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Chapter 14 - Implementing Interactive and Multichannel Marketing
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MAKING RESPONSIBLE DECISIONS
Ethics: Who is Responsible for Internet Privacy and Security?
Privacy and security are two key reasons why consumers are leery of online shopping
and buying. Many consumers have stopped shopping a website or forgone an online
purchase because of these concerns. Industry analysts estimate that over $30 million in
e-commerce sales are lost annually due to these concerns from online shoppers.
According to the Federal Trade Commission, 46 percent of fraud complaints are
D. When and Where Consumers Shop and Buy Online
• Shopping and buying happen at different times in marketspace than in the
traditional marketplace.
E. How Consumers Shop and Buy Online
• Online shopping has evolved with changing technology.
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LEARNING REVIEW
14-3. What are the six reasons consumers prefer to shop and buy online?
14-4. What is the eight-second rule?
III. CROSS-CHANNEL SHOPPERS AND
MULTICHANNEL MARKETING [LO 14-4]
Consumer marketspace browsing and buying in the traditional marketplace has led to:
• The cross-channel shopper.
• The importance of multichannel marketing.
A. Who is the Cross-Channel Consumer?
• [Figure 14-4] A cross-channel shopper is an online consumer who shops online,
but buys offline; or shops offline, but buys online.
B. Implementing Multichannel Marketing
• Multichannel marketing:
a. Blends different communication and delivery channels.
Chapter 14 - Implementing Interactive and Multichannel Marketing
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b. Is mutually reinforcing in attracting, retaining, and building relationships with
1. Document the Cross-Channel Consumer Journey
a. Marketers have found that consumer journey maps and consumer touchpoints
are invaluable for multichannel marketing to succeed.
b. [Figure 14-5] Generic multichannel consumer journey map.
c. Map identifies the communication and delivery channels; shows the links
between communication and delivery channels; and highlights consumer
2. Employ Channels that are Mutually Reinforcing in Attracting, Retaining,
and Building Relationships with Consumers
a. No one best approach to multichannel marketing. The configuration depends
on the channels used by consumers of a company’s products.
3. Monitor and Measure Multichannel Marketing Performance
Chapter 14 - Implementing Interactive and Multichannel Marketing
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• Progress has been made as companies routinely track website visitors who
LEARNING REVIEW
14-5. A cross-channel consumer is __________.
14-6. Efforts to implement multichannel marketing involve what three steps?
Chapter 14 - Implementing Interactive and Multichannel Marketing
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APPLYING MARKETING KNOWLEDGE
1. Have you made an online purchase? If so, why do you think so many people who
have access to the Internet are not also online buyers? If not, why are you reluctant
to do so? Do you think that electronic commerce benefits consumers even if they
don’t make a purchase?
Answer: Students will most likely refer to concerns about credit card fraud and invasions of
privacy as the main reasons why more people do not make online purchases. Students who
2. Like the traditional marketplace, the digital marketspace offers marketers
opportunities to create greater time, place, form, and possession utility. How do you
think Internet-enabled technology rates in terms of creating these values? Take a
shopping trip at a virtual retailer of your choice (don’t buy anything unless you really
want to). Then compare the time, place, form, and possession utility provided by the
virtual retailer to that provided by a traditional retailer in the same product category.
Answer: The utilities created by the websites students choose to visit will vary. Each site,
however, will be an example of how the marketspace allows creation of incremental value
3. Visit Amazon.com (www.amazon.com) or Barnes & Noble
(www.barnesandnoble.com). As you tour the website, think about how shopping for
books online compares with a trip to your university bookstore to buy books.
Specifically, compare and contrast your shopping experiences with respect to
convenience, choice, customization, communication, cost, and control.
Answers: Students may differ in their opinions about whether the traditional or the online
retailers offer greater value along each of these dimensions. Sometimes, slow Internet
Chapter 14 - Implementing Interactive and Multichannel Marketing
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a. Convenience. Online book shopping means that customers don’t have to fight traffic,
find a parking space, or wait in line at checkout.
b. Cost. Both these book e-tailers offer deep discounts so that the prices are often less
4. You are planning to buy a new car so you decide to visit www.edmunds.com. Based
on your experience visiting that site, do you think you would enjoy more or less
control in negotiating with the dealer when you actually purchase your vehicle?
Answer: Edmunds.com is a comparison shopping service that provides car buyers with a
5. Visit the website for your university or college. Based on your visit, would you
conclude that the site is a transactional site or a promotional site? Why? How would
you rate the site in terms of the six website design elements that affect customer
experience?
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BUILDING YOUR MARKETING PLAN
Does your marketing plan involve a marketspace presence for your product or
service? If the answer is “no,” read no further and do not include this element in your
plan. If the answer is “yes,” then attention must be given to developing a website in your
marketing plan. A useful starting point is to:
1. Describe how each website element—context, content, community, customization,
communication, connection, and commerce—will be used to create a customer
experience.
2. Identify a company’s website that best reflects your website conceptualization.
Answer: If marketspace presence is important for the product or service in the student
Helping with Common Student Problems
Perhaps 20 or 30 percent of the students in your class have outstanding computer and
Chapter 14 - Implementing Interactive and Multichannel Marketing
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TEACHING NOTE FOR VIDEO CASE VC-14
Pizza Hut and imc2: Becoming a Multichannel Marketer
Synopsis
Pizza Hut is the world’s largest pizza chain with more than 10,000 restaurants in 100
countries. It was also one of the top 35 U.S. Internet retailers.
This case describes Pizza Hut’s online business initiative that produces hundreds of
millions of dollars in annual revenue. Specific emphasis is placed on Pizza Hut’s multichannel
marketing approach to creating a unique customer experience and customer engagement
platform.
Teaching Suggestions
This video case provides a behind-the-scene look at how a market leader in the quick
serve restaurant industry revolutionized interactive marketing. When assigning this case for
[Video 14-3: Pizza Hut Video Case (kerin.tv/cr8e/v14-3)]
Answers to Questions
1. What kind of website is PizzaHut.com?
Answer:
2. How does PizzaHut.com incorporate the seven website design elements?
Answers:
PizzaHut.com incorporates five of the seven website design elements.
a. Context. The website’s layout and visual design focuses largely on company offerings
Chapter 14 - Implementing Interactive and Multichannel Marketing
d. Communication. The website offers an interactive experience that describes new
3. How are choiceboard and personalization systems used in the PizzaHut.com website?
Answers:
a. Choiceboard system. The website permits customers to design their favorite pizza
Epilogue
The U.S. pizza industry grew at a rate of 1 percent to a record $37 billion last year. Pizza
Hut was the market leader with about 15 percent market share, followed by Dominos, Papa
John’s, and Little Caesars with 9, 6, and 4 percent market share, respectively. In addition to the
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ICA 14-1: IN-CLASS ACTIVITY
Buying an Automobile: Marketplace vs. Marketspace
Learning Objectives. To have students compare the traditional “marketplace” channel
with the new “marketspace” channel.
Nature of the Activity. To have students compare the traditional marketplace channel
for buying an automobile from a dealership with the new marketspace channel for buying the
vehicle at the manufacturer’s website using the Six “C” Framework.
Estimated Class Time and Teaching Suggestions. About 20 minutes, taught in class in
4-person teams.
Materials Needed. Copies for each student of the:
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the BMW Z4 Video on your classroom computer to view
2. Click the Internet icon “BMW Z4 Video” to play the video clip
[TRT = 1:18] and give the following mini-lecture:
“To generate awareness and motivate prospective buyers to go to a dealership, most
of us see a TV ad, print ad, or video clip in a news broadcast about a particular
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3. Give students the following mini-lecture on the “marketplace” channel for cars:
“Like other firms, automobile manufacturers pursue a multichannel marketing
strategy to sell their vehicles to target customers, which consists of the marketplace
channel and the marketspace channel. The ‘marketplace’ channel is the traditional
4. Conclude this background mini-lecture:
“Consumers choose to use interactive marketing websites to purchase products
6. Using the Six “C” Framework for Buying an Automobile Handout as a guide, ask
students to write down specific reasons why consumers would (a) choose the
7. Pass out copies the Six “C” Framework for Buying an Automobile Answers handout
to each student.
Chapter 14 - Implementing Interactive and Multichannel Marketing
USING THE SIX “C” FRAMEWORK FOR BUYING AN
AUTOMOBILE ANSWERS HANDOUT
Traditional “Marketplace” Channel
New “Marketspace” Channel
Convenience:
• Local dealer may be available
• Relationship with dealer important for after-sale
service; expedite repairs
• Visually inspect the car before buying
Convenience:
• Shop anytime and from anywhere
• Not dependent upon local dealer availability or
hours of operation to compare features & prices
Cost:
• May be able to negotiate lower price
• May get more value for trade-in
• May get better financing terms with one’s own
local bank
Cost:
• Usually the same or lower than dealer
• Lower due to lower inventory, order processing,
communications, and commissions costs
• Easier to adjust prices due to market conditions
• Search costs lower (save time = money)
Choice:
• May have good selection of cars on dealer lot
• May have more than one dealer in larger
metropolitan markets to choose from
Choice:
• Compare the dealership(s) with the
manufacturer’s “build to order” website
• Search other websites, such as Autobytel or
Edmunds, to compare prices or purchase from
other dealers nationwide
• Search websites for reviews on the automobile
Customization:
• Dealers can create direct marketing programs for
their local market; know profiles of customers
better and therefore target programs more
efficiently
Customization:
• Create the product with only the features and
options desired via the manufacturer’s “build to
order” website
• Suggest specific features & options to different
segments if customer profiles are captured
Communication:
• IMC approach to generate awareness, trial, and
purchase
• Knowledgeable salespeople can be invaluable
Communication:
• Can request e-mail or telephone response for
additional information from an online salesperson
• Can receive e-mail notices of product news,
special offers, etc. automatically
Control:
• Aggressive customers like to dictate the terms of the
negotiation process (price, trade-in value, features
and options, financing, etc.)
• Concern over privacy and security of personal and
financial information
Control:
• Consumers can better dictate the amount of
information they receive, the alternatives they
wish to evaluate, and the terms of the purchase
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USING THE SIX “C” FRAMEWORK FOR
BUYING AN AUTOMOBILE HANDOUT
Traditional “Marketplace” Channel
New “Marketspace” Channel
• Convenience
• Cost
• Control
• Convenience
• Cost
• Control
Chapter 14 - Implementing Interactive and Multichannel Marketing
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Connect Exercises
Exercise 1: Creating Customer Value in Marketspace
Activity Summary: In this click and drag activity, students evaluate the face-to-screen
interactions between consumers and firms, focusing on the ways firms create customer value in
the marketspace. Students are given the four utility types as drop areas (time, place, form,
Exercise 2: Why Consumers Shop and Buy Online
Activity Summary: In this click and drag activity, students evaluate the motivations for
consumers to shop online over offline. Students are given six reasons consumers buy online as
drop areas (convenience, choice, customization, communication, cost, control) and six online
shopping scenarios (mySimon, from Nana, just for me, treat tower, room for tonight, smart
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Exercise 3: Creating the Online Customer Experience
Activity Summary: In this click and drag activity, students evaluate the consumer’s online
experience by identifying seven website design elements. The seven website design elements
(context, content, customization, connection, communication, community, commerce) are
provided as drop areas. Seven website scenarios are the dragable items which provide hints to the
Exercise 4: Multichannel Marketing at Pizza Hut
Activity Summary: In this 6-minute video case, students learn about the implementation of
multichannel marketing at Pizza Hut and focus on brand engagement through social media. After
LO 14-02 Explain why certain types of products and services are
particularly suited for interactive marketing.
LO 14-03 Describe why consumers shop and buy online and how
Chapter 14 - Implementing Interactive and Multichannel Marketing
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to perform a website analysis for Pizza Hut’s
Marketing Analytics Activity: Web Design
Activity Summary: In this analytics activity, students read a mini-case about an online sporting
goods company that sells an assortment of specialty sporting goods. The owner would like to
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Marketing Analytics
Learning Objective: LO 14-01 Describe what interactive marketing is and how it creates
customer value, customer relationships, and customer experiences.
