Wymbs Marketing Blog » ja056411

Notes for Final

ja056411 — Mon, 22 Dec 2008 14:07:32 +0000

The 2Is: WHy the web is Unique at creating Customer Relationships

1.Interactivity

–Defined as the extent to which a two-way flow if communication occurs between the firm and the customer.

2.Individualization

–Reflects the degree to which firm-customer interactions are tailored or customized to the individual user.

Stages of a Relationship

1.Awareness

2.Exploration and Expansion

1.Attraction

2.Relationship Norms

3.Trust

4.Power Relations

5.Satisfaction

3.Commitment

4.Dissolution

Two basic reasons why customer relationships increase profitability:

1.Costs of serving existing customers are lower.

2.Existing customers are willing to pay higher prices.

Pricing – +++++++++++++++++++++++++++++++++++++++

Key variables of basic demand-curve pricing:

•Price

•Substitute Offerings/ Prices

•Complementary Offerings/ Prices

•Income

•Market Size

•Taste

•Marginal Revenue

•Marginal Cost

Basic Pricing Strategies

•Cost Plus

•Target Profit Growth

•Target-Return Pricing

•Prestige Pricing

•Price as a Sign of Quality

•Cyclical Promotional Pricing (Hi-Lo)

•Everyday Low Pricing

•Fairness in Pricing

•Promotional Low-Cost Pricing

Auction Types

•English Auctions

–Reverse-Price English Auction

•Dutch Auctions

•First Price Sealed-Bid Auctions

•Reverse First Price Sealed-Bid Auctions

•Group Buying

•Exchanges

Product – +++++++++++++++++++++++++++++++++++++++++

Cass 21, 11/24

ja056411 — Mon, 22 Dec 2008 13:22:22 +0000

Power Point and use the note section to explain powerpoint 20-30 Slides

Which Lever should be used?

Choose levers to Effect a change
Determine which levers Have the most leverage
Consider barriers to advancement
Consider the medium’s effect on desired behavior
Level of involvement matters
Understand consumer learning trends
Credibility of the channel matters
The choice of levers must be consistent with positioning choice
The medium can be the message – or the product
Matrix design must be adaptive

eBay’s Application of the Marketspace Matrix (1998-99)

Once eBay had advanced a significant number of users into the exploration/ expansion phase, the firm needed to focus on sustaining commitment.
As the firm’s needs changed, so did its Marketspace Matrix

Awareness

Began first major advertising campaign in late 1998
Radio and print campaign with “You might not just find it on eBay” slogan
Strategic alliances with AOL.com and the now defunct Go.com
Sponsored auction of famous memorability for free media exposure

Exploration/ Expansion

Added new attributes and features
Offered complementary services
Improved existing services
Improved ecxisting services
Unbalanced community offerings
Forums where verteran

Commitment

Community enabling remains a constant product lever to advance user to and sustain commitment
Loyalty program where seller can earn “Power Seller”

Dissolution

Class 20, 11/17

ja056411 — Mon, 22 Dec 2008 13:21:54 +0000

Post articles in the three different categories of Prof. W blog’s

Nike distribution channels

Indirect

Direct

Direct Niva niketown in major metropolitan areas

Indirect via offline retailer

Customers

Nike

What is a brand?

According to the American marketing association, a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition.”

Class 19 – 11/12

ja056411 — Mon, 22 Dec 2008 13:21:17 +0000

Class 19: Designing a Marketspace Matrix – 11/12

Lecture (Notes posted on web)

Session Overview: This lecture ties all of the marketing levers (product, pricing, communication, community and distribution) into the Marketspace Matrix, and shows how students can use the Marketspace Matrix to design a marketing plan.

Class Preparation Questions:

What is a buyer-seller relationship? How can it vary?
Why is integrated lever selection important in a marketing plan?
How did eBay’s application of the Marketspace Matrix change over time?
What are the four categories of principles for lever selection?

What the key principles for lever selection within the Marketspace Matrix?

Interactive TV. It could open doors for marketers to sell tv certain products.

Movie revenue sources

Tickets
Advertising
Video (DVDs)
If the technology to sell on movie is made available, this could also be an additional source of revenue.

What do you need for a community online?

Volume
Interactivity
- You need topics that interest people
- Create some sort of passion (motivation)

The Community Application Model

Purpose

Community

Creation

Consumer Attributes

Product Attributes

Consumer attributes are behavioral

Product attributes are emotional

Interactivity makes internet different than traditional marketing media.

In an online community the user is the one that creates the content. The more things that the user do, the less thing that a company has to do.

_____________________________________________________________________________________

Distribution

The internet and distribution

How has it changed the world?

Coordination costs has been reduced tremendously

Historically information flowed from the company to the customer. Today information can flow easily both ways.

What is distribution?

Getting products to consumers

Flows of goods

Flows of funds

Flows of information

Class 18, 11/10

ja056411 — Mon, 22 Dec 2008 13:20:54 +0000

Session Overview: This lecture focuses on how the 2is and the Internet have influenced distribution. The lecture concludes by showing how various distribution levers fit into the Marketspace Matrix.

Class Preparation Questions:

Is the Internet a distribution channel?
What are the functions of channel intermediaries?
What is disintermediation and what are its implications for channel intermediaries and customers?
What are the distribution levers and how do they affect relationships between intermediaries and buyers and sellers?

Group Project

Options

Pick a particular product
1. Product
2. Price
3. Awareness
4. Commitment

Take an exiting case
1. Google.com
2. Toyota
3. Yahoo
4. Mercadolibre.com

Blog posting

I need a total of three – choose diferent catagories

0	Awareness	Exploration	Commitment	Dissolution
Product
Price
Communication
Community

What is community?

A set of interwoven relationships built on shared interests, which satisfies members’ needs otherwise unattainable individuality.

Community Criteria

People Criteria > Process Criteria > Culture criteria > Technology

Class 17 – 11/05

ja056411 — Mon, 22 Dec 2008 13:20:15 +0000

1. What is the definition of community?
2. What are the criteria that define successful community?
3. What are the different types of interests that form the foundations of community?
4. What are the different ways in which communities function?
5. What are the three primary ways in which value is created within a community?
6. What are the benefits that community can generate for a parent firm?
7. What are the different levels of community?

Class 17: Community 11/5

Lecture (Notes posted on web)

Session Overview: This lecture focuses on how firms can encourage and profit from community, and how various community levers fit into the Marketspace Matrix.

Class Preparation Questions:

Google – Comparison Chart Public Service

Facebook

Youtube Hits – Sara Palin (Saturday night) – 50 million hits

Ultimately you want two things from people (for Political ads)

Donations
Votes

Anytime you have interaction you have communication

Banner ads generate awareness

If you click on it you enter into Exploration

Commitment – No commitment

Who controls the communication flow on the internet?

The user

What do user wants?

They want relevant and targeted communication

Importance of integrated communication

Goal of marketing and communication is 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 Process

Identifying the target audience
Determining the communication objective
Developing the media plan
Creating the message
Executing the campaign
Evaluating the effectiveness of the campaign

Augmented Product

Development Levers

8 Customer Service Programs

Postsales support, customer care, & customer relationship management.

8 Loyalty programs and privileges

8 Availability of complementary products

8 Upgrades

8 Enabling community

8 Additional functionality

8 Fulfillment capabilities

Class 16 11/03

ja056411 — Mon, 22 Dec 2008 13:19:36 +0000

Relationships – a bond between two parties
Pricing
Communication

Why do firms want relationships with customers?

Word of mouth
Trust

Pricing type open up by the internet

Auction -> Dynamic pricing

” target=”_blank”>Mysimon.com

Pricing Types

Cost plus
Comptetitive pricing
Demand pricing
Lost leader
EDLP (everyday low prices) – i.e Wallmart
Luxury pricing
Frenzy pricing

Stub-hut

E-bay

Dynamic Pricing Strategies

*decreased menu costs

Interactivity

Auction Types (important)

English auction
- Reverse-price English auction

Dutch Auctions
First price sealed – Bid auctions
Reverse First Price Sealed – Bid Auctions
Group buying
Exchange

Our Generation – Interesting article about our contribution to the world

ja056411 — Wed, 19 Nov 2008 14:43:28 +0000

http://www.economist.com/books/displaystory.cfm?story_id=12591038

This article talks about the implication of growing in a digital world. I describes our view of the world and how we interact with problems in society and in the workplace. Its worth reading!

Obama asks people what they want from an US Government CTO

ja056411 — Wed, 19 Nov 2008 14:39:27 +0000

http://www.pcworld.com/article/154142/what_should_obamas_cto_do.html

This article its really interesting. It talks about the community that President Elect Obama has built online and how the website obtains feedbacks in issues dealing with technology. The website asks the public who they would recommend as the next American CTO and what are the key issue this person should focus on. This PC world article is really critical about the priorities that people has voted for, but I think our generation of internet users will enjoy greater interaction with the government thanks to technology. This is just a sample of many questions government officials will ask us in the future.

You can now google using spoken words

ja056411 — Wed, 19 Nov 2008 14:21:57 +0000

“You want to be able to interact with your phone just like you would with your mom or friends,” said Dariusz Paczuski, senior director for consumer services at Tellme. “Voice is a great interface and it can simplify interactions more than anything.”

We all have agreed in class that google has changed how we see the world and how we think about obtaining information. This new technology that google is developing for people to conduct search has the potential of teaching us a new language “Googlish.” When you search in google you don’t use whole sentences rather you use bit and pieces that make up what you are looking for. Insted of typing “Plato’s Allegory of the Cave” when we google this we usually type ‘Plato Allegory” or “Plato Cave”. This a new language often referred to as “Googlish” and it might defined how we interact with technology.

The article can be found here http://bits.blogs.nytimes.com/2008/11/18/google-iphone-machine/