Marketing mix with elements defined

_________ Physical item or service sold
Brand: customers’ product perception

_________ Amount customer pays for product
Customer value: customer benefits minus total cost

______ Any means to spread word about product

_________ Need to have products or services available in many different locations

Getting right products to the right places at the best time to sell them

_____Communications media selection to carry message

Web presence must integrate with image and brand
Managers often think in terms of products and services sold
Useful Web site design when customers use product categories
Web site examples: Home Depot and Staples
Not a useful Web site design when customers look to fulfill a specific need
• Design Web site to meet individual customer needs
– Offer alternative shopping paths

Web sites to meet various types of customers’ specific needs
Initial step: identify customer groups sharing common characteristics
Make site more accessible and useful for each group
Companies need to take view beyond internal perspective
Example: university Web sites today focus design on needs of stakeholders
(current students, prospective students, parents of students, potential donors, faculty)

_______ Uses building construction and floor space design

_______ Communications media selection: critical , No physical presence
Customer contact made through image projected through media and Web site

________________Obtain customer trust with no physical presence

________________Broad intermediate step , Between mass media and personal contact

choose the Web communication offers

2 answers

Mass media advertising offers lowest trust level :

this type is important factor in media choice _____________

Promotes well with mass media
Mass media: expensive to produce
Used primarily for short messages
what is this type _________________

________ Promote well with personal contact
Customers may ask questions

______________ Offers various elements
Mass media messaging
Personal contact interaction , Anything in between

_________ Successful mass media campaigns , Rely on passive nature of media consumption

Select the Market Segmentation on the Web

2 answers

____________ Better to use a trust-based model approach

____________ Divides potential customer pool into segments
Defined in demographic characteristics terms

____________ Offering products, services matched to needs of a particular customer

example : dell

____________ Practice of targeting very small market segments ,Hampered by cost increases

select three categories to identify market segments

Television advertisers use all three categories

Psychographic segmentation , Demographic segmentation , Geographic segmentation

_______ Companies target similar customer groups as market segments
One-to-one marketing - Chance to create individually unique Web experiences

_______ Use the Web to target specific customers in different ways at different times

_______ Needs different combinations of products and services , Depending on the occasion

__________ Creation of separate customer experiences based on behavior

__________ Behavioral segmentation based on things happening at a specific time or occasion

_______ Easier to meet needs of different behavioral modes
Can include elements appealing to different behavioral segments

_______ Customizing visitor experiences to match the site usage behavior patterns
of each visitor or type of visitor

_______ Browsers, buyers, and shoppers

Browsers are _______________________

Buyers are _______________________

______________ Prompt visitor to stay and investigate products or services

______________ Part of the Web site
Keeps track of selected items for purchase
Automates purchasing process

______________ get buyer to shopping cart as quickly as possible

_________ Offer comparison tools, product reviews, and features lists
People do not retain behavioral categories from one visit to the next
Even for the same Web site

_________ Using stages to create customer groups in each stage

_________ McKinsey & Company’s six behavior-based categories
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, or shop)
• Bargainers (search for good deals)
• Connectors (stay in touch with other people)
• Routiners (return to same sites over and over)
• Sportsters (spend time on sports, entertainment sites)
• Must identify groups and formulate ways of generating revenue

One-to-one marketing and usage-based segmentation value
Strengthen companies’ relationships with customers

Good customer experiences
Create intense loyalty feeling

Typical five-stage model of customer loyalty
First four stages show increase in relationship intensity
Fifth stage (separation) • Decline occurs, relationship terminates

_______ Online and offline customer contact points

_______ Goal of providing similar levels and quality of service at all touchpoints

Customer Relationship Intensity and Life-Cycle Segmentation
Characteristics of the five stages

_________Customers recognize company name, product

_________ Customers learn more about company, products

_________ Customers have completed several transactions
Customers aware of returns and credits policies
Customers aware of pricing flexibility
Customers just as likely to shop competitors

_________ Customer experiences highly satisfactory encounters
Customer develops fierce loyalty or strong preference

_________ Conditions that made relationship valuable change
Parties enter separation stage

_________ Attract new visitors to a Web site

_________ Total amount of money site spends drawing one visitor to site

_________ Convert first-time visitor into a customer

_________ Total amount of money site spends to induce one visitor to make a purchase,

sign up for a subscription, or register
May exceed profit earned on average sale

Retained customers are ___________________

• Retention costs are ___________________

Importance of measuring these costs
– Indicates successful advertising, promotion strategies
• More precise than classifying into five loyalty stages

Effective advertising involves communication

in Five-stage customer loyalty model helpful in creating advertising messages :

Advertising message should inform is _________

in Five-stage customer loyalty model helpful in creating advertising messages :

Message should explain how product, service works - Encourage switching brands _________

in Five-stage customer loyalty model helpful in creating advertising messages :

Message should be persuasive, convince customer to buy _________

in Five-stage customer loyalty model helpful in creating advertising messages :

Customer sent reminder messages _________

in Five-stage customer loyalty model helpful in creating advertising messages :

Customer not targeted _________

in Five-stage customer loyalty model helpful in creating advertising messages :

Always coordinate with existing advertising efforts _________

how many key brand elements ?

________Degree to which product offers utility to customer

_______ Customer perceives a value in buying product

__________ Environment changes

__________Work well if ad targets in passive mode of information acceptance ,Television, radio, billboards, print media

__________Active medium controlled by customer

______________ Offer to help Web users in some way
• In exchange for viewing an ad
– Relies on cognitive appeal of specific help offered

_____________Includes descriptions, reviews, ratings, other information about a product

linked to another firm’s site (offers item for sale)

_____________For every visitor following link from affiliate’s site to seller’s site

_____________Handling inventory, advertising and promoting product, transaction processing

_____________Relies on existing customers
Tell other people (prospective customers) about products or service
Use individual customers to spread the word about a company

Viral Marketing Strategies
Use individual customers to spread the word about a company
– Example: BlueMountain Arts • Electronic greeting cards
• E-mail messages that include link to greeting card site
– Social media sites being utilized • Key to viral marketing: post often, but not too often