e-Business and International Services Marketing Management
what is marketing?
e-Business and International Services Marketing Management
Marketing Knowledge
Relationships
Industry Market
Not a Formula, but
A Way of Thinking
e-Business and International Services Marketing Management
Marketing Perspectives
• Core Product
• Price
• Image
• Services
e-Business and International Services Marketing Management
Marketing Perspectives
• Core Product
– product/service main value
– differentiation via core solution (e.g.
technology)
• Price
– differentiation via low price
• Image
– creates extra value via brand
image
e-Business and International Services Marketing Management
Marketing Perspectives
• Services
– core solution isn’t sufficient to
differentiate
– price less important
– hidden services (billable & non-
billable) important
– customer value-creating process
– total service offering
e-Business and International Services Marketing Management
Customer Relationship Perspective
• Services are relational
• Perceived relationships are critical
• Transactional perspective less
important than customer
relationships
• Building loyalty is important to
profitability; key to long-term
value
e-Business and International Services Marketing Management
Intellectual Capital Management
• Individual Capital
– employees; network partners;
customers
– knowledge; behaviour; relationships
• Structural Capital
– company culture
– embedded knowledge
• databases
• brand images
• network relationships
e-Business and International Services Marketing Management
Service Competition Rationale
• Customer-driven
– sophisticated; informed; demanding
– comfort; lower additional costs; less trouble;
better value
• Competition-driven
– fierce; global
• Technology-driven
– easy creation of new services
– customer relationship strategies
– additional value-creating support
e-Business and International Services Marketing Management
Some Thoughts
As relationships grow, more organizational
functions have contact with customers
Technical solutions not the key
to success today
Service has turned into an
experience
Customers willing to pay for
“total experience”
Marketing activities must be integrated
throughout the organization
e-Business and International Services Marketing Management
e-Business and International Services Marketing Management
Exchange and Interactions
• Transaction Marketing
– singular exchanges or transactions (purchases)
– new customers vs. maintenance of existing
customer relationship
– large markets
– no interactions between producer and
consumer
– information technology removes this
limitation; narrows scope of
interactions; creates opportunity for
continuous interactions
e-Business and International Services Marketing Management
Relationship Perspective
• Continuous purchases; cross-
sales opportunities; exchanges
or transactions
• Interactions: long or short-term
• Service process leads to
cooperation between provider
and customer
e-Business and International Services Marketing Management
Exchange & Relationship Perspectives
Relationship: cooperation to create value for customer
and supplier as a basis for marketing
Process Exchange: exchange of value (in goods or services) for
money as a basis for marketing
Relationship
perspective
Value Value
distribution creation
Exchange
perspective
Outcome
e-Business and International Services Marketing Management
Inherent Values:
Relationship & Transaction Marketing
Relationship marketing: perspective based on
cooperation in order to facilitate a mutual creation of value
Mutual
Interdependence
Transaction marketing: perspective based on the
exchange of ready-made value for money
Relationship
marketing
Competition
Mutual
and
cooperation
conflict
Transaction
marketing
Independence
e-Business and International Services Marketing Management
Strategic & Tactical Elements of a
Relationship Strategy
• Tactical elements
– seek direct contacts with customers
– build a database
– develop a customer-centric service
system
• Strategic requirements
– redefine as service business /
competition
– process management perspective
– establish partnerships / network to
manage whole service process
e-Business and International Services Marketing Management
Service Business Demands a
Process Management Perspective
• Customers demand holistic service offering
• Delivered in a friendly, trustworthy, and timely
manner
• Core product / service less often
the reason for customer
dissatisfaction
• Firm must manage additional
elements of the offering better than
the competition
e-Business and International Services Marketing Management
Process Management Perspective
• Requires internal collaboration among departments
• Managed as a total process
• Traditional departmental boundaries torn down
• Workflow is organized and
managed as a value-supporting
process
• Enables and strengthens
relationship building and
management
e-Business and International Services Marketing Management
Process Management
• Partnerships and Networks
– look both horizontally and vertically in distribution
and supply chain to manage the business
• Direct contacts with Customers
– utilize technology to develop sophisticated
databases for the creation of strategic initiatives
• Customer-Oriented Service System
– design everything with a customer-
oriented perspective
– internal motivation strategies that
affect employee attitudes,
commitment, and performance
– manage time with customers to
create long-lasting value
e-Business and International Services Marketing Management
How & When is it a Relationship?
• Continuous purchases
• An attitude
• Hearts and minds
• Emotional
• Earned
• Mutual loyalty and trust
• Continuous communication
• Time
• Efforts are integrated into one
value-created relationship
e-Business and International Services Marketing Management
Customer Benefits
• Consumer
– confidence: reduced anxiety, faith & trust
– social benefits: recognition, familiarity, friendship
– special treatment: extra services, special prices,
higher priority
• Business
– revenue-generating capability
– lower costs
e-Business and International Services Marketing Management
Trust, Commitment & Attraction in
Relationship Marketing
• Trust
– generalized: size, longevity and reputation (continuous source)
– system: laws, regulations, contracts and professionalism
– personality-based: predictable behaviour
– process-based: experience over time
• Commitment
– enduring desire to maintain value
relationship
• Attraction
– Financial; technological; social
e-Business and International Services Marketing Management
Not all Customers are interested in
Relationships
• Relational contact
– active mode: customer seeks contact
– passive mode: customer knows you’re there
if needed (comfort)
• Transactional contact
– Simply purchase
– No unnecessary contact (follow-up)
e-Business and International Services Marketing Management
e-Business and International Services Marketing Management
Technology & Marketing
• Mass Production
• Selling
• Brand Management
• Customer Management
e-Business and International Services Marketing Management
Technology & Marketing
• Mass Production
– product / service standardization
– volume oriented
– production efficiency & wide distribution
– “depersonalizing” of customer
relationships
– internet offers pre-mass production
personalization
e-Business and International Services Marketing Management
Technology & Marketing
• Selling
– develops / builds category demand
– complicated distribution systems
– introduction of national brands
– communications technology key
(radio / tv)
– creates product awareness
– near-instantaneous brand rollouts
e-Business and International Services Marketing Management
Technology & Marketing
• Brand Management
– rise of television
– dominant emphasis second half of 20th
century
– success measured by market share and
brand image
– segmentation and computer databases
• purchase location
• demographics
• psychological profiles
– segmentation capabilities relatively
limited
e-Business and International Services Marketing Management
Technology & Marketing
• Customer Management
– Rapid development of direct marketing
(‘80s)
– Power of customer loyalty realized
– Balance between customer retention &
new customer recruitment
– Limitation of one-way flow of
communication
– Internet is changing the
communication process between firm
and customer again
e-Business and International Services Marketing Management
Technology & Marketing
• Production Phase
– ship the same thing to everyone
• Selling & Marketing Phase
– target markets shrunk
• Individual Phase
– target each customer uniquely &
individually
e-Business and International Services Marketing Management
we are at a transition point…
e-Business and International Services Marketing Management
we are at a transition point…
individual global individual
e-Business and International Services Marketing Management
General Purpose Technologies (GPT) &
Marketing
• Engines of Growth throughout Economy
– pervasive presence
– room for improvement
– generate innovation
• 3 GPTs of Internet Marketing
– digital revolution
– networking
– individualization
e-Business and International Services Marketing Management
General Purpose Technologies (GPT) &
Marketing
• Digital Revolution
– improvement of computers
– invisible uses of computers
• mobile phones
• automobiles
• home appliances
– pervasive; natural opportunities for
improvement; innovation flow
e-Business and International Services Marketing Management
General Purpose Technologies (GPT) &
Marketing
• Networking
– computer dominated today
– history
• telegraph (military, financial, news;
commercial; personal)
• telephone (voice for text: emotional)
• radio (nationwide & global
programming)
• fax (print news media: text / photo)
• internet
– new media has impacts on social
community & distant individuals /
groups
e-Business and International Services Marketing Management
General Purpose Technologies (GPT) &
Marketing
• Individualization
– more organizational than simply technical
• How business / marketing is conducted
– one-to-one marketing
• identification
• tailor information to individual
• interact appropriately
– both new technical capabilities and new
organizing principles driven
– emphasis shift from brand management
to customer management
• market share & brand value vs.
“share of wallet” (indv. Profitability)
e-Business and International Services Marketing Management
marketing is a way of thinking
e-Business and International Services Marketing Management
