Community
A set of interwoven relationships built upon shared interests, which satisfies members’ needs otherwise unattainable individually
Criteria that Define Successful Community
Membership is a conscious choice
Member base has achieved critical mass and sustainability: sufficiently large membership base that consistently gathers, participates, and adds value in community meeting areas
Members feel a great sense of trust: feeling safety when [...]
Importance of Marketing Communication
Conveys Relevant messages to the right consumers at the right time
Traditional and interactive marketing method are converging
Categories of Communication Types (tools/marketing levers used to communicate with customers)
Mass Offline: (1) broadcast media:television, radio, outdoor and public relations) (2) [...]
Customer Relationship:
Commitment/ bond or connection between a firm and customers
Weak relationships=open market; customer is easily persuaded to purchase from other firms because no loyalty exists
Strong relationship= like family (high customer loyalty)
Types of Customer Relationships:
intellectual: customer evaluates pros and cons and decides between A and B
emotional: makes the customer feel good/ high loyalty/ repeated purchases/ used for [...]
Today we watched presentations.
-Online advertising is valued most for responsiveness, pay-per-click, and an ability to assess return on advertisement
-Web will emerge into a platform
-Every transaction is a piece of data…target and personalize every marketing interaction
Brand Building
Techniques and Enterprises for Brand-Building on Web:
E-mail Promotions
Online Advertising: allows business to generate purchase interest among target market and be [...]
Critical E-Mail Principles:
Relevance
Respect
Recipient Control
Advantages of E-Mail Marketing
Can be developed quickly
Content is flexible, including HTML, Rich Media, and Video
Distribution is controllable by marketer
Can be tested and revised for effectiveness
Measurable
Inexpensive
Getting good opt-in lists is an issue
Levels of Permission Marketing:
Opt-Out
OPT-IN
-Double Opt-In
-Confirmed Opt-In
Other Techniques:
Events
Publicity
Affiliates
Portal Relationships
Viral
-Watched movie about organic search and paid search
-Google can choose for the #1 search based on key words
Organic Search Steps:
Match the query
Search index
Rank the matches. Best results come first
Displays results
-”Spider” program crawls the home page of a site (words on your page are scanned)
-Spiders don’t see flash very well
Paid Search Steps:
Match the query
Ad database
Rank the [...]
- Ben & Jerry’s: insight express
-Looked at iVillage website
-Polls contribute to website
Seven Design Elements of Customer Interface
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 or allow users to personalize the site
Communication – the ways sites enable user-to-user [...]
Testing Process
Reasons for conducting a test
Standard practice (test all mkt programs)
Strategic question (reactivate lapsed customers)
Tactical questions (which incentive to use)
Design a test
What MKT variables (price,etc)
Type of variables (a/b, control/A)
Sample (pop, size)
Establish Test Metrics
Significance
Cut off date
Data
Purchase
Census
Associations
Research Firms
Purchase data
Survey/Ques
Focus Groups
Web site
Acct. Data
Call Center
Customer Inquiries
Hierarchy of customer-focused MKT strategies (top to bottom)
customization
personalization
transaction
interaction
information
Segments of Internet users
Rural residents are less [...]
-Amazon makes money through commission and advertising
The Business Models
Aggregator (ex. Amazon)
ASP (ex. Corio, Constructw@re)
Content Provider (ex. New York Times)
Fund Raiser (ex. Red Cross)
Informediary (ex. Stockgroup Media)
X (ex. List Brokers)
Marketplace (ex. eBay, Craigslist, Exostar)
Multichannel (ex. Staples)
Machine to Machine (ex. Otis Elevator)
Open Source (ex. Kazaa)
Peer to Peer (ex. Yahoo)
Portal
-Customers are acquired online through advertising, email, and marketing
-Products [...]
-Best Buy bought Napster
-Talked about Business Models, Revenue Modes, M-2-M, and Direct Response
Functions of Business Models
Articulate Value Proposition
Identify Target Market Segment
Define structure and value chain
Define cost structure and profit potential
Explain position in value network
Set forth competitive strategy
-Target Customer has needs for Value Proposition which matches Capabilities
-Capabilities enable Value Proposition which gives value for the Target [...]