According to the article, Motorola is releasing a $2,000 phone that does little more than the currently available models (including an unimpressive 2.0 mexapixel camera).  Relying on unique (adn expensive) aesthetic choices might not work out in the long run.

Boy Genius Report confirms rumors of the next Google phone, the G2.  Being released in April, the phone will have a 5-megapixel autofocus camera, VGA camera for video calls, a full touch screen, and Wi-Fi connectivity, according to the blog.  Unlike its predecessor, the G2 will not be a T-Moble exclusive.

This article details the new features and updates to the Android operating system.  Also of note in the article is the reference to Andoird becoming open source.

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.

The functions of channel intermediaries are to efficiently reduce distribution costs and time. They should also create value for the customer.

Disintermediation is the elimination of an intermediary. Through disintermediation, customers can expect lower prices and better lines of communication between buyers and sellers.

The distribution levers and their impact on the relationship between intermediaries and buyers and sellers are as follows:
Awareness
1. Number of Intermediaries – greater awareness because the firm is accessible via more outlets.
2. Number of Channels/ Intermediary Type – greater variety of distribution channels increase market coverage and therefore awareness
Exploration/ Expansion
3. Degree of Channel Integration – as integration increases, the willingness to explore the potential for a relationship increases
4. Number of Channels/ Intermediary Type – likelihood of exploration increases as the number of channels increase
Commitment
5. Degree of Channel Integration – customers expect to be treated in a holistic sense, rather than on a per-transaction basis
6. Intermediary Type – manufacturers that go direct have greater control over the brand’s marketing strategy and are more likely to generate commitment
7. Number of Channels – customers often have different buying requirements based on the purchase situation, and their requirements can evolve over time as they grow older or their life situation changes
8. Intermediary Functions and Responsibilities – functions and responsibilities that can lead to greater commitment include customer representative training, sales incentives that focus on customer satisfaction and increased margins
Dissolution
9. Elimination of Channel Types – customers of eliminated channel type will complain or leave
10. Reduction in the Number of Intermediaries – customers will find it more difficult to purchase the firm’s products and will complain or exit
11. Reduction in Channel Integration – customers being treated based only on part of their transactions, they are less likely to feel connected to the firm or brand, and dissolution is likely to follow

The criteria that define a successful community are:
• Membership is a conscious choice.
• Member base has achieved critical mass and sustainability.
• Members feel a great sense of trust.
• Members achieve benefits in scale.
• Roles are not hierarchical or imposed.
• Effective facilitation and site structure keeps community activities on track.
• A spirit of participation and feedback is clearly cultivated.
• A sense of affiliation is achieved through ownership of equity in the community.
• Efficiency in interaction is maximized.
• The community is easily navigable

The different types of interests that form the foundations of community are information-driven, activity-driven, and commonality-driven communities.

Communities function in the following ways:
• Real-time systems
– Internet Relay Chat (IRC)
– Web-based chat
– Virtual worlds and MUDs (Multiuser Dimensions)/ MOOs (MUDs Object Oriented)
• Asynchronous systems
– Mailing lists
– Newsgroups (Usenet groups)
– Web-based message boards (bulletin board systems [BBS])

Value is created within a community by user to user, administrator to user, and user to administrator interactions.

The benefits that community can generate for a parent firm are as follows:
• Cost Benefits
– Reduced Customer Service Costs
– Reduced Customer Acquisition Costs
– Reduced Costs from Decreased Product Flaws and Marketing Mistakes
– Reduced Marketing Costs
• Revenue Benefits
– Increased Customer Segmentation and Customization
– Increased Branding
– Deepened Customer Relationships

The different levels of community are:
According to Amy Jo Kim in Community Building on the Web: Visitors, Novices, Regulars, Leaders, Elders
According to Randall Farmer: Passives, Actives, Motivators, Caretakers

The 2is affect product by allowing companies to learn about customer needs/wants and develop a product (or alter an existing product) to meet these needs. They also allow companies offer relationship building tools post purchase

The key marketing levers for products are:
• Basic Product Development Levers
o Packaging
o Attributes and Features
o Customer-Specified Attributes and Features
o Mass-Customized Product
• . Augmented Product Development Levers
o Customer Service Programs
 Post sales support, customer care, & customer relationship management.
o Loyalty Programs and Privileges
o Availability of Complementary Products
o Upgrades
o Enabling Community
o Additional Functionality
o Fulfillment Capabilities

The product development process is as follows:
1. Idea generation
2. Screening ideas
3. Product design
4. Prototype development
5. Business analysis
6. Test marketing
7. Commercialization

Companies can manage their product portfolios through:
1. New product development
2. Enhancements and line extensions of current products and services
3. Development of existing products
4. Support of current products and services

Products can help enable a customer relationship in two ways. The first way is by implementing the appropriate levers to product development in that existing relationship and by emphasizing the elements of the value proposition that are relevant to the current stage of the relationship.

A customer centric approach to product development creates strategic advantages by providing exactly what the customers has been said to value. The market already exists because it has been created by the customer. Once the product is developed, the customer is already likely to purchase (as it is what they have requested).

In a marketing communications campaign, the Internet is a distribution channel, advertising vehicle, and a customer service vehicle.

Communication types:
• Mass offline
o Broadcast
 Television
 Radio
 Outdoor
 PR
o Print
 Newspapers
 Magazines
 Yellow pages
 Brochures
 Newsletters
o Point of Purchase displays
• Personal Offline
o Telemarketing
o Direct mail
o Statement stuffers
o Customer service
• Mass Online
o Basic online tools
 Banners
 Interstitials
 Search engines
 PoP displays
o Applications of Basic Online Tools
 Partnerships and affiliate programs
 Sponsorships
 Chat rooms
 Serial marketing
• Personal Online
o Personalized commercial websites
o Email marketing
 Viral marketing
 Loyalty programs
 Custom service

The six steps in the communication process are:
1. Identifying the Target Audience
2. Determining the Communication Objective
3. Developing the Media Plan
4. Creating the Message
5. Executing the Campaign
6. Evaluating the Effectiveness of the Campaign

The Internet applies the effect of the 2is, so they affect online levers to a greater degree than the offline levers.

For the different customer stages, the following levers are used:
AWARENESS  Online levers: online billboards, search engines, e-mail, viral marketing
 Offline levers: television, 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: television, radio, newspapers, packaging
COMMITMENT  Online levers: 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

A firm should consider fair pricing because consumers often make decisions based on past prices, substitute products, and the purchase environment. That is, the lowest or highest price may not be enough for purchase. A fair price will not turn off the consumer and they will probably return for repeat purchase.

The internet has enhanced opportunities for dynamic pricing strategies by decreasing menu costs (changing the price of a product – stores or mail order cannot do it as cheaply as the Internet) and making interactivity easy and convenient. They can visit stores and comparison shop from the comfort of their homes.

A firm would want to implement a price-discrimination strategy in order to find the amount a consumer will pay for a product (first degree), find the amount a consumer is willing to pay for the first and also subsequent products (second degree), and in order to maximize revenue from all consumers ([some will pay more and some will pay less] third degree).

Static markets are those in which all variables are fixed. For example, in a static market, every consumer will purchase a product at a certain point; conversely, nobody will purchase a product at another (very high) point. This is not how the market truly is. The market is dynamic. Each consumer is different and will be willing to pay different prices for products or their substitutes.

I do not reply or access the emails that I receive from websites/stores, but the initial action that adds me to their mailing list is always the same: An online order. Soon after that purchase, I receive emails will all sorts of coupons and discounts. This is a very good way to keep me returning to the site. They can then customize the information that they send in the next batch of emails. They are learning about what will get me to place another order or visit the site (if I return right after discount emails) and also what things I am interested in receiving more information about.