ELC 310 Day 26. Agenda Questions? Exam # 4 on Friday, December 8 10 Short essays Plus one extra...
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Transcript of ELC 310 Day 26. Agenda Questions? Exam # 4 on Friday, December 8 10 Short essays Plus one extra...
Agenda
Questions? Exam # 4 on Friday, December 8
10 Short essays Plus one extra credit essay
Entire class period Albert Chapters 1-14
Case study Analysis 3 A’s, 2 B +’s and 1 B Did use student grading even though some of the input was flawed Eliminated bad inputs
Student prepared Case Studies 16% of Overall Grade Written due December 14, email in WebCT Presentation due December 14 at 1-3 PM, email in WebCT prior to 1
PM Lecture/Discuss Evaluation Methodology and Research in E-
Commerce
Schedule for last days of class
Today Albert Chap 13 & 14
December 8 Quiz 4
December 14, 1 – 3 PM Written Case study & presentations Due
Please send me your PowerPoint's prior to any presentation so I may load them up on the web server
Case Study RecapCase Industry Marketing Challenge
1 Insulation Manufacturer Integrated marketing Communications
2 Steel Mill Pricing Decision Process
3 Hardware Distributor Business Strength matrix
4 Utility Company Branded Customer experience
5 Not for Profit Branding Strategies
6 Consumer packaged goods
Service Marketing Model
7 Insurance Company Disintermediation Reintermediation
8 Financial Service New Product Development
What is “Customer”ization?
Customerization defines the exchange process of marketing in the context of complete customer-control.
Natural fit with the electronic environment
Entices customers to remain loyal
Overview of the Model
Customerization is a buyer or customer-centric marketing model.
Develops a relationship between: One-to-one marketing Mass customization
Internal operations must have the capability to customize “Build to order process”
Characteristics
Flexible Requires database integration,
operations, and production for success Relies on a number marketing
approaches: traditional mass marketing targeted direct marketing
8 Enhanced Marketing Outcomes
1. Develop/Deepen Customer Relationship2. Transitioning Experienced-Based
Decision3. Customizing the Interaction4. Co-develop Products and Services5. Premium Pricing Acceptance6. Interactive Information Exchange7. Distribution Channel Choice8. Personal Brands
I. Developing/Deepening Customer Relationship
Capitalizes on relationship building
E-business component demonstrated : CRM
Value Bubble Steps involved: Attract, Engage, Retain, Learn, Relate
II. Transitioning Experienced-Based Decisions
“Design and Discover Process” allows user to see the outcome provides the experience that is
necessary to make purchase decision E-business component
demonstrated : CRM and SCM
Value Bubble Steps involved: Engage, Retain
III. Customizing the Interaction
Relies on accurate databases that integrate all customer information a firm possesses. Segmentation and Microsegmentation
E-business component demonstrated: CRM and BI
Value Bubble Steps involved: Learn and Relate
IV. Co-Develop Products and Services
Collaborate with customers to develop a new product or service part of market research and NPD
E-business component demonstrated: BI, CRM
Value Bubble Steps involved: Engage
V. Premium Pricing Acceptance
Increases value beyond competition creates customer satisfaction and loyalty
E-business component demonstrated : E-Commerce or the transaction
Value Bubble Steps involved: Learn and Relate
VI. Interactive Information Exchange
Leverages information about the products and services it provides
E-business component demonstrated: CRM
Value Bubble Steps involved: Engage and Retain
VIII. Personal Brands
Transfers the brand from the company to the customer allows for total customer empowerment
E-business component demonstrated: CRM
Value Bubble Steps involved: Engage and Retain
Original Article
Evolution mass customization personalization 1:1 marketing
Customerization buyer-centric mass customization with customized
marketing
1:1 and Personalized
“Know thy customer” Controlled by the firm Customerization
more than customized products/services
internal processes supply chain partnerships what if significant costs are involved?
Customerization
Why? Changing customer ability/competency to co-produce technological and operational
capabilities Customer-centric
active participant drive process building/solidifying relationships
Potential Benefits
Customer better meet needs worth premium price higher satisfaction
Firm reductions in inventory enhance loyalty avoid commoditization better channel mgmt.
Online environment: reconfigurable, and easier identification of preferences
Company Examples
Dell (build to order) inventory = $273 million/sales of $18.2
billion (1.5%)
Compaq (build to stock) inventory = $2 billion/ sales of $38.5
billion (5.2%)
1999 figures
Marketing Implications
Relationship Marketing passive to active participants “What can you do with us?” adoption of MP3 by music industry
Focusing on Unarticulated Needs guides customer through design & discovery product use experiences (search vs. experience) Andersen Windows
Tailoring the offer only relevant options (db, software, ask)
New Products interactive process (no longer laboratory only) Acumin
company no longer manufacturer but service provider Customized vitamin packs
TI specs for new calculator high school teachers’ web reviews pre-sold copycat product from competitor reaction
Marketing Implications
Price is Negotiable: Global Bazaar more fluid tailored to specific users based on elasticity customer acceptance issues dynamic pricing evolves
prices don’t go down value-added services
price becomes less important Interactive Edu-tainment
mix what you know with what you offer DuPont customer selects information
Marketing Implications
Distribution off-the-shelf direct channel channel conflict customer has choice reverse portals
aggregate and coordinate final distribution
Marketing Implications
Competitive Advantage: Power of Finesse instead of brute strength high customer value wins levels playing field
street likes finesse and flexibility “big will not eat the small…the fast will eat
the slow” E-volve-or-Die.Com
Marketing Implications
Customerization--additional strategy determine optimal portfolio
mass marketing direct marketing to target segments interactive customized marketing
E-businesses have advantage Amazon vs. General Motors
Technology is easy strategic and organizational decisions more complex and
expensive.
Marketing Strategies/Implications
E-business Market Research
Business Intelligence Web Site Focus Results impact
E-Commerce Customer relationship management Supply chain management Enterprise resource planning
Traditional Marketing Research Process
5 steps1. Define the issue or challenge2. Develop the research plan3. Collect information4. Analyze the information5. Actions
Defining the issue or challenge
Indicators Declining market share Sales reduction Profits Order reduction Increased complaints Competitive actions
Develop research objectives
Developing the Research Plan
5 Steps (for step two)1. Deciding on the research design2. Determining the types of information
needed and sources3. Evaluating different data Collections
options4. Developing the data collection device5. Deciding who and how many will
participate
Research Design
Exploratory research Devine patterns
Look for connections Independent variables (cause) Dependant variables (effect) Multivariate analysis
Experimental research Experimental group Control group
Data sources Primary Secondary
Skewed Populations
Analyzing the Data
Begin with research objectives Address the issue, opportunity or
challenge Analysis leads to
Recommendations Actions
Must be supported by quantifiable evidence
3 Strategies for an Initial Web Launch
Setup Strategies Maintenance strategies Evaluation Strategies
Setup Strategies
Attract customers applicable to offerings
3 components Web Site Quality Frequency of updates Speed
56K—10 secs Value bubble
Attract, Engage & Retain
Maintenance Strategies
Create Site Loyalty and Facilitate Sales GIST
Gather Infer Segment Track
Measure Sales Value bubble
Learn & Relate