- What is a buyer-seller relationship? How can it vary?
A buyer-seller relationship - the bond/ relationship/connection between the seller and it customers. The bond may be strong, weak, or nonexistent at some point. The relationships can be base on emotions (brand brings happiness due to purchase) or logic (is when a customer realizes that they can’t get a better product). A strong bond brings loyalty which is important (to the firm) b/c they are less likely to search for a “better” brand, promote word of mouth, and are willing to go out of their way to stay loyal.
- why is integrated lever selection important in a marketing plan?
The 2Is let firms choose levers that can move customers through the relationship phases faster and more effectively. The 2Is affect each category of levers differently, but in the end it will remain consistent throughout all the levers. Product – individualization of customers’ pages. This can maintains commitment which increases switching costs to the customer (being comfortable with that product). It eases the way from awareness to the exploration stage. Pricing – can move customers from exploration/expansion to commitment by giving their customers a price incentive so that they will purchases the product. Communication- can example of the 2is are banners ads which can influence the communication channel. This can move customers from awareness to exploration stage. Community- presents benefits to the customers by giving them connections to the firm and to other users. Distribution- the relationship becomes tighter through interactivity.
- how did EBay’s application of the marketspace matrix change over time?
From 1995 – 98 : since it was a pioneer to the online auction business, they were not so popular so the levers were not applicable during this time. Then from 1998-99 eBay became popular enough that they were able to focus on their commitment lever. Since 2000 to the present time, Ebay had done such a good job in satisfying the community (and were able to retain customers) that eBay were able to require new buyers and sellers to continue its history of growth. They were able to expand internationally and pursued an international strategy by building international sites and acquiring new competitors. In order to increase business abck home they made efforts to win new users. This was done through tv campaign in late 2000s. They promoted payment services by including a bill paying service called Billpoint which competes with PayPal. This allows any user with an email to receive a payments online.
- what are the four categories of principles for lever selection? what the key principles for lever selection within the Marketspace Matrix?
Choose Levers to Effect a Change – Firms must understand the behavioral change they are trying to create.
Determine Which Levers Have the Most Leverage – Firms need understand which levers are going to move customers to the next stage.
Consider Barriers to Advancement – understanding what will prevent people from moving to another stage.
Consider the Medium’s Effect on Desired Behavior – the advancement from one stage to the another. The medium that are use for awareness can be different from the one for the commitment stage.
Level of Involvement Matters - Being highly involve with the purchases will have different marketing levers than a low-involvement purchases. Its important that the firms know where the product falls on the involvement spectrum.
Understand Consumer Learning Trends – understand how consumers learn about the products. It varies from different segments.
Credibility of the Channel Matter -The credibility of the channel matters more than the literal message. The message could be ignored when is being delivered through one medium. On the other hand it can be taken in when delivered by another source.
The Choice of Levers Must be Consistent with Positioning Choice – levers must support the position that the firm takes in a certain segment of the market.
The Medium can be the Message – or the Product – this means choosing the channel that the firm is already selecting. (about what its already saying)
Matrix Design Must be Adaptive- A firm must be able to adapt its matrix so that it can respond to the evaluation of the campaign/changes in the market.