Topic 4

• When household products were purchased primarily by women, ads depicting the father as inept might have made sense
• Men now take a larger role in these decisions and companies have turned away from adverting that makes a joke of men's experiences
• In 2012 Kimberly-Clark faced a firestorm of criticism for portraying men as incompetent caregivers
• Company now regularly engages with "dad-focused" social media outlets and participates in the annual Dad 2.0 Summit
• Product


  The physical item or service sold
• Brand


  The customers' product perception
• Price


  The amount customer pays for product
• Customer value


  Customer benefits minus total cost
• Promotion


  Any means to spread word about product
• Place (distribution)


  The 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
• Product-based marketing strategies


  • Managers often think in terms of products and services sold
  • Works well when customers think of needs in terms of product categories
  • Not an efficient Web site design when customers look to fulfill a specific need
• Customer-based marketing strategies


  • Web sites designed to meet various types of customers' specific needs
  • Initial step is to identify customer groups sharing common characteristics (demographic)
  • Make site more accessible and useful for each group
  • Companies need to take view beyond internal perspective
• Micromarketing


  The practice of targeting very small market segments
• Three categories to identify market segments

  • Geographic segmentation
  • Demographic segmentation
  • Psychographic segmentation
• Television advertisers use all three categories to identify market segments
• Market segmentation on the Web

  • Web presents an opportunity for different store environments online
  • Retail stores have limited floor and display space, must convey one particular message
  • Web stores can provide separate virtual spaces for different market segments
• Offering customers a choice on the Web

  • One-to-one marketing offers products and services matched to needs of a particular customer
  • Dell offers several different ways to do business, high level of customer-based market segmentation
• Segmentation using customer behavior

  • Behavioral segmentation is the creation of separate customer experiences based on behavior
  • Occasion segmentation when based on things happening at a specific time or occasion
  • Customizing visitor experiences to match site usage or visitor type is usage based market segmentation
• Browsers


  • Web site must offer something to pique visitors' interest
  • Trigger words prompt visitors to stay and investigate products or services
  • Links to explanations or instructions helpful for this type of visitor
  • Include extra content related to products and services
• Buyers


  • Site should offer a direct route into purchase transaction
  • Shopping cart is the part of the Web site that keeps track of items selected for purchase and automates purchasing process
  • Primary goal is to get buyer to shopping cart as quickly as possible
• Shoppers


  • Offer comparison tools, product reviews, and features lists
  • Person may visit a Web site one day as a browser and return later as a shopper or buyer
  • People do not retain behavioral categories from one visit to the next even for the same Web site
• Alternative models


  • McKinsey & Company's six behavior-based categories: Simplifiers, Surfers, Bargainers, Connectors, Routiners, Sportsters
  • Must identify groups and formulate ways of generating revenue
• Customer relationship intensity and life-cycle segmentation

  • One-to-one marketing and usage-based segmentation strengthen companies' relationships with customers
  • Typical five-stage model of customer loyalty: awareness, exploration, familiarity, commitment, separation
• Touchpoints


  Online and offline customer contact points
• Characteristics of the five stages of customer loyalty

  • Awareness: customers recognize company name, product
  • Exploration: customers learn more about company, products
  • Familiarity: customers have completed several transactions, aware of returns/credits policies, pricing flexibility, just as likely to shop competitors
  • Commitment: customers experience highly satisfactory encounters, develop fierce loyalty or strong preference
  • Separation: conditions that made relationship valuable change, parties enter separation stage
• Funnel model


  Conceptual tool used to understand the overall nature of a marketing strategy, provides a clear structure for evaluating specific strategy elements
• Separation


  Conditions that made relationship valuable change, parties enter separation stage
• Goal


  Move customers into the commitment stage as quickly as possible and keep them there as long as possible, only want to see customers move into the separation stage if they are costing more to serve than they are worth
• Customer Acquisition Funnel Model

  Conceptual tool used to understand the overall nature of a marketing strategy, provides a clear structure for evaluating specific strategy elements, similar to customer life-cycle model but less abstract, better job at showing effectiveness of two or more specific strategies
• Acquisition cost


  Amount of money spent to bring one customer to the site
• Conversion


  Converting a visitor into a customer
• Conversion cost


  Total amount of money a site spends to induce a visitor to purchase, subscribe or register
• Retained customers


  Customers that return to site after purchase
• Retention cost


  Cost of inducing customers to return to a Web site and buy again
• Advertising on the Web - Five-stage customer loyalty model

  • Awareness stage
  • Exploration stage
  • Familiarity stage
  • Commitment stage
  • Separation stage
• Display ads


  Small rectangular object with stationary or moving graphic also called banner ads, includes hyperlink to advertiser's Web site, versatile: informative and persuasive functions, attention-grabbing ads include audio and video, created using Shockwave, Java, Flash
• Interactive marketing unit (IMU) ad formats

  Voluntary standard ad sizes
• Universal ad package (UAP)


  Standard ad sizes
• Leaderboard ad


  Designed to span Web page top or bottom