TOPIC 2

MARKETING ADAPTATION IN THE NEW ECONOMY

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NEW ECONOMY MAIN DRIVERS

Digitalisation and Connectivity Disintermediation and Reintermediation Customisation and Customerisation Industry Convergence

DIGITALISATION AND CONNECTIVITY

The growth of internet Internet technologies provide platform for:
Intranet Internal corporate network that allows employees within an organization to communicate with each other and gain access to corporate information Secure network accessible through a Web site by external customers or organisation for electronic commerce

Extranet

ETargeting customers by collecting and analyzing commerce business information, conducting customer transactions and maintaining online relationships with customers by means of computer network

DISINTERMEDIATION AND REINTERMEDIATION

Selling goods and services online Examples:
     

Dell computer Air Asia Amazon Anti virus Games and many more
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CUSTOMISATION AND CUSTOMERISATION

Customisation firm can offer variety of their product according to a specific order from the customer whether by telephone, online or in person. Customerisation the ability of the firm to interact with each customer personally when they place the order.

INDUSTRY CONVERGENCE
More firms apply techniques and knowledge from another industry to amplify their competitiveness Kodak & Fuji

CHANGES OF BUSINESS PRACTICE

OLD Based on product unit Focuses on profitable transaction NEW Based on customer segment Focuses on transaction that will give the highest value for customer lifetime value Focuses on the interest of shareholders & stakeholders
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Focuses on the interest of the shareholders

CHANGES OF BUSINESS PRACTICE (cont.)

OLD Focuses on financially balanced score card Only the marketing department perform marketing activities Build brand recognition by advertising NEW Focuses also on balanced marketing score card All the workers and department will perform marketing activities Build brand recognition by excellent company performance
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CHANGES OF BUSINESS PRACTICE (cont.)

OLD Emphasis customer acquisition Lack yardstick to measure customer satisfaction Traditional transaction NEW Emphasis customer retention Detailed method to measure customer satisfaction Traditional and online transaction
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THE CHANGES OF MARKETING

E-Commerce
 

allow customer to do their transaction online provide information about the background & company policy and service offered B2C B2B C2C C2B

Four internet domain

   

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B2C BUSINESS TO CUSTOMER

Two types of B2C websites 1. Shopping sites
Dell computer, Air Asia
2. Informational sites

For example, Toyota website is informational only. No one buy a new car online
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B2B BUSINESS TO BUSINESS

Interaction involve professional buyers and sellers people whose performances are evaluated by their purchasing and selling decision Firms set up private portal that allow their business customer to buy needed items Services and customized pages are accessed through passwords provided by B2B marketer For example:


FedEx Web site

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C2C CUSTOMER TO CUSTOMER

Interaction among customers Customers join internet interest groups to share and circulate ideas regarding products or services and suppliers.

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C2B CUSTOMER TO BUSINESS

Customer communicate to businesses to ask questions, proposal and complaint normally through email For example
 

Government portal Maybank2U

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CHANGES IN MARKETING PRACTICE: WEBSITE

Designing an attractive website Placement of advertisement and promotion online The construction of revenue and profit model

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CHANGES OF MARKET PRACTICE: CRM

CRM


A strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups Traditional mass marketing shot gun approach CRM rifle approach

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CUSTOMER DATABASE & DATABASE MARKETING

Customer database


Collection of information of the existing or potential customer Process of constructing, maintaining and using the customer database and other database for the purpose of communication, conducting business and fostering a close relationship with customer
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Database marketing


UTILISING THE CUSTOMER DATABASE

To determine potential customer To determine suitable customer to receive special offers To enhance customer loyalty towards the company To reactivate customer purchasing

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