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1. Designing the Marketspace Matrix Annie Zhang
Jinyi Shao
Rohit Thimaiah
10th May, 2005
2. Agenda A Consumer Perspective
The Marketspace Relational Matrix
The 2Is
Using the Marketing Levers to Establish and Maintain Customer Relationships
Designing the Marketspace Matrix
3. A Consumer Perspective: The Marketspace Relational Matrix
4. The 2Is
5. Using the Marketing Levers to Establish and Maintain Customer Relationships
6. Using the Marketing Levers to Establish and Maintain Customer Relationships, cont. Awareness
Direct levers—communication-based and controlled by the firm
E.g. advertising & sales promotions
Indirect levers—stimulate third-party communications to create awareness
E.g. publicity & WOM
Exploration/Expansion
Encourage an initial website visit and subsequent investigation of the site
7. Using the Marketing Levers to Establish and Maintain Customer Relationships, cont. Commitment
Encourage contribution to the relationship by offering products/services with superior value.
Dissolution
Levers are used to reduce customer value in order to reduce costs and encourage undesirable customers switching
10. Designing the Marketspace Matrix Market Analysis
11. Principles of Matrix Design Matrix design is a four-step process that helps marketing managers select and implement appropriate levers
12. Step 1. Which levers are Customers Most Responsive to Base the levers on consumer behaviour
Understand your consumers
Choose levers to affect change
E.g. Amozon’s 1-click ordering process
13. Step 1. Cont.,Which levers are Customers Most Responsive to Measure the impact of each lever
Consider affecting factors
Multiple metrics to measure levers for each stage
Invest in levers with greatest impact
Overcome barriers to advancement
E.g. Handspring
Barrier of product functionality
Pricing lever
E.g. Lands’ End
Barrier of product triability
14. Step 2. Which levers are Least Likely to Generate a Competitive Response Anticipate your competitors’ likely responses
E.g. P&G
Lose market share because of competitive response
Build on your firm’s skills and resources
Differentiation based on the unique and superior skills and resources
Use levers consistent with the superiorities to create sustainable competitive advantages
15. Step 3. Which levers work best together Look for interaction effects
Advertising lever interactions
Price promotion + advertising
Produce design+ channel improvement/promotional campaign
Branding interactions
Brand + every other marketing lever
Communication channel interactions
Advertising vehicle + marketing message
Product interactions
Product type + advertising appeals
Integrate across levers
To create consistency and generate the desired effect
16. Integration of Levers
17. Step 4. Which levers work best together Levers create the position
Support the choice of positioning in a certain target segment
E.g. American Express: a personal invitation to potential customers are consistent with its positioning
Focus on Superior Customer Value
Functional benefits
Symbolic benefits
Hedonic benefits
18. Functional, symbolic, and Hedonic Benefits