Mkt501 mod2case

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Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of First-e Group PLC one of Europe's largest e-Banks valued at 1.6 billion euros at the time.

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Mkt501 mod2case

  1. 1. . . . . . . . . . . Dynamics within Mass Marketing and Micro Marketing . . . . . . . . . . Edgardo Donovan Touro University International MKT 501 Dr. Alf Walle Module 2 – Case Analysis Monday, May 9, 2005
  2. 2. . . . . . . . . . . Dynamics within Mass and Micro Marketing Ex.1 – Priorities (CartoonStock.com) " Eddie Donovan to Bill Gates (via email): Can you shed some light on how you think companies will leverage an efficient digital infrastructure to perform one-on-one marketing in the future? Bill Gates to Eddie Donovan (via live video chat): We have Eddie Donovan from Framingham, MA asking, "How do you think companies will leverage an efficient digital infrastructure to perform one-on-one marketing in the future"? Companies will gather the email address of their customers and they will actually need to get permission from those customers to say, "We would like to send you a certain amount of electronic mail". People's inbox will allow them to control who is getting their attention and who is getting into that high priority Inbox. If you are working with somebody you might say, "OK they can send me mail on a once or twice 2
  3. 3. per month and I will be glad to pay attention to that". A company will want to think through what email do they want to send out to this customer and how can they tailor it to their particular needs, what products have they bought in the past, what kind of interest have they shown, and from the same way when you come to the web site you will have a personalized presentation. The email that gets sent on a regular basis will be very personalized. That can either be composed by hand, if the customer is valuable enough to justify that, or it can be put together using the database of information we have about the customer. Sometimes you will have a combination where the database will suggest the email that gets sent out and then somebody involved in customer service, who might interact with that customer, can put in a personal note in addition to the normal information that is going to be sent there. The concept of marketing won't be divided down into normal advertising, direct marketing, and customer service. The boundaries between those will fuse as you are sending out electronic communication that can be easily customized." (Gates/Donovan) I, along with countless other marketing professionals during the 1990s, witnessed the technological advances along with the fragmentation of traditional media ushering in a new era of increased one-to-one or micro marketing at the expense of traditional mass marketing. However, micro marketing and mass marketing cannot exist without the other given that they offer both advantages and disadvantages to the marketer vis-à-vis building demand and awareness for its products and/or services. Marketing departments need to be more dynamic and sophisticated in nature nowadays as increased technical capabilities and mass media fragmentation opportunities make it imperative to pursue an integrated approach to include mass marketing, micro marketing, and customer service. 3
  4. 4. . . . . . . . . . . Ex.2 – Bad Targeting (CartoonStock.com) " Many people think that marketing is just selling and advertising. Peter Drucker explains marketing this way: "The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits him or her and sells itself." This is not to say that selling and advertising are unimportant, but rather that they are part of a larger "marketing mix" that must be orchestrated for maximum impact on the marketplace." (Allen) 4
  5. 5. Although it is in the best interest of any organization to maximize its amount of personalized micro marketing because it is an inherently more efficient and cost- effective method in building relationships with customers and prospects it is important to realize its limitations. Micro-marketing databases, given the constantly changing needs and tastes of customers, will never be able to offer a real-time view all viable prospects for any given product or service. Furthermore, building the databases required for effective one-to-one marketing take resources and time. More often than not, regardless of how intuitive a long term marketing strategy may be orchestrated, competitive pressures will force companies to employ large traditional time sensitive mass marketing components in their marketing campaigns. Mass marketing is a shotgun approach to getting a message out fast and for creating hype and excitement. Ex. 3 – Logical Marketing? (CartoonStock.com) 5
  6. 6. . . . . . . . . . . " In the book business, as in the movie business, there are two kinds of hits: sleepers and blockbusters." (Gladwell) Although there are decreasing returns depending on how often you employ high- prestige high-exposure marketing tactics there is a quantifiable branding and prestige building element that may occur when mass untargeted marketing is performed. The 1984 commercial aired to launch the Macintosh computer in 1984 during the Superbowl was aired only once but was instrumental in creating a generation of loyal Apple customers. This is only quantifiable in hindsight. Similarly to movies, products and services may or may not be successful if they are marketed as blockbusters or sleepers. Both “The Blair Witch Project” marketed as a sleeper and “Star Wars” marketed as a blockbuster achieved great returns on their initial investment. At the same rate every year numerous movies who use either methodologies fail. Usually the decisions on whether to employ one of these almost opposite approaches depend on the resources available to the marketer as well as risk factors. 6
  7. 7. Ex. 4 – Re-Targeting (CartoonStock.com) Whereby the new Internet/database driven technologies that came of age during the nineties force marketers to adopt more sophisticated intra-coordinated one-to-one marketing campaigns the fragmenting of the mass media, although it requires adaptation to a new playing field, is an easier matter for advertisers to deal with when mass marketing is concerned. Whereas in 1980 a company could have launched a major mass marketing campaign by spending 25 million dollars among the three main television networks today all they would have to do is spend the same amount of money in today’s dollars among twenty five networks, cable stations, and new media elements. Although this presents a greater logistical challenge it offers greater opportunities for targeting. The big losers will be the network and the big advertising agencies unless they find ways to adapt and fragment themselves to meet the demands of the more sophisticated advertising marketplace,. 7
  8. 8. . . . . . . . . . . Ex. 5 – Bare Necessities (CartoonStock.com) “Meanwhile, the mass media have tried, with varying degrees of success, to adapt to micro marketing’s growing momentum. There is not much that broadcast TV, the quintessential mass medium, can do to accommodate the growing demand for targeting; in essence, it is technologically hamstrung. Meanwhile, cable continues to nibble away at its broadcast rivals by adding highly specialized channels and such services as video-on-demand. According to Nielsen Media Research, the average U.S. household receives 100 TV channels, compared with 27 in 1994. The audiences attracted by even the largest cable stations remain far smaller than those of the broadcast networks. Collectively, though, cable now rules prime time, with a 52% share to broadcast's 44%, according to Nielsen Media." (Bianco/Lowry/Berner/Arndt) 8
  9. 9. I, along with countless other marketing professionals during the 1990s, witnessed the technological advances along with the fragmentation of traditional media ushering in a new era of increased one-to-one or micro marketing at the expense of traditional mass marketing. However, micro marketing and mass marketing cannot exist without the other given that they offer both advantages and disadvantages to the marketer vis-à-vis building demand and awareness for its products and/or services. Marketing departments need to be more dynamic and sophisticated in nature nowadays as increased technical capabilities and mass media fragmentation opportunities make it imperative to pursue an integrated approach to include mass marketing, micro marketing, and customer service. 9
  10. 10. . . . . . . . . . . BIBLIOGRAPHY Works Cited Gates, Bill - Donovan, Eddie. Launch of Business at the Speed of Thought. Microsoft.com, 1999. Bianco, Anthony - Lowry, Tom - Berner, Robert - Arndt, Michael. The Vanishing Mass Market. Business Week, 2004. Allen, Gemmy. Introduction to Marketing. Mountain View College, 2005 Gladwell, Malcolm. The Science of the Sleeper: How the Information Age could blow away the blockbuster. The New Yorker, 1999 CartoonStock.com. Bare Necessities. CartoonStock.com, 2005 CartoonStock.com. Re-Targeting. CartoonStock.com, 2005 CartoonStock.com. Priorities. CartoonStock.com, 2005 CartoonStock.com. Logical Marketing? CartoonStock.com, 2005 CartoonStock.com. Bad Targeting. CartoonStock.com, 2005 II. Works Consulted Gates, Bill - Donovan, Eddie. Launch of Business at the Speed of Thought. Microsoft.com, 1999. CartoonStock.com. Bare Necessities. CartoonStock.com, 2005 CartoonStock.com. Re-Targeting. CartoonStock.com, 2005 CartoonStock.com. Priorities. CartoonStock.com, 2005 CartoonStock.com. Logical Marketing? CartoonStock.com, 2005 CartoonStock.com. Bad Targeting. CartoonStock.com, 2005 Bianco, Anthony - Lowry, Tom - Berner, Robert - Arndt, Michael. The Vanishing Mass Market. Business Week, 2004. 10
  11. 11. Allen, Gemmy. Introduction to Marketing. Mountain View College, 2005 Gladwell, Malcolm. The Science of the Sleeper: How the Information Age could blow away the blockbuster. The New Yorker, 1999 Grove, Andy. Only the Paranoid Survive. Simon and Schuster, 1995 Gates, Bill. Business at the Speed ot Thought. Warner Books, 1999 Ries, Al – Trout, Jack. Marketing Warfare. Bantam Books, 1978 11

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