Download VTU (Visvesvaraya Technological University) MBA 4th Semester (Fourth Semester) 16MBAMM403-E-Marketing E marketing Management Module 6 Important Lecture Notes (MBA Study Material Notes)
6 th model
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
Customer Acquisition
6 th model
? https://www.youtube.com/watch?v=-SV1d8stwgA ? Customer acquisition is the process of acquiring new customers for
business or converting existing prospect into new customers.?
Customer Acquisition and Retention
? Situation Analysis
Evaluate your existing approach to customer acquisition and retention,
and make recommendations for finding profitable new customers and
increasing the value of your current customers.
? Market Segmentation
Analyze your market opportunity and identify the most promising
segments.
? Campaign Development
Create a robust marketing plan, ready for execution.
Customer Acquisition and Retention
? Retention Marketing
Plan a dynamic ongoing customer retention strategy, using
personalized communications to increase the lifetime value of your
customer base.
? Loyalty Programs
Analyze your customer segments and recommend ROI-based programs
to reward your best customers, keep them buying and stimulate
referrals.
Process of Customer acquisition
? 1. Gather customer Intelligence.
? Gather customer data
? 2.Organize internal Acquisition-planning meetings
? 3.Build strategy around the ideal customer profiling
? 4. make the most of the CRM
? 5.share the knowledge
Online customer Acquisition strategy
? Target prospects
? Improve direct mailing
? Using Analytical tools for customers segments
? Finding financial status of customers
? Coupons or discounts
? Royalty programmes
Profile of the customer-components
? Geographical
? Demographical
? Psychographic
? Buyers behavior
Customer browsing behavior model
? Entry
? Register
? Search
? Browse
? Select
? Add to cart
? Buy (billing)
? Exit
Aggregate Metrics for E-business sites
? Hits/second
? Page views/day
? Click-throughs
? Unique visitors
? Revenue throughput
? loss
Customer Retention
? Identification of potential customers
? Analysis
? Streaming of targeting
? Contact strategies
? Testing
? Evaluation
Customer Retention strategy
? Financial bond
? Discounts
? Gifts
? Membership
? Social bond
? Special attention, informing about new service, wishing on occassions
? Customization bond
? Personalizing service, combination of services
? Structural bond
Online Customer Retention strategy
? Reducing attrition
? Loyalty programme
? Frequent communication
? Service
? Product of service integrity
? Retention emails
A Model of Online Consumer Behavior
Shoppers: Browsers and Buyers
? About 63% of online users purchase online; an additional 12%
research online, but purchase offline.
? Significance of online browsing for offline purchasing and vice versa
should not be underestimated.
? E-commerce and traditional commerce are coupled and should be
viewed by merchants and researchers as part of a continuum of
consuming behavior.
Copyright ? 2007 Pearson Education, Inc. Slide 7-16
Online Shoppers and Buyers
Figure 7.5, Page 375
SOURCE: Based on data from eMarketer, Inc., 2005a; Shop.org, 2005; authors? estimates.
Copyright ? 2007 Pearson Education, Inc. Slide 7-17
What Consumers Shop for and Buy Online
? Online sales divided roughly into small ticket and big ticket
items
? Top small ticket categories (apparel, books, office
supplies, software, etc.) have similar characteristics?
sold by first movers, small purchase price, physically
small, high margin items, broad selection of products
available
? Purchases of big ticket items (travel, computer
hardware, consumer electronics) expanding
Copyright ? 2007 Pearson Education, Inc. Slide 7-18
What Consumers Buy Online?Small Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-19
What Consumers Buy Online?Large Ticket
Items
Figure 7.6, Page 376
SOURCE: Based on data from eMarketer, Inc., 2004b.
Copyright ? 2007 Pearson Education, Inc. Slide 7-20
Intentional Acts: How Shoppers Find Vendors
Online
? Over 85% of shoppers find vendor sites by typing
product or store/brand name into search engine or
going directly to the site
? Most online shoppers plan to purchase product
within a week, either online or at a store
? Most online shoppers have a specific item in mind
Copyright ? 2007 Pearson Education, Inc. Slide 7-21
Why More People Don?t Shop Online
? Major online buying concerns:
? Security
? Privacy
? Shipping costs
? Return policy
? Product availability
? Shipping issues/delays
Copyright ? 2007 Pearson Education, Inc. Slide 7-22
Trust, Utility, and Opportunism in Online
Markets
? Trust and utility among the most important factors shaping
decision to purchase online
? Consumers are looking for utility (better prices,
convenience)
? Asymmetry of information can lead to opportunistic
behavior by sellers
? Consumers also need to trust merchants before willing to
purchase
? Sellers can develop trust by building strong reputations for
honesty, fairness, delivery
Copyright ? 2007 Pearson Education, Inc. Slide 7-23
Basic Marketing Concepts
? Marketing: The strategies and actions firms take to
establish a relationship with a consumer and
encourage purchases of products and services
? Internet marketing: Using the Web, as well as
traditional channels, to develop a positive, long-
term relationship with customers, thereby creating
competitive advantage for the firm by allowing it
to charge a higher price for products or services
than its competitors can charge
Copyright ? 2007 Pearson Education, Inc. Slide 7-24
Basic Marketing Concepts (cont?d)
? Firms within an industry compete with one another on four
dimensions:
? Differentiation
? Cost
? Focus
? Scope
? Marketing seeks to create unique, highly differentiated
products or services that are produced or supplied by one
trusted firm (?little monopolies?)
Copyright ? 2007 Pearson Education, Inc. Slide 7-25
Feature Sets
? Defines as the bundle of capabilities and services
offered by the product or service
? Includes:
? Core product
? Actual product
? Augmented product
Copyright ? 2007 Pearson Education, Inc. Slide 7-26
Feature Set
Figure 7.7, Page 379
SOURCE: Kotler and Armstrong, 2006.
Copyright ? 2007 Pearson Education, Inc. Slide 7-27
Products, Brands and the Branding Process
? Brand: A set of expectations that consumers have when
consuming, or thinking about consuming, a product or service
from a specific company
? Branding: The process of brand creation
? Closed loop marketing: When marketers are able to directly
influence the design of the core product based on market
research and feedback
? E-commerce enhances the ability to achieve
? Brand strategy: Set of plans for differentiating a product from its
competitor, and communicating these differences to the
marketplace
? Brand equity: estimated value of the premium customers are
willing to pay for a branded product versus unbranded
competitor
Copyright ? 2007 Pearson Education, Inc. Slide 7-28
Marketing Activities: From Products to Brands
Figure 7.8, Page 381
Elements of Social Media
? Media components
FirstRanker.com - FirstRanker's Choice
This post was last modified on 18 February 2020