Marketing Management

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Marketing Management
Adapting Marketing To The New Economy
Dr. Zafer Erdogan
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Kotler on Marketing

• The Internet will create new winners and bury
  the laggards.

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Major Drivers of the New Economy

• Digitization and Connectivity
• Disintermediation and Reintermediation
• Customization and Customerization
• Industry Convergence

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How Business Practices are Changing

• From organizing by product units to organizing by
  customer segments
• Shift focus from profitable transactions to
  customer lifetime value
• Shift focus from financial scorecard to also
  focusing on the marketing scorecard
• Shift focus from shareholders to stakeholders

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How Business Practices are Changing

• Everyone does the marketing
• Build brands through performance, not just
  advertising
• Customer retention rather than customer
  acquisition
• From none to in-depth customer satisfaction
  measurement
• From over-promise, under-deliver to
  under-promise, over-deliver
• The Fact is the New Hybrid!

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How Marketing Practices are Changing E-business

• E-business
• E-commerce
• E-purchasing
• E-marketing
• Some argue that e will be dropped in time

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Four Major Internet Domains

• B2C (Business to Customer)
• B2B (Business to Business)
• C2C (Consumer to Consumer)
• C2B (Customer to Business)

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Pure Click vs. Brick and Click

• Pure-Click companies
• Search engines, Yahoo!, Google, Excite
• Internet service providers, AOL, CompuServe
• Commerce sites, Amazon, e-Toys
• Transaction sites, e-bay, etrade
• Content sites, The Globe and Mail, E.Britannica
• Enabler sites, hardware and software companies
• Brick-and-Click companies

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Discussion Question
Which is more important for developing an
e-presence the agility of a pure-click company,
or the well defined and readily identifiable
resources of a traditional brick and mortar
company?
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How Marketing Practices are Changing Customer
Relationship Marketing

• Reduce rate of customer defection
• Increase longevity of customer relationship
• Enhance growth potential through cross-selling
  and up-selling
• Make low profit customers more profitable or
  terminate them
• Focus disproportionate effort on high value
  customers

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Table 2.3 Mass Marketing vs. One-to-One
Marketing
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Four steps for CR Marketing

• Dont go after everyone, identify prospects.
• Differentiate customers by their needs and their
  value to the company.
• Individual interaction with customers builds
  stronger relationships.
• Customize messages, services, and products for
  each customer.

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Marketing Spotlight Yahoo!

• If "point of destination" placed Yahoo! on the
  Internet map, what marketing miscue
  causedYahoo!'s "point of departure" from the
  scene? Discuss.
• If Yahoo! was caught in the web of overconfidence
  with the dot-corns in 2000, can you
  suggestmarketing management strategies that
  would help it avoid this situation in 2005 and
  after? Is amerger the only answer?
• What changes would you suggest for Yahoo! to give
  their marketing strategy a longer rangemarketing
  perspective?