Interactive Marketing

G.L. BAJAJ INSTITUTE OF MANAGEMENT &

RESEARCHPRESENTATION ON

INTERACTIVE MARKETINGPRESENTED BY:VAIBHAV PANDEYPUSHKIN SRIVASTAVAHARDIK MEHROTRAVED PRAKASHROHIT ANAND

PRESENTED TO:DR. SUGANDHA AGARWAL

InteractivInteractive e

MarketingMarketing

MarketspaceMarketspace

Marketplace • traditional• buyers & sellers interact to trade

in face-to-face relationships, in a physical environment

Marketspace• digitized• buyers & sellers interact to trade in

face-to-screen relationships, in an electronic environment

WHY is Marketspace WHY is Marketspace growing?growing?

Value creation is greater in Marketspace than in conventional physical Marketplace.

In Marketspace, consumers can get information from marketers anywhere and at any time.

Consumers can customize a product/ service anywhere and at any time.

Interactivity & Interactivity & IndividualityIndividuality

• These Internet technological capabilities are valuable in building buyer-seller relationships.

• Choiceboard• Collaborative filtering• Personalization• Permission marketing

ChoiceboardChoiceboard

= an interactive Internet-enabled system that allows individual customers to design their own products & services by answering a few questions, & choosing from a menu of product or service attributes, prices, & delivery options

http://www.mymms.com/utility.aspx?oid=13

http://www.mymms.com/utility.aspx?oid=15

ChoiceboardChoiceboard

“Your Reebok” iPhone app allows a customer to design his/her own athletic shoe.

http://www.youtube.com/watch?v=g_VP6xSY8n4&feature=player_embedded

ChoiceboardChoiceboardBuild Your Own 2013 X3- select exterior, interior, packages,

options, accessories

Collaborative filteringCollaborative filtering

= process that automatically groups people with similar buying intentions, preferences, & behaviors, & anticipates future purchases

• software is programmed to reason that if 2 customers who don’t know each other buy the same items over time, then if one likes a particular product, the other will probably like it too.

Page 123 // View All

http://spectrum.ieee.org/computing/software/the-million-dollar-programming-prize/1




Personalization Personalization

= consumer-initiated practice of generating content on a marketer’s web site, that is custom-tailored to an individual’s specific needs & preferences

• increasingly valuable in a mass-produced, mass-connected world

Page 123 // View All


7 website design elements drive customer 7 website design elements drive customer experienceexperience

What Online Consumers What Online Consumers BuyBuy

Why consumers shop & buy Why consumers shop & buy onlineonline

CONVENIENCECONVENIENCE

• 8-second rule = customers will be patient for 8 seconds, after which they will abandon efforts to enter & navigate a web site; downloading time must be ≤ 8 seconds; SITE NAVIGATION MUST BE QUICK & EASY

• Bots = ‘robots’ or electronic shopping agents that scan web sites to compare prices & features of products/services


CHOICECHOICE

1. Selection of products/services available to customers - shop at individual company or at general merchant (like specialty stores & department stores)

2. Choice assistance - via interactive electronic dialogue, e.g.


CUSTOMIZATIONCUSTOMIZATION Some customers prefer unique items that cater to their

specific needs (or wants).

Customerization = customizing a product + personalizing the marketing & overall

shopping & buying interaction for each customer

• offers consumers the right product at the right time at the right price + choiceboard & personalization

• makes shopping experience enjoyable, personal, memorable

• fosters loyalty, i.e. repeat purchases & positive word-of-mouth


COMMUNICATIONCOMMUNICATION Online consumers like communication via Internet technology.1. Marketer-to-consumer (notifications, promotions)

2. Consumer-to-marketer (requests)

3. Consumer-to-consumer (chat rooms, IM, social networking sites, e.g. Twitter, Facebook)

Blog = “web log” = publicly accessible personal journal for individual or organization; e.g. Frito-Lay routinely monitors blogs to gather customer opinions

Spam = electronic junk mail; 75% of email

Viral marketing = promotional strategy enabled by the Internet that encourages people to forward messages to others via email; messages can be embedded, encouraged by incentives, or so brilliantly marketed that people can’t resist passing it on

Why consumers shop & buy Why consumers shop & buy onlineonlineCOSTCOST

Prices are often better on line than in physical retail stores.

Dynamic pricing = changing prices for products/ services in response to changing supply and demand conditions; used for time-sensitive items (e.g. airline tickets), scarce and out-of-date items

ShowroomingShowroomingShowrooming = shoppers check out merchandise in store, then purchase on line from a rival at a lower price

and versus

Half shoppers who buy online have checked out items in brick-and-mortar stores.

Forms of Interactive MarketingEmail – Delivering ads, deals, and

notifications through email is an effective and economical way to communicate with customers.Sponsorships – Partnerships with companies that have a more established online presence can be a great way to connect with new customers.

Forms of Interactive Marketing

Offline Activation – Companies must actively advertise their URL and Twitter handle in offline environments so that customers can easily find them online.

Social Networking – Sites like Facebook and Twitter have millions of users and are critical spaces for connecting with customers

Targeting – Certain ads can be targeted at certain customers. When customers are exposed to advertising that is relevant to their needs, they purchase more.