Chapter 6

Chapter 6

1. 6.1 Online consumers: Internet audiences and consumer behavior

   • Before selling online, you must understand
     • Type of people and how they behave behave
   • Internet traffic patterns: The profile of the online consumer
     • Intensity, range and use
       • use
         • Teenagers
           • More than 90% connect to the Internet on a daily basis
         • Adults
           • 71% log in on a typical day
         • Percentage of internet usage
           • Young adults (18-29) - 96%. Adults (30-49) - 93% 65 years and older - 58%. Adolescents (12-17) - 97% Young children (0-11) - 50%
             • Children and adolescents who spend a lot of time on the Internet are called wasted time because
               • they are not studying or learning.
       • More than 72% of all Internet users use mobile telephones
         • The more time users spend on the Internet, the more comfortable and familiar they become with it.
           • They are therefore more likely to more likely to explore more services
     • Demographics and access
       • Gender, income, education, age and ethnicity
         • Influencing online behavior
   • Type of Internet connection: Mobile and broadband impacts.
     • reduction of gaps in internet access
     • Growth of smartphones and tablets connected to mobile and WiFi networks
       • It is the foundation of a truly mobile marketing and e-commerce platform.
     • Marketing Specialists the broadband audience broadband audience offers
       • Opportunities for the use of multimedia marketing campaigns and product processing
   • Effects on the community: Social contagion in social networks
     • Reasons consumers buy online
       • Low prices (59%), Shop from home (53%), Shop 24/7 (44%), variety of products (29%)
     • marketing specialists rely
       • the strength of the brand and the decision to buy
         • are related to network membership, rank, prominence and centrality, prominence and centrality
     • social networks
       • Influence on purchases and buying behavior
         • Facebook, Pinterest and Twitter
     • Consumer behavior
       • Social science discipline
         • model and understand the behavior of humans in a marketplace in a marketplace
     • Clickstream behavior clickstream behavior
       • Record of transactions that consumers establish as they move around the Web.
   • Intentional acts: How buyers find online sellers.
     • consumers do not buy online due to lack of
       • confidence
         • can be given with
           • Honesty, fairness and delivery of quality products
       • consumers are looking for
         • utility
           • Through good deals, bargains, convenience and speed of delivery
   • Offline Marketing Media
     • traditional print media
       • such as magazines, newspapers and television
         • They are the most powerful means of reaching and engaging consumers
           • with information to new products and directed to the Web.

2. 6.2 Digital commerce marketing and advertising

   • Features
     • *Personalized *Participatory *Peer-to-peer *Communal
   • Type of marketing:
     • Web site:
       • 1.Anchor site with costumer 2.establishes the brand identity 3.has the multiple presences of the Brand and customer experience
     • Tradicional Online Marketing:
       • Function: Query-based intention marketing interest and contex based marketing, target marketing, permission marketing, Brand extension.
     • Social marketing:
       • Involves the use of online social network.
     • Mobile Marketing:
       • includes the use of display banner ads, rish media, video, games, e-mail, text messaging, in-store messaging, QR code and couponing
     • Offline Marketing:
       • Multi-chanel Function: Brand anchoring and inform
   • Strategies
     • *Client retention *Pricing *Long tail

3. 6.3 Internet Marketing Technologies

   • Internet marketing objective: To build customer relationships so that the firm can achieve above-average returns
     • Internet’s main impacts on marketing:
       • *Scope of marketing communications broadened *Richness of marketing communications increased *Information intensity of marketplace expanded *Always-on mobile environment expands marketing opportunities
     • The Long Tail: Big Hits and Big Misses
       • Internet allows for sales of obscure products with little demand
       • Substantial revenue because:
         • *Near zero inventory costs *Little marketing costs *Search and recommendation engines
     • e-Marketing technologies:
       • Web Transaction Logs
         • Built into Web server software
         • Record user activity at Web site
         • Provides much marketing data, especially combined with:
           • *Registration forms *Shopping cart database
         • Answers questions such as:
           • What are major patterns of interest and purchase? After home page, where do users go first? Second?
       • Cookies and other Tracking Files
         • Users browsing tracked as they move from site to site
           • Three types of tracking files:
             • Cookies
               • *Small text file placed by Web site *Allows Web marketers to gather data
             • Flash cookies
             • Web Beacons (“bugs”)
               • *Tiny graphic files embedded in messages and on Web sites *Used to automatically transmit information about user and page being viewed to monitoring server
           • Other cross- device tracking methods:
             • Deterministic cross-device tracking
             • Probabilistic cross-device tracking
       • Databases, Data Warehouses, Data Mining and Big Data
         • Databases
           • Database:
             • Software that stores records and attributes
           • Database management system (DBMS):
             • Software used to create, maintain, and access databases
           • SQL (Structured Query Language):
             • Industry-standard database query and manipulation language used in a relational database
           • Relational database:
             • Represents data as two-dimensional tables with records organized in rows and attributes in columns; data within different tables can be flexibly related as long as the tables share a common data element
         • Data Warehouses, Data Mining and Big Data
           • Data warehouse:
             • Collects firm’s transactional and customer data in single location for offline analysis by marketers and site managers
           • Data mining:
             • Analytical techniques to find patterns in data, model behavior of customers, develop customer profiles:
               • *Query-driven data mining *Model-driven data mining *Rule-based data mining
         • Hadoop and the Challenge of Big Data
           • Bg Data:
             • Web traffic, e-mail, social media content
           • Traditional DBMS unable to process the volumes—petabytes and exabytes
           • Hadoop:
             • *Open-source software solution *Processes any type of data, including unstructured and semi-structured
     • Marketing automation and Customer Relationship Management (CRM) systems
       • Marketing automation:
         • Track steps in lead generation from products awareness to purchase
       • CRM system:
         • Manage relationship with customers once purchase is made
         • Create customer profiles:
           • *Product and usage summary data *Demographic and psychographic data *Profitability measures Contact history *Marketing and sales information
         • Customer data used to:
           • Develop and sell additional products Identify profitable customers Optimize service delivery, and so on

4. 6.4. Understanding the cost and benefits of Online

   • Online Marketing Metrics: Lexicon
   • How well does online advertising work?
   • The Cost of Online Advertising
   • Marketing Analytics: Software for Measuring Online

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