The document discusses how marketing is adapting to the new economy. The major forces driving the new economy are digitization, connectivity, disintermediation, reintermediation, and customization. As a result, businesses are shifting from organizing by product units to organizing by customer segments, focusing on customer lifetime value over individual transactions, and considering additional stakeholders beyond just shareholders. Marketers are using tools like the internet, customer databases, and customer relationship management to better understand and serve customers in this new environment.

1. Adapting Marketing to the New Economy Strategic Marketing Perspective Prof.Prasanna Venkatesh Indian Business Academy

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6. Old Economy vs. New Economy 2- Old Economy New Economy Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Overpromise, underdeliver Organize by customer segments Focus on customer lifetime value Look also at marketing scorecard Focus on stakeholders Everyone does the marketing Build brands through behaviour Focus on customer retention and growth Measure customer satisfaction and retention rate Underpromise, overdeliver

10. The Supplier-Customer Relationship: Traditional and New Economy Structures 2-

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