1) What is a buyer-seller relationship? How can it vary?
A relationship is defined as a bond or connection between the firm and its customers. This bond may be strong, weak, or nonexistent, and it can be based on either logic or emotion. An example of logical bond is a realization that the customer simply cannot get a better product elsewhere. However, strong relationships typically have an emotional dimension as well- think of your relationships with family and friends. Buyer-seller relationships can be strong, but generally they are not as powerful as the connection we have with people who are close to us. Buyer-seller relationships are based on exchange, where each party expects, or perhaps even demands, value for what is given.
2) Why is intregrated lever selection important in a marketing plan?
IMC ensures that levers complement one another and thus drive customers through the relationship stages more effectively.
3) How did eBay’s application of the Marketspace Maxtrix change over time?
eBay first focused on advancing users into the awareness and exploration/expansion stages. The next phase of its matrix involved building community and sustaining commitment. Once the community was established along with a large user base, eBay again returned to bringing new users into the community through the awareness and exploration/expansion phases.
4) What are the four categories of principles for lever 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 lever selection within the Marketspace Matrix?
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