Announcements

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Announcements

• Exam on Friday, May 1st from 1030 1150 am in
  351 Maguire.
• Exam review in class on Wednesday.
• Summary of your exam and quiz scores.

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Trend in Internet/Web users and online retail
sales
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Who surfs online?
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Lifestyle segments

• Click and mortar (23)
• Hunter gatherers (20)
• Brand loyalists (19)
• Time sensitive materialists (17)
• Hooked, online and single (16)
• Ebivalent newbies (5)

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What do consumers buy online?
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Why consumers buy online

Convenience (Bots, 8-second rule)
Choice
Cost (Dynamic pricing)
Communication (Web communities, Blogs, Viral
marketing)
Control
Customization (My Yahoo!, choiceboards)
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Viral marketing

• Word of mouth delivered online (typically via
  email)
• May or may not be directly related to product or
  brand
• Burger King
• http//www.subservientchicken.com/
• Selling Pixels
• www.milliondollarhomepage.com

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Challenges of online marketing

• Limited consumer buying (vs. exposure)
• Clutter
• Security/Privacy issues
• Consumers unaware of data collection
• Profiling concerns
• Improper use of information
• Lack of control
• Volkswagen Polo viral video
• Ford Sportka viral video (2)

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Multichannel marketing

• The blending of different communication and
  delivery channels that are mutually reinforcing
  in attracting, retaining, and building
  relationships with consumers who shop and buy in
  the traditional marketplace and marketspace.

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Multichannel multiplier
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Transactional vs. Promotional websites
SATURN
NIKE
SATURN DEALERS
SATURN.COM SITE
NIKE DEALERS
NIKE.COM SITE
CAR BUYERS
SHOE BUYERS
70 of leads come from website 80 of customers
visiting dealers visited the website first
Nike retails through dealers and its own website
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Challenges with multichannel marketing

• Resources required to coordinate all channels
• Channel conflict with transactional websites

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Global Marketing

• 04/27/09

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Importance of global marketing

• Technological advances have made the entire world
  one big market
• Markets outside the US are gaining importance in
  terms of sales and profits
• Growth rate of markets outside the US is often
  much higher than within the US

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Decline of Protectionism
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Global consumers

• customer groups living in many countries or
  regions of the world who have similar needs or
  seek similar features and benefits from products
  and services.

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Networked Marketspace
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What makes global marketing different?

• Different Environments
• Economic/Financial
• Political/Legal
• Social/Cultural
• Competition
• Different Marketing Infrastructures
• Media
• Distribution/Logistics
• NEED TO
• Adjust to These Differences

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Examples of failures

• Coke had to withdraw its 2-liter bottle from
  Spain after discovering that few Spaniards owned
  refrigerators with large enough compartments to
  accommodate it.
• Hallmark cards failed in France. The French
  dislike syrupy sentiment and prefer writing their
  own cards.
• Philips began to earn a profit in Japan after
  reducing the size of its coffeemakers to fit
  smaller Japanese kitchens.

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Marketing 1 in international blunders?
Marketing
41
Management
26
Personnel
17
Production
6
Legal
6
Finance
4
Source Ricks Arpan, International Business
Blunders (Columbus, Ohio Grid, Inc.)
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Type of global companies