Class 19: Designing a Marketspace Matrix 11/12

1. What is a buyer-seller relationship? How can it vary?
a. A relationship is a bond or connection between the firm and its customers.
b. This may be strong, weak or nonexistent.
c. It can be based on logic or emotion Logical bond – realization that a customer simply cannot get a better product elsewhere. Greatest potential for strong buyer-seller relationships exists when the product is an important part of consumers’ lives.
d. Buyer-seller relationships are based on exchange, where each party expects, or perhaps even demands value for what is given (i.e. money for products).
e. Firms want a relationship with their customers, even though it is not always cost effective.
f. Firms must understand that not all committed customers are equal, and relationships that bring no benefit to the firm should be dissolved.
2. Why is integrated lever selection important in a marketing plan?
Selected Levers must be integrated in two ways: Levers must match the positioning and targeted segment & Online and offline levers must be integrated as well. The chosen levers should reinforce each other to maximize the effect of the marketing plan.
3. How did eBay’s application of the Marketspace Matrix change over time?
a. Ebay began to utilize more levers, and the additions were focused in two places: the commitment column in the matrix became heavily utilized, as did the community row.
b. Ebay did also seek to drive awareness and exploration among new users, but the firm designed the bulk of the new levers added to the matrix to advance users to the commitment stage and keep them there.
c. Having nearly perfected its community and ability to retain customers, eBay requires new buyers and sellers to continue its history of growth.
d. Pursued international strategy through building international sites and acquiring competitors.
e. To increase core business in the US, eBay has stepped up efforts to win new users.
f. Television campaign in late 2000.
g. Promote ancillary services including a bill-paying service called Billpoint which competes with PayPal, which allows anyone with an email to receive a payment.
4. What are the four categories of principles for lever selection?
a. Which levers are customers most responsive to?
b. Which levers are least likely to generate a competitive response?
c. Which levers work best together?
d. Which levers are consistent with strategy?
5. What are the key principles for lever selection within the Marketspace Matrix?
The key principles for lever selection within the marketspace matrix are Choose Levers to Effect a Change, Determine Which Levers Have the Most Leverage, Consider Barriers to Advancement, Consider the Medium’s Effect on Desired Behavior, Level of Involvement Matters, Understand Consumer Learning Trends, Credibility of the Channel Matters, The Choice of Levers Must be Consistent with Positioning Choice, The Medium can be the Message – or the Product, Matrix Design Must be Adaptive