0
Marketing Strategies – New Economy
PPT11.
S. Venkat
Discussion Questions
1. What do we mean by the “new economy”?

This refers to the industries that fuel the
development of ...
Discussion Questions
2. Does every company need a neweconomy strategy?
Why or why not?
• Reasons why
• Growing penetration of the Internet and
mobile telephony in all segments of the
population around the worl...
• Reasons why not
• Many once-promising Internet business
models have failed to make money
• B2B hubs
• B2C e-tailers
Seven key elements characterize
new-economy technologies: are they advantages or
disadvantages?
•
•
•
•
•
•
•

Syndication...
• Syndication of information
• Definition? involves the sale of the same good—typically an informational
good—to many cust...
• Increasing returns to scale of networks
• Definition? The lower cost of subsequent transactions
arising from positive ne...
• Personalization and customization
• Definition? Personalization is marketer-driven, in other words a
marketer can person...
• Disintermediation
• Definition? Marketers reaching customers directly
without the expense or complication of distributio...
• Global reach
• Definition? Information, digital goods or services
available anywhere one can gain access to the Web.
• A...
• 24x7 access
• Definition: Allowing customers access 24 hours per
day, seven days per week, 52 weeks per year.

• Advanta...
• Instantaneous delivery
• Definition? Delivery of information, digital goods and
service over the Web instantaneously.

•...
Discussion Questions
3. Are these new economy attributes
opportunities or threats?
• Variable cost for syndicated goods
approaches zero  zero price
• Few barriers to entry
• Internet strategies may be imi...
• Versioning
– Time
– Convenience
– Comprehensiveness
– Manipulation
– Community
– Support
– Freedom from annoyance, speed...
Discussion Questions
4. What factors should be considered in
coming up with marketing strategy
decisions in the new econom...
How should marketers decide
what new-economy tools to apply?
Can we
digitize?

Customer Insight
Product
promotion
and bran...
New Economy Strategy Tools
•
•
•
•
•
•
•
•
•
•
•
•

Really Simple Syndication (RSS)
Collaborative Filtering
Rule Based Per...
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

New Economy Strategy Tools
E-mail Marketing
Viral E-mail
Blogs
Promotional Sites
Affili...
Discussion Question
5. Many of you may have thought of ideas
for entrepreneurial new-economy
ventures. What are some key q...
• The basics already covered
• Is the market attractive?
• Large and growing market, favorable macro trends

• Is the indu...
• The basics already covered
• Does my idea satisfy some target customers’
wants and needs better than current solutions?
...
• What questions have often been overlooked by
would-be entrepreneurs in the new economy?
• Where will our revenue come fr...
Ppt11
Ppt11
Ppt11
Ppt11
Ppt11
Ppt11
Upcoming SlideShare
Loading in...5
×

Ppt11

47

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
47
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Ppt11"

  1. 1. Marketing Strategies – New Economy PPT11. S. Venkat
  2. 2. Discussion Questions 1. What do we mean by the “new economy”? This refers to the industries that fuel the development of or participate significantly in electronic commerce and the Internet, develop and market computer hardware and software, and develop or provide any of the growing array of telecommunications services.
  3. 3. Discussion Questions 2. Does every company need a neweconomy strategy? Why or why not?
  4. 4. • Reasons why • Growing penetration of the Internet and mobile telephony in all segments of the population around the world • Inherent efficiencies of the Internet to reduce transaction and other costs • Strong venture capital support for high technology industries will spawn further innovation • Many established bricks and mortar companies have had success with their Internet gambits
  5. 5. • Reasons why not • Many once-promising Internet business models have failed to make money • B2B hubs • B2C e-tailers
  6. 6. Seven key elements characterize new-economy technologies: are they advantages or disadvantages? • • • • • • • Syndication of information Increasing returns to scale of networks Personalization and customization Disintermediation Global reach 24x7 access Instantaneous delivery
  7. 7. • Syndication of information • Definition? involves the sale of the same good—typically an informational good—to many customers, who then combine it with information from other sources and distribute it. • Advantages? A company can syndicate the same informational goods or services to an almost infinite number of customers with little incremental cost. The syndication process can be automated and digitized, enabling syndicated networks to be created, expanded and flexibly adapted far more quickly than would be possible in the physical world. • Disadvantages? It is difficult to police the information that gets sent out. For example, copyrighted material could be sent out for free and without permission, causing the authors or companies to lose money.
  8. 8. • Increasing returns to scale of networks • Definition? The lower cost of subsequent transactions arising from positive network effects. • Advantages? Companies like Cameraworld.com are benefited by building a community of photo enthusiasts who share insights with one another via the Cameraworld website. • Disadvantages? For companies that are new to the market it may be difficult to get customers to switch because of the relationships already developed with other companies.
  9. 9. • Personalization and customization • Definition? Personalization is marketer-driven, in other words a marketer can personalize the message it sends to each customer (i.e. send a reminder of an upcoming birthday). Customization is user-driven, which allows users to specify the nature of what is offered to them. • Advantages? Personalization and customization can help build customer loyalty and make it less likely for customers to switch to other suppliers. • Disadvantages? Once again, for competitors it is difficult to get potential customers to switch because of the loyalty they have with the company they are currently doing business with.
  10. 10. • Disintermediation • Definition? Marketers reaching customers directly without the expense or complication of distribution channels. • Advantages? Cuts out the middleman and his costs, which can increase profits for some businesses. Note, however, that the middleman’s functions typically must still be provided. • Disadvantages? Performing the functions the former middleman played may turn out to be expensive and/or difficult.
  11. 11. • Global reach • Definition? Information, digital goods or services available anywhere one can gain access to the Web. • Advantages? Reaches distant markets easily and inexpensively. • Disadvantages? Global reach is limited to those who can gain access to the Web, which is not available in all parts of the world and all economic levels.
  12. 12. • 24x7 access • Definition: Allowing customers access 24 hours per day, seven days per week, 52 weeks per year. • Advantages: Great advantage to customers in our increasingly time-pressed world. • Disadvantages: Even though customers have access 24x7, most companies can’t operate all those hours, which can make it frustrating for the customer
  13. 13. • Instantaneous delivery • Definition? Delivery of information, digital goods and service over the Web instantaneously. • Advantages? Fast and convenient delivery in our increasingly time-pressed world. • Disadvantages? May require more effort by the purchaser, which may offset the convenience. Instantaneous delivery is limited to information, digital goods and services.
  14. 14. Discussion Questions 3. Are these new economy attributes opportunities or threats?
  15. 15. • Variable cost for syndicated goods approaches zero  zero price • Few barriers to entry • Internet strategies may be imitated • Privacy issues – Cookies – Click streams • Security issues • Versioning – The value of information to different kinds of customers is likely to vary substantially
  16. 16. • Versioning – Time – Convenience – Comprehensiveness – Manipulation – Community – Support – Freedom from annoyance, speed, user interfaces, image resolution • Now can use: – Market segmentation, targeting, differentiation, positioning
  17. 17. Discussion Questions 4. What factors should be considered in coming up with marketing strategy decisions in the new economy?
  18. 18. How should marketers decide what new-economy tools to apply? Can we digitize? Customer Insight Product promotion and brand building Transaction Product delivery Customer support and service Product return or disposal Can we do so first, and/or be Proprietary? How valuable and timecritical is what kind of information? Can we reach and build relationships with our target market? Measurably effective? Measurably efficient?
  19. 19. New Economy Strategy Tools • • • • • • • • • • • • Really Simple Syndication (RSS) Collaborative Filtering Rule Based Personalization Customization Disintermediation Global Reach 24/7 Access Instantaneous Delivery Instant Messaging (IM) Search Paid Inclusion Search Engine Optimization
  20. 20. • • • • • • • • • • • • • • • • • New Economy Strategy Tools E-mail Marketing Viral E-mail Blogs Promotional Sites Affiliate Schemes Aggregators Banner Advertising Rich Media Cliffhangers Superstitials Streaming Audio V Flash Opt-In E-mail Permission Marketing Dynamic Pricing Digital Signatures Co-production
  21. 21. Discussion Question 5. Many of you may have thought of ideas for entrepreneurial new-economy ventures. What are some key questions we have learned to date to test the merit of those ideas?
  22. 22. • The basics already covered • Is the market attractive? • Large and growing market, favorable macro trends • Is the industry structurally attractive? • Five forces favorable on balance • Threat of new entrants • Bargaining power of suppliers • Rivalry among existing competitors • Bargaining power of buyers • Threat of substitute products • Driving forces - CSFs favorable
  23. 23. • The basics already covered • Does my idea satisfy some target customers’ wants and needs better than current solutions? • Who is the target market? • What benefits will we offer them? • Do we have some basis for establishing sustainable competitive advantage? • Unique or proprietary technology or capabilities • Difficult for others to imitate or duplicate
  24. 24. • What questions have often been overlooked by would-be entrepreneurs in the new economy? • Where will our revenue come from? Who will pay? For what? How much will they pay? When?
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×