What are the four categories of principles for level selection?
-which levers are customers most responsive to?
-which levers are least likely to generate a competitive response?
-which levers work best together?
-which levers are consistent with strategy?
What are the key principles for level selection with the Marketspace Matrix?
Principle 1: Base the levers on consumer behavior
2. choose levers to effect change
3. measure the impact of each lever
4. overcome barriers to advancement
5. anticipate your competitors’ likely responses
6. build on your firm’s skills and resources
7. look for interaction effects
8. integrate across levers
9. levers create the position
10. focus on superior customer value
Importance of integrated communication
-goal of marketing and communication if to convey relevant messages to the right consumers at the right time
-synergy between messages is integrated communications
-traditional and interactive marketing methods are converging
Communication types:
Marketing levers
-marketing commutations, which include all the points of contact that a firm has with its customers, can be grouped into four categories:
1. mass offline
-broadcast media: television, radio, outdoor and PR
-print media: newspapers, magazines, yellow pages, brochures, newsletters
-point of purchase displays
2. personal offline
-telemarketing, direct mail, statement stuffers, customer service
3. mass online
-basic online tools: banners, interstitials, search engines, point of purchase displays
-applications of basic online tools: partnerships and affiliate programs, sponsorships, chat rooms, serial marketing
4. personal online
-personal commercial websites
-e-mail marketing: viral marketing, loyalty programs, customer service
Implementation across the 4 relationship stages
Relationship stage (marketing levers)
Awareness (online levers: online billboards, search engines, e-mail, viral marketing; offline levers: TV, magazines, radio, yellow pages, billboards outdoor)
Exploration/expansion (online levers: online billboards, search engines, e-mail, viral marketing, website, permission marketing, serial marketing; offline levers: TV, radio, newspapers, packaging)
Commitment (online lever: targeted email, permission marketing, personalized pages; online/offline levers: loyalty programs, customer service; offline levers: telemarketing, direct mail permission marketing with personalized offers)
Dissolution (personalized pages, termination)
How interactivity and the individual affect product development
-the 2I’s allow a company to learn more about it customer, personalize a product to meet customer preferences, and offer CRM tools to provide more value for customers and cut costs for product sellers
-websites which require customers to register to use the site have access to numerous tools to interact with the user as an individual