A buyer-seller relationship is the set of interactions or transactions that take place between firms and customers. It can vary on the basis of strength or behavioral preference (logic or emotion).
Integrated lever selection is important in a marketing plan because the chosen levers should match and reinforce the objective (in the target segment). Their interaction should also maximize the effectiveness of the marketing plan.
Initially, eBay had very little brand value, focusing on the awareness and exploration/expansion stages. Very soon after that, distribution channels increased and more users entered the exploration/ expansion stage (due to the increased number of items). The community became a valued asset and effectively moved users to the commitment stage. After that, the features of the site and quantity/quality of the community increased, moving more members into the commitment stage. There became a need for dissolution as some members did not deliver on their end of the sales (sending the item or paying the seller). Currently, eBay has a high retention rate and continues to grow, improving levers with new customer options (Buy-It-Now, more product categories).
The four categories of principles for lever selection are:
1. Which levers are customers more responsive to?
2. Which levers are least likely to generate a competitive response?
3. Which levers work best together?
4. Which levers are consistent with strategy?
The key principles for lever selection within the Marketspace Matrix are:
1. Base the levers on consumer’s behavior.
2. Choose levers to effect change.
3. Measure the impact of each.
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.