Lectures of multi-channel marketing in Artevelde University College International Days 2 - 4 May 2018

1. Heli Aaltonen 2018
Multi-channel marketing
in sales, distribution, communication and
customer support
Principal lecturer , DSc. (Econ.) Heli Aaltonen
Artevelde University College International Days 2 – 4 May 2018
Gent, Belgium

2. Heli Aaltonen 2018
Multi-channel
marketing
What digital channels
companies use?
How customers
search information for
their decision making
process?
What motivates
companies to
implement multi-
channel marketing ?
The main topics in the lecture
What are the basic
concepts of multi-
channel marketing?
How customers’
needs for content
meet companies’
objectives?

3. Heli Aaltonen 2018
Objectives? After two sessions…
You are familiar with features of both consumer behaviour and
corporate behaviour in multiple channels
- You understand the concept of multi-channel marketing
- You know what motivates companies to implement multi-channel
marketing
- You can identify four customers’ search strategies the basis for
multi-channel marketing
- You are familiar with four digital channels model
- You are familiar with channel coordination challenges

4. Heli Aaltonen 2018
How do we study today?
9.00 – 10.30
• Three brief lectures, three run-through + reflection
11.00 – 12.30
• Case study in small groups, discussion

5. Heli Aaltonen 2018
The main setting and viewpoints
How to keep up with
competitors and
industry standards?
A company's
viewpoint: What
are the most
profitable ways to
distribute, sell and
communicate with
customers?
Customers’ viewpoint: What are the
most convenient and economic ways
to buy, gain information, gain support,
discuss, provide feedback…
How to avoid conflict
with partners and
intermediaries?

6. Heli Aaltonen 2018
What are the basic concepts?
Multichannel marketing means that a firm
• simultaneously offers their customers and prospects
• information, products, services and support (or any combination
of these)
• through two or more synchronized channels.
(Chen & Lamberti 2016)

7. Heli Aaltonen 2018
Multi-channel vs omni-channel?
Multi-channel is the
company’s point of view
Blending various distribution
and communication
channels for the purpose of
marketing
Omni-channel is the
customer’s point of view
Omni-channel seeks to
provide customers a
seamless shopping
experience
A nice video clarifying the terms multi-channel and omni-channel
https://youtu.be/44rQux8Jfps

8. Heli Aaltonen 2018
What are the basic concepts?
• In multichannel marketing a channel’s role in distribution and
communication is blended together
• In cross-channel behaviour consumers cross many times between
the channels
(Chen & Lamberti 2016)
distribution
communication
distribution
communication
distribution
communication

9. Heli Aaltonen 2018
Consumers’ cross-channel behaviour?

10. Heli Aaltonen 2018
Basic channel types: channel variety
and channel usage
(Chen & Lamberti 2016)
Massmedia
Outlets
E-mail
Callcenter
Website
Socialnetwork
Industryspecific
Mobile
Webapplication
Channels carry out
• Distribution/ transactions
• Practical information > to facilitate and fulfil transactions
• Relational communication > to develop customer relationships

11. Heli Aaltonen 2018
Basic concepts: sales and delivery
channel systems
(Eyuboglu et al. 2017)
Manufacturer
Customers
Sales agent/
Broker
Distributor
Distributor
Sales agent/
Broker
Sales office/
e-commerce
Sales force
1 2 4 53
1
2
3

12. Heli Aaltonen 2018
What motivates firms to implement
multichannel marketing?
1. Economic-
driven
motivations
3. Competition and
industry standards
2. Customer-driven motivations
(Chen & Lamberti 2016)

13. Heli Aaltonen 2018
What motivates firms to implement
multichannel marketing?
1. Economic-
driven
motivations
• Cost savings
• Identifying the most profitable
customers through segmentation
• Maximizing market coverage
(market expansion)
• Increasing revenues
• Efficiency through economies of
scale
• Exploiting synergies
(Chen & Lamberti 2016)

14. Heli Aaltonen 2018
What motivates firms to implement
multichannel marketing?
2. Customer-driven motivations • Better customer experience
– Select the preferred channel
– Multi-channel utility along the
purchase process
• Customer engagement
• Customer satisfaction
• Customer loyalty
(Chen & Lamberti 2016)

15. Heli Aaltonen 2018
What motivates firms to implement
multichannel marketing?
(Chen & Lamberti 2016)
3. Competition and
industry standards
• Pressure of competition
• Industry standard = new channels
have already emerged or they are
already widely diffused

16. Heli Aaltonen 2018
To summarize
- Consumers cross between the
channels
- The main motivations are
economic-driven, customer-driven
and competition-driven

17. Heli Aaltonen 2018
The starting point for an effective
multi-channel strategy
• How customers search information and make their choices in purchasing
process
• Customers do not choose specific channels but
– they look for the environment that supports their requirements for
interaction the best
• Customers have become experts since sources of information have
multiplied
• Customers are less receptive to business offers and atmosphere
elements of physical spaces
• Only a small amount behave as “single-channel” customers
• There are remarkable differences between sectors if people carry out
transactions on the web or in stores.
(van der Veen & Ossenbruggen 2015; Jeanpert & Pache 2016)

18. Heli Aaltonen 2018
Customers’ four search strategies
Convenience
seekers
Information
seekers
Peace-of-mind
seekers
Reassurance
seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others
(van der Veen & Ossenbruggen 2015)

19. Heli Aaltonen 2018
Convenience seekers
Convenience
seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others
• Often know what they want
• They perform targeted searches >
goal-oriented.
• They need simplicity and speed in
their choices
• They arrive relatively easily at
their purchase decision
• They often consult physical
provider and use many channels
• Internet solutions should promote
dialogue
(van der Veen & Ossenbruggen 2015)

20. Heli Aaltonen 2018
Information seekers
Information
seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others
• They focus most on the Internet
channel in their search
• Often it is the only channel
• Self-service
• They rely on themselves in
decision making
• Information should be freely
accessible and complete
(van der Veen & Ossenbruggen 2015)

21. Heli Aaltonen 2018
Peace-of-mind seekers
Peace-of-mind
seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others
• They often search for good
advice
• They purchase more
frequently from personal
providers
• Less intensive channel use
• Offline shops and service
are important
(van der Veen & Ossenbruggen 2015)

22. Heli Aaltonen 2018
Reassurance seekers
Reassurance
seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others
• True multi-channel users
• They spend time exploring the market
• Security and risk aversion are
important
• They frequently consult their social
contacts
• They rely on others in their decision
making
• They value services verifying
information and thus diminishing risks
(van der Veen & Ossenbruggen 2015)

23. Heli Aaltonen 2018
To summarize…
Customers’ search habits are the
starting point for the multi-channel
strategy
Companies’ should offer information,
dialogue and support to meet various
search habits

24. Heli Aaltonen 2018
Digital channels and digital touchpoints
Digital channels are routes of communication
between an organisation and its customers
• technology-based platforms
• that use the Internet to connect with customers
• provide a range of different content and
purposes
• facilitate communication with a range of
different interaction levels.
A digital touchpoint is an individual channel,
while a group of touchpoints is called digital
channels
(Straker, Wrigley & Rosemann 2015)

25. Heli Aaltonen 2018
Challenges with digital channels
and touchpoints?
• How to engage customers?
• How to create valuable content for them?
• How to integrate isolated channels?
– digital channels are often managed like traditional one-way
communication channels
– they do not connect with each other
• Companies may overuse of digital channels
– excessive, uncoordinated online presence
“Always on” customers?
• Expect companies responding and interacting with them
immediately and 24/7
• Since companies offer various channels for interaction
(Straker, Wrigley & Rosemann 2015)

26. Heli Aaltonen 2018
”Always on” customers
Reply
Speedy
Reaction
24/7
Fast
Quick
(Straker, Wrigley & Rosemann 2015)

27. Heli Aaltonen 2018
Outlets
Callcenter
Website
Vertical channel
management
Cross-functional channel
management
(Straker, Wrigley & Rosemann 2015; Jeanpert & Pache 2016)
Typical coordination activities in channel management
• Purchasing, logistics, customer data management and brand
What is essential to cross-functional multi-channel strategy?
• Consumers perception of the multi-channel coherence and
• Sales force’s access to real time logistical information.

28. Heli Aaltonen 2018
The digital channel model
(Straker, Wrigley & Rosemann 2015)
Customer content
needs are
• To contact,
• To search for
information
• To build trust
• To share interests
• To buy
Company’s objectives
are
• To inform
• To promote
• To gain revenue
• To support

29. Heli Aaltonen 2018
Functional channelsCorporate channels
Community
channels
Social channels
To inform, promote, gain revenue and support
(Straker, Wrigley & Rosemann 2015)

30. Heli Aaltonen 2018
Corporate channels
Corporate channels
(Straker, Wrigley & Rosemann 2015)
Typical for corporate digital channels
• They are one-way engagement by
nature
• Customer interaction is low or medium
• Typically clear functional purpose such
as
• Digital catalogues,
• Digital ads
• Digital feedback forms,
• FAQs
• Digital magazines
• Digital media releases
• E-commerce

31. Heli Aaltonen 2018
Functional channels
Functional channels
(Straker, Wrigley & Rosemann 2015)
Typical for functional digital
channels
• They are run by one user or
company
• Customer interaction is medium
• Typically
– Websites
– E-mails, e-news letters
– Online store
– Applications
– Tutorials
– Live chat
– LinkedIn

32. Heli Aaltonen 2018
Social channels
Social channels
(Straker, Wrigley & Rosemann 2015)
What is typical for social digital
channels?
• They are run by an administrator
– who is able to delete content or
block users
• They are driven by company
objectives
• Customer interaction is high
• Users expect something in return
of interaction
• Typically social media sites
(Facebook, Twitter, Instagram,
Pinterest, Flickr etc)

33. Heli Aaltonen 2018
Community
channels
Community channels
(Straker, Wrigley & Rosemann 2015)
What is typical for community
digital channels?
• They are run by a group of
users
• Their interest is aligned with the
company
• Privacy settings possible
• Comments, ratings, texts,
images, videos;
• Customer interaction is medium
• Typically forums, blogs,
YouTube, Vimeo

34. Heli Aaltonen 2018
To summarize: A company
- should not overuse digital channels
- should integrate channel management
- should take into account customers’
features, content needs and their various
ways to search information