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  • 1. Customer Driven Marketing: How Consumers are Taking over the Marketing Mix Leyland Pitt Lulea University of Technology November 2009
  • 2. Marketing’s Progression Up to 1980’s 1990’s through to 2005 Since 2005
  • 3. Traditional Marketing: Marketing AT the Customer
  • 4. Marketing “at” the customer
    • Customer heterogeneity confuses marketing
    • So customers are best seen as homogenously grouped – market segments
    • “ Target marketing” – but more like hunting with a shotgun and hoping to hit something
  • 5. Addressable Marketing: Marketing TO the Customer Firm
  • 6. Marketing “TO” the Customer
    • The age of addressability
    • Technology enables an understanding of the individual customer
    • The customer becomes the “prey” and the marketer becomes the “hunter”
    • Customer is targeted with laser precision
    • The era of “mass customization”
  • 7. Marketing in the Age of the Network: Marketing WITH the Customer
  • 8. The Consumer becomes a Marketer
    • The networked consumer uses technology to perform marketing functions previously the prerogative of firms
    • The “4 P’s”
    • The consumer becomes part of a marketing dialog, not the target of a marketing monolog
  • 9. Deighton and Kornfeld, 2007
    • “ The really surprising and interesting events of the last decade from the perspective of marketing practice and theory have not had to do with better interaction between the marketer and the consumer. They have had to do with digitally enhanced communication among consumers, and between people and the world’s information, and marketing has struggled to find a place on these new communication pathways.”
  • 10. Whereas the early promise of technology
    • …… was to give marketers hitherto undreamed of power over consumers by using all the information that had been gathered and processed on them to the firm’s benefit (cf. Blattberg and Deighton, 1991) recent evidence suggests that the opposite is occurring.
    • Deighton and Kornfeld (2007): “ it's the consumer who runs the show for the most part, not the marketer—in fact, forget the "consumer" label altogether ”.
  • 11. Technology is enabling consumers to perform for themselves and others
    • many of the marketing tasks and functions (the well-known “4Ps”) that were previously the prerogatives of organizations
    • eBay
    • Betfair
    • ePinions
    • redesigning and remanufacturing products for themselves and others, and using internet technologies to distribute their offerings (Mollick, 2005)
    • There don’t seem to be any of marketing’s 4 Ps that are immune to the consumer-technology onslaught
  • 12. Clever Customers Messing with Products
  • 13. Jim Hill
    • barred from the Magic Kingdom
    • devoted Disney fan writes a blog on Disney
    • Offers guided but unauthorized tours of Disneyland, charging $25 per person
    • March 2005 security at Disneyland in Anaheim, California informed him barred from the park and all other Disney venues
  • 14. Jose Avila
    • Made furniture for his apartment exclusively from Federal Express boxes
    • displayed pictures on his website ( )
    • FedEx promptly overnighted a cease and desist letter
    • consumer comments on weblogs persist:
      • “ This really brightened my day! The letters are classic lawyer exchange. My husband and I laughed and laughed. Lawyers jousting at windmills...”,
      • “ FedEx needs to lighten up. Jose is a bright and innovative young man, and instead of making his life miserable, they should give him a great job.
  • 15. Ron Gremban’s car
    • looks like a typical Toyota Prius hybrid
    • an additional stack of 18 brick-sized batteries boosts the car's already high mileage with an extra electrical charge so it can burn even less fuel.
    • spent several months and $3,000 tinkering with his car
    • Toyota initially frowned on people altering their cars
    • now say they may be able to learn from them
  • 16. Consumers Playing with Prices
  • 17. On eBay Off eBay On eBay On eBay Identify Items to Sell Find & Research Similar Items (Product, Price) Decide on Specifics for Price & others Decide when to list item List Items
  • 18. On eBay, sellers rely on each other
    • Most sellers do research by reviewing other sellers’ listing, primarily to set price expectations for the item they are trying to sell
    • Sellers are using eBay to assess the true market value of an item on eBay before they sell, using the same “finding” experience that buyers are using to find find value as well
  • 19. Consumers distributing products and themselves
  • 20. The Power of Social Networking
    • Facebook – more members than the populations of most of the world’s countries (world’s number 2 website)
      • In December 2008, the Supreme Court of the Australian Capital Territory ruled that Facebook is a valid protocol to serve court notices to defendants.
    • Twitter: Your own moment of fame
    • LinkedIn
  • 21. Consumers are now
    • Salespeople
    • Advertisers
  • 22. Selling the Self in Second Life…and real and virtual products too
  • 23. The Consumer as Advertiser
    • Consumers now using inexpensive software, and websites such as YouTube
    • To make and distribute ads
    • About the brands they love
    • And the brands they hate!
  • 24. A spoof ad