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Kotler02exs
Kotler02exs
Kotler02exs
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Kotler02exs
Kotler02exs
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Kotler02exs

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  • 1. Chapter 2 Adapting Marketing to the New Economy PowerPoint by Karen E. James Louisiana State University - Shreveport
  • 2. Objectives
    • Identify the major forces driving the new economy.
    • Understand how business and marketing practices are changing as a result of the new economy.
  • 3. Objectives
    • Explore how the Internet has changed the way marketers use customer databases.
    • Understand how marketers practice customer relationship management.
  • 4. Drivers of the New Economy
    • Digitalization and connectivity
      • The Internet, intranets & extranets are key
    • Disintermediation and reintermediation
    • Customization and customerization
    • Industry convergence
  • 5. Changes in Business Practices
    • Old Economy
      • Product unit organization
      • Profitable transactions
      • Financial scorecard
      • Stockholders
      • Marketing does the marketing
    • New Economy
      • Customer segment organization
      • Lifetime value of customer
      • Marketing scorecard
      • Stakeholders
      • Everyone does the marketing
  • 6. Changes in Business Practices
    • Old Economy
      • Build brands via advertising
      • Customer acquisition
      • No customer satisfaction measurement
      • Overpromise, underdeliver
    • New Economy
      • Build brands via performance
      • Customer retention
      • Measure customer satisfaction and retention rates
      • Underdeliver, overpromise
  • 7. How Marketing Practices are Changing
    • E-Business
    • Setting up web sites
    • Customer relationship marketing
  • 8. How Marketing Practices are Changing: E-business
    • Business practices are changing . . .
      • E-business uses electronic means and platforms to conduct business.
      • E-commerce web sites facilitate the online sale of products and services.
      • E-purchasing from online suppliers.
      • E-marketing efforts include those that inform, communicate, promote, and sell products and services over the Internet.
  • 9. How Marketing Practices are Changing: E-business
    • Internet Domains
    • B2C
    • B2B
    • C2C
    • C2B
    • B2C = Business-to-Consumer
    • Benefits include: greater ordering convenience, lower cost, easier information and price gathering
  • 10. How Marketing Practices are Changing: E-business
    • Internet Domains
    • B2C
    • B2B
    • C2C
    • C2B
    • B2B = Business-to-Business
    • Volume is 10-15% higher than B2C.
    • Benefits include: lower costs via B2B auctions, buying alliances, greater access to information.
  • 11. How Marketing Practices are Changing: E-business
    • Internet Domains
    • B2C
    • B2B
    • C2C
    • C2B
    • C2C = Consumer-to-Consumer
    • Transactions occur via online trading sites such as eBay.
    • Consumers are creating online product information via newsgroup and chat room dialogues.
  • 12. How Marketing Practices are Changing: E-business
    • Internet Domains
    • B2C
    • B2B
    • C2C
    • C2B
    • C2B = Consumer-to-Business
    • Facilitate communication between customer and businesses.
  • 13. How Marketing Practices are Changing: E-business
    • Brick and click firms have often faced channel conflict issues
    • Brick and click firms tend to be more successful than pure click e-tailer competitors because . . .
      • Customer acquisition costs are lower
      • Resources, knowledge, customer base, supplier relationships are superior
  • 14. How Marketing Practices are Changing: Web Site Design
    • Context
    • Content
    • Community
    • Communication
    • Connection
    • Commerce
    • Customization
    The Seven “C’s” of Web Site Design
  • 15. How Marketing Practices are Changing: Web Site Design
    • Placing Ads and Promotions Online
      • Banner ads
      • Sponsorships
      • Microsite
      • Interstitials
      • Browser ads
      • Alliances and affiliate programs
  • 16. How Marketing Practices are Changing: Web Site Design
    • Advertising income
    • Sponsorship income
    • Alliance income
    • Membership and subscription income
    • Profile income
    • Product and service sales income
    • Transaction commissions and fees
    • Market research/ information
    • Referral income
    Dot.com revenue and profit models:
  • 17. How Marketing Practices are Changing: CRM
    • Customer Relationship Marketing (CRM) allows companies to:
      • Deliver real-time customer service
      • Customize market offerings, products, services, media, and messages
  • 18. How Marketing Practices are Changing: CRM
    • Effective Customer Relationship Marketing requires:
      • Reducing customer defection rates
      • Extending the life of the customer relationship
      • Enhancing customer sales / profit potential
      • Making low-profit customers MORE profitable or terminating them
      • Focusing on high value customers
  • 19. How Marketing Practices are Changing: CRM
    • CRM Leads to One-on-One Marketing
      • Four Steps for One-to-One Marketing
        • Don’t go after everyone, carefully identify your prospects and customers.
        • Group customers by their needs and their value to the company; aggressively pursue the most valuable customers.
        • Build stronger relationships with customers via individual interaction.
        • Customize messages, services, and products for each customer.
  • 20. How Marketing Practices are Changing: CRM
    • Customer Databases and Database Marketing are the key to Effective CRM
    • Database uses include:
      • Best prospect identification
      • Matching offers to customers
      • Deepening customer loyalty
      • Reactivating customer purchasing
      • Avoiding serious mistakes

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