration

Intermediary functions and responsibilities

Branding:

• 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.
• Brand is an outcome of the levers… pricing, product, distribution, community, communication, etc…
• Branding is fundamentally different from marketing activities.

Dell: the concept of virtual integration essentially describes how we have integrated with our customers and partners as one enterprise. As opposed to trying to build all of this ourselves. Figuring out what we really do well and the partnering w/ the best in the business has made a huge impact on our success!

On the customer side; dell because of their close relationship w/ customer dell has access to information most companies in their industry don’t. Speed is very important for dell and its customers. They are involved in the building process of the computer so they feel like it’s their own unique computer.

Steps to Creating a virtual value chain:  1rst step is to provide visibility or translate all of the relevant information about all the activities in the value chain to all employees who need it. The second stage is call mirroring which is the ability to create information system that provide and the third step is enhance customer value with tool such as portal: large site with multiple services ranging from news to directories to searches that acts as an entry point onto the internet.

Zara’s success come form 2 key drivers: 1rst the fashion appeals; customer trend are constantly monitored. Stores employee using handhelds devices roams stores asking customers what they like and what they don’t like. The second driver is the ability of zara to apply chain allows them to produce and get the items in the stores in just 2 weeks, which enable zara to provide customers with up to date design.

Business model are important because it is the method of doing business by which a company can sustain itself, that is generate revenue. It spells how companies make money by, specifying where it is positioned in the value chain.

A business model has to articulate the value proposition: the value created for users by the offering based on technology. Identify the market segment, the people to whom the technology is important; define the structure of the value chain

Internet revenues have evolved from: advertisements revenue where the explosion growth of advertising on the internet. Nether less few sites can sustain themselves on advertising.

Sponsorship revenue: content on a web or an email site cab be sponsored providing another.

Membership or subscription revenue, sales or licensing of software or system. Sale or licensing of software or system.

Software based services; syndicated or licensing of content.

Transaction revenue

Ex: Syndication: sale of content to multiples customers each of whom then integrate it into their own products

Licensing: legal permission to own or use a product or piece of content…

Multi channel retailers such as eBay and Amazon are more likely to experience long term success because they have an open door to different market.

Customer lifetime value is the value net present value of a future stream of net revenue from an identified customer.

Testing is a timely and statistically valid manner is another advantage that direct marketing has traditionally held over mass media marketing. Direct marketers are able to track each response; they therefore know whether programs are performing satisfactorily.

The stages of internet consumer behavior are:

Awareness

Search behavior: goal oriented and entertainment/ experienced oriented.

Task Completion: content/information acquisition, purchase, abandonment

Repeat visit: occasional or frequent

Use/consumption behavior

Loyalty

context, content, community, customization, communiction, connection, and commerce.  We then went into each one a bit more specifically:
- context: site layout and design
- content: text, pics, sound, and video that webpages contain
- community: the ways sites enable user-to-user communication
- customization: site’s ability to self-tailor to different users or to allow users to personalize the size
- communication: the ways sites enable site-to-user communication or 2-way communication
- connection: degree site is linked to other sites
- commerce: site’s capabilities to enable commerce

Then we talked about what determines the Look-and-Feel of Design:
context: look-and-feel of a screen-to-face customer interface
dimensions of context: function and asthetics
function: factors critical in site layout: section breakdown, linking structure, etc.

What are the dimensions of content?:
content refers to any digital information included on a website, e.g. audio, video, images, text
-offering mix
- appeal mix
- multimedia mix
- content type

87% prefer puzzle games compared to 57% of men.

The Internet is an inter-acrtive model that provides a lot of information, it’s also immediate and you are involved.

Word of mouth is the best way to get information( its more credible), the next best thing Will be testimonial.

Critical startegy from element from direct response is :

• the offer
• the email list
• the service and support
• the media
• the creative execution

Drop shipping is selling inventory that you dont have

CLV: customer loyalty value. its cheaper that to found one. it costs 4 to 5 times more to find a new customer than to keep one.

the advantage of network system is that it prevents piracy!

UK e.commerce has been doing better that the US e.commerce and that can be attributed to economics reason such as the liquidation of Lehman Brothers and Meryl Lynch

Value proposition: ex. Apple ’s was all your music on the GO!

Funtions of a business Model!!

1. articulate value proposition
2. identify target market segment
3. Define structure of value chain
4. Define cost structure and profit potential
5. Explain position in value network
6. set fourth competitive strategy

**Marketing Actions: Advertisement and Promotion, direct response.

The strategic drivers of the Internet economy are : 1. Information gives greatest value added, 2.Distance no longer matters, 3.Speed is of essence and 4.People are the key assets, 5.Grothw is accelarated by network and 6. the Marketers can deal with customers 1 to 1

Zara had a pretty unique way to approach its clients: Real time customer feedback and made the customers feel like expert because THEY HAD THEIR SAY ON THE CLOTHES ZARA WAS SELLING. with that concept they were also building customers loyalty because they more likely to return to the store for the unique reason that they are selling what they desire. Zara made sure to be trendy, develop a community , possess an high value of functionality, consistency with quality and design and a leading edge

How does dell do it?:

Manage supply chain as a single organism, close customer relationships(customers segment and experience and relationship), cost control also creates customers value, speed and agility, Extensive metrics in real time and targeting global growth

RFID: Radio frequency

RTI: Real Time Information

the Internet is a packet based medium, the router adapts the network and transfer it around. E-commerce in Brazil is doubling. In order to ge a effective website you want to tie it to your customers. A good website should provide information that is valuable to the customers at the time the customers need it(Its basically what marketing is all about)

Web.2.0: interactive, track people , gives the sens of a community. Ebay was the 1rst creator of community.