1 / 17

Theories of Network (or Interactive) Marketing

Theories of Network (or Interactive) Marketing. What is Interactive Marketing? Is it perhaps. …selling over the Net?. …advertising over the Net?. …distributing over the Net?. …producing using the Net?. …others? What do you think?. My Definition:

jesimae
Download Presentation

Theories of Network (or Interactive) Marketing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Theories of Network (or Interactive) Marketing

  2. What is Interactive Marketing? Is it perhaps... …selling over the Net? …advertising over the Net? …distributing over the Net? …producing using the Net? …others? What do you think?

  3. MyDefinition: Network Marketing is the Process of Building and Maintaining Customer Relationships ThroughBuilding and MaintainingValue-adding Electronic Product and Service Networks using the Power of Information.

  4. So why does a company like Carrier do Network Marketing? Because the NEW NETWORK supports one or more of these efforts: Enhance Customer Relationships Improve Profitability E-Business Increase Product Cycle Times Increase Market Share

  5. carrier.com, totaline.com, hvacpartners.com, myappliance.com Carrier: Smart Products Do We Need “Central Internet Air Conditioning”?

  6. The Product: A Internet-Enabled Comfort Choice Thermostat What are the Benefits for Consumers? 1) Web-Enabled Micromanagement of Temperature. 2) Added-Value Through Cost Saving. And for Carrier? 1) Bundling Smart Services allows to Maintain Prices in Competitive Market. 2) Carrier, a B2B Company, is now VERY Close to the Customer (User Data). 3) Last but not Least: Image of Being Cutting-Edge

  7. Does Carrier Make Anyone Else Happy? Yes, Long Island Power Authority... Get 45,000 customers into the Carrier program and it'll conserve the equivalent of a small power plant…

  8. Concepts of Networked Marketing • Information as “Dematerialization” • Coproduction • Product Ecologies

  9. The informational mode of production • Information management has been labor intensive, therefore high cost, high overhead. • Castells: The IT revolution makes knowledge work productive through automation.

  10. “network marketing” • When messages are transported at network speed, and production is decentralized, the result is FLEXIBILITY!

  11. Doing Networked Marketing: • Customization: Change segments on the fly—even make segments of one! • Co-production: Bring in the customer • Multi-channel solutions: real-time click and brick sales pitch. • For each of these marketing innovations, find examples and evidence in the readings for last week and this week.

  12. Link Concepts: • How can you conceptually combine • the multi-channel retail system • Customization of segments • And co-production?

  13. Network Products in Networked Markets • The last decade has witnessed a shift from a focus on the value created by a single product to an examination of the value created by networks of products (product ecosystems or NETWORKED PRODUCT). • Network products emerge at the intersection of three types of networks: • User network • Complements network • Producer network Key Claims: • Any or all of these networks add value or enhance the attractiveness of the associated focal product. • Consumers allocate resources among competing products based on the perceived value added of any or all of these networks.

  14. The Networked Product: • Complements network • Services that permit consumption Focal Product • User network • Other consumers Producer network Other companies producing the same or similar product or service

  15. Linux as Networked Product: • Complements network • Application developers • Maintenance and Repair • Service Companies Ex.: Linux Operating System • User network • number of other companies that are using Linux (moderated by size, reputation, industry, etc. of these companies) Producer network Other companies producing the same or similar product or service

  16. Remember: • If you are dealing with a focal product that is a networked product • Consumers allocate resources not only based on the objective and perceived quality of the focal product but based on the perceived value added to the focal product by the networks it has. • Marketing of a networked product therefore is no longer limited to developing a marketing mix and a strategic position for the focal product. Rather, marketing needs to support network strength as well. …think imode…

  17. Midterm Prep Questions:Linux versus Microsoft Server OS • What is the focal product? • What constitutes the: • User network • Complements network • Producer network • Which one adds most value to the focal product? • What are the marketing implications of your analysis?

More Related