marketing in new liberalised economy
TRANSCRIPT
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 0 in Chapter 2
Marketing in
21st Century
©2003 Prentice Hall, Inc.
The New Economy
Substantial increase in buying power
A greater variety of goods and services
A greater amount of information about
practically anything
A greater ease in interacting and placing and
receiving orders
An ability to compare notes on products and
services
To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 2
©2003 Prentice Hall, Inc.
The New Economy
Websites can provide companies with
powerful new information and sales channels.
Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
Companies can facilitate and speed up
communications among employees.
Companies can have 2-way communication
with customers and prospectsTo accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 2
©2003 Prentice Hall, Inc.
The New Economy
Companies can send ads, coupons, samples,
information to targeted customers.
Companies can customize offerings and
services to individual customers.
The Internet can be used as a communication
channel for purchasing, training, and recruiting.
Companies can improve logistics and
operations for cost savings while improving
accuracy and service quality.To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 2
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 2
Changes in Business Practices
Old Economy
– Product unit organization
– Profitable transactions
– Financial scorecard
– Stockholders
– Marketing does the marketing
New Economy
– Customer segment organization
– Lifetime value of customer
– Marketing scorecard
– Stakeholders
– Everyone does the marketing
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 2
Changes in Business Practices
Old Economy
– Build brands via advertising
– Customer acquisition
– No customer satisfaction measurement
– Overpromise, underdeliver
New Economy
– Build brands via performance
– Customer retention
– Measure customer satisfaction and retention rates
– Underdeliver, overpromise
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 2
How Marketing Practices Are Changing: E-business
Internet Domains
B2C
B2B
C2C
C2B
B2C = Business-to-
Consumer
Benefits include:
greater ordering
convenience, lower
cost, easier
information and price
gathering
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 2
How Marketing Practices Are Changing: E-business
Internet Domains
B2C
B2B
C2C
C2B
B2B = Business-to-Business
Volume is 10-15% higher than B2C.
Benefits include: lower costs via B2B auctions, buying alliances, greater access to information.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 2
How Marketing Practices Are Changing: E-business
Internet Domains
B2C
B2B
C2C
C2B
C2C = Consumer-to-Consumer
Consumers are creating product information online via newsgroup and chat room dialogues.
Transactions occur via online trading sites such as
eBay.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 2
How Marketing Practices Are Changing: E-business
Internet Domains
B2C
B2B
C2C
C2B
C2B = Consumer-
to-Business
Facilitate
communication
between
customer and
businesses.
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 2
B2B Vs. B2C
B2B B2C
Small/Focused Target Market Large Target Market
Features/Functional/Education Benefits/Symbolic/Appeal
Rational….mostly Emotional…mostly
Less/Selective Media Consumption Multiple Touch Points
Long Lead Time/Multi Step ProcessShort Lead Time/Single Step
Process
Long Term Relationship Instantly Interesting
Create and Support Demand Drive Demand
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 2
How Marketing Practices Are Changing: CRM
Customer Relationship Marketing
(CRM) allows companies to:
–Deliver real-time customer service
–Customize market offerings,
products, services, media, and
messages
©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 2
How Marketing Practices Are Changing: CRM
Effective Customer Relationship Marketing requires:
– Reducing customer defection rates
– Extending the life of the customer relationship
– Enhancing customer sales / profit potential
– Making low-profit customers MORE profitable or terminating them
– Focusing on high value customers
©2003 Prentice Hall, Inc.
Marketing
Typically seen as the task of
creating, promoting, and
delivering goods and services to
consumers and businesses.
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 2
©2003 Prentice Hall, Inc.
How Business andMarketing are Changing
Customers
Brand manufacturers
Store-based retailers
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 2
©2003 Prentice Hall, Inc.
How Business andMarketing are Changing
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 2
Company responses and adjustments
Reengineering
Outsourcing
Partner-suppliers
Market-centered
E-commerce
Benchmarking
Alliances
Global and local
Decentralized
©2003 Prentice Hall, Inc.
How Business andMarketing are Changing
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 2
Marketer Responses and Adjustments
Customer relationship Marketing
Integrated marketing communications
Customer lifetime value
Customer share
Target marketing
Customization
Customer database
Channels as partners
Every employee a marketer
Model-based decision making