ELC 310

Day 22

Agenda

Questions? Assignment 3 Corrected

– 2 A’s, 1 B and 1 non-submit Two major assignments Left

– Case study analysis of an existing case Choice of Case?

– Creation of a case study Last week of the semester

Case Study Proposals Due Nov 23 – Less than one page on the company you will be writing a case study on and

where you will be getting the research. – No class meeting on this day– Use the time to get your case studies started and to read the 8 cases in the

book Today we will be in the text ebusiness.marketing

– Friday, Nov 20 Chap 3 & 4

Chapter Three

The Value Bubble

Overview

Five Elements of the Value Bubble Applying the Value Bubble Attracting (Building Traffic) Engaging (Building Loyalty) Retaining (Strengthening the Relationship) Learning (Building the Database) Relating (Data-Driven Interactions) Business-to-Business Value Bubble Adaptations

McKinsey Model

A model for Marketing On-line Originated in mid-1990s Updated through ongoing research Three opportunities in original model

– lower cost of providing services– relationship building– redefine channel intermediation

Five Steps

Attract Engage Retain Learn Relate Extension from Learn: GIST (chapter 14) Most companies falter in last 2 steps

Figure OneAttract (Building Traffic)

piggyback marketing(all points of contact)

build it they will come misconception consistent branding(online and offline)

Attract Stakeholder to Site or Storefront

“Formula to Attract”

Offline Online PR Buzz Traditional Stores Links Microsegmentation Involvement

Technology Attraction

Flash Graphics

– dancing baloney

Jakob Nielsen’s work– Useability– http://www.useit.com/

BI component

Figure TwoEngage--Building Loyalty

m os t s ites lose h ere con ten t & visu a l c rite ria u n iq u e in te rac tion(va lu e-ad d ed )

E n g ag e S takeh o ld ers

Engage Strategies

Form and Substance BI “One voice” EC--the sale Client side/server side Beginnings of CRM

Figure ThreeRetain--Strengthening the Relationship

databaseintegration

hidden expense re-fresh, re-fresh

online servicequality

switching costs

Retain Stakeholders(Repeat Visits andBuilding Loyalty)

Retaining Strategies

Repeat Visits--site is the firm E-Service Quality Model

– Purchase– Loyalty– WoM

Web features and attributes– e-service quality dimension

Core Service Recovery

CLV precision Cookies

Figure FourLearn--Building the Database

u n p reced en ted

seg m en ta tion

in te llig en t m arke tin gfo r p e rson a liza tionor cu s tom iza tion

sou rces(on lin e " foo tp rin t")

L earn ab ou t S takeh o ld e rs

Learning Strategies

Integrated databases– offline and online

Log files Clickstreams GIST model

– Gather– Infer– Segment– Track

Figure FiveRelate--Data-driven Interactions

greatest contribution

segmentation

customize theinteraction

interactiv ity(attribute of communication)

Relate to Stakeholders

Relating Strategies

Segments of one Privacy (the paradox) Targeted communication

– emails

Competitive edge

Business-to-Business

Financial advisors’ study Adoption rate by web site features Different motivation (“buying criteria”)

– extrinsic– SCM, ERP leading to CRM– more obvious than B2C

Organic solidarity

Chapter Four

Communication Research

&

Web Site Storyboarding

Objectives

The Communication Process Model The Adapted Communication Model for E-Business

Marketing Message Research Model

– PACT Principle 1– PACT Principle 2– PACT Principle 3– PACT Principle 4– PACT Principle 5– PACT Principle 6– PACT Principle 7– PACT Principle 8

Communication Process(one way - two way)

Sender Encoding Message Media Receiver Decoding Response Noise Feedback

Comparison between the offline and online process

Types of Communication

Personal– Face to face– High interactivity

Non-Personal– Broadcast, print– Little to no interactivity

Hybrid– Internet– Receiver controls level of interactivity

Involvement

Role in the Communication Process High, Low and No involvement

– Think feel do– Think do feel– Do think feel

Web is Low

Prefinished Formats tested

Storyboards – drawings

Animatics – Frames or cells

Photomatics– photographs

Ripamatics– Existing commercials reedited

Livematics– Condensed version of the actual commercial

Commercials can be tested in animatic form

Message Research

Communication Process + Involvement Need to measure effectiveness

Using EyeTracking to test ads

Positioning Advertising Copytesting (PACT)

PACT 1: measure communication objectives– Broader in the online environment

PACT 2: agreement on the use of research– Similar in online environment (marketing, IT,

research, web design) PACT 3: Multiple measurements

– similar in online environment. Easier to gather and interpret

PACT 4: Response to hierarchical models– electronic environment is low involvement– understanding the critical factors

PACT 5: Number of exposures– investment decision– importance of the attract phase

PACT 6: Effective form to test– storyboarding– issues of self-reporting

Positioning Advertising Copytesting (PACT)

PACT 7: Use a “true” environment– Nielsen’s useability– provide an exit

PACT 8: Test with a target audience– Mountain Sobek or Patagonia versus Amazon– microsegments to nano-segments– cultural preferences/differences

PACT 9: Reliable and valid– PACT 6, 7, and 8 effects

Positioning Advertising Copytesting (PACT)

Positioning Advertising Copy (PACT) Testing Principles

1. Provide measurements relevant to objectives of advertising

2. Require agreement on how results will be used before each test

3. Provide multiple measures (Single measures aren't adequate)

4. Be based on a model of human response to communications

5. Consider multiple versus single exposure to the stimulus

6. Require alternative executions to have the same degree of finish

7. Provide controls to avoid the biasing effects of exposure context

8. Take into account basic considerations of sample definition

9. Demonstrate reliability and validity

StoryBoarding

Online methodology– address all PACT principles

Review & discussion

of process on page 60

Case Study Analysis

Methodology– Critical analysis

Individual Case Collective over all cases

– Format Grading

– Student and Instructor– Rubric

Author’s PowerPoints available– Need work