1. Marketing Management Dr. Zafer Erdogan
Adapting Marketing To The New Economy
Dr. Zafer Erdogan

2. Kotler on Marketing
The Internet will create new winners and bury the laggards.

3. Major Drivers of the New Economy
Digitization and Connectivity
Disintermediation and Reintermediation
Customization and Customerization
Industry Convergence

4. 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

5. 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!

6. How Marketing Practices are Changing: E-business
E-commerce
E-purchasing
E-marketing
Some argue that ‘e’ will be dropped in time

7. Four Major Internet Domains
B2C (Business to Customer)
B2B (Business to Business)
C2C (Consumer to Consumer)
C2B (Customer to Business)

8. 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, e*trade
Content sites, The Globe and Mail, E.Britannica
Enabler sites, hardware and software companies
Brick-and-Click companies

9. 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?

10. 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

11. Table 2.3: Mass Marketing vs. One-to-One Marketing
Average customer
Customer anonymity
Standard product
Mass production
Mass distribution
Mass advertising
Mass promotion
One-way message
Economies of scale
Share of market
All customers
Customer attraction
Individual customer
Customer profile
Customized market offering
Customized production
Individualized distribution
Individualized message
Individualized incentives
Two-way messages
Economies of scope
Share of customer
Profitable customers
Customer retention

12. Four steps for CR Marketing
Don’t 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.

13. Marketing Spotlight: Yahoo!
If "point of destination" placed Yahoo! on the Internet map, what marketing miscue caused Yahoo!'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 suggest marketing management strategies that would help it avoid this situation in 2005 and after? Is a merger the only answer?
What changes would you suggest for Yahoo! to give their marketing strategy a longer range marketing perspective?