Kotler02exs
- 1. Chapter 2 Adapting Marketing to the New Economy PowerPoint by Karen E. James Louisiana State University - Shreveport
- 2. Objectives Identify the major forces driving the new economy. Understand how business and marketing practices are changing as a result of the new economy.
- 3. Objectives Explore how the Internet has changed the way marketers use customer databases. Understand how marketers practice customer relationship management.
- 4. Drivers of the New Economy Digitalization and connectivity The Internet, intranets & extranets are key Disintermediation and reintermediation Customization and customerization Industry convergence
- 5. 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
- 6. 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
- 7. How Marketing Practices are Changing E-Business Setting up web sites Customer relationship marketing
- 8. How Marketing Practices are Changing: E-business Business practices are changing . . . E-business uses electronic means and platforms to conduct business. E-commerce web sites facilitate the online sale of products and services. E-purchasing from online suppliers. E-marketing efforts include those that inform, communicate, promote, and sell products and services over the Internet.
- 9. 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
- 10. 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.
- 11. How Marketing Practices are Changing: E-business Internet Domains B2C B2B C2C C2B C2C = Consumer-to-Consumer Transactions occur via online trading sites such as eBay. Consumers are creating online product information via newsgroup and chat room dialogues.
- 12. How Marketing Practices are Changing: E-business Internet Domains B2C B2B C2C C2B C2B = Consumer-to-Business Facilitate communication between customer and businesses.
- 13. How Marketing Practices are Changing: E-business Brick and click firms have often faced channel conflict issues Brick and click firms tend to be more successful than pure click e-tailer competitors because . . . Customer acquisition costs are lower Resources, knowledge, customer base, supplier relationships are superior
- 14. How Marketing Practices are Changing: Web Site Design Context Content Community Communication Connection Commerce Customization The Seven “C’s” of Web Site Design
- 15. How Marketing Practices are Changing: Web Site Design Placing Ads and Promotions Online Banner ads Sponsorships Microsite Interstitials Browser ads Alliances and affiliate programs
- 16. How Marketing Practices are Changing: Web Site Design Advertising income Sponsorship income Alliance income Membership and subscription income Profile income Product and service sales income Transaction commissions and fees Market research/ information Referral income Dot.com revenue and profit models:
- 17. 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
- 18. 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
- 19. How Marketing Practices are Changing: CRM CRM Leads to One-on-One Marketing Four Steps for One-to-One Marketing Don’t go after everyone, carefully identify your prospects and customers. Group customers by their needs and their value to the company; aggressively pursue the most valuable customers. Build stronger relationships with customers via individual interaction. Customize messages, services, and products for each customer.
- 20. How Marketing Practices are Changing: CRM Customer Databases and Database Marketing are the key to Effective CRM Database uses include: Best prospect identification Matching offers to customers Deepening customer loyalty Reactivating customer purchasing Avoiding serious mistakes