Server logs is created by the owner of the site and it records each files requests from websites. Code page is a new way to collect data. This located on the user’s side of  the transaction. The data collected by tags have several advantages over server log data (which is data that can be a bit more accurate). The data collected by web bugs has smaller storage requirements due to the fact that it stores only relevant data, and when data are collected in this manner, it permits real-time processing and viewing of site metrics. Panel data is the process of using panel data to generate site effectiveness data. which is the same as using panels in the general marketing research process. Specialized software is downloaded onto a participant’s computer to record their click stream data. The main similarity between them is that they all are use for recording peoples activities on website. The differences are that server logs record information on the server side while Coded Data collects information from the browser side. Meanwhile coded pages are more useful than server logs because the user’s IP address may change during the session. In effect it causes the server log to record different visitors. Coded pages have real time viewing and server logs does not because it has to be transferred.

• What are some of the specific metrics that measure Internet traffic, audiences, and campaigns. Which ones do you think are the most important?

Hits- numbers of files requested.

sessions -amount of activity on a site during a specified period.

Page views- times a web page is requested.

Click-through- numbers of times visitors come to the site by clicking on an ad.

Impressions- number of times and ad banner is requested by a browser.

Measuring metrics for Audiences: Unduplicated audience: the visitors that are not “regulars” to the website. Visitors- number of people who visit the site.

Behavior on the site -how many pages were viewed, time on the pages.

Measuring metrics for Campaigns: Offer – promotion (testing shipping cost from free to discount offer). The communication channels can be use as will (mail/email, online banners)

• What kinds of variables are needed to measure the effectiveness of branding efforts on the Internet? Where are these measures obtained?

Sales can be measure of effectiveness if it is a transactional site. Three ways of collecting it: hit counters, server log files, and coded web pages. The audience measures the provided date about the people who visit the site. (by time, members, non members, etc) The traffic can see the document site activity. You can see what things were most requested, the total activity of the site (”click throughs”, time spent on it).

The consumer adoption process is when a customer comes in contact with a new product, then when they are aware of the product they develop an interest. The customer can sometimes contrast the product with another product. As the customer begins to buy their product, they will begin to purchase other products from the same firm; thus making them(company) a part of the customers life.  The consumer adoption process will explain the customer’s behavior. This will also tells us how the customers adapt to the product and the diffusion of innovations. in which it will explain the life of a product over a period of time. The diffusion of innovations is the communication models that consists of four parts: the time, communication channels, innovation, and social system in which the innovation is spreading.

• Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the internet?

Pervasive computing - is the concept that indicate that a single person has connections to many computing devices that assist them in performing tasks in an everyday manner. (ex. Blackberry, laptops, cellphone, etc which can be on/off-line). The changes that can occur due to this is that marketers will have to keep up with  the changes. Although this can be also viewed as something positive, in which they will use the technology as it evolves and new products and services come out. (ex. RFID)

• Strategic drivers of wireless adoption and explanation for each.

High value- the coupon will have to have a reasonable value in order to be submitted in the wireless context. Voice activation- there are many situations in which it is not safe to use the keyboard. Personalization- the customer can select not only the type of information desired but also the frequency of information provision (consumer may select specific stocks and specific price levels at which he or she wishes to be notified.) Time sensitive- because the computer screens are small and storage in limited, information should be send at an appropriate time. (ex. not sent too early) Localization- location of the user can be identified and information specific to that location can be provided (with the use of GPS, Tracking Devices). Security- users must be assured that data transmissions are secure, and authentication services must be provided in a way that is suitable for the devices such as smart cards that can be inserted or taken out. Privacy- providers of content and services in which it will be time sensitive to download, a lack of storage, and/or the fact that users may be paying for airtime. Context- providing necessary information when and where the customer needs or wants it (consumer has the power of the content trigger). Expanded permission marketing- marketers will have to find a new way to get permission marketing, that are besides the opt-in scenarios. They must find out what kind of information they are willing to receive, how often they want to receive transmissions, and where they want the information to get to. One-click payment mechanisms – a system in which payment is done. The payment is considered to be easily secure and authorized. It can also be billed to a single account since there are many customers that don’t  want to enter their credit card information. (ex paypal)

A buyer-seller relationship - the bond/ relationship/connection between the seller and it customers. The bond may be strong, weak, or nonexistent at some point. The relationships can be base on emotions (brand brings happiness due to purchase) or logic (is when a customer realizes that they can’t get a better product). A strong bond brings loyalty which is important (to the firm) b/c they are less likely to search for a “better” brand, promote word of mouth, and are willing to go out of their way to stay loyal.

• why is integrated lever selection important in a marketing plan?

The 2Is let firms choose levers that can move customers through the relationship phases faster and more effectively. The 2Is affect each category of levers differently, but in the end it will remain consistent throughout all the levers. Product – individualization of customers’ pages. This can maintains commitment which increases switching costs to the customer (being comfortable with that product). It eases the way from awareness to the exploration stage.  Pricing – can move customers from exploration/expansion to commitment by giving their customers a price incentive so that they will purchases the product. Communication- can example of the 2is are banners ads which can influence the communication channel. This can move customers from awareness to exploration stage.  Community- presents benefits to the customers by giving them connections to the firm and to other users. Distribution- the relationship becomes tighter through interactivity.

• how did EBay’s application of the marketspace matrix change over time?

From 1995 – 98 : since it was a pioneer to the online auction business, they were not so popular so the levers were not applicable during this time.  Then from 1998-99 eBay became popular enough that they were able to focus on their commitment lever. Since 2000 to the present time, Ebay had done such a good job in satisfying the community (and were able to retain customers) that eBay were able to require new buyers and sellers to continue its history of growth. They were able to expand internationally and pursued an international strategy by building international sites and acquiring new competitors. In order to increase business abck home they  made efforts to win new users. This was done through tv campaign in late 2000s. They promoted payment services by including a bill paying service called Billpoint which competes with PayPal.  This allows any user  with an email to receive a payments online.

• what are the four categories of principles for lever selection? what the key principles for lever selection within the Marketspace Matrix?

Choose Levers to Effect a Change – Firms must understand the behavioral change they are trying to create.

Determine Which Levers Have the Most Leverage – Firms need understand which levers are going to move customers to the next stage.

Consider Barriers to Advancement – understanding what will prevent people from moving to another stage.

Consider the Medium’s Effect on Desired Behavior – the advancement from one stage to the another. The medium that are use for awareness can be different from the one for the commitment stage.

Level of Involvement Matters - Being highly involve with the purchases will have different marketing levers than a low-involvement purchases. Its important that the firms know where the product falls on the involvement spectrum.

Understand Consumer Learning Trends – understand how consumers learn about the products. It varies from different segments.

Credibility of the Channel Matter -The credibility of the channel matters more than the literal message. The message could be ignored when is being delivered through one medium. On the other hand it can be taken in when delivered by another source.

The Choice of Levers Must be Consistent with Positioning Choice – levers must support the position that the firm takes in a certain segment of the market.

The Medium can be the Message – or the Product – this means choosing the channel that the firm is already selecting. (about what its already saying)

Matrix Design Must be Adaptive- A firm must be able to adapt its matrix so that it can respond to the evaluation of the campaign/changes in the market.

The internet is a distribution channel because its able to facilitate the exchange of goods and services between a buyer and the seller. The internet allows products to become available for consumption, which is the essence of a distribution channel.

• what are the functions of channel intermediaries?

Effectiveness- it’s the ability of a channel to perform its functions. In exchange, this will creates value for the customer.

Efficiency- distribution cost can be decrease if the retailers are able to perform its require functions more efficiently than other manufactures. (through a direct channel)

• what is disintermediation and what are its implications for channel intermediaries and customers?

Disintermediation – this is a strategy that eliminates the channel intermediary. The Internet-driving force for disintermediation are that the Internet allows firms to keep in touch at a much lower cost and higher speed

• what are the distribution levers and how do they affect relationships between intermediaries and buyers and sellers?

The distribution levers are:

Awareness -

number of intermediaries – Intensive distribution strategy should lead to greater awareness b/c the  firm is accessible through more outlets. Most distribution in the online world is intensive b/c of the of its ability to reach soo many people. Although, participation in affiliate programs is one tactic that increases distribution intensity.

Number of Channels/ Intermediary Type -Given that different customers are likely to shop at different channel types, a greater variety of distribution channels increase market coverage and therefore awareness.

Exploration/ Expansion

Degree of Channel Integration -As integration increases, the willingness to explore the potential for a relationship should increase.Very simply, integration increases the level of customer service, which increases the attractiveness of the firm as the relationship partner.Also important is the effect of channel integration on the reliability of customer service.Relationship quality comes not only from the level of the customer service, but also from whether the customer can count on the service from interaction to interaction.

Number of Channels/ Intermediary Type - Likelihood of exploration increases as the number of channels increase.Firms increase exploration and expansion of the relationship by ensuring they target their customers correctly.By understanding the needs of each target segment, the product or service can be delivered through the most appropriate distribution channel. As the perceived value of the product is enhanced, the willingness to explore increases.

Commitment

Degree of Channel Integration -The channel environment must be integrated for customers to commit.Customers expect to be treated in a holistic sense, rather than on a per-transaction basis.

Intermediary Type -Making a commitment to the firm requires trust and so the selection of the channel should be affected  by the degree of trust that is associated with the alternatives.Another issue is the ability to form buyer-seller relationship in an indirect channel.  Manufacturers that go direct have greater control over the brand’s marketing strategy and are more likely to generate commitment.

Number of Channels -While a major advantage of employing multiple channels is the ability to appropriately serve multiple market segments, this strategy can also increase customer commitment within a segment.Customers often have different buying requirements based on the purchase situation, and their requirements can evolve over time as they grow older or their life situation changes.

Intermediary Functions and Responsibilities – The firm can enhance customer value and strengthen commitment by using market research to understand customer perceptions of service quality.Other channel functions and responsibilities that can lead to greater commitment include customer representative training, sales incentives that focus on customer satisfaction and increased margins.

Dissolution

Elimination of Channel Types -Some customers, particularly those who find value in the functions carried out by the channel type that has been eliminated will complain or leave.

Reduction in the Number of Intermediaries -customers will find it more difficult to purchase the firm’s products and will complain or exit.

Reduction in Channel Integration - By customers being treated based only on part of their transactions, they are less likely to feel connected to the firm or brand, and dissolution is likely to follow.

It’s a relationship that has been build on share interests which satisfies members’ needs. In which it would be difficult/ unattainable by an individually.

• what are the criteria that define successful community?

1.    Membership is a conscious choice. (they do it b/c they are want to be a part of it)
2.    Member base has achieved critical mass and sustainability.
3.    Members feel a great sense of trust. (they trust among members)
4.    Members achieve benefits in scale. (feeling that they are benefiting from the community)
5.    Roles are not hierarchical or imposed.
6.    Effective facilitation and site structure keeps community activities on track.
7.    A spirit of participation and feedback is clearly cultivated.
8.    A sense of affiliation is achieved through ownership of equity in the community. ( sense of equal-ness)
9.    Efficiency in interaction is maximized. (chat rooms, blogs, bulletin boards, etc)
10.    The community is easily navigable. (no hassle to find)

• what are the different types of interest that form the foundations of community?

Activity-driven communities- Shared interests in activities. (ex games, shopping)

Commonality game- shared interest through professions, lifestyle stages, and ethnicity.

Information-driven communities- shared their interests in information and they seek to exchange this information. (ex Wikipedia)

• what are the different ways in which communities functions?

Real time systems-Internet real chat (IRC), web based chat, virtual worlds and Multiuser Dimensions (MUD’s)/ MUDs Object Oriented (MOOs).

Asynchronous system- Newsgroups (eg usenet groups), mailing list, and the web-based message boards.

• what are the three primary ways in which value is created within a community?

1. User to user- the user makes content.It can be through sharing ideas, information, etc)
2. administrator to user- the firm creates the content like reports, exclusive research, etc…
3. User to administrator- the customer makes money for the firm by the purchase of products. Usage fees, content fees, advertising sales and also through commissions

• what are the benefits that community can generate for a parent firm?

Cost Benefits: reduce costs in marketing , acquisition, customer service, decrease product flaws and marketing mistakes.

Revenue Benefits: Increase customer segmentation and customization, branding, and it deepens customer relationship.

• what are the different levels of community?

Nascent level – run by community founders and a small portion of main participants (the start up)

Formative level – marked by growing membership and evolving goals (development)

Mature level – In this stage it to ensure feedback and maintain it (change and maintenance of the site)

The additional levels include: awareness, exploration, expansion, commitment, & dissolution.

Awareness- the user becomes aware of the community.

Exploration/expansion- this happens when the user starts to become involve they become a part of the novice stage.

Commitment- In this stage the user makes the most value.

Dissolution – there is a possibility to satisfy the customer dissatisfaction if the customer is treated with the same attention when they entered.

A product can be tangible(can touch) or intangible (services). They are for transaction purposes. There are two types of products physical and services. The Internet is changing some accepted limitations of service-based offerings such as intangibility, simultaneity, heterogeneity, and perishability. There are three components for the value proposition: core benefit, basic product and augmented product.

• How do interactivity and individualization affect product?

They affect product development, it also allows the firm to learn about their consumers. It also allows the personalization of the product for the preference of consumers. It also will decrease costs for sellers. In other words, the 2Is allow a company to learn more about its customer, personalize a product to meet their preferences, and offer CRM tools to provide more value for customers. This can help companies in the development augmented products. Websites that require a login/password allow the company to recognize the customer individually and to see their frequency in logins. Meanwhile, websites that use log files allow the company to see what are the consumers interest by viewing their every click.

• What are the key marketing levers for products?

Attributes and Features-this is used to differentiate companies from each other, by customizing specific things for the customer (taste or preferences). (for example Dell) Companies should not overwhelm customers with too many choices.                                                                                                                    Customer Service program-support for customers before/during/after sales, customer care and it also helps the relationship with the management.                                                                                            loyalty programs and privileges – rewarding customers by increasing their relationship.                          Packaging- this makes the product stand out from the rest of the products (subconsciously and consciously)                                                                                                                                                      Availability of complementary products- it improves the value or potential value of the basic product. Upgrades- this offers a greater potential value for the customer. Plus it can add-on to their long term relationship.

• What does the overall product development process look like?

Idea Generation ( basically, Brainstorming).Screening Ideas- (having a set of objective and a way on how the product will go into the development). Then it will go to the Product Design ( self explanatory). Prototype development – (this is like a model of the product. helps determine if there are flaws, safety issues, and it saves time/money since its just a model). Then its the Business Analysis (analyze comapny with theproduct image).Testing Marketing – (its a test to show where the new products should be open and looks if it is supported by the target area). Commercialization -( this includes the implementation of the plan, resources, marketing and the distribution to be done corectly in order for the process to be successful.

• How can companies manage their product portfolio?

For starters they need to have a new product development. Then they can support their current products/services, by expanding with their existing products. (extend the line)

• How can products help enable a customer relationship?

The company can upgrade their value at the important stages in the relationship. Keep customers interested.  There are two type of techniques : developing the product development levers that are appropriate for the existing relationship. Emphasizing the elements of the value proposition that are most relevant at a given stage of the relationship.

• How can a customer-centric approach to product development create strategic advantages?

Product development is impacted: Customers need, Production needs and capabilities, Research and development, and competitors and marketplace forces.

It is definitely important in the introductory stage of a PLC (product life cycle) in order to generate awareness to the product.  Furthermore, it’s the traditional & interactive marketing methods. Plus, it sends the relevant message to the right customer at the right time. You want to let your target audience know that you are there to provide an offering that will solve their current “problem”. You want to make them feel that you can solve it better, or cheaper, than your competitors.

• What is the role of the Internet in a marketing communications campaign?

The Internet gives new forms of media vehicles, in which it can be easily be directed to other right people.  For example, a company can access certain consumers (which are interested in their product) through ads online (through websites that they know they can reach those types of customers).

• What are the main categories of communication types, and within each category, what are the tools, or marketing levers, that marketers use to communicate with customers?

Marketing communications (includes all points of contacts that a firm has with its customers) can be grouped into four categories: mass offline, personal offline, mass online, and personal online.

1. Mass-Offline marketing levers: broadcast media, print media, and point of purchase displays.   Broadcast Media: television, radio, outdoor, and public relations.                                                          Print Media: newspapers, magazines, yellow pages, brochures, newsletters                                        Point-of-Purchase displays                                                                                                           Telemarketing                                                                                                                                         Direct Mail                                                                                                                                            Customer Service
2. Mass online: the basic online tools such as: banners, search engines, point of purchase display, applications of basic tools: affiliate programs, partnerships, sponsorships, and chat rooms.          Basic Online Tools: banners, interstitial, search engines, point-of-purchase displays                         Applications of Basic Online Tools: partnerships affiliate programs, sponsorship, chat rooms, serial marketing.
3. Personal online: personalized commercial websites, loyalty programs, viral marketing, email, and customer service.                                                                                                                                  Personalized commercial websites                                                                                                      E-mail Marketing: viral marketing, loyalty programs, customer service
4. Personal Offline: telemarketing, direct mail, statement stuffers, and customer service.

• What are the six steps in the communication process?

The six communication process are:

1. Identifying the target audience
2. executing the campaign
3. creating the message
4. evaluating the effectiveness of the campaign
5. developing the media plan
6. determining the communication objective

• How do the 2is of the Internet affect marketing communications?

1. Interactive: Developing closer relationships with your consumers through what seems to be 2 way communication, via emails, text alerts, interactive ads. This helps customers go from the exploration stage to commitment. This is where the actual relationship starts
2. Individual: The actual relationship with each individual.  Giving each individual a sense of importance to the company. It also gives customers more control over the messages they are expose to online and offline

• What levers are used for the different customer stages?

AWARENESS
Online levers: viral marketing, , search engines, e-mail, online billboards
Offline levers: radio, magazines, television,  billboards/ outdoor, yellow pages

EXPLORATION/ EXPANSION
Online levers: online billboards, search engines, e-mail, viral marketing, website, permission                       marketing, serial marketing
Offline levers: television, radio, newspapers, packaging

COMMITMENT
Online levers: personalized pages, targeted email/ permission marketing
Online/ Offline levers: loyalty programs, customer service
Offline levers: direct mail,  permission marketing w/personalized offers, telemarketing

DISSOLUTION
Personalized pages
Termination

The relationship between price and demand is that the price affects demand. For example, +more expensive the -less demand for the item.  Meanwhile, there is an inverse relationship between the price and the quantity. In case where an item is less availability the demand will increase. It is important that the price is at the point where the marginal revenue is equal to the marginal cost because it sets the balance between the products being set too cheap. Furthermore, it allows the company to set the margin where it can receive the most profit. The marginal revenue is the additional revenue collected from adjusting the product price. Marginal cost is the cost associated with producing an additional good. Marginal cost curve is often U-shaped when there are more goods produced.

• Why should a firm consider fairness when pricing its goods?

Firms need to consider fairness because the price plays a huge factor on whether the customer will make the purchase. There are times when customers will value the price as quality. In the other hand, if it is far too expensive customer will be turn off by the price. There are a few points that are taken into consideration when it comes to pricing: the past price, close-substitute price, and context. (meaning the surrounding in which the purchase is being made)

• how has the Internet enhanced opportunities for dynamic pricing strategies?

Some opportunities are decreased menu cost: this cost is associated with the changing of prices in a product. Through the internet, its easy to change the price of the products and with less cost to the company unlike offline stores. for example, a company can just go online and edit their pricing but if it is offline they will need to change the numbers on the tags, catalog pages, billboards, etc. All of the offline changes include cost and time. Interactivity is easier for sellers/buyers to interact. Plus is cheaper.

• why would a firm want to implement a price-discrimination strategy?

There are 3 degrees of the strategy, that are used to explain the reasons behind the price-discrimination strategy.

1st - it is when a firm gets their customers into paying exactly what they are willing to pay for that product.

2nd – this when the firm tries to price the product at a price in which they are willing to pay for the first purchase of the product. Furthermore, be willing to pay that price for additional purchases.

3rd- (it is the most used) They will group individuals according to what they are willing to pay. It has been important for firms to use these price-discrimination strategy because they are able to increase demand for their products. This is due to the fact that the price is determine upon the willingness of the customer to pay.

• what is the difference between static and dynamic markets? why must a firm consider its pricing strategies within the context of a dynamic marketer?

Static markets stay in the same place but dynamic markets are constantly changing. Pricing strategies within the context of a dynamic market must be considered to follow the price fluctuation. For example in which the top online retailers are imposing it because it allows firms to be able to compete better and stay in the online business.

Customer relationship- it is a relationship between the customers and a firm.  The firm can be considered a brand or product. This relationship is a very important to the firm because as long as the relationship is weak it  will make it easier for the customers to purchase from a different brand. (since their is not a strong link/loyalty with the brand). When there is a strong relationship, customers will do their best to continue to  purchasing from the same brand since they become loyal/attach to the brand.

There   are different types of customers relations:

Emotional –  it makes the customer feel good which will produce a repetitive purchases and it increases the loyalty between them.

Intellectual – customers evaluate the pros & cons of the products. The customers can have either a positive/negative relationship. A positive relationship will allow the customer to trust the seller and make them believe that it will provide them with great value continuously (which in effect, creates a positive feeling among them). It can make them  feel that the brand represents them and their interests. This will drive them to accept the brands advertising efforts toward them. Meanwhile a negative relationship will create a doubt, instability, and the idea that them brand is either cheap(lower value) or that it doesn’t represent them accurately.

Book information : CRM

Targeting: its directing marketing communications to the individuals/businesses that are viewed as valid prospects for acquisition or retention.  Targeting in CRM will identify customers by developing customer profiles and using them either to identify customers who are appropriate to receive.

Customer profile: it describes the primary quantitative, of an individual/segment using lifestyle, behavioral characteristics,  and specific demographics.  The quickest way to build your own house list is through registration on a Web site. Firms would love to have techniques like the pull-down lists to reduce error.  It helps them in such a way that the form cannot be completed without an incentive.  Data collection is just a “fishing expedition”, as relationship strengthens, more information that is more detailed and more personal can be collected.

Personalization: involves the creation of specialized content for a prospect with a known profile by choosing from an array of existing content modules.

THREE BASIC TYPES OF PERSONALIZED SITE CONTENT ARE USE:

· Rules-based personalization chooses content on the basis of known. (location, likes)

· User-Controlled personalization this allows users to choose the content elements that will be on display. Businesses are encouraging customers to create their own personalized entry page containing the information they access most frequently.

· Information-driven personalization uses complex profiles.

CUSTOMER LOYALTY PROGRAMS- club card programs and credit cards

]]> http://blsciblogs.baruch.cuny.edu/wymbs/2008/12/20/customer-relationships/feed/ 0 http://blsciblogs.baruch.cuny.edu/wymbs/2008/12/16/intel-will-bring-internet-and-tv-together/ http://blsciblogs.baruch.cuny.edu/wymbs/2008/12/16/intel-will-bring-internet-and-tv-together/#comments Wed, 17 Dec 2008 03:09:07 +0000 gmera0226 http://blsciblogs.baruch.cuny.edu/wymbs/?p=951 Intel is trying to personalize the television. In efforts to accomplish this, they have made a creation in which a prototype device will combine the internet with the TV experience. Widgets will permit TV watchers to talk to friends in real time or buy products advertised on TV from online stores. Intel partnered up with Yahoo! to create the “Widget Channel” which is a hardware and software platforms that is able to combine them. I believe that this is definitely the beginning of a new innovation and an enhancement to their line of products.

http://news.yahoo.com/s/pcworld/20081216/tc_pcworld/inteltoshowdevicesthatbringinternettotv;_ylt=ArMcrGRXZPQB0QlQXwZ3eEv6VbIF