1. Copyright © 2003 by Marketspace LLC Mohammed, Fisher, Jaworski, Paddison Internet Marketing, 2 nd Ed Chapter 13 Lecture Slides Designing the Marketspace Matrix Exhibits and Tables

2. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC The Marketspace Matrix — Today’s Objectives  Objectives will be to: Introduce the Marketspace Matrix Examine the role of the 2Is across all categories of marketing levers Review how the marketing levers are used to establish and maintain customer relationships Examine the principles and guidelines firms can use when designing the Marketspace Matrix

3. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion Chapter 13: The Marketspace Matrix

4. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

5. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–1: The Marketspace Matrix Relationship Stages Categories of Levers Branding

6. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

7. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Result Exhibit 13–2: The 2Is InteractivityIndividual Product Pricing Communication Distribution Community Greater possibilities to create and sustain relationships Branding

8. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

9. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–3: Moving Through the Relationship Stages Profitable, Uncommitted Customer Commitment Dissolution Exploration / Expansion  Customers can advance through the stages in several different ways. Awareness

10. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–4: The Marketspace Matrix Relationship Stages Categories of Levers Branding

11. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

12. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Supporting Slide 13–A: Coca-Cola Website Targeting one segment often leads to the alienation of customers in other segment. Firms that market to multiple segment (for example, Coca-Cola) face this problem on a daily basis

13. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–5: Lever Selection Process Lever Targeting Segment Current Relationship Phase Objective Positioning While segmenting, targeting and positioning provide a framework that helps managers identify the optimal mix of marketing levers, there will never be one right answer

14. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–6: Principles for Marketspace Matrix Design Principle 1: Base the levers on consumer behavior. Principle 2: Choose levers to effect change. Principle 3: Measure the impact of each lever. Principle 4: Overcome barriers to advancement. Principle 5: Anticipate your competitors likely responses. Principle 6: Build on your firm’s skills and resources. Principle 7: Look for interaction effects. Principle 8 : Integrate across levers. Principle 9: Levers create the position. Principle 10: Focus on superior customer value. Which levers work best together? Which levers are consistent with strategy? Which levers are customers most responsive to? Which levers are least likely to generate a competitive response? Matrix design is a four-step process that helps marketing managers select and implement appropriate levers

15. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Supporting Slide 13–B: Principles for Marketspace Matrix Design The Principles: 1.Base the levers on consumer behavior 2.Choose levers to effect change (see Exhibit 13.7) 3.Measure the impact of each lever 4.Overcome barriers to advancement Which levers work best together? Which levers are consistent with strategy? Which levers are customers most responsive to? Which levers are least likely to generate a competitive response?

16. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC The Principles: 5. Anticipate your competitors’ likely responses 6. Build on your firm’s skills and resources (see Exhibit 13.8) Which levers work best together? Which levers are likely to generate a competitive response? Which levers are customers most responsive to? Supporting Slide 13–C: Principles for Marketspace Matrix Design Which levers are consistent with strategy?

17. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Supporting Slide 13–D: Principles for Marketspace Matrix Design The Principles: 7. Look for interaction effects 8.Integrate across levers (see Exhibit 13.9) Which levers work best together? Which levers are customers most responsive to? Which levers are consistent with strategy? Which levers are least likely to generate a competitive response?

18. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Supporting Slide 13–E: Principles for Marketspace Matrix Design The Principles: 9. Levers create the position 10. Focus on superior customer value (see Exhibit 13.10) Which levers work best together? Which levers are consistent with strategy? Which levers are customers most responsive to? Which levers are least likely to generate a competitive response?

19. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–7: Amazon’s 1-Click Has to enter name, address, credit card CommitmentCommitment User in exploration / expansion stage Places book in shopping cart Barrier 1-click ordering bypasses barrier Given Amazon.com’s need to stimulate impulse purchases, the focus is on levers that encourage this behavior

20. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–8: TiVo Website

21. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–9: Integration of Levers Targeted Segment Online Levers Positioning Offline Levers Integrated Levers

22. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–10: Functional, Symbolic and Hedonic Explained Product’s ability to provide utility provide utility Product’s ability to provide utility provide utility Benefits that relate to the anticipated reaction of other individuals Sensual (taste, sound, sight, touch) benefits derived from the product Functional Symbolic Hedonic

23. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

24. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–11: Marketspace Matrix for EBay (1995) Relationship Stages Categories of Levers Branding

25. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–12: Marketspace Matrix for EBay (1998–1999) Relationship Stages Categories of Levers Branding

26. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Exhibit 13–13: Marketspace Matrix for EBay (2000–Present) Relationship Stages Categories of Levers Branding

27. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC Chapter 13: The Marketspace Matrix The Marketspace Matrix Role of the 2Is Across All Categories of Marketing Levers How Marketing Levers Are Used to Establish and Maintain Customer Relationships Designing the Marketspace Matrix eBay Example Conclusion

28. Last Updated: 07/21/03 Copyright  2003 by Marketspace LLC The Marketspace Matrix — Conclusion The Marketspace Matrix is intended to help firms build a marketing plan within the context of moving customers through the relationship stages. The 2Is allow firms to choose levers that can move customers through the relationship stages faster and more effectively than ever. Also, the 2Is offer firms new and improved possibilities to maintain commitment. The 10 principles of matrix design can help marketing managers select and implement appropriate levers. The principles span four categories: –Which levers are customers most responsive to? –Which levers are least likely to generate a competitive response? –Which levers work best together? –Which levers are consistent with strategy?