Bài giảng E-commerce business, technology, society - Chapter 6: E-Commerce Marketing Concepts

E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.seventh editionCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Copyright © 2010 Pearson Education, Inc.Slide 6-*Chapter 6E-commerce Marketing ConceptsCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Netflix Strengthens and Defends Its BrandClass DiscussionWhat was Netflix’s first business model? Why did this model not work and what new model did it develop?Why is Netflix attractive to customers? How does Netflix distribute its videos?What is Netflix’s “recommender system?”How does Netflix use data mining?Is video on demand a threat to Netflix?Slide 6-*Copyright © 2011 Pearson Education, Inc.Consumers Online: The Internet Audience and Consumer BehaviorAround 70% (82 million) U.S. households have Internet access in 2010Growth rate has slowedIntensity and scope of use both increasingSome demographic groups have much higher percentages of online usage than others Gender, age, ethnicity, community type, income, educationSlide 6-*Copyright © 2011 Pearson Education, Inc.The Internet Audience and Consumer Behavior (cont’d)Broadband audience vs. dial-up audiencePurchasing behavior affected by neighborhoodLifestyle and sociological impactsUse of Internet by children, teensUse of Internet as substitute for other social activitiesMedia choicesTraditional media competes with Internet for attentionSlide 6-*Copyright © 2011 Pearson Education, Inc.Consumer Behavior ModelsStudy of consumer behaviorSocial science Attempts to explain what consumers purchase and where, when, how much and why they buy Consumer behavior modelsPredict wide range of consumer decisionsBased on background demographic factors and other intervening, more immediate variables Slide 6-*Copyright © 2011 Pearson Education, Inc.A General Model of Consumer BehaviorFigure 6.1, Page 352Slide 6-*SOURCE: Adapted from Kotler and Armstrong, 2009.Copyright © 2011 Pearson Education, Inc.Background Demographic FactorsCulture: Broadest impactSubculture (ethnicity, age, lifestyle, geography)SocialReference groupsDirect reference groupsIndirect reference groupsOpinion leaders (viral influencers)Lifestyle groups PsychologicalPsychological profilesSlide 6-*Copyright © 2011 Pearson Education, Inc.The Online Purchasing DecisionPsychographic researchCombines demographic and psychological dataDivides market into groups based on social class, lifestyle, and/or personality characteristicsFive stages in the consumer decision process:Awareness of needSearch for more informationEvaluation of alternativesActual purchase decisionPost-purchase contact with firmSlide 6-*Copyright © 2011 Pearson Education, Inc.The Consumer Decision Process and Supporting CommunicationsFigure 6.3, Page 356Slide 6-*Copyright © 2011 Pearson Education, Inc.A Model of Online Consumer BehaviorDecision process similar for online and offline behaviorGeneral online behavior modelConsumer skillsProduct characteristicsAttitudes toward online purchasingPerceptions about control over Web environmentWeb site featuresClickstream behavior: Transaction log for consumer from search engine to purchaseSlide 6-*Copyright © 2011 Pearson Education, Inc.A Model of Online Consumer BehaviorSlide 6-*Figure 6.4, Page 357Copyright © 2011 Pearson Education, Inc.A Model of Online Consumer BehaviorClickstream factors include:Number of days since last visitSpeed of clickstream behaviorNumber of products viewed during last visitNumber of pages viewedSupplying personal informationNumber of days since last purchaseNumber of past purchasesClickstream marketingSlide 6-*Copyright © 2011 Pearson Education, Inc.Shoppers: Browsers and BuyersShoppers: 87% of Internet users72% buyers16% browsers (purchase offline)One-third offline retail purchases influenced by online activitiesOnline traffic also influenced by offline brands and shoppingE-commerce and traditional commerce are coupled: part of a continuum of consuming behaviorSlide 6-*Copyright © 2011 Pearson Education, Inc.Online Shoppers and BuyersFigure 6.5, Page 359Slide 6-*SOURCE: Based on data from eMarketer, Inc., 2010bCopyright © 2011 Pearson Education, Inc.What Consumers Shop for and Buy OnlineBig ticket items ($500 plus)Travel, computer hardware, consumer electronicsExpanding Consumers more confident in purchasing costlier itemsSmall ticket items ($100 or less)Apparel, books, office supplies, software, etc.Sold by first movers on WebPhysically small itemsHigh margin items Broad selection of products availableSlide 6-*Copyright © 2011 Pearson Education, Inc.What Consumers Buy OnlineFigure 6.6, Page 361Slide 6-*SOURCES: Based on data from eMarketer, Inc., 2010b; Internet Retailer, 2010.Copyright © 2011 Pearson Education, Inc.Intentional Acts: How Shoppers Find Vendors OnlineSearch engines (59%)Coupon Web sites (29%)Comparison shopping sites (27%)E-mail newsletters (25%)Online shoppers are highly intentional, looking for specific products, companies, servicesSlide 6-*Copyright © 2011 Pearson Education, Inc.Table 6.6, Page 362Slide 6-*SOURCES: Based on data from eMarketer, Inc., 2010cCopyright © 2011 Pearson Education, Inc.Trust, Utility, and Opportunism in Online MarketsTwo most important factors shaping decision to purchase online:Utility: Better prices, convenience, speedTrust:Asymmetry of information can lead to opportunistic behavior by sellersSellers can develop trust by building strong reputations for honesty, fairness, delivery Slide 6-*Copyright © 2011 Pearson Education, Inc.Basic Marketing ConceptsMarketing Strategies and actions to establish relationship with consumer and encourage purchases of products and servicesAddresses competitive situation of industries and firmsSeeks to create unique, highly differentiated products or services that are produced or supplied by one trusted firmUnmatchable feature setAvoidance of becoming commoditySlide 6-*Copyright © 2011 Pearson Education, Inc.Feature SetsThree levels of product or serviceCore producte.g. cell phoneActual productCharacteristics that deliver core benefitse.g. wide screen that connects to InternetAugmented productAdditional benefitsBasis for building the product’s brande.g. product warrantySlide 6-*Copyright © 2011 Pearson Education, Inc.Feature SetFigure 6.7, Page 364Slide 6-*Copyright © 2011 Pearson Education, Inc.Products, Brands and the Branding ProcessBrand: Expectations consumers have when consuming, or thinking about consuming, a specific productMost important expectations: Quality, reliability, consistency, trust, affection, loyalty, reputationBranding: Process of brand creationClosed loop marketingBrand strategyBrand equitySlide 6-*Copyright © 2011 Pearson Education, Inc.Marketing Activities: From Products to BrandsFigure 6.8, Page 366Slide 6-*Copyright © 2011 Pearson Education, Inc.Segmenting, Targeting, and PositioningMajor ways used to segment, target customersBehavioralDemographicPsychographicTechnicalContextualSearchWithin segment, product is positioned and branded as a unique, high-value product, especially suited to needs of segment customersSlide 6-*Copyright © 2011 Pearson Education, Inc.Are Brands Rational? For consumers, a qualified yes:Brands introduce market efficiency by reducing search and decision-making costsFor business firms, a definite yes:A major source of revenueLower customer acquisition costIncreased customer retentionSuccessful brand constitutes a long-lasting (though not necessarily permanent) unfair competitive advantageSlide 6-*Copyright © 2011 Pearson Education, Inc.Can Brands Survive the Internet? Brands and Price DispersionEarly postulation: “Law of One Price”; end of brandsInstead:Consumers still pay premium prices for differentiated productsE-commerce firms rely heavily on brands to attract customers and charge premium pricesSubstantial price dispersionLarge differences in price sensitivity for same product“Library effect”Slide 6-*Copyright © 2011 Pearson Education, Inc.The Revolution in Internet Marketing TechnologiesThree broad impacts:Scope of marketing communications broadened Richness of marketing communications increasedInformation intensity of marketplace expandedInternet marketing technologies:Web transaction logsCookies and Web bugsDatabases, data warehouses, data miningAdvertising networksCustomer relationship management systemsSlide 6-*Copyright © 2011 Pearson Education, Inc.Web Transaction LogsBuilt into Web server softwareRecord user activity at Web siteWebtrends: Leading log analysis toolProvides much marketing data, especially combined with:Registration formsShopping cart databaseAnswers questions such as:What are major patterns of interest and purchase?After home page, where do users go first? Second?Slide 6-*Copyright © 2011 Pearson Education, Inc.Cookies and Web BugsCookies: Small text file Web sites place on visitor’s PC every time they visit, as specific pages are accessedProvide Web marketers with very quick means of identifying customer and understanding prior behaviorFlash cookiesWeb bugs: Tiny (1 pixel) graphics embedded in e-mail and Web sitesUsed to automatically transmit information about user and page being viewed to monitoring serverSlide 6-*Copyright © 2011 Pearson Education, Inc.Insight on SocietyEvery Move You Make, Every Click You Make, We’ll Be Tracking YouClass DiscussionAre Web bugs innocuous? Or are they an invasion of personal privacy? Do you think your Web browsing should be known to marketers? What are the Privacy Foundation guidelines for Web bugs?Should online shopping be allowed to be a private activity?Slide 6-*Copyright © 2011 Pearson Education, Inc.DatabasesDatabase: Stores records and attributesDatabase management system (DBMS): Software used to create, maintain, and access databasesSQL (Structured Query Language): Industry-standard database query and manipulation language used in a relational databaseRelational database: Represents data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data elementSlide 6-*Copyright © 2011 Pearson Education, Inc.A Relational Database View of E-commerce CustomersFigure 6.12, Page 382Slide 6-*Copyright © 2011 Pearson Education, Inc.Data Warehouses and Data MiningData warehouse: Collects firm’s transactional and customer data in single location for offline analysis by marketers and site managersData mining:Analytical techniques to find patterns in data, model behavior of customers, develop customer profilesQuery-driven data miningModel-driven data miningRule-based data miningCollaborative filteringSlide 6-*Copyright © 2011 Pearson Education, Inc.Data Mining and PersonalizationFigure 6.13, Page 383Slide 6-*SOURCE: Adomavicius and Tuzhilin, 2001b ©2001 IEEE.Copyright © 2011 Pearson Education, Inc.Insight on TechnologyThe Long Tail: Big Hits and Big MissesClass DiscussionWhat are “recommender systems”? Give an example you have used.What is the “Long Tail” and how do recommender systems support sales of items in the Long Tail?How can human editors, including consumers, make recommender systems more helpful?Slide 6-*Copyright © 2011 Pearson Education, Inc.Customer Relationship Management (CRM) SystemsRecord all contact that customer has with firm Generates customer profile available to everyone in firm with need to “know the customer”Customer profiles can contain:Map of the customer’s relationship with the firmProduct and usage summary dataDemographic and psychographic dataProfitability measuresContact history Marketing and sales informationSlide 6-*Copyright © 2011 Pearson Education, Inc.A Customer Relationship Management SystemFigure 6.14, Page 388Slide 6-*SOURCE: Compaq, 1998Copyright © 2011 Pearson Education, Inc.Market Entry StrategiesSlide 6-*Figure 6.15, Page 390Copyright © 2011 Pearson Education, Inc.Establishing the Customer RelationshipAdvertising NetworksBanner advertisementsAd server selects appropriate banner ad based on cookies, Web bugs, backend user profile databasesPermission marketingAffiliate marketingSlide 6-*Copyright © 2011 Pearson Education, Inc.How an Advertising Network such as DoubleClick WorksFigure 6.16, Page 393Slide 6-*Copyright © 2011 Pearson Education, Inc.Establishing the Customer Relationship (cont’d)Viral marketingGetting customers to pass along company’s marketing message to friends, family, and colleaguesBlog marketingUsing blogs to market goods through commentary and advertisingSocial network marketing, social shopping Mobile marketingSlide 6-*Copyright © 2011 Pearson Education, Inc.Insight on BusinessSocial Network Marketing: Let’s Buy TogetherClass DiscussionWhy do social networks represent such a promising opportunity for marketers?What are some of the new types of marketing that social networks have spawned?What are some of the risks of social network marketing? What makes it dangerous?Have you ever responded to marketing messages on Facebook or another network?Slide 6-*Copyright © 2011 Pearson Education, Inc.Establishing the Customer Relationship (cont’d)Wisdom of crowds (Surowiecki, 2004)Large aggregates produce better estimates and judgmentsExamples: Prediction marketsFolksonomiesSocial taggingBrand leveragingSlide 6-*Copyright © 2011 Pearson Education, Inc.Customer Retention: Strengthening the Customer RelationshipMass marketingDirect marketingMicromarketing Personalized, one-to-one marketing Segmenting market on precise and timely understanding of individual’s needsTargeting specific marketing messages to these individualsPositioning product vis-à-vis competitors to be truly uniquePersonalizationCan increase consumers sense of control, freedomCan also result in unwanted offers or reduced anonymitySlide 6-*Copyright © 2011 Pearson Education, Inc.The Mass Market-Personalization ContinuumFigure 6.17, Page 404Slide 6-*Copyright © 2011 Pearson Education, Inc.Other Customer Retention Marketing TechniquesCustomizationCustomer co-productionTransactive content: Combine traditional content with dynamic information tailored to each user’s profileCustomer serviceFAQsReal-time customer service chat systemsAutomated response systemsSlide 6-*Copyright © 2011 Pearson Education, Inc.Net Pricing StrategiesPricingIntegral part of marketing strategyTraditionally based on: Fixed cost Variable costs Demand curvePrice discriminationSelling products to different people and groups based on willingness to paySlide 6-*Copyright © 2011 Pearson Education, Inc.Net Pricing Strategies (cont’d)Free and freemiumCan be used to build market awarenessVersioningCreating multiple versions of product and selling essentially same product to different market segments at different pricesBundlingOffers consumers two or more goods for one priceDynamic pricing: AuctionsYield managementSlide 6-*Copyright © 2011 Pearson Education, Inc.Channel Management StrategiesChannels: Different methods by which goods can be distributed and soldChannel conflict: When new venue for selling products or services threatens or destroys existing sales venuesE.g. online airline/travel services and traditional offline travel agenciesSome manufacturers are using partnership model to avoid channel conflict Slide 6-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.