7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 1/13

Chapter 2Marketing in the New Economy

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 2/13

Objectives

What are the major forces driving thenew economy?

How our businesses and marketing

practices changing as a result of thenew economy?

Our marketers using the Internet,customer databases, and customer 

relationship management in the neweconomy?

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 3/13

New elements of the new economy

Companies are increasingly subcontracting activities tooutsourcing firms.

Companies are increasingly benchmarking their performanceagainst best of class companies anywhere in the world.

Companies are deepening their partnership agreements.

Companies are emphasizing interdepartmental teamwork.

Companies are inventing new advantages rather than relyingon their existing advantages.

Companies are recognizing that much of their market valuecomes from intangible assets.

Companies are making substantial investments and

information systems. Companies are increasingly organizing their activities around

customer groups, not just around products.

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 4/13

Major drivers of the new economy

Digitization and connectivity

Disintermediation and reintermediation

Customization and customerization

◦ Individually differentiated goods

◦ The combination of operational

customization and marketing

customization Industry Convergence

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 5/13

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 6/13

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 7/13

Internet domains

B2C(business to consumer)◦ Focus of most popular press

◦ Ones that we typically use

B2B(business to business)◦ Where most businesses conducted

C2C(consumer to consumer)◦ Chat rooms, etc.

C2B(consumer to business)◦ Pure click companies

◦ Brick and click companies

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 8/13

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 9/13

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 10/13

Designing a Web Site

Context: layout and design Content: text, pictures, sound, and video.

Community: how the site enables user to user communication.

Customization: the sites ability to tower itself todifferent users.

Communication: how the site enables site to user,user to site, or two-way communication.

Connection: agree that the site is linked to other sites.

Commerce: the site’s capabilities to enablecommercial transactions

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 11/13

Building a Revenue and Profit

Model Advertising income Sponsorship income

alliance income

Membership and subscription income Profit income

Product and service sales income

Transaction commissions and fees

Market research/information Referral and come

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 12/13

7/30/2019 CH2n

http://slidepdf.com/reader/full/ch2n 13/13

Customer Databases and Database

Marketing

Objectives◦ Identify prospects

◦ Decide which customers should receive a

particular offer ◦ Deep and customer loyalty

◦ reactivate customer purchases

◦

 Avoid serious customer mistakes