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CRM e-business

Dominique Beaulieu
2014 Copyright beaulieu.d@studyline.fr
Exams preparation v2013/10/14

Introduction & Concepts


Exponential evolution
CRM
Internet
Net economy/New economy
New trends (peer-to-peer, book-crossing, flash mobs, mobile clubbing, invasions, geocaching,
citizen newspapers, podcasting)
Upselling/cross-selling
Customer share/Customer Yield Mgt
Reengeneering
Build to Order
Desintermediation
Reintermediation
Retromediation
One Click Away
Collaborative filtering
Decommoditization

Internet:
- communication protocol
- World Wide Web
- customer interaction channel: communication and distribution
Net economy:
A society whose material and financial exchanges are mainly based on new means on
information and communication
New Economy:
A society modified by the impact of new information technologies: new values, lifestyles,
business models reshape the economic and cultural landscape
e-business:
A business that relies on new technologies and new channels of interaction (Internet, call
centers, SMS, SSTs)

New economy brings:


- New values: share, generous, open minded, participative (peer2peer, booking, mobile
clubbing, fightpods)
- New characteristics: speed, anywhere, anytime, anybody becomes the base line
- Young people can manage or deal with older
- A peaceful and constructive revolution
- Innovative business models
- The village: world citizen, sustainable development
- The old barriers evade:
Work-life balance
Boss-employees relationship
Old frontiers such as geographic, cultural, linguistic, generational
Peer2Peer:
Software platform allowing connected members from the community to share documents
between volunteers.
Book crossing:
Practice of deliberately leaving books in places where they will be found and read by other
people, who then do likewise (on a bench in a public garden, in a supermarket, in a train).
Dead drops:
USB keys plugged in cement, whose content is left by an individual, inciting people to read it
in a public place.
Mash-up:
Flags on a map: web page or application that uses and combines data, presentation or
functionality from two or more sources to create new services
Flash mob:
Group of people who assemble suddenly in a public place, perform an unusual and pointless
act for a brief time, then disperse. Flash mobs are organized via telecommunications, social
media, or viral emails. The term is generally not applied to events and performances
organized for the purposes of politics (such as protests), commercial advertisement, publicity
stunts that involve public relation firms, or paid professionals.
Street wars:
Three week long water gun "assassination" tournament that travels to cities around the world.
Created by Franz Aliquo and Liao Yutai, the tournament is based on the college and high
school game Assassin.
Lip Dub:
Video that combines lip synching and audio dubbing to make a music video. It is made by
filming individuals or a group of people lip synching while listening to a song or any recorded
audio then dubbing over it in post editing with the original audio of the song. There is often
some form of mobile audio device used such as MP3 players. Often they look like simple
music videos, although many involve a lot of preparation and production. Lip dubs can be
done in a single unedited shot that often travels through different rooms and situations within
a building. They have become popular with the advent of mass participatory video content
sites like YouTube.

Urban Invasion:
Graphical contamination posting in public places stickers, drawings (ex. Miss Tic), tags or
mosaics.
Geocaching:
GPS-enabled treasure hunt; recreational activity in which someone buries something for
others to try to find using a Global Positioning System receiver. Usually, a geocache consists
of a small, waterproof container that holds a logbook and inexpensive trinkets. Participants
are called geocachers.
3 options:
100% Real Life: find hidden objects
100% virtual from website to website
Mix virtual/real: find a virtual object in Augmented Reality
Citizen journalism:
The act of a citizen, or group of citizens, playing an active role in the process of collecting,
reporting, analyzing and disseminating news and information. The intent of this participation
is to provide independent, reliable, accurate, wide-ranging, and relevant information that a
democracy requires, and less pessimistic than in conventional newspapers.
Web 2.0:
Participative websites, in which content, interactions, transactions are conceived and realized
by individual contributors
UGC: User Generated Content

Podcasting:
Possibility to download and visualize a video or music previously broadcasted live, then
posted online by the initiator.
A podcast is a type of digital media consisting of an episodic series of files (either audio or
video) subscribed to and downloaded through web syndication or streamed online to a
computer or mobile device. The word is a neologism derived from "broadcast" and "pod"
from the success of the iPod, as podcasts are often listened to on portable media players.
Social networking like Facebook (1st generation):
Personal page posted on a community website, gathering your profile, your preferences,
activities, friends, illustrated by photos, videos or text, which you share with people you have
previously identified as friends . Goggle+ brings the concept of circles, depending on how
close you are with your relations. (keyword: like)
Social networking like Twitter (2nd generation):
Online social networking service and micro blogging service that enables its users to send and
read text-based posts of up to 140 characters, known as "tweets". It was created in March
2006 by Jack Dorsey and launched that July. The service rapidly gained worldwide
popularity, with over 140 million active users as of 2012, generating over 340 million tweets
daily and handling over 1.6 billion search queries per day. It has been described as "the SMS
of the Internet." (keyword: follower)
Social networking like Aka-Aki ou Foursquare (3rd generation):
Geolocalized social network founded in March 2009 by Denis Crowley (CEO) and Naveen
Selvadurai. It allows you to tell your friends in real time where you are via a website/mobile
app using your smartphone. You can also be identified as the mayor of the place, the
ambassador able to mobilize the community around a place or an activity (keyword: mayor).
In the same category: Aka-Aki, Gowalla, dismoiou

Customer Value
Management
Gartner Group
+1% retention
=+8% profit

Exp

n
nsio

Conquest

The competitor is
One click away

2006 beaulieu.d@Studyline.fr

Retentio
n

Potential
Customer
Value

Up-selling definition:
Additional sales: you wanted the 100 dress, I try to sell you the 150 one , you put
your finger in the marmalade, I try to sell the complete pot
Cross-selling definition:
Cross sales: You wanted the black dress, I propose you buy the hat and the black shoes that
fit perfectly with
Desintermediation:
Suppression of poor added value intermediaries. Direct Sales (Dell, Cortal, Banque Directe)
short-circuited resellers of traditional branches, in order to share the cost-cutting with the
customer.
Reintermediation:
New intermediary that brings added value: consulting, service, shopping assistant, brokerage,
product or service customization
Retromediation:
Attempt to control the end user, to avoid the barrier built when you distribute your products
through resellers. The manufacturer can keep control on its clients, that escape indeed more
and more solicited by distributors brands.
Build to Order:
The product is manufactured at the same time the client order is processed. Youve just given
the color parameters of the car to the computer online, the robot will paint the real car
immediately, according to your needs.
Market Share:
For a given company, its the proportion (in percentage) of products or services sold by this
company on a given perimeter, compared with the total of sales of the line of business on the
same boundary.
It may be expressed in:
- Volume: number of products sales compared with the total market
- Amount: turnover compared with the whole market
Example: if SEAT (turnover: 2 billions ) sells 100 000 vehicles in France on a global market
of 1 million (30 billions ), its market share will be:
- in volume 10% (100 000/1 million)
- In amount approximately 6,1% (2/30)

Client Share:
For a given company and a given client, its the proportion (in percentage) of products or
services bought by this customer on a given period, compared with the total of buying of this
customer in this field, including competition, in the same period
Example: if Mr DUPONT buys 1000 at Auchan, 2000 at Carrefour and 7000 at Leclerc, Mr
Duponts market share for Auchan will be 1000/(1000 + 2000 + 7000), i.e. 10%
For Carrefour, it would be 20%.

One To One:
the IDIPien Complex

Treat different customers differently


Differenciate them by needs and value

Product
Price
Publicity
Place
2006 beaulieu.d@Studyline.fr

Identify
Differenciate
Interact
Personnalize

What lines of business are


ready for One to One?
Mode accessories
++

Differenciate
customers by
the value

Edition

Hotels
Ready to wear

DVD
Softwares

Service station

Airlines
tourism

BtoC
Telcos
Medias

Financial
services

Computers

high tech
BtoB
Telcos
Cosmtiques
sant
Cultural Products
(CD, livres)

Insurance

Vacuum cleaner

Mass marketing+

2006 beaulieu.d@Studyline.fr

Marketing 1to1

++

Differenciate clients by their needs

Decommotitization:
In order to shift your positioning to the right-up quadrant, you need to complexify the
product, the service or the relation, in order to build or reinforce the barrier for competitors
As a company tries to build entry barriers to prevent or refrain new competitors to enter its
market, a wise company can build way-out barriers for its customer in order to refrain the
churn.
Examples:
- NOKIA icons
- Peapod, grocery shopping through Internet, delivers at home. 6 months later, they
suggest you to deliver, at your consumption rhythm, mineral water packs, bier, or toilets
paper. A competitor would need as much time to know you that well
Collaborative Filtering:
Spontaneous solicitation from the seller, that guesses your behaviour, based on the behaviour
of people that initially bought the same thing you were interested in.

How to decide?
Board of Directors
Nominate corporate, countries, lines of businesse subsidiaries CEOs
Mono activity Multi activity
Merges/acquisitions
Investments, profits sharing, structure of the capital

CEO

Recruit 150 Sales Executives


Train 200 persons
Build a new manufactory
Launch a new advertising campain
Open a new country
Develop a distributors and resellers network
Develop direct sales through Internet or a call center
Fire 30 back-office employees
Buy a competitor
Create a new product

More than a Go/No Go, its about day to day decisions among pertinent opportunities
So, what criteria will authorize the right choice?

Relative importance of a criteria: from the customer point of view, it defines the
impact of a component on his purchasing behavior, compared to others
Align strategy and means on the customers expectations: instead of starting from mix
marketing (4Ps), you start from the customers expectations, in order to dynamically
adapt the offer and the relation to his needs and values, explicit or implicit
Bottle Neck: this is a mandatory option, an essential characteristic of the product that
hides all the others behind.
Ex.: is this laptop running with Windows XP operating system or Mac OS? According
to the answer, the customer confirms his interest or definitively goes away, whatever
the other characteristics may be

Relative Importance
45 %

Criteria Scoring
Competitors Scoring

10 %
10 %
10 %
5%
5%
80 %

45 %

8/10 8/10

Product
25%

PC

10%

20%

20 %

8/10 9/10

Price

Hardware15 %
Software
Hadrware
Software

Performance
Compatibility
Nber peripherals
Reliability
Perennity
Ergonomy
Design

Processor
Architecture
Bus
15 % Memory
Hadrddisk
Telecommunications
Wi-Fi

9/10 8/10

Relation

Direct Sales
Large Account Sales Exec
International coordination

7/10 7/10

Service

2006 beaulieu.d@Studyline.fr

Warranty
Maintenance
Delivery
Installation
Integration
Specific developments customization
Consultancy

How to interpret the results?


If I improve the performance of the mass storage (hard disks), the customer visibility,
i.e. the impact on the buying decision will be: 45% x 80% x 45% x 15%, i.e. 2,43%
Identify bottlenecks: the question at this branch road is decisive for the customer
choice (examples: Windows XP vs Mac OS, Informix vs Oracle)
Are my investments aligned on the customer values?

Product
The mass-produced products are not anymore stocked.
Directly from the customer needs declared online, the
supplier dynamically manufactures a customized offer,
gathering standardized modules.
Mass customization
Limited series
Vintage
ISS (Interactive Selling System)
Collaborative Marketing
Customer Made
Talent Aggregation
Demand Aggregation
Mass Customization:
Combination of standard modules that compose together a unique, personalized product
adapted to the customers needs.
It avoids stocks and supplies pre-sold products at an economical price.
Mass customization often implies to conceive a new manufacturing and deployment process.
ISS (Interactive Selling System):
Combination of a configurator and a design system that authorize together a realistic
graphical representation of the product or services you wish to order. You choose the options
step by step, and the product appears immediately modified on the screen.
Examples: Dell, cars (Peugeot.).
Collaborative Marketing:
Technique that encourages the client to take part in the delivery process: He participates in
the conception, the preparation, the making and the service around the product, with a double
target:
- reduce the costs and share the benefits with the customer
- authorize the best possible personalization of the offer and the associated service
Customer Made:
The product is designed by the customer, and posted on the web platform. A committee
(usually composed of visitors) will select the best ideas. From now on, any sale will give a
commission back to the creator.
Ex: Threadless, Derby, Cyroline, Buutvrij, La Fraise, Spreadshirt, Customermade

Talent aggregation:
Combined creations of web visitors, or coordinated actions, or co-financing and co-producing,
that will allow the emergence of a new offer.
Ex: Splice, Net4Music
Demand aggregation:
Participative process in which the creator tests and verifies the interest of potential customers
in his product or idea, by inviting them to subscribe to his offer. Consequently, in case of
profitable outlooks, he can launch the making of the product without any risk.
Ex: a designer proposes a translucent blue table that perfectly matches the color of your Imac. If 4000 of you want it, it will be made and sent to you.
Ex: www.MyFab.com
Collaborative consumption:
Rapid explosion in traditional sharing, bartering, lending, trading, exchanging, renting,
bartering, gifting or swapping reinvented through network technologies, changes consumption
and the way businesses operate
Colunching:
Invitation to share your meal with strangers or members of a community.
Couchsurfing:
A cheap form of lodging used mainly by college-students or recent college-grads, where one
stays on acquaintance's couches rather than a hotel. Couchsurfing is a neologism referring to
the practice of moving from one friend's house to another, sleeping in whatever spare space is
available, floor or couch, generally staying a few days before moving on to the next house.
The CouchSurfing project was conceived by Casey Fenton in 1999.
Wwoofing:
Worldwide Opportunities on Organic Farms (WWOOF, /wf/), or Willing Workers on
Organic Farms, is a loose network of national organizations that facilitate placement of
volunteers on organic farms. While there are WWOOF hosts in 99 countries around the world,
no central list or organization encompasses all WWOOF hosts. As there is no single
international WWOOF membership, all recognized WWOOF country organizations strive to
maintain similar standards, and work together to promote the aims of WWOOF.
WWOOFing aims to provide volunteers with first-hand experience in organic and
ecologically sound growing methods, to help the organic movement, and to let volunteers
experience life in a rural setting or a different country. WWOOF volunteers ('WWOOFers')
generally do not receive financial payment. The host provides food, accommodation, and
opportunities to learn, in exchange for assistance with farming or gardening activities.
The duration of the visit can range from a few days to years. Workdays average five to six
hours, and participants interact with WWOOFers from other countries. WWOOF farms
include private gardens through smallholdings, allotments, and commercial farms. Farms
become WWOOF hosts by enlisting with their national organization. In countries with no
WWOOF organization, farms enlist through WWOOF UK and WWOOF Australia.
Examples of WWOOF experiences include harvesting cup gum honey from Ligurian bees at
Island Beehive in Kangaroo Island, harvesting Syrah grapes for Knappstein Vineyard in the
Clare Valley, and harvesting coffee beans from Arabicas in Northern Thailand. Source wikipedia

Cohousing:
Life style based on the idea of "intentional neighborhoods" where people consciously commit
to living as a community, sharing commodities such as home cinema, garden, guest room,
video games or toys, movies or Blu-rays...
Coworking/Collective working spaces):
Coworking has emerged as a driving force to help strengthen the startup community. It is
providing an energetic environment where great young entrepreneurs can come together to
work, to learn and be inspired by one another and to jump start great new businesses. It
becomes easier to communicate and to feel home based on new technologies enablers and
cozy environment

Price
The data Price becomes variable, with dynamic
pricing
Auctions on the Net
Group Buying
Half Price
Shopbots
Free Models
Rental
Products sharing
Buying Communities
CtoB RFP (Request For Proposal), reverse auctions
Cash back
Pay as you Surf (IP tracking):
Tracking and tracing your physical address gives indications on your behavior on the net. It
allows the site for example to increase the site when you confirm your interest for a product
by visiting the offer for the second time.
Pay as you Drive:
Usage based insurance, also known as pay as you drive (PAYD) and pay how you drive
(PHYD) and mile-based auto insurance is a type of automobile insurance whereby the costs of
motor insurance are dependent upon type of vehicle used, measured against time, distance,
behaviour and place.
Pay as you Walk:
The insurance company will provide you a pedometer. If you walk 12,000 steps a day, you
will obtain 50% discount on your Life Insurance.
Pay as you Are:
Socit Gnrale: At the call center, prospects are offered a better interest rate than loyal.
customers.
Rental cars: same site, different language, different price: the rental car will be cheaper for a
German speaking person than a French speaking one.

Yield Management:
Modular pricing technique used by companies delivering services (such as transport,
accommodation, restaurants, telecommunication) consisting in reciprocally adjusting
demand and offer, and optimizing both perceived quality and profitability.
Auctions:
No simple replica of the Drouot, Christies, or Sothebys of the real world
but
A new person-to-person intermediation business model in which the prices of all the products
and services of the world re dynamically fixed.
BtoC
Airline ticket
Hotel Room
Car renting
Duty-free
Windows
BtoB
Ad_on Sales
CARSAT
Airline tickets prices
Companies
Transit via London, Rome, Munich(saves 50 to 100 , but is 3 to 6 h.
longer)
Low Cost: Ryanair, Easyjet
Charter (occasional lines):
Go Voyages, Look Voyages (Star Airlines), Nouvelles Frontires (Corsair) or
Jet Tours: very touristic destinations, no rebate for children, no exchange, no
refund
Sales channel
Internet (online agency or airline company site)
Agent shop
Conditions
Promotions
Booking date
Exchange conditions

We found:
a kidney (organs)
12 unemployed executives
the ovums of 8 mannequins
SuperU.com for 6 000
Drugs.com bought 800 000 $
a baby
Remember the parable of the European crossroad or the queue in a supermarket as a proof of
auto organization.
Auctions: (latin origin: augere, increase)
Sales Process that organizes a competition between potential buyers and determines which
one will earn the product and at which price
1) English: rising, ascending auctions
2) Netherland: descending auctions (perequation)
3) Reverse (CtoB): the buyer posts a need and the suppliers offer prices lower and lower
4) The best offer in closed envelopes
5) Vickrey the winner pays the second best offer
6) Candle
Group Buying:
People gather their buying intentions (wish lists), and the more they are, the lower the prices
become
Shopbot (Shopping Robot):
Price Comparison among different products, brands, Internet sites for a specific product
requested. The shopbot suggests a list of the available products at the best possible price

I want to buy
5- confirms
1- indicates the product
The sending
he looks for in the
search engine Buyer
Seller
2- visualizes the
products list,
their status,
the seller scoring
3- orders and paies Price Minister
6- confirms the
receipt

4- informs the seller


7- pays the seller minor its
Commission fee

2006 beaulieu.d@Studyline.fr

Whos free?
For sure, nothing is free, but the business model relies on an environment where the
revenue sources come from elsewhere than the selling price of the product itself. The
client/consumer is not the payer.
Ex: a magazine like Geo draws 70% of its revenues out of publicity, wouldnt it have
an interest in lowering the subscription fee in order to enlarge its customer base, and
bill its publicity pages a higher price?
Cash Back:
Percentage of money given back to the customer (credit, advantages, mileage on
Airline companies)
Examples:
American Express gives back 1% of your purchases paid with the card: you cumulate
mileage for Airline tickets
LCL (ex Credit Lyonnais) retention program gives back 1/1000 on banking
operations, 1/500 with the Gold credit card
Ebuyclub gives back 2%, 3% or more depending on the partner you bought the
product from

Advertising
Mass communication evades, replaced by closer and
interactive contacts with measurable effects
Surprise parcel
Mobile vectors
Product Placement (video games, Comic books,TV, Movies, video
clips, painted surfaces )

Licences and Sponsorship


Street Marketing (Urban event, Snipe, Night life, Guerilla video
projection, Retail posters, Sampling, Street Animation, Rip away posters,
Lean over)

Virtual Advertising/Augmented Reality


Affinity Marketing, poly sensoriel, experiential, ethnic,
tribal, generational, deprivation
QR codes
Dark Sites
3D Virtual Universes/serious games
Viral Marketing (Rumor, Word of Mouth, Buzz, Viral)
Interactive advertising

Surprise Parcel:
Message, proposal or sample that comes with the delivery of your order or the buying of your
product
Mobile advertising (cars or buses, dogs, bags):
Embedded publicity on a mobile vector, or a publicity that follows the customer wherever he
goes
Product Placement in video games, comic books, toys
Visual or verbal insertion of a brand inside a video game, a sequence in a movie or a drawing
in a comic book.

Cross Licences:
Two companies or more combine their promotional efforts, like burger King and the movie
Teenage Mutant Ninja Turtles in 1990. The movie was promoted by Burger King during the
launch; Burger King at his turn was very visible in the movie
Painted surfaces (scaffoldings, walls, streets):
Use of a vertical or horizontal urban surface (scaffoldings, walls, streets, trompe lil
paintings) in order to paint, stick or project a static or evolutive advertising
Licences, sponsorship and patronage:
Partnership agreement aiming to subsidize an event, a champion or a star, with the visibility
of the brand in return.
Recent trend, the Naming :
give its name to a stadium, a room, a street
PSV Eindhoven (P = Philips)
Bayer Leverkusen
Nissan Stadium (oct 2004)
After Emirates and Arsenal in the UK, Nissan gives its name to Yokohama stadium
for 175 million euros
Street Marketing:
Technique promoting the brand in crowded public places for a specific segment of population
or for anybody.
Several forms of street animation:
Urban event (large scale city animation)
Snipe (posters that pretend to be wild, illegal)
Night life (animations in the dark)
Guerilla video projection
Retail posters
Sampling (distribution of free samples)
Street animations (hip-hop shows, concerts, artists, basket exhibitions)
Rip away posters
Lean over (persons who act in complicity, attract people attention on a new trendy
product or service: a vehicle, a drink, a coffee shop or a night club)
Lean Over:
Lean Over is a technique that promotes the brand via colleagues disguised in ordinary trendy
people. The customers are not conscious that it is advertising.
PR/PR: Public Relations, Press Relations:
Association of the brand with VIPs, in order to obtain press articles, create sympathy and
provoke a purchase attitude imitating the personality
Virtual Advertising:
Insertion of a virtual image that covers the real televisual image, and looks like a billboard, a
script on the ground or a visual media

Affinity Marketing:
Targeting a community that buys a product or a service, beyond its basic characteristics or
advantages, to support a group, a star, an initiative or a country
Black sites or Dark Sites :
Non official site developed:
- Directly by the brand that wishes to build an affinity community around its market, or
catch the e-mail addresses or information relative to their behaviours or the
competition
- Or by an individual or a group of supporters or opponents that want to inform,
stimulate the sales, boycott by a consumerist initiative
3D Virtual Universes:
Site reproducing an imaginary life space (town, hotel, imaginary landscape) in which the
customer is invited to create an avatar (virtual representation of his personality), to move, to
discuss, to buy.
Serious games:
Games with serious purposes, such as education, training, awareness, simulation, event
management or advertising (advergaming).
Augmented Reality:
Augmented Reality browser melds the real world with digital data.
There is a growing interest in location-based Augmented Reality applications called AR
browsers
AR browsers gather information from online sources (e.g., Wikipedia, Google) and present it
on the phone of a user by directly labeling the real world
SPRX mobile released an AR browser called LAYOR: Its built for enjoying any user of
mobile phones, cameras, GPS and Compass.
When you look at the display, you see what the camera sees but overlaid on top of that is
information about what youre looking at. Different layers can provide different information
about the same scene.
Imagine driving by a home thats for sale. Pointing your phone at it and on top of that you see
the square footage, number of bedrooms and bathrooms and the asking price and the
description which leads to photos of the interior
Another example: youre driving by a restaurant. You point your camera out there and you
see the menu and the daily specials
It has initially been released on the Dutch market and then it will be spread out from there.
Cascading:
Declension in more and more numerous series of an historical model or a unique creation
delivered in limited series.
Ex.: H&M 2004 and the collection Lagerfeld
Interactive Advertising:
Advertising on TV that you can point with your pad, and that permits the spectators to order
products and services, fill forms, post classifieds, exchange products, participate in the
broadcasts, fill surveys.

QR Codes (Quick Response):


QR Code are 2 dimensional bar-codes (matrix code) allowing to store 7089 digital characters,
4296 alpha characters (in comparison with the traditional bar code with only 10 13
characters) or 2953 bytes. Little, big capacity, quick to scan: QR comes from Quick
Response because its content can be decoded rapidly
QR code was created by a Japanese company Denso-Wave in 1994. It is widely spread and
used today in Japan.
Push: The Near Field Communication is an American device sending Bluetooth waves in
a restricted area. You can propose a product or service to the consumer without obliging you
to shoot the tag.
Should you walk along this last Disney billboard, you will be proposed to watch a short cut on
your mobile phone
Pull: You take a picture of a product, a billboard, a map with your mobile phone, and you are
automatically redirected to the appropriate website that will complete the information.
RFID (Radio Frequency Identification):
New labels on the products that will allow people to automatically sum the content of their
trolley in a supermarket, or track the supply-chain of any product from the manufacture to the
warehouse, through transportation and to the shelves of the supermarket.
Viral Marketing:
Nothing new under the sun. There has always been viral marketing in the real world, but what
is specific to Internet is instantaneity, worldwide coverage, and the number of potential
receivers
Stanhome and Tupperware began to exploit personal networking, and recruited their
ambassadors in the 50s, in order to build and strengthen the brand and product awareness
through a pyramidal distribution.
So simple: every ambassador invites as many friends she can, and those friends invite at their
turn people they know. As a result, free products, a percentage on the sales, special discounts
or nothing will be given to the organizer
Rumor:
Informal idea, persistent whose source is not determined, uncertain. Usually intended to hurt
and provoke damages, initiated either by an individual or a corporation. The issue is not
necessarily merchant.
Word-of-Mouth:
Linear propagation, one mouth talks to one ear (reputation, patronage). It may be either
organized or spontaneous.
According to Richins, its a form of interpersonal communication between consumers
talking about their personal experiences
source Richins, M.L, Word-of-mouth communication as negative information, in Advances
Consumer Research, Volume 11
Buzz:
Literally a noise, a buzz, designed to announce a launch, create a trend (rave parties, flash
mobs), usually prepares the launch of an event, a movie, a product or service. Among the
famous campaigns: Boo e-commerce site, Segway or the movie Blair Witch Project.

Pyramidal Marketing:
Geometric/pyramidal diffusion and propagation speed depict viral marketing, as fast as a
virus would contaminate a population.
There is a precise objective, a budget, mile stones.
A viral marketing campaign is characterized by advergames, patronage programs, videos or
funny web sites.

Place
The points of sales face a new competitor with Internet
and the multiplication of disrtibution channels. They have
to adapt themselves with innovative initiatives
Collaborative Filtering
Learning relationship
Decommoditization
Olfactive/Polysensorial Marketing Virtual Points of Sales
Theatralization of the Point of Sales
Intelligent Objects
Interaction Channels
Co-Surfing
Geolocalization
Innovative Channels (Internet, Call Centers, SMS, MMS, i-mode,
interactive TV)

Experiential Marketing
Biometry:
You can recognize an individual thanks to his physiological characteristics, such as today: his
voice, digital fingerprints, and the eye.
Concept store:
A shop that wont gather products by styles, but will gather offers around a theme (NBC,
NBA) or a target (example: Lafayette v.o., everything for teenagers, surfing, skate boards,
music, Warhammers, clothes, video games).
You can also mix two domains, such as basketball+hair dresser.
The shop becomes more a showroom inviting to order on Internet.

Experiential Marketing:
The selling process doesnt limit itself in the delivery of the products or the service, but
covers your feelings, impressions, souvenirs, experiences encountered from the first contact to
the customer service: relation, design, atmosphere
Experience is based on 5 phases:
- Consumption anticipation
- Purchasing experience (Ex: Surcouf)
- The heart of consumption
- Memory
- Desire to come back again (bunji jumping)
The environment is getting more and more important:
- Decoration, atmosphere
- Story board (ritual)
- Community (sharing opinions and ideas)
The objective consists in creating high added value consumer experiences, based on the 5
main following criteria:
- the Sense
- the Feel
- the Think (ease of use for example)
- the Act (physical relation with the object, life style)
- the Relate (social identity)
Pop-up shops:
Pop-up retail, also known as pop-up store (pop-up shop in the UK), is the trend of opening
short-term sales spaces
Temporary shops (the space could be a sample sale one day and host a private cocktail party
the next evening) aiming to develop affinity among a community of customers, create the
buzz around a launch event, or in order to discard excess merchandise
Brick and mortar (briques et ciment): physical shop in the real world (ex: FNAC, Carrefour)
Click: also named pure players, companies operating only on Internet (Amazon.com)
Click and mortar: a link between the virtual world and the real world; example: I order a
DVD on an Internet site, and I pick it from a distributor (SST) near my house tonight, I order
at 3suisses.fr that delivers in a shop in the nearby.

The concept of smart objects:


Be everywhere, immediately, easily, is just impossible: in front of this limitation, the new role
of the object, of the product, will be to remain the ambassador of the company, keeping in
touch with the supplier. It will dynamically adapt to the customer and the context.

At Sables-dOlonnes, the meter reading of water consumption is automatically sent via


a sender-receiver directly plugged in the meter. The information are sent to a server in
the nearby and routed via GSM, to offices (source Enjeux October 2004)
In the United States, the car is linked to the concessionary company, and the agent
informs the vehicle owner of the next major service after 10,000 km (source One To
One Don Peppers)