E Business

CRM e-business

Dominique Beaulieu

2014 Copyright [email protected]

Exams preparation v2013/10/14

Introduction & Concepts Exponential evolution

CRM

Internet

Net economy/New economy

New trends (peer-to-peer, book-crossing, flash mobs, mobile clubbing, invasions, geocaching,

citizen newspapers, podcasting) Upselling/cross-selling

Customer share/Customer Yield Mgt

Reengeneering

Build to Order

Desintermediation

Reintermediation

Retromediation

One Click Away

Collaborative filtering

Decommoditization

Internet:

- communication protocol

- World Wide Web

- customer interaction channel: communication and distribution

Net economy:

A society whose material and financial exchanges are mainly based on new means on

information and communication

New Economy:

A society modified by the impact of new information technologies: new values, lifestyles,

business models reshape the economic and cultural landscape

e-business:

A business that relies on new technologies and new channels of interaction (Internet, call

centers, SMS, SSTs)

New economy brings:

- New values: share, generous, open minded, participative (peer2peer, booking, mobile clubbing, fightpods)

- New characteristics: speed, anywhere, anytime, anybody becomes the base line - Young people can manage or deal with older - A peaceful and constructive revolution - Innovative business models - The village: world citizen, sustainable development - The old barriers evade: Work-life balance Boss-employees relationship Old frontiers such as geographic, cultural, linguistic, generational

Peer2Peer:

Software platform allowing connected members from the community to share documents

between volunteers.

Book crossing:

Practice of deliberately leaving books in places where they will be found and read by other

people, who then do likewise (on a bench in a public garden, in a supermarket, in a train).

Dead drops:

USB keys plugged in cement, whose content is left by an individual, inciting people to read it

in a public place.

Mash-up:

Flags on a map: web page or application that uses and combines data, presentation or

functionality from two or more sources to create new services

Flash mob:

Group of people who assemble suddenly in a public place, perform an unusual and pointless

act for a brief time, then disperse. Flash mobs are organized via telecommunications, social

media, or viral emails. The term is generally not applied to events and performances

organized for the purposes of politics (such as protests), commercial advertisement, publicity

stunts that involve public relation firms, or paid professionals.

Street wars:

Three week long water gun "assassination" tournament that travels to cities around the world.

Created by Franz Aliquo and Liao Yutai, the tournament is based on the college and high

school game Assassin.

Lip Dub:

Video that combines lip synching and audio dubbing to make a music video. It is made by

filming individuals or a group of people lip synching while listening to a song or any recorded

audio then dubbing over it in post editing with the original audio of the song. There is often

some form of mobile audio device used such as MP3 players. Often they look like simple

music videos, although many involve a lot of preparation and production. Lip dubs can be

done in a single unedited shot that often travels through different rooms and situations within

a building. They have become popular with the advent of mass participatory video content

sites like YouTube.

Urban Invasion:

Graphical contamination posting in public places stickers, drawings (ex. Miss Tic), tags or

mosaics.

Geocaching:

GPS-enabled treasure hunt; recreational activity in which someone buries something for

others to try to find using a Global Positioning System receiver. Usually, a geocache consists

of a small, waterproof container that holds a logbook and inexpensive trinkets. Participants

are called geocachers.

3 options:

100% Real Life: find hidden objects 100% virtual from website to website Mix virtual/real: find a virtual object in Augmented Reality

Citizen journalism:

The act of a citizen, or group of citizens, playing an active role in the process of collecting, reporting, analyzing and disseminating news and information. The intent of this participation is to provide independent, reliable, accurate, wide-ranging, and relevant information that a

democracy requires, and less pessimistic than in conventional newspapers.

Web 2.0:

Participative websites, in which content, interactions, transactions are conceived and realized

by individual contributors

UGC: User Generated Content

Podcasting: Possibility to download and visualize a video or music previously broadcasted live, then

posted online by the initiator.

A podcast is a type of digital media consisting of an episodic series of files (either audio or

video) subscribed to and downloaded through web syndication or streamed online to a

computer or mobile device. The word is a neologism derived from "broadcast" and "pod"

from the success of the iPod, as podcasts are often listened to on portable media players.

Social networking like Facebook (1st generation):

Personal page posted on a community website, gathering your profile, your preferences,

activities, friends, illustrated by photos, videos or text, which you share with people you have

previously identified as friends . Goggle+ brings the concept of circles, depending on how

close you are with your relations. (keyword: like)

Social networking like Twitter (2nd generation): Online social networking service and micro blogging service that enables its users to send and

read text-based posts of up to 140 characters, known as "tweets". It was created in March

2006 by Jack Dorsey and launched that July. The service rapidly gained worldwide

popularity, with over 140 million active users as of 2012, generating over 340 million tweets

daily and handling over 1.6 billion search queries per day. It has been described as "the SMS

of the Internet." (keyword: follower)

Social networking like Aka-Aki ou Foursquare (3rd generation):

Geolocalized social network founded in March 2009 by Denis Crowley (CEO) and Naveen

Selvadurai. It allows you to tell your friends in real time where you are via a website/mobile

app using your smartphone. You can also be identified as the mayor of the place, the

ambassador able to mobilize the community around a place or an activity (keyword: mayor).

In the same category: Aka-Aki, Gowalla, dismoiou

2006 [email protected]

Gartner Group+1% retention=+8% profit

The competitor isOne click away

Customer Value Management

PotentialCustomer

ValueExpans

ion

Conquest

Retention

Up-selling definition:

Additional sales: you wanted the 100 dress, I try to sell you the 150 one , you put your finger in the marmalade, I try to sell the complete pot

Cross-selling definition:

Cross sales: You wanted the black dress, I propose you buy the hat and the black shoes that

fit perfectly with

Desintermediation:

Suppression of poor added value intermediaries. Direct Sales (Dell, Cortal, Banque Directe)

short-circuited resellers of traditional branches, in order to share the cost-cutting with the

customer.

Reintermediation:

New intermediary that brings added value: consulting, service, shopping assistant, brokerage,

product or service customization

Retromediation:

Attempt to control the end user, to avoid the barrier built when you distribute your products

through resellers. The manufacturer can keep control on its clients, that escape indeed more

and more solicited by distributors brands.

Build to Order:

The product is manufactured at the same time the client order is processed. Youve just given the color parameters of the car to the computer online, the robot will paint the real car

immediately, according to your needs.

Market Share:

For a given company, its the proportion (in percentage) of products or services sold by this company on a given perimeter, compared with the total of sales of the line of business on the

same boundary.

It may be expressed in:

- Volume: number of products sales compared with the total market

- Amount: turnover compared with the whole market

Example: if SEAT (turnover: 2 billions ) sells 100 000 vehicles in France on a global market of 1 million (30 billions ), its market share will be:

- in volume 10% (100 000/1 million) - In amount approximately 6,1% (2/30)

Client Share:

For a given company and a given client, its the proportion (in percentage) of products or services bought by this customer on a given period, compared with the total of buying of this

customer in this field, including competition, in the same period

Example: if Mr DUPONT buys 1000 at Auchan, 2000 at Carrefour and 7000 at Leclerc, Mr Duponts market share for Auchan will be 1000/(1000 + 2000 + 7000), i.e. 10% For Carrefour, it would be 20%.

2006 [email protected]

Treat different customers differentlyDifferenciate them by needs and value

IdentifyDifferenciateInteractPersonnalize

ProductPricePublicityPlace

One To One: the IDIPien Complex

Decommotitization:

In order to shift your positioning to the right-up quadrant, you need to complexify the

product, the service or the relation, in order to build or reinforce the barrier for competitors

As a company tries to build entry barriers to prevent or refrain new competitors to enter its

market, a wise company can build way-out barriers for its customer in order to refrain the

churn.

Examples:

- NOKIA icons

- Peapod, grocery shopping through Internet, delivers at home. 6 months later, they

suggest you to deliver, at your consumption rhythm, mineral water packs, bier, or toilets

paper. A competitor would need as much time to know you that well

Collaborative Filtering:

Spontaneous solicitation from the seller, that guesses your behaviour, based on the behaviour

of people that initially bought the same thing you were interested in.

2006 [email protected] Differenciate clients by their needs

Differenciate

customers by

the value

++

++-Service station

Airlines

tourism Financial

services

BtoC

Telcos

Cosmtiques

sant Cultural Products

(CD, livres)

Computers

+

+ Insurance

Marketing 1to1Marketing 1to1

high tech

BtoB Telcos

Mass marketingMass marketing

Ready to wear

Vacuum cleaner

Mode accessories

DVD

Softwares

Edition

Medias

Hotels

What lines of business are ready for One to One?

How to decide?

Board of Directors Nominate corporate, countries, lines of businesse subsidiaries CEOs Mono activity Multi activity Merges/acquisitions Investments, profits sharing, structure of the capital

CEO Recruit 150 Sales Executives Train 200 persons Build a new manufactory Launch a new advertising campain Open a new country Develop a distributors and resellers network Develop direct sales through Internet or a call center Fire 30 back-office employees Buy a competitor Create a new product

More than a Go/No Go, its about day to day decisions among pertinent opportunities So, what criteria will authorize the right choice?

Relative importance of a criteria: from the customer point of view, it defines the impact of a component on his purchasing behavior, compared to others

Align strategy and means on the customers expectations: instead of starting from mix marketing (4Ps), you start from the customers expectations, in order to dynamically adapt the offer and the relation to his needs and values, explicit or implicit

Bottle Neck: this is a mandatory option, an essential characteristic of the product that hides all the others behind.

Ex.: is this laptop running with Windows XP operating system or Mac OS? According

to the answer, the customer confirms his interest or definitively goes away, whatever

the other characteristics may be

How to interpret the results?

If I improve the performance of the mass storage (hard disks), the customer visibility, i.e. the impact on the buying decision will be: 45% x 80% x 45% x 15%, i.e. 2,43%

Identify bottlenecks: the question at this branch road is decisive for the customer choice (examples: Windows XP vs Mac OS, Informix vs Oracle)

Are my investments aligned on the customer values?

2006 [email protected]

PC

Price

Relation

Product

Service

Hardware

Software

Direct Sales

Large Account Sales Exec

International coordination

Hadrware

Software

Warranty

Maintenance

Delivery

Installation

Integration

Specific developments customization

Consultancy

Performance

Compatibility

Nber peripherals

Reliability

Perennity

Ergonomy

Design

Processor

Architecture

Bus

Memory

Hadrddisk

Telecommunications

Wi-Fi

Relative Importance

45 %

25%

10%

20%

80 %

20 %

10 %

45 %

10 %

10 %

5 %

5 %

15 %

15 %

Criteria Scoring

8/10

8/10

9/10

7/10

Competitors Scoring

8/10

9/10

8/10

7/10

Product The mass-produced products are not anymore stocked. Directly from the customer needs declared online, the supplier dynamically manufactures a customized offer, gathering standardized modules. Mass customization Limited series Vintage ISS (Interactive Selling System) Collaborative Marketing Customer Made Talent Aggregation Demand Aggregation

Mass Customization:

Combination of standard modules that compose together a unique, personalized product

adapted to the customers needs. It avoids stocks and supplies pre-sold products at an economical price.

Mass customization often implies to conceive a new manufacturing and deployment process.

ISS (Interactive Selling System):

Combination of a configurator and a design system that authorize together a realistic

graphical representation of the product or services you wish to order. You choose the options

step by step, and the product appears immediately modified on the screen.

Examples: Dell, cars (Peugeot.).

Collaborative Marketing:

Technique that encourages the client to take part in the delivery process: He participates in

the conception, the preparation, the making and the service around the product, with a double

target:

- reduce the costs and share the benefits with the customer

- authorize the best possible personalization of the offer and the associated service

Customer Made:

The product is designed by the customer, and posted on the web platform. A committee

(usually composed of visitors) will select the best ideas. From now on, any sale will give a

commission back to the creator.

Ex: Threadless, Derby, Cyroline, Buutvrij, La Fraise, Spreadshirt, Customermade

Talent aggregation:

Combined creations of web visitors, or coordinated actions, or co-financing and co-producing,

that will allow the emergence of a new offer.

Ex: Splice, Net4Music

Demand aggregation:

Participative process in which the creator tests and verifies the interest of potential customers

in his product or idea, by inviting them to subscribe to his offer. Consequently, in case of

profitable outlooks, he can launch the making of the product without any risk.

Ex: a designer proposes a translucent blue table that perfectly matches the color of your I-

mac. If 4000 of you want it, it will be made and sent to you.

Ex: www.MyFab.com

Collaborative consumption:

Rapid explosion in traditional sharing, bartering, lending, trading, exchanging, renting,

bartering, gifting or swapping reinvented through network technologies, changes consumption and the way businesses operate

Colunching:

Invitation to share your meal with strangers or members of a community.

Couchsurfing:

A cheap form of lodging used mainly by college-students or recent college-grads, where one stays on acquaintance's couches rather than a hotel. Couchsurfing is a neologism referring to the practice of moving from one friend's house to another, sleeping in whatever spare space is available, floor or couch, generally staying a few days before moving on to the next house. The CouchSurfing project was conceived by Casey Fenton in 1999.

Wwoofing:

Worldwide Opportunities on Organic Farms (WWOOF, /wf/), or Willing Workers on Organic Farms, is a loose network of national organizations that facilitate placement of volunteers on organic farms. While there are WWOOF hosts in 99 countries around the world, no central list or organization encompasses all WWOOF hosts. As there is no single international WWOOF membership, all recognized WWOOF country organizations strive to maintain similar standards, and work together to promote the aims of WWOOF.

WWOOFing aims to provide volunteers with first-hand experience in organic and ecologically sound growing methods, to help the organic movement, and to let volunteers experience life in a rural setting or a different country. WWOOF volunteers ('WWOOFers') generally do not receive financial payment. The host provides food, accommodation, and opportunities to learn, in exchange for assistance with farming or gardening activities.

The duration of the visit can range from a few days to years. Workdays average five to six hours, and participants interact with WWOOFers from other countries.

WWOOF farms include private gardens through smallholdings, allotments, and commercial farms. Farms become WWOOF hosts by enlisting with their national organization. In countries with no WWOOF organization, farms enlist through WWOOF UK and WWOOF Australia.

Examples of WWOOF experiences include harvesting cup gum honey from Ligurian bees at Island Beehive in Kangaroo Island, harvesting Syrah grapes for Knappstein Vineyard in the Clare Valley, and harvesting coffee beans from Arabicas in Northern Thailand. Source wikipedia

Cohousing:

Life style based on the idea of "intentional neighborhoods" where people consciously commit to living as a community, sharing commodities such as home cinema, garden, guest room, video games or toys, movies or Blu-rays...

Coworking/Collective working spaces):

Coworking has emerged as a driving force to help strengthen the startup community. It is providing an energetic environment where great young entrepreneurs can come together to work, to learn and be inspired by one another and to jump start great new businesses. It becomes easier to communicate and to feel home based on new technologies enablers and cozy environment

Price The data Price becomes variable, with dynamic pricing Auctions on the Net Group Buying Half Price Shopbots Free Models Rental Products sharing Buying Communities CtoB RFP (Request For Proposal), reverse auctions Cash back

Pay as you Surf (IP tracking):

Tracking and tracing your physical address gives indications on your behavior on the net. It

allows the site for example to increase the site when you confirm your interest for a product

by visiting the offer for the second time.

Pay as you Drive:

Usage based insurance, also known as pay as you drive (PAYD) and pay how you drive

(PHYD) and mile-based auto insurance is a type of automobile insurance whereby the costs of

motor insurance are dependent upon type of vehicle used, measured against time, distance,

behaviour and place.

Pay as you Walk:

The insurance company will provide you a pedometer. If you walk 12,000 steps a day, you

will obtain 50% discount on your Life Insurance.

Pay as you Are:

Socit Gnrale: At the call center, prospects are offered a better interest rate than loyal.

customers.

Rental cars: same site, different language, different price: the rental car will be cheaper for a

German speaking person than a French speaking one.

Yield Management:

Modular pricing technique used by companies delivering services (such as transport,

accommodation, restaurants, telecommunication) consisting in reciprocally adjusting demand and offer, and optimizing both perceived quality and profitability.

Auctions:

No simple replica of the Drouot, Christies, or Sothebys of the real world

but

A new person-to-person intermediation business model in which the prices of all the products

and services of the world re dynamically fixed.

BtoC

Airline ticket

Hotel Room

Car renting

Duty-free

Windows

BtoB

Ad_on Sales

CARSAT

Airline tickets prices

Companies Transit via London, Rome, Munich(saves 50 to 100 , but is 3 to 6 h.

longer)

Low Cost: Ryanair, Easyjet Charter (occasional lines):

Go Voyages, Look Voyages (Star Airlines), Nouvelles Frontires (Corsair) or

Jet Tours: very touristic destinations, no rebate for children, no exchange, no

refund

Sales channel Internet (online agency or airline company site) Agent shop

Conditions Promotions Booking date Exchange conditions

We found:

a kidney (organs) 12 unemployed executives the ovums of 8 mannequins SuperU.com for 6 000 Drugs.com bought 800 000 $ a baby

Remember the parable of the European crossroad or the queue in a supermarket as a proof of

auto organization.

Auctions: (latin origin: augere, increase)

Sales Process that organizes a competition between potential buyers and determines which

one will earn the product and at which price

1) English: rising, ascending auctions 2) Netherland: descending auctions (perequation) 3) Reverse (CtoB): the buyer posts a need and the suppliers offer prices lower and lower 4) The best offer in closed envelopes 5) Vickrey the winner pays the second best offer 6) Candle

Group Buying:

People gather their buying intentions (wish lists), and the more they are, the lower the prices

become

Shopbot (Shopping Robot):

Price Comparison among different products, brands, Internet sites for a specific product

requested. The shopbot suggests a list of the available products at the best possible price

Whos free? For sure, nothing is free, but the business model relies on an environment where the

revenue sources come from elsewhere than the selling price of the product itself. The

client/consumer is not the payer.

Ex: a magazine like Geo draws 70% of its revenues out of publicity, wouldnt it have an interest in lowering the subscription fee in order to enlarge its customer base, and

bill its publicity pages a higher price?

Cash Back:

Percentage of money given back to the customer (credit, advantages, mileage on Airline companies)

Examples: American Express gives back 1% of your purchases paid with the card: you cumulate

mileage for Airline tickets

LCL (ex Credit Lyonnais) retention program gives back 1/1000 on banking operations, 1/500 with the Gold credit card

Ebuyclub gives back 2%, 3% or more depending on the partner you bought the product from

2006 [email protected]

Seller

Price Minister

Buyer

1- indicates the producthe looks for in thesearch engine

2- visualizes theproducts list, their status, the seller scoring

3- orders and paies

4- informs the seller

6- confirms thereceipt

7- pays the seller minor itsCommission fee

5- confirmsThe sending

I want to buy

Advertising Mass communication evades, replaced by closer and interactive contacts with measurable effects Surprise parcel Mobile vectors Product Placement (video games, Comic books,TV, Movies, video clips, painted surfaces )

Licences and Sponsorship Street Marketing (Urban event, Snipe, Night life, Guerilla video projection, Retail posters, Sampling, Street Animation, Rip away posters, Lean over)

Virtual Advertising/Augmented Reality Affinity Marketing, poly sensoriel, experiential, ethnic, tribal, generational, deprivation QR codes Dark Sites 3D Virtual Universes/serious games Viral Marketing (Rumor, Word of Mouth, Buzz, Viral) Interactive advertising

Surprise Parcel:

Message, proposal or sample that comes with the delivery of your order or the buying of your

product

Mobile advertising (cars or buses, dogs, bags):

Embedded publicity on a mobile vector, or a publicity that follows the customer wherever he

goes

Product Placement in video games, comic books, toys Visual or verbal insertion of a brand inside a video game, a sequence in a movie or a drawing

in a comic book.

Cross Licences:

Two companies or more combine their promotional efforts, like burger King and the movie

Teenage Mutant Ninja Turtles in 1990. The movie was promoted by Burger King during the

launch; Burger King at his turn was very visible in the movie

Painted surfaces (scaffoldings, walls, streets): Use of a vertical or horizontal urban surface (scaffoldings, walls, streets, trompe lil paintings) in order to paint, stick or project a static or evolutive advertising

Licences, sponsorship and patronage:

Partnership agreement aiming to subsidize an event, a champion or a star, with the visibility

of the brand in return.

Recent trend, the Naming :

give its name to a stadium, a room, a street

PSV Eindhoven (P = Philips) Bayer Leverkusen Nissan Stadium (oct 2004) After Emirates and Arsenal in the UK, Nissan gives its name to Yokohama stadium

for 175 million euros

Street Marketing:

Technique promoting the brand in crowded public places for a specific segment of population

or for anybody.

Several forms of street animation:

Urban event (large scale city animation) Snipe (posters that pretend to be wild, illegal) Night life (animations in the dark) Guerilla video projection Retail posters Sampling (distribution of free samples) Street animations (hip-hop shows, concerts, artists, basket exhibitions) Rip away posters Lean over (persons who act in complicity, attract people attention on a new trendy

product or service: a vehicle, a drink, a coffee shop or a night club)

Lean Over:

Lean Over is a technique that promotes the brand via colleagues disguised in ordinary trendy

people. The customers are not conscious that it is advertising.

PR/PR: Public Relations, Press Relations:

Association of the brand with VIPs, in order to obtain press articles, create sympathy and

provoke a purchase attitude imitating the personality

Virtual Advertising:

Insertion of a virtual image that covers the real televisual image, and looks like a billboard, a

script on the ground or a visual media

Affinity Marketing:

Targeting a community that buys a product or a service, beyond its basic characteristics or

advantages, to support a group, a star, an initiative or a country

Black sites or Dark Sites :

Non official site developed:

- Directly by the brand that wishes to build an affinity community around its market, or catch the e-mail addresses or information relative to their behaviours or the

competition

- Or by an individual or a group of supporters or opponents that want to inform, stimulate the sales, boycott by a consumerist initiative

3D Virtual Universes:

Site reproducing an imaginary life space (town, hotel, imaginary landscape) in which the

customer is invited to create an avatar (virtual representation of his personality), to move, to

discuss, to buy.

Serious games:

Games with serious purposes, such as education, training, awareness, simulation, event

management or advertising (advergaming).

Augmented Reality:

Augmented Reality browser melds the real world with digital data.

There is a growing interest in location-based Augmented Reality applications called AR

browsers

AR browsers gather information from online sources (e.g., Wikipedia, Google) and present it

on the phone of a user by directly labeling the real world

SPRX mobile released an AR browser called LAYOR: Its built for enjoying any user of mobile phones, cameras, GPS and Compass.

When you look at the display, you see what the camera sees but overlaid on top of that is

information about what youre looking at. Different layers can provide different information about the same scene.

Imagine driving by a home thats for sale. Pointing your phone at it and on top of that you see the square footage, number of bedrooms and bathrooms and the asking price and the

description which leads to photos of the interior

Another example: youre driving by a restaurant. You point your camera out there and you see the menu and the daily specials

It has initially been released on the Dutch market and then it will be spread out from there.

Cascading:

Declension in more and more numerous series of an historical model or a unique creation

delivered in limited series.

Ex.: H&M 2004 and the collection Lagerfeld

Interactive Advertising:

Advertising on TV that you can point with your pad, and that permits the spectators to order

products and services, fill forms, post classifieds, exchange products, participate in the

broadcasts, fill surveys.

QR Codes (Quick Response):

QR Code are 2 dimensional bar-codes (matrix code) allowing to store 7089 digital characters,

4296 alpha characters (in comparison with the traditional bar code with only 10 13

characters) or 2953 bytes. Little, big capacity, quick to scan: QR comes from Quick

Response because its content can be decoded rapidly

QR code was created by a Japanese company Denso-Wave in 1994. It is widely spread and

used today in Japan.

Push: The Near Field Communication is an American device sending Bluetooth waves in

a restricted area. You can propose a product or service to the consumer without obliging you

to shoot the tag.

Should you walk along this last Disney billboard, you will be proposed to watch a short cut on

your mobile phone

Pull: You take a picture of a product, a billboard, a map with your mobile phone, and you are

automatically redirected to the appropriate website that will complete the information.

RFID (Radio Frequency Identification):

New labels on the products that will allow people to automatically sum the content of their

trolley in a supermarket, or track the supply-chain of any product from the manufacture to the

warehouse, through transportation and to the shelves of the supermarket.

Viral Marketing:

Nothing new under the sun. There has always been viral marketing in the real world, but what

is specific to Internet is instantaneity, worldwide coverage, and the number of potential

receivers

Stanhome and Tupperware began to exploit personal networking, and recruited their

ambassadors in the 50s, in order to build and strengthen the brand and product awareness

through a pyramidal distribution.

So simple: every ambassador invites as many friends she can, and those friends invite at their

turn people they know. As a result, free products, a percentage on the sales, special discounts

or nothing will be given to the organizer

Rumor:

Informal idea, persistent whose source is not determined, uncertain. Usually intended to hurt

and provoke damages, initiated either by an individual or a corporation. The issue is not

necessarily merchant.

Word-of-Mouth:

Linear propagation, one mouth talks to one ear (reputation, patronage). It may be either

organized or spontaneous.

According to Richins, its a form of interpersonal communication between consumers talking about their personal experiences source Richins, M.L, Word-of-mouth communication as negative information, in Advances

Consumer Research, Volume 11

Buzz:

Literally a noise, a buzz, designed to announce a launch, create a trend (rave parties, flash

mobs), usually prepares the launch of an event, a movie, a product or service. Among the

famous campaigns: Boo e-commerce site, Segway or the movie Blair Witch Project.

Pyramidal Marketing:

Geometric/pyramidal diffusion and propagation speed depict viral marketing, as fast as a

virus would contaminate a population.

There is a precise objective, a budget, mile stones.

A viral marketing campaign is characterized by advergames, patronage programs, videos or

funny web sites.

Place The points of sales face a new competitor with Internet and the multiplication of disrtibution channels. They have to adapt themselves with innovative initiatives Collaborative Filtering Learning relationship Decommoditization Olfactive/Polysensorial Marketing Virtual Points of Sales Theatralization of the Point of Sales Intelligent Objects Interaction Channels Co-Surfing Geolocalization Innovative Channels (Internet, Call Centers, SMS, MMS, i-mode, interactive TV)

Experiential Marketing

Biometry:

You can recognize an individual thanks to his physiological characteristics, such as today: his

voice, digital fingerprints, and the eye.

Concept store:

A shop that wont gather products by styles, but will gather offers around a theme (NBC, NBA) or a target (example: Lafayette v.o., everything for teenagers, surfing, skate boards,

music, Warhammers, clothes, video games). You can also mix two domains, such as basketball+hair dresser.

The shop becomes more a showroom inviting to order on Internet.

Experiential Marketing:

The selling process doesnt limit itself in the delivery of the products or the service, but covers your feelings, impressions, souvenirs, experiences encountered from the first contact to

the customer service: relation, design, atmosphere

Experience is based on 5 phases:

- Consumption anticipation - Purchasing experience (Ex: Surcouf) - The heart of consumption - Memory - Desire to come back again (bunji jumping)

The environment is getting more and more important:

- Decoration, atmosphere - Story board (ritual) - Community (sharing opinions and ideas)

The objective consists in creating high added value consumer experiences, based on the 5

main following criteria:

- the Sense

- the Feel

- the Think (ease of use for example)

- the Act (physical relation with the object, life style) - the Relate (social identity)

Pop-up shops:

Pop-up retail, also known as pop-up store (pop-up shop in the UK), is the trend of opening

short-term sales spaces

Temporary shops (the space could be a sample sale one day and host a private cocktail party

the next evening) aiming to develop affinity among a community of customers, create the

buzz around a launch event, or in order to discard excess merchandise

Brick and mortar (briques et ciment): physical shop in the real world (ex: FNAC, Carrefour)

Click: also named pure players, companies operating only on Internet (Amazon.com)

Click and mortar: a link between the virtual world and the real world; example: I order a

DVD on an Internet site, and I pick it from a distributor (SST) near my house tonight, I order

at 3suisses.fr that delivers in a shop in the nearby.

The concept of smart objects:

Be everywhere, immediately, easily, is just impossible: in front of this limitation, the new role

of the object, of the product, will be to remain the ambassador of the company, keeping in

touch with the supplier. It will dynamically adapt to the customer and the context.

At Sables-dOlonnes, the meter reading of water consumption is automatically sent via a sender-receiver directly plugged in the meter. The information are sent to a server in

the nearby and routed via GSM, to offices (source Enjeux October 2004)

In the United States, the car is linked to the concessionary company, and the agent informs the vehicle owner of the next major service after 10,000 km (source One To

One Don Peppers)