Consumer Behavior People in the Marketplace

4. Procter & Gamble’s Reflect.com site allows customers to design their own beauty products

5. “ How Business Practices are Changing” Table 2-1: Old Economy vs. New Economy Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromise, overdeliver Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver New Economy Old Economy

7. B2C: Customers can shop online at Calyx and Corolla or ask for a catalog and shop by phone

8. B2B: www.transora.com: global online marketplace for the consumer packaged goods industry

9. A “Pure Click” company: CarPoint, the leading metamediary for car buying, exists only on the Web.

10. Which is more important for developing an e-presence: the agility of a pure click company, or the well defined and readily identifiable resources of a traditional brick and mortar company? Discussion Question

11. Table 2-2: Setting Up a Dot-com Presence (p. 49) See text for more info. on retailers, site organization, profits … Attracting and Keeping Visitors How can we get more prospects to know and visit our site? How can we use marketing to spread word-of-mouth? How can we convert visitors into repeaters? How do we make our site more experiential and real? How can we build a strong relationship with our customers? How can we build a customer community? How can we capture and exploit customer data for up-selling and cross-selling? How much should we spend on building and marketing our site? Advertising on the Internet What are the various ways that we can advertise on the Internet? How do we choose the right sites for placing our ads or sponsorship?

13. Infogate.com “pushes” targeted content and ads to those who are interested in a product or product category

16. Customer Relationship Marketing (CRM) Table 2-3: Mass Marketing vs. One-to-One Marketing (CRM) (p. 53) Individual customer Customer profile Customized market offering Customized production Individualized distribution Individualized message Individualized incentives Two-way messages Economies of scope Share of customer Profitable customers Customer retention Average customer Customer anonymity Standard product Mass production Mass distribution Mass advertising Mass promotion One-way message Economies of scale Share of market All customers Customer attraction One-to-One Marketing Mass Marketing

19. Uses of Knowledge Management in Two Industries Source : Adapted from Kalakota and Robinson (1999 ) Back Wal-Mart Kmart Sears Osco/Savon Drugs Casino Supermarkets W. H. Smith Books Otto Versand Mail Order Amazon.com Scanner Check-Out Data Analysis Sales Promotion Tracking Inventory Analysis and Deployment Price Reduction Modeling Negotiating Leverage with Suppliers Frequent-Buyer Program Management. Profitability Analysis Product Selection for Markets Representative Firm Use in the Retail Industry AT&T Ameritech Belgacom British Telecom Telestra Australia Telecom Ireland Telecom Italia Scanner Check-Out Data Analysis Call Volume Analysis Equipment Sales Analysis Customer Profitability Analysis Cost and Inventory Analysis Purchasing Leverage with Suppliers Frequent-Buyer Program Management Representative Firm Use in the Telecom Industry

22. 3 G Back