Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Marketing Strategies for the New Economy 11 C H A P T E R ELEVEN

11-2 New Economy oIndustries: oFuelling the development of electronic commerce and the Internet oDeveloping and marketing computer hardware and software oProviding any of the growing array of telecommunications services

11-3 Elements characterizing new-economy technologies oSyndication of information oIncreasing returns to scale of networks oPersonalization and customization oDisintermediation and restructuring oGlobal reach oRound-the-clock access oInstantaneous delivery

11-4 Syndication of Information oInvolves the sale of an informational good to many customers oSyndication process: oCan be automated and digitized oEnables syndicated networks to be created, expanded and flexibly adapted

11-5 Increasing Returns to Scale of Networks oPositive network effect oA product becomes more valuable as the number of users increases oCompanies identifying and exploiting opportunities oBenefit from the increasing returns to scale

11-6 Personalization and Customization oPersonalization and customization can: oHelp build customer loyalty oMake it less likely for customers to switch to other suppliers oPersonalization is marketer-driven oCustomization is user-driven

11-7 Disintermediation and Restructuring oDisintermediation oThe Internet enables marketers to reach customers directly, without the expense or complication of distribution channels oDeciding to restructure one’s channel, should not be done lightly

11-8 Global Reach, 24x7 Access, and Instantaneous Delivery oGlobal reach oDelivery of information, digital goods, and services over the Web oMaking goods available 24 hours per day, seven days per week, 52 weeks per year oProviding instantaneous delivery

11-9 A Customer Experience Model for New-Economy Marketing Decision Making Exhibit 11.6 A Customer Experience Model for New-Economy Marketing Decision Making Stage in Customer Experience Process Direction of Information Flows Direction of Product Flows (Goods or Services) Direction of Cash Flows (Revenue Opportunities) Customer insightP C Product promotion and brand building P C TransactionP C Product delivery P C Customer support and service P C Product return or disposal P C P = Producer C = Customer

11-10 Conducting Marketing Research Online – Guidelines oDesign surveys - the shorter the better oPlace open-ended questions toward the end of the survey. oDo not ask questions of everyone that only brand- users can answer. oDo not include large numbers of multiple-rating questions without keeping the respondent engaged. oDo indicate progress made toward survey completion as subjects proceed.

11-11 Decision Framework oInternet applications for customer insight oNew-economy applications for: oProduct promotion and brand building oConducting transactions oDelivering digital products oCustomer service and support oProduct return and disposal

11-12 Diagnostic Questions for New-Economy Marketing Decisions Exhibit Diagnostic Questions for New-Economy Marketing Decisions Can we digitize? Can we do so first, and/or be proprietary? How valuable and time-critical is what kind of information? Can we reach and build relationships with our target market? Measurably effective? Measurably efficient?

11-13 Managing New Economy Strategies oOne issue: finding talented people to implement new economy strategies oCurrent CMO’s are unfamiliar with the new media and how to exploit them oYoung web-savvy marketing graduates can benefit the firms they join.

11-14 Industries to Get the Dot-Com Treatment oJewelry oChecks oTelecom oHotels oReal estate brokerage oSoftware