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860 WIRELESSMARKETINGperform value-creating activities. The success of a com-
pany’s value chain depends on the performance of various
departments and how well these activities are coordinated
(Kotler & Armstrong, p. 677).
In summary, customers are always the center of all
marketing activities in m-commerce. A firm’s capabilities
and its adaptation for value creation based on customer
information are vital to sustaining long-term success.
“Customers become data. Then data become customers.
Finally, both customers and data migrate to real time”
(Lamont, 2001, p. 58). Marketers must carefully examine
the best ways to work with their customers; they must
know how to use the collected data better than their com-
petitors to create more value for customers.GLOSSARY
Always-on service A 24-hour service supported by
GRPS that allows wireless subscribers access to value-
added services anytime and anywhere.
Anonymous Nondisclosure of personally identifiable
information
Brand community A group whose members have a par-
ticular brand preference and are grouped together to
form a brand community. Members of this social group
are committed to the brand and are willing to share and
exchange information.
Churn rate A measure for the percentage of subscribers
who switch from one mobile phone service provider to
an alternative provider.
Consumer market The business environment in which
individual end users purchase goods or services for
their personal or household use.
Customer needs Human needs (e.g., basic needs for
food and shelter) that are not conceived by marketers.
Customer loyalty A factor used to describe a con-
sumer’s faithfulness in a particular brand or store. A
loyal customer is one who has a preference for a par-
ticular brand or store without considering the alterna-
tives. Marketers differ on how this loyalty can be mea-
sured.
Data mining A method for discovering patterns and
meaningful relationships of customers’ buying behav-
ior from a data bank
Database marketing A process that involves establish-
ing and updating customer information into a data
bank. Marketers use the information provided to de-
cide how and when to contact the consumer for mar-
keting activities, such as a sales promotion.
Direct marketing A method of distribution in which
sellers contact potential buyers through direct commu-
nication channels (e.g., e-mail) seeking customers’ re-
sponses (e.g., seeking more information, making a trial
purchase).
E-tailing (electronic retailing, e-retailing) A form of di-
rect marketing in which all business transactions are
arranged through electronic means such as the Inter-
net and cellular phones.
Lifestyle The ways that a consumer spends his or her
time and money.
One-to-one (1:1) marketing Designing and im-
plementing the marketing mix (product, price,distribution, and promotion) for the individual
buyer. It relies on extensive information about each
purchaser’s buying needs and behaviors.
Push promotion A traditional promotional method in
business-to-business market. Manufacturers offer dis-
counts or incentives to a wholesaler or retailer to push
their products to end users (or final consumers).
Pull promotion Manufacturers focus all their promo-
tional efforts (e.g., promotional discounts or compli-
mentary gifts) to attract end users or final consumers
who buy their products. Under this structure, final cus-
tomers would request the products from retailers. Re-
tailers will order the products from the manufacturers
to meet expressed consumer demand.
Segmentation An important concept in marketing.
Market segmentation divides the market into small,
mutually exclusive groups. Each segment consists of
customers with similar needs, characteristics, and buy-
ing behavior. Different marketing strategies (i.e., prod-
uct, price, place [or distribution], and promotion) are
required for targeting different segments because their
needs are different. Firms can select one or more seg-
ments to target based on their strength and resources.
Supplementary channel An additional channel to ex-
isting distribution or sales outlets for selling products
to customers or end user.
Telemarketing A kind of direct marketing method in
which sellers use telephone calls to sell a product or
service to an individual customer.
Value chain A management tool to identify methods for
generating more customer value.CROSS REFERENCES
See Consumer Behavior; Marketing Communication
Strategies; Personalization and Customization Technolo-
gies; Value Chain Analysis.REFERENCES
Advisor.com (2002, April 2). Mobile marketing: Con-
sumers say, “Bring it on!” (Marketing Advisor zone,
Doc. No. 09546). Retrieved November 20, 2002, from
http://advisor.com
Boone, L. E., & Kurtz D. L. (2001).Contemporary market-
ing(10th ed.). Forth Worth, TX: Harcourt College.
Computer Industry Almanac (2002, March 21).
Internet users will top 1 billion in 2005, wireless
Internet users will reach 48% in 2005 (press release).
Retrieved November 22, 2002, from http://www.c-i-a.
com/pr032102.htm
e-Marketer (2003). Mobile penetration in the US and
Europe. Retrieved February 13, 2003, from http://www.
emarketer.com/news/article.php
Fletcher, J. (2000, August 14). InfoSpace looks to wireless
for exponential growth.eCommerce Business,p. 14.
Fricke, P. (2001, August 22). Study: charging for con-
tent lead to wireless success.CommWeb.com. Retrieved
October 18, 2002, from http://www.commweb.com/
article/COM20010822S0003
Godin, S., & Peppers, D. (1999). Permission market-
ing: Turning strangers into friends, and friends into
customers.New York: Simon & Schuster.