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Multimedia Marketing Systems
Improving Your Business with the Next Generation of Direct
and Interactive Marketing Media

by prof dr Martijn Hoogeveen

© 1996 by Lansa Publishing BV
ISBN 90-5590-019-2



Order information:

The book can be ordered via the bookstore and directly via the publisher Lansa Publishing BV (fdesk@lansa.nl).


Contents

Summary

1. Introduction 1
    1.2 Insight into Viability and Effectiveness 3
    1.3 Outline 4

2. Developments in Marketing and Multimedia 5
    2.1 Towards Multimedia Marketing to Survive Service Competition 7
        2.1.1 Business Objectives 8
        2.1.2. Portfolio Development 12
        2.1.3. Marketing Related Tasks and Processes 13
        2.1.4. People Involved 23
        2.1.5. Marketing Information Items Processed 24
        2.1.6. Summary 25
    2.2 Developments in Multimedia Systems (MSs) 26
        2.2.1 Types of Media Involved 28
        2.2.2 Multimedia Information Processing by Processing Media 33
        2.2.3 Developments in Multimedia Retrieval 35
        2.2.4 Summary 42
    2.3 General Summary 43

3. The Marketing Communications Archive (MCA) 45
    3.1 Business Objectives 45
    3.2 Information Processing Tasks 48
    3.3 System Functionality 49
    3.4 Implementation Aspects 50
    3.5 A Retrospective Cost Benefit Analysis 52
        3.5.1 Results 53
        3.5.2 Evaluation 55
    3.6 Discussion 57

4. The Tele Sales Assistant (TSA) System 60
    4.1 Business Objectives 61
    4.2 Information Processing Tasks 62
    4.3 System Functionality 64
    4.4 Implementation Aspects 66
    4.5 Discussion 68

5. The Multimedia Business Catalogue (MBC) 69
    5.1 Business Objectives 70
    5.2 Information Processing Tasks 71
    5.3 System Functionality 72
    5.4 Implementation Aspects 74
    5.5 Expert Evaluation of an MBC 76
    5.6 Prospective Cost Benefit Analysis of an MBC for Tele-ordering 8
        5.6.1 Results 81
        5.6.2 Conclusion 84
    5.7 Discussion 85

6. The Multimedia Promotion System (MPS) 87
    6.1 Business Objectives 88
    6.2 Information Processing Tasks 90
    6.3 System Functionality 91
    6.4 Implementation Aspects 92
    6.5 Expert Evaluation of a Promotional CD-i 93
    6.6 Discussion 96

7. Multimedia Assisted Instruction (MAI) 99
    7.1 Business Objectives 99
    7.2 Information Processing Tasks 101
    7.3 System Functionality 102
    7.4 Implementation Aspects 103
    7.5 Discussion 105

8. The Marketing Documentation Archive (MDA) 107
    8.1 Business Objectives 108
    8.2 Information Processing Tasks 109
    8.3 System Functionality 110
    8.4 Implementation Aspects 112
    8.5 Discussion 114

9. The Virtual Market (VM) 115
    9.1 Business Objectives 116
    9.2 Information Processing Tasks 119
    9.3 System Functionality 120
    9.4 Implementation Aspects 122
    9.5 A Survey of the Viability and Effectiveness of Multimedia Teleshop Services 127
    9.6 Discussion 132

10 Towards a New Multimedia Paradigm 135
    10.1 Multimedia Paradigm 135
    10.2 Level of multimediality 139
    10.3 Level of man-machine interactivity 141
    10.4 Level of congruence 141
    10.5 Adequate usage of reference models 143
    10.6 Quality of representation 143
    10.7 Quality of retrieval functionality 144
    10.8 Conclusion 146

11. The Viability and Effectiveness of Multimedia Marketing Systems 151
    11.1 How to Measure MMS's Success? 151
    11.2 Are MMSs Effective? 153
    11.3 What is the Viability of MMSs? 154
    11.4 Market Research and Viability 155
    11.5 Critical Success/Risk Factors for MMS 158
        10.5.1 Project Management Success/Risk Factors 159
        10.5.2 System Success/Risk Factors 160
        10.5.3 How Critical are Success/Risk Factors for Your Project? 161
    11.6 Summary 163

12. Discussion 164
    12.1 Towards a Comprehensive Marketing System 166
    12.2 Unclarified Issues 167
    12.3 Some Speculations about Surviving Information Competition 167

Appendix A. Abbreviations 169
Appendix B. Terminology 173
Appendix C. Symbols Used in Diagrams 179
Appendix D. Overview Business Objectives and Success/Risk Factors per System 181
References 183
Index 193


Summary

This book gives insight in re-engineering and improving your business by developing
Multimedia Marketing Systems (MMSs), i.e. multimedia systems that support one, or more,
marketing processes. Multimedia means that multiple "media" or information types, such as
speech, music, text, graphic, still, animation and video, are used in an integrated manner.

Today, marketing is one of the most viable application domains for multimedia technology.
Viability, being able to survive under business conditions, is a very important issue for every
investor in multimedia systems, therefore this book focuses on increasing insight into viability,
and factors influencing viability, to improve MMSs and the way they are developed. An
overview of viable MMSs is given on the basis of extensive case research and practical
experiences. Subsequently, business aspects, functional aspects and implementation aspects of
MMSs are discussed such as the Multimedia Communications Archive for storage and
retrieval of corporate advertisement material, Tele Sales Assistant for support of telephonic
sales personnel, Multimedia Business Catalogue offering the possibility of tele-ordering to
business customers, Multimedia Promotion System at a trade fair stand, Multimedia Aided
Instruction for training marketing and sales staff, and the Virtual Market. The Virtual Market
is the most appealing system, as it offers flexible support for all types of information services
and meets the demands of heterogeneous groups of private and business customers.

Insight into the viability of MMSs is given by describing findings with regard to the added
value of multimedia, business objectives and success/risk factors for multimedia projects.
Experimental findings indicate that multimedia adds entertainment value as respondents
experience it as fun, as enjoyable and attractive. Perceptions about the effectiveness of
multimedia and multimedia retrieval are, however, more positive than can be concluded from
experimental findings. The belief in multimedia has clearly taken the form of a paradigm,
which needs to be corrected. Experimental findings suggest, however, that multimedia systems
are effective for information and knowledge transfer if a high level of multimediality is
combined with a high level of man-machine interactivity, adequate use of mental reference
models, good quality of information representation and if audio, video, text and graphics, etc.
are used congruently.

Some of the success/risk factors, identified as critical for the viability of MMSs, are
multimedia specific; for example, the technological complexity of multimedia projects, the
scarcity of necessary multimedia expertise, too little standardization of multimedia products,
and the innovative image of multimedia systems.

Market developments, experience, expert assessments and Cost Benefit Analyses suggest that
most MMSs are viable today; they are perceived as effective; and for the case of a Multimedia
Communications Archive and tele-ordering Multimedia Business Catalogue, it has been shown
that a very high Return On Investment is possible! Only the Virtual Market can not today be
seen as economically effective and viable; experts believe it will take about 5-10 years before
this will be the case. This implies that multimedia service providers and marketing firms that
want to survive the shift from service competition to information competition in the next
century, have to prepare themselves for the Virtual Market now, to be ready for an awakening
market in about 5 years and a profitable market in about 10 years from now.

© 1996 by Lansa Publishing BV, Leidschendam, the Netherlands
ISBN 90-5590-019-2

© 1995-2002 Martijn Hoogeveen