CH02E-中山大學吳柏林教授-Kotler營銷管理(第11版)-絕密資料

Chapter2—AdaptingMarketingtotheNewEconomy

Overview

TheNewEconomypresentsmanynewchallengesandopportunitiesforthemarketer.ThemostimportantpointisthattheNewEconomyassuredlyplacesthecustomermorefirmlyinthedriver’sseatfordecisionsonher/hisproductandservicechoices(customizationandcustomerization).Inaddition,therehavebeenandwillbemanychangesinbusinessandmarketingpracticesasbothconsumersandbusinesseshavevirtualandreal-timeaccesstoliterallymillionsofproducts,offers,options,prices,people,competitors,andsourcesofinformationthatdidnotexistuntilrecentyears.Asaresult,themarketingmixwillchangeasmarketersandfirmsidentifynewusesforintangibleassetsandeffectivecustomerrelationshipmanagementthatismorethanamarketingterm.Wecanassumethatthisincreasinglyrapidgrowthandrateofchangewillcontinue,anddespitethedot-combust,recession,andothermajorsocial,political,andeconomicadjustments,theInternetandtheNewEconomyhavechangedmarketersandmarketingforthelong-termfuture.

Manyspecificareasofmarketingalsowillfeelthestingofchange.Marketingchannelsarebecomingincreasinglydirect,ascustomerscontrolthetimeandplaceofcontact.Internationalmarketingisbecomingmorelocalizedasthemarketingimagesfromoneregioncanquicklybeidentifiedandutilizedinotherregions.Informationdisseminationcapability,despitevirtualoverload,isbringingmassivechangestoadvertisers,competitors,suppliers,andotherstakeholders,withonlythemostcustomer-awareandmarket-awareplayerssurviving.Marketerswhotakeforgrantedtheirpastimages,marketpositions,andchannelpositionscanandoftendofindthemselvesontheoutsidelookinginratherthantheinsidelookingout.

Databasemarketing

XE"Databasemarketing"

continuestobeanimportantelementintheNewEconomymarketingprocess,placingevenmoreresponsibilityonmarketerstoensurethatdataisaccurate,up-to-date,andnonintrusive.Marketershavehigherlevelsofresponsibilityforabusesthathaveoccurredindirectmarketingoverthelastfewyears.Despitethepotentialforonlineanddirectmarketing,thecontroversyassociatedwithdirectmarketingcontinues.Thereareissuesofconcernregardingirritation,unfairness,deception,andfraud,andincreasinglytheinvasionofprivacy.InternalmonitoringbetweenmarketersisallthatstandsbetweenunfetteredgrowthoftheInternet,e-marketing,directmarketing,andeventualgovernmentcontroloftheInternet.

Asband-width(broadband)capabilitiesincrease,thelevelofmarketingdetailandqualityaddsthepotentialfor“remotemarketing”thatbringstheworldclosertotrue24/7marketing,limitedonlybythecreativityandintegrityofmarketers.Thejob/careeroptionsformarketerswilllikelyreachnewlevelsincomingyears,butitisimportantnottoignorethebasicsofmarketingandconstantlytoobservetheconsumerandchangingconsumerlifestyledirectionsandpatternsfromaglobalperspective.

LearningObjectives

Afterreadingthechapterthestudentshouldunderstand:

ThemajorforcesdrivingtheNewEconomy

HowbusinessandmarketingpracticeschangeasaresultoftheNewEconomy

HowmarketersusetheInternet,customerdatabases,andcustomerrelationshipmanagementintheNewEconomy

ChapterOutline

Introduction

Hybridnatureofforcesintheneweconomy

Subcontractingandoutsourcing,retaincore,benchmarking,partnering,interdepartmentteaming,developnewadvantages,marketintangibles,information,customergroupingversusproducts

Oldeconomymarketingaround,butmoreonrelationshipsandinformationinneweconomymarketing

Majordriversoftheneweconomy

Generally,technology,globalization,andmarketderegulation

Specificdriversthatunderpintheneweconomy:

Digitalizationandconnectivity

Disintermediationandreintermediation

Customizationandcustomerization

Industryconvergence

Industryboundariesareblurringrapidly

ExamplesincludeKodak(chemicalstoelectronics),Shiseido(cosmeticstodermatologydrugs),Disney(cartoonsandthemeparkstomajorfilms,licensing,retailstores,hotels,cruiseships,andeducationalfacilities)

Recognitionthatnewopportunitiesmaybeattheintersectionoftwoormoreindustries

Howbusinesspracticesarechanging

Oldeconomybusinessbeliefs

Organizebyproductunits,focusonprofitabletransactions,focusonshareholders,onlymarketingdoesthemarketing,buildbrandsthroughadvertising

Focusoncustomeracquisition,nocustomersatisfactionmeasurement,overpromise,underdeliver

Neweconomybusinessbeliefs

Marketingshouldbuildbrandsthroughbehaviorthat

Focusesoncustomerretentionandgrowth

Measurescustomersatisfactionandretentionrates

Organizesbycustomersegments

Focusesoncustomerlifetimevalue

Focusesonmarketingscorecard(alongwithfinancialscorecard)

Focusesonstakeholders

Underpromises

Overdelivers

Movesfromnocustomersatisfactionmeasurementtoin-depthcustomersatisfactionmeasurement

Newhybrid

Mostcompaniesareahybridoftheoldandtheneweconomies.Theyretainskillsandcompetenciesthatworkedinthepastbutaddnewunderstandingsandcompetencies

Themarketplacetodayismadeupoftraditionalconsumers(whodon’tbuyonline),cyberconsumers(whomostlybuyonline),andhybridconsumers(whodoboth)

Howmarketingpracticesarechanging:e-business

Definitions:e-business,e-commerce,e-purchasing,e-marketing

E-Businessande-vcommercetakeplaceoverfourmajorinternetdomains:B2C(businesstoconsumer),B2B(businesstobusiness),C2C(consumerstoconsumers),andC2B(consumerstobusinesses).

B2C(businesstoconsumer)

Targettherightcustomers

Ownthecustomer’stotalexperience

Streamlinebusinessprocessesthatimpactthecustomer

Providea360-degreeviewofthecustomerrelationship

Letcustomershelpthemselves

Helpcustomersdotheirjobs

Deliverpersonalizedservice

Fostercommunity.

Internetislessusefulforproductsthatmustbetouchedorexaminedinadvance.

Note:cluetrainmanifesto—companiesaretoobureaucratic,tooartificial,toomanipulative,toogiventoone-wayrhetoric.Companiesthatdon’trecognizethattoday’smarketsareconversationsaredestinedtoflounde.

B2B(businesstobusiness)

10–15timesthevolumeofB2C

Auctionsites,spotexchanges,onlineproductcatalogs,bartersites,andsoon

Loweringinvoicecostsfrom$100to$20

Buyingalliances

EfficienciesbasedonuseofsupplierWebsites,infomediaries,marketmakers,andcustomercommunities,withtheresultthatpricingismuchmoretransparent

C2C(consumertoconsumer)

Shareinformation(wordofweb)growing

eBay,A,WebMD

C2B(consumertobusiness)

Offeringcall-in,customerservice

Needforfaster,betterresponse

Newsletters,specialpromotions(basedonpurchasinghistory),otherreminders

Pure-clickversusbrick-and-clickcompanies

Pure-clickcompanies

Websitewithoutpriorexperienceasafirm

Searchengines,ISPs,commerce,transaction,contentandenablersites

Dot-comsfailedforavarietyofreasons

Rushedtomarketwithoutproperresearchorplanning,poorlydesignedWebsites,complexity,poornavigation,anddowntime

Lackedadequateinfrastructuresforshippingontimeandforansweringcustomerinquiries.Believedthatfirstcompanyenteringacategorywouldwincategoryleadership

Wantedtoexploitnetworkeconomics—thevalueofanetworktoeachofitsmembersisproportionaltothenumberofotherusers(Metcalfe’sLaw)

Somerushedtothemarketinthehopeoflaunchinganinitialpublicoffering(IPO)whilethemarketwashot

But,manypure-clickdot-comsaresurvivingandevenprospering

Othersareshowinglossestoday,buttheirbusinessplansarefundamentallygood..

Howmarketingpracticesarechanging:settingupwebsites

CompaniesneedtoMoveintoE-marketingandE-purchasing

Howcanweusemarketingtospreadword-of-mouth?

Howcanweconvertvisitorsintorepeaters?

HowdowemakeourWebsitemoreexperientialandreal?

Howcanwebuildastrongrelationshipwithourcustomers?

Howcanwebuildacustomercommunity?

Howcanwecaptureandexploitcustomerdataforup-sellingandcross-selling?

HowmuchshouldwespendonbuildingandmarketingourWebsite?

Howdowechoosetherightsitesforplacingouradsorsponsorship?

Howcanwecoordinateouronlinecommerceandstoresalesandservice?

Howmuchwillourretailoperationsbehurtbyouronlinesalesandbyothere-tailers?

Shouldthesitebesetupinsideoroutsideofthecompany?

Howdowegetmanagementbuy-inandfunding?

HowcanwefightpricepressureandpricetransparencyontheInternet?

Designinganattractivewebsite

Attractiveonfirstviewing;interestingenoughtoencouragerepeatvisits

Earlytext-basedwebsitesreplacedbysophisticatedsitesthatprovidetext,sound,andanimation.examples:

Context:layoutanddesign

Content:text,pictures,sound,andvideotheWebsitecontains

Community:howthesiteenablesuser-to-usercommunication

Customization:site’sabilitytotailoritselftodifferentusersortoallowuserstopersonalizethewebsite

Communication:howthesiteenablessite-to-user,user-to-site,ortwo-waycommunication

Commerce:site’scapabilitiestoenablecommercialtransactions

Contextfactors

Contentfactors

Gettingfeedback

Placingadsandpromotiononline

Banneradsandsmallboxescontainingtextandperhapsapicturearethemostbasis

Buildingarevenueandprofitmodel.Thecompany’srevenuestreammaycomefromseveralsources:

Advertisingincome

Sponsorshipincome

Allianceincome

Membershipandsubscriptionincome

Profileincome

Productandservicesalesincome

Transactioncommissionsandfees

Marketresearch/information

Referralincome

Howmarketingpracticesarechanging:customerrelationshipmarketing

Customerrelationshipmarketinganddatabasemarketing(CRM)

Enablecompaniestoprovideexcellentreal-timecustomerservicebydevelopingarelationshipwitheachvaluedcustomerthroughtheeffectiveuseofindividualaccountinformation

Basedoncustomerattributes,companiescancustomizemarketofferings,services,programs,messages,andmedia

Reducestherateofcustomerdefection

Increasesthelongevityofthecustomerrelationship

Enhancesthegrowthpotentialofeachcustomerthrough“shareofwallet,”cross-selling,andup-selling

Makeslow-profitcustomersmoreprofitableorterminatesthem

Focusesdisproportionateeffortonhighvaluecustomers

Notedifferencesinmassmarketingversusone-to-onemarketing

MassMarketing

One-to-OneMarketing

Averagecustomer

Individualcustomer

Customeranonymity

Customerprofile

Standardproduct

Customizedmarketoffering

Massproduction

Customizedproduction

Massdistribution

Individualizeddistribution

Massadvertising

Individualizedmessage

Masspromotion

Individualizedincentives

One-waymessage

Two-waymessages

Economiesofscale

Economiesofscope

Shareofmarket

Shareofcustomer

Allcustomers

Profitablecustomers

Customerattraction

Customerretention

Otherconsiderations:

Interactwithindividualcustomerstoimproveknowledgeoftheirindividualneedsandtobuildstrongerrelationships

Customizeproducts,services,andmessagestoeachcustomer

Customerdatabasesanddatabasemarketing

Datawarehousesanddatamining

Capturinginformationeverytimeacustomercomesintocontactwithanyofitsdepartments

Thetouchpointsincludeacustomerpurchase,acustomer-requestedservicecall,anonlinequery,oramail-inrebatecard.Thesedataarecollectedbythecompany’scontactcenterandorganizedintoadatawarehouse.Companypersonnelcancapture,query,andanalyzethedata

Inferencescanbedrawnaboutanindividualcustomer’sneedsandresponses

Telemarketerscanrespondtocustomerinquiriesbasedonatotalpictureofthecustomerrelationship

Companiescanusetheirdatabasesinfiveways

Identifyprospects

Decidewhichcustomersshouldreceiveaparticularoffer

Todeepencustomerloyalty

Toreactivatecustomerpurchases

Toavoidseriouscustomermistakes

Downsideofdatabasemarketing

Goodandbadsides—threeproblemscandeterafirmfromeffectivelyusingCRM:

Requiresalargeinvestmentincomputerhardware,databasesoftware,analyticalprograms,communicationlinks,andskilledpersonnel.Buildingacustomerdatabasenotbeworthwhile

Whentheproductisaonceina-lifetimepurchase(e.g.,agrandpiano)

Whencustomersshowlittleloyaltytoabrand(e.g.,thereislotsofcustomerchurn)

Whentheunitsaleisverysmall(e.g.,acandybar)

Whenthecostofgatheringinformationistoohigh

Thesecondproblemisthedifficultyofgettingeveryoneinthecompanytobecustomer-orientedandtousetheavailableinformation.It’seasiertocarryontraditionaltransactionmarketing

Thethirdproblemisthatnotallcustomerswantarelationshipwiththecompanyandresentcollectedutilizationofpersonalinformation

Marketersmustbeconcernedaboutcustomerattitudestowardprivacyandsecurity

Europeancountriesinparticulardonotlookfavorablyupondatabasemarketing.

Databasemarketingisnotforeveryone

Mostfrequentlyusedbybusinessmarketersandserviceproviders(hotels,banks,andairlines)thatnormallyandeasilycollectalotofcustomerdata.

Itisusedlessoftenbypackaged-goodsretailersandconsumer-packaged-goodscompanies,thoughsomecompanies(Kraft,QuakerOats,RalstonPurina,andNabisco)havebuiltdatabasesforcertainbrands

70percentoffirmsfoundlittleornoimprovementthroughCRMimplementation

Allthispointstotheneedforeachcompanytodeterminehowmuchtoinvestinbuildingandusingdatabasemarketingtoconductitscustomerrelationships

Thegrowthandbenefitsofdirectmarketing—directmarketingisaninteractivebuildingprocess(directrelationshipmarketing).

Lecture—E-MarketingandtheAirlinesInformationWeek,November12,2001.

Introduction

Followingthedismalearningsduringthelastfourmonthsof2001,U.S.airlinesscrambledtofilltheirseats,andmanyreliedone-marketingtodrumupbusiness,improvecustomerservice,andkeepalidoncosts.

ThecrisisofSeptember11andafter,forcedairlinestoobtainthegreatestpossiblevalueoutoftheirinformationtechnologyande-marketingsystems.ThesesystemswereneverpushedtoperformliketheywereafterSeptember11.AsthepresidentofContinentalAirlinesnoted:“We’relivingonoursystemsandourpeoplerightnow.”Asconsumerspostponedflightsandbusinessesrestrictedtravel,theairlinesattemptedtoenhanceschedulingandrevenue-managementsystemstocontrolcostsandmaximizerevenue.Atthesametime,theairlinesalsoacceleratedplannede-marketing,Web-site,andcustomer-serviceinitiativestokeepprofitablecustomershappyandrecruitnewones.

Background

TheninelargestairlinesintheUnitedStatescollectivelyreportednetlossesof$2.43billionforthethirdquarterof2001andoperatinglossesof$3.65billionforthesameperiod.BeforeSeptember11,industryanalystswereforecastingthatU.S.airlineswouldhaveabout$2billioninlosses,butafterSeptember11theypredictedlossesforthefourthquarteraloneof$3to4billion.Boeingplannedtodeliverasmanyas520newaircraftduring2002,andthatnumberdroppedtoaround400.percentofitsseatsinOctober2001,comparedwith70percentinOctober2000.NorthwestAirlines’percentpercent,andUnitedAirlines’spercentpercent.

Unitedreportedtheworstresultsinitshistory,with$542millioninnetlosses,aftertakinginhalfofthegovernment’s$5billionbailoutforthethirdquarter.AirCanadaannounceditmaysellitsverysuccessfulregionalaircraftmanufacturingdivisiontoerasesomeofits$6.3billiondebt.Lastly,AmericaWestannounceditwaslosingabout$2millionaday.

Thesteeplossesforcedcarrierstorethinksomelong-plannedinitiatives.SouthwesthadformonthsbeenplanningtostartservicetoVirginia’sNorfolkInternationalAirportonOctober7,andhadorderedaircraftfromBoeingtosupportthenewroute.However,aftertheSeptember11attacksSouthwestdeferreditsshipmentfromBoeingandinsteadredirectedsomeofitsexistingplanestoNorfolk.

PostSeptember11,2001,Marketing

Soonaftertheattacks,Southwestexecutivesspentaweekendanalyzingdataintheairline’sschedulingandlogisticssystemstofigureoutwherepilots,crew,andaircrafthadendedupafterthemandatorygrounding.Thentheyrepositionedthemasnewflighttrendsemerged.Accordingly,theyhadtomakevariousmarketingdecisionsthattheinteractivemarketingsystemenabledthemtoaccomplishquickly.

Meanwhile,asscheduleschanged,airlinesreliedonrevenue-managementsystemstoanalyzetimetables,capacity,andpassengerdemandtodetermineticketpricesthatmaximizerevenue.Inboomtimes,ifcertainflightslostmoney,profitableflightscouldmakeupthedifference.Now,everydollaroneveryflightcounted.

BeforeSeptember11,airtrafficwaspredictable,andairlinestypicallystoredthreeyears’worthofdatatoprojectfuturebusiness.Buttheattackshavemadeitallbutimpossibletoestimatehowmanyticketedpassengerswouldshowup.“Yieldmanagementbasicallywentoutthewindow,”anairlineexecutivesaid.

Intheweeksaftertheattacks,revenue-managementanalystsadjustedthepredictivemodelstoassumethatcustomerswhoboughtticketsafterSeptember11wouldfly;thosewhopurchasedticketsbeforeSeptember11werelesslikely.Thatletairlinessellmoreticketswithoutfearofoverbooking.

AtFrontierAirlinesInc.,theterroristattackshurtdemandforflightsinandoutofBoston,NewYork,andWashington,D.C.,worsethanthoseinthewesternUnitedStates.Frontieradjusteditssystemintheeasttousedifferentmodelstopredictdemandandno-showsforeachflight.Formanyairlines,revenue-managementsystemswerethelifelinethatdeterminedwhethertheywouldstayinbusiness.

Thirty-fiveairlinesuseSabre’sAirMaxrevenue-managementsystem,whichcombinesdataonfaresthatallairlinesofferwithaparticularflightscheduletocalculateticketprices.AfterSeptember11,Sabrereprogrammedthesystemtoreflectfluctuatingdemandandthefactthatbusinesstravelreboundedfasterthanleisuretravel.

Earlierin2001,ContinentalAirlinesrolledoutmarketingandfinancialapplicationspackagesthatinteractedwiththeotherITsystemstoprovidekeydetailsaboutoverallperformance.Airlinemanagerswereabletoanalyzetheprofitofanyflightonanygivenday.Beforetheattacks,Continentalwasshiftingfrommonthlytoweeklyfinancialreviews.FollowingSeptember11,however,executivesbegantoreviewthedatadailytospottrendsandchangeschedulesmorequicklytomaximizerevenue.

Manyairlinesalsorampedupcustomerserviceande-marketingprojects.Forexample:

AlaskaAirlinesworkedaroundtheclocktolaunchanautomatedphonesystemonSeptember19,twomonthsaheadofschedule.TheyutilizedPAR3Communicationssoftwaretoautomaticallycallpassengerstoinformthemofschedulechangesandaskwhethertheyintendtokeeptheirreservations.AlaskaAirlinessentmorethan100,000alertstocustomers,freeingreservationsstafftobooknewflights.

SouthwestAirlinesbegantargetingitsfrequentflyerswithane-marketingcampaign.Theyreceive“featureddestination”e-mailsthathighlightcertaincitiesandincludehotelandcarrentalrates,alongwithalistofplacestovisit.Thegoalwassimple:Getpeoplebackintheair.

UnitedAirlinesfocusedonfrequentfliers.Inthepast,whenatop-tiermileagemembercalledtobookaseatonasold-outflight,heorshewasturnedaway.Now,Unitedreservationsagentscanviewrevenue-managementdatatoseewhatpercentageofpeopleareexpectedtoshowupanddecidewhethertoselltheimportantcustomeraticket.

Totietogethertheairlinemarketinginformationwiththatinotherindustries,considerwhatelsehashappenedsinceSeptember11,2001.Source:InformationWeek,November5,2001.

TheInternetnowoffersanalternativetodirect-mailmarketing.Anthraxworrieshavesentcompaniesscramblingtocomeupwithelectronicmarketingoptions:

ElectronicmarketingprovidersareofferingWeb-basedalternativestobusinessesconcernedabouttheanthraxscare’seffectontheirdirect-mailmarketingcampaigns.However,giventheimmaturityofe-marketingsoftwareandservices,someobserversquestionedwhethertheInternethasthesamereachandimpactasdirectmail.

AnOklahoma-basedmediacompany(PennWellCorporationofTulsa,Oklahoma)usesdirectmarketingtoreachmagazinesubscribers.Thepublisherexpecteda10percentdropinsubscriberresponsesduetoconcernsaboutthesafetyofpostalmail.Manyintheonline-marketingarenahavebeenvocalinpromotingtheInternetasasafealternativetosnailmail.Thecompanyisadvisingcompanieswithdirect-mailprogramstoturntotherelativesafetyandcost-efficiencyoftheInternet.

Tohelpmovebusinessesonline,BigFootInteractive,whichsellse-mailmarketingsystems,putoutguidelinesfore-marketerswhileencouragingthemtointegratee-mailintotheircampaigns.

Inanefforttomakemarketersfeelmoresecure,e-maillist-managementsoftware-makerL-SoftInternationalmadeavailablefreevirus-checkingtoolsfromF-SecureCorporationaspartofitssoftware.

Adirectmarketer(BrannBaltimore)thatusedbothonlineanddirect-mailmarketingnotedthatmanyofitscustomersbeganthinkingabouttheimpactoftheanthraxscareontheirmarketingefforts.Interestingly,however,noneofthefirm’sclientseliminateddirectmailormadedrasticchangesintheiroverallmarketingplans.Theprimaryreasonwasthatthereachofe-mailwasnotyetclosetothelevelofdirectmail.Asacompanyexecutiveputit:“Therearehundredsofmillionsofpostaladdresses,butonly20to22millione-mailaddresses.”

Tosummarize:Marketersthathavenotyetbuiltupadatabaseofcustomerswhoopttoreceiveelectronicmessagesmustbuythosee-mailnamesandthensendoutunsolicitedmailtounqualifiedprospects.Marketerswillsaythat’snodifferentfromsendingunsolicitedpapermail,saysanindustryanalystfromForresterResearch.Asaresult,companiescouldbeperceivedasspammers,andthismakesitnotyetaviablelong-termsolution.

MarketingandAdvertising

TheePadadinFigure1,targetedtoconsumers,highlightsoneaspectoftheboominelectronicpayment:thelegalityofelectronicsignaturesforcompletingavarietyofsalestransactions.InterlinkElectronicsispositioningtheePadasasimpleyettechnologicallyadvancedmethodofsecurelyandpermanentlydocumentingaconsumer’ssignatureonapaperlessrealestatecontractoranyotherelectronictransaction.

HowdoesInterlinkElectronicsbuildonthemajordriversoftheNewEconomyinmarketingtheePad?

IfInterlinkwantedtoexpandfromthisB2CadtoaB2Bad,whomightthecompanytargetandwithwhatbenefits?

HowmightInterlinkElectronicsenhanceitsrevenuestreambytargetingbusinessbuyersforePadpurchases?

Answer

Thisadstressesdigitalizationofacustomer’ssignature;digitalizationisoneoftheNewEconomy’sdrivers.Italsostressescustomerizationbecauseitcapturesthecustomer’suniquesignature.StudentsmaymentionotheraspectsofthenewEconomy,suchasconvergence.

ForaB2Bad,Interlinkmighttargetbusinessesthatrequiresignaturestocompletetransactions,suchasmajorbanks,insurancecompanies,andsecuritiesbrokeragefirms.ItmightalsotargetbusinessessuchasWesternUnion,whichcanusesignaturestoverifyidentitiesofpeoplesendingorreceivingmoneyinremotelocations.InterlinkcouldstresssuchB2Bbenefitsasbeingabletocompleteatransactionwithoutthecustomer’sphysicalpresence,andtheconvenienceandcost-efficiencyofcompletingtransactionsacrossmilesratherthanhavingtotraveltoasinglelocation.Studentsmayciteadditionalbenefitsaswell.

Toenhanceitsrevenuestream,InterlinkmightoffertosellePadsinvolume(atareducedprice)toWesternUnion(foritsmoneytransferservice),WellsFargo(foritsbankingandrealestateloanbusinesses),CharlesSchwab(foritsbrokeragebusiness),andotherfinancialservicesfirmsthatcouldprovidetheePadstoconsumersorbusinessownersforuseincompletingtransactions.ItmightalsoinvestigatetheneedforePadstocompleteonlinepurchasesofproductsthatarefinanced,suchascars,inordertotargetB2Bmarketingtowardcar-makersandtheirdealers.

Adnumber2:ThisadfortheGarminStreetPilotin-vehiclesatellitenavigationsystemfocusesonNewEconomyconnectivity.Atthesametime,itsuggestsaccesstotheburgeoningworldofm-commerce,inwhichcustomerswillbeabletolocateandbuygoodsandservicesinthevastvirtualmarketspace,notjustthemarketplace.

Whichcoremarketingconceptsarereflectedinthetextofthisad?

IfGarmincollecteddataaboutcustomeruseoftheStreetPilot,howmightitusethisinformationforrelationshipmarketing?

WhatconcernsmightcustomershaveifGarmindecidedtotracktheiruseoftheStreetPilot?HowcouldGarminrespondtosuchconcerns?

Answer

Theadreflectsseveralcoremarketingconcepts:targetmarkets(addressingdrivers,specificallythosewhoareinterestedinin-carnavigationdevices);needs,wants,anddemands(customerswanttobeabletofindhotelsandotherdestinationslistedinthead);productoroffering(describedasan“in-carsatellitenavigationsystem”);valueandsatisfaction(theproductisdescribedas“affordable,”relatingtoitscosts,andisalsodescribedasbeing“portable”andoffering“peaceofmind,”relatingtoitsbenefits);marketingchannels(theadincludescommunicationchannelssuchasGarmin’sphonenumberandWebaddress).

KnowinghowcustomersusetheStreetPilotwouldhelpGarminbetterunderstanditscustomers’needsandwants.Inturn,thisdeeperunderstandingwouldenableGarmintoproactivelyofferimprovedproductusesornewproductsthatarelikelytointerestitscustomers.Bysatisfyingcustomersonanongoingbasis,Garminincreasestheirloyaltyandstrengthenstherelationshipovertime.

IfGarmintrackedusageoftheStreetPilot,customersmightbeconcernedaboutinvasionofprivacyandcommercialuseoftheinformation.Garmincouldrespondtosuch