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Kwok WL040/Bidgoli-Vol III-Ch-68 August 14, 2003 18:9 Char Count= 0
Wireless MarketingWireless Marketing
Pamela M. H. Kwok,Hong Kong Polytechnic University, ChinaIntroduction 850
Wireless Technologies and Wireless Marketing 850
What Is Wireless Marketing? 850
Major Services Are Provided by
Third-Generation Technologies 851
Factors Influencing Adoption of Wireless
(or Mobile) Internet 851
Mobile Penetration in the United States
and Europe 851
Marketing Opportunities and Wireless
(or Mobile) Internet 851
Will Wireless (or Mobile) Substitute
Fixed-Line Internet? 853
M-commerce and Marketing 853
What Industries Benefit Most From
M-commerce? 853
M-commerce and Information Services 853
Database Marketing in M-commerce 853
What Must Marketers Do to Be a Successful
M-marketer? 853
Merits of Reconfiguring the Value Chain 854
Wireless Consumer Behavior 854
Key Impact of Mobile Number Portability
(MNP) or Wireless Number Portability
(WNP) on Customer Loyalty 854
Brand Community and Customers’ Loyalty 854
Consumer Decision-Making Process
for Wireless 855Segmentation Variables for Wireless
Consumer Markets 855
Permission Marketing and Customer
Relationship 855
Participation Marketing and Customer
Relationship 855
Ethical and Privacy Issues in Wireless
Marketing 855
Consumer Protection 856
Marketing Mix for Wireless 856
Product 856
Price 856
Distribution or Sale Channels 857
Promotion 857
Real-Time Impacts of the Wireless Internet
on the Four Ps of Marketing 858
Wireless Marketing and Examples of
Business Models 858
Measurment of Marketing Performance 859
Performance-Measurement Management 859
Marketing Effectiveness and Efficiency
Measures 859
Looking at Future 859
Glossary 860
Cross References 860
References 860
Further Reading 861INTRODUCTION
Wireless technology began its growth in the 1980s and
the rapid development of wireless products such as mo-
bile phone, pagers, and other handheld devices has trans-
formed the ways that people conduct business (Lamont,
2001). Surfing the Web or online services is another way
to get product information and order merchandise from
catalogs....Firms can quickly update information at min-
imum “costs” (Boone & Kurtz, 2001, p. 25).
During the mid-1990s, the Internet became the main
online direct-marketing channel that allows users to send
e-mail and access public news, product information, and
online shopping activities, among other things (Kotler &
Armstrong, 2001). Nowadays, the development of high-
speed wireless Internet, Web-enabled mobile phone hand-
sets, and other wireless technologies has further sustained
the application direct-marketing or one-to-one marketing
in the wireless business world.WIRELESS TECHNOLOGIES AND
WIRELESS MARKETING
Advancement in wireless technology such as WAP, iMode,
GSM, GPRS, UMTS, wireless LAN, WCDMA (see Table 1for details) has enabled marketers to develop more
effective and specific marketing (or one-to-one marketing)
programs tailored to the needs of individual customers.
To fully utilize these technologies, marketers must learn
how to work with their customers to develop long-term
mutual benefit relationships. Obviously, wireless mar-
keting offers new business opportunities and threats to
m-marketers. Marketers must understand the key dy-
namic developments in the wireless world to capitalize on
business opportunities at the right time and take proactive
strategies to eliminate potential risks.What Is Wireless Marketing?
Wireless is defined as “radio communications” or a “radio
receiver or transmitter” (Oxford Advanced Learner’s
English–Chinese Dictionary, 4th Edition, 1994). Microsoft
Dictionary (1998, available on CD-ROM) defined wireless
as “pertaining to, or characteristics that take place with-
out the use of interconnecting wires or cables, such as
by radio, microwave, or infrared.” Marketing is regarded
as “a social and managerial process whereby individuals
and groups obtained what they need and want through
creating and exchanging products and value with others
(Kotler & Armstrong, 2001, p. 6). So wireless marketing850