Marketing II summary

Marketing II

Lecture 1

Digital transformation

 Big data
o The collection of a wealth of data from and about everything internal and external to
the organization and its interpretation to help make the business run more efficiently
and improve customer service
 Tracking customers and their communications across every channel
 Measuring and managing the customer experience
o What can big data do?
 Help improve customer service levels
 Enhance customer retention
 Improve overall customer lifetime value
 Be used to deliver personalized services
o Some scepticism:
 Big data mostly show what has happened or what is happening – but do not
always explain why things are happening
 First learn to maximize value from smaller data before going big – sometimes
big data can also be useless
 Reverse marketing
o The power relationship between firms and customers has changed – power to the
customer!
o Organizations and brands are increasingly distrusted by customers and so the
customer has become the marketer
o Customers trust other customers more
 Conversations on platforms such as fb
 Posting reviews on platforms such as TripAdvisor or retailer websites
o The impact of how potential customers use search engines
o How organization react to a request determines who gets the business
o Helping the buyer to buy: shifting from helping the seller to sell to helping the buyer
to buy
o Consumers now expect to be facilitated in their research on the product or service
that best meets their wants and needs
 Mobile applications
o The smartphone: the best example of technological advances in mobile devices
o More Google searches are now performed on mobile devices than from PCs
o Consumers expect that all tasks should be easily achievable from a mobile device
o What caused what?
 Was the rise of the mobile internet a result of consumer behavior, or was
consumer behavior changed by the technology?
 ‘Technology doesn’t cause out behaviors to change, it enables out behaviors
to change’
 It was the convenience that smartphones enabled that was behind their
adoption, not their technology
 The internet of things (IOT)

, o Computers communicating with each other to perform tasks without intervention
from humans
o Examples:
 Internet-connected fridges that order milk via a shopping app when you are
running low
 Wearable devices that are used to monitor health, wellness or athletic
performance
 Oral-B toothbrush that connects with your smart phone in order to track
which teeth are being brushed
 The automation of business processes
o The most long-standing aspect of an organization transforming to the digital world is
the use of technology to automate processes
o Examples:
 Robots building cars
 Computer software doing jobs that once required people
o ‘The technology has freed out crew and our guests from many of the mundane tasks
that keep us from human interactions’

Lecture 2

Classification of terms

 Buy = to acquire by paying
 Sell = to transfer ownership in exchange for payment
 Customer = the person who pays for a product
 Consumer = person who consumes it
 The customer might not always be the consumer
 Customer behavior = not only financial transactions, where a good is exchanged for money
o Example: the aim of a website might be to provide information. Therefore,
downloading a pdf might be the required sale
o The term customer might not be appropriate in all contexts

Online buying behavior B2C

 Business to consumer (B2C)
o The most commonly used model of buyer behavior
o It considers the buying process as a cycle in a series of steps:
 Problem recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post-purchase behavior
o For some products, the process is swift – all stages might even take place almost
instantaneously
o For other products, the process might be much longer
o Buying model applied online:

, Another classical model of buyer behavior = AIDA (attention, interest, desire, action) model
o Did the ad grab attention, arouse interest, stimulate desire, provide a call for action?
o The AIDA model is a funnel model
o Not as linear as the buying cycle model
o Acknowledges the fact that people leave the buying cycle at various stages




o

,  The process can also be seen as circular: the last stage of one buying process leads directly
into the first stage of the next process
 Purchase as a repeated, not isolated event -> customer retention and relationship marketing
 Eisenberg’s 20 forces that influence buying behavior:




o
 People value their time and are willing to pay more in order to save time
 Convenience is a key driver of buying behavior – and even so more so of buying online

Online buying behavior B2B

 B2B differs from B2C in:
o The decision-making process and the actual purchase
o The range of products
 Decision-making process: online presence serves more as a source of information and less as
a transaction channel
 Range of products: much more diverse than B2C, marketers must adapt their online selling to
different product lines
 Key objective of the B2B website is lead generation
o To provide information that will serve as a foundation to develop relationship with
customers
o Customers use the B2B website to gather information in order to narrow down a list
of potential suppliers, and then contact them on a personal basis
o Plays the tole of replacing or supplementing catalogues, brochures, trade shows, or
advertising
o The quality of the web presence plays a big role
 The buying cycle model applied in B2B: