Marketspace Professor Chen School of Business Administration Gonzaga University Spokane, WA 99258 chen@gonzaga.edu

1. MarketspaceProfessor ChenSchool of Business AdministrationGonzaga UniversitySpokane, WA 99258chen@gonzaga.edu

2. Agenda at a Glance • Introduction 5 minutes • Video Presentation 15 minutes • Response to Video 5 minutes • Review of Concepts 10 minutes • Group Discussion 25 minutes

3. Meeting goals Explore how information technologies (cable, Internet, etc.) can be used to increase profits by managing customer relationships in new ways. Get beyond technology issues to business issues. We will see: •What the Marketspace is • Real Markespace successes • A framework for thinking about managing customer relationships in the Marketspace Consider these questions: • Do we have a Marketspace strategy? • Does our strategy optimize the potential of the Marketspace? • Have we integrated our strategies in “Space” and “Place”?

4. Understanding the Marketspace It is: • Technology-enabled, not technology-driven It offers: • Opportunity-Totally new and often better ways of attracting and retaining customers and of facilitating customer interactions • Risks-New tools our competitors can use to chip away at our core customer franchise

5. Customer need Marketspace solution QVC AUCNET Baxter Meeting customer needswith information Learn about products, interact with friendly people, without leaving home Product pictures and specifications, charismatic studio host, and friendly telephone staff Dealer-Sell cars without having to ship them to a central auction site Retailers-Get car information without traveling Inspectors examine and photograph cars; information distributed and auctions conducted on-line A broad selection of products and fast, easy, ordering Product descriptions and photos on-line, linked to an ordering system

6. A way to think about transactions Both “Place” and “Space” transactions have 3 components  Content- What companies are offering  Context- How they are offering it-the look and feel of the customer’s experience when finding out about and obtaining the content  Infrastructure- What enables the transaction to occur (including the technology platform)or the distribution of content and context to occur Component, usually linked in the “Place,” can be separated in the “Space”. Marketplace Brand Content Context Infrastructure Marketplace Brand Content Context Infrastructure Brand Brand

7. Examples:Content, Context, and Infrastructure Content Context Infrastructure

8. Defining content Content can be Information about products and services – Demonstrations and data about product (QVC) – Product specifications (Baxter) The product itself – Information:Bank balances (ATM) –Tangible product:Cash (ATM) Transactions –Account transfers (ATM) –Ordering product (Baxter) Community –Customers talking to customers (QVC)

9. The role of context Key question: What does the customer want from the transaction experience? • Transaction speed? (Baxter) • A fun and friendly experience? (QVC) • Scope of information? (Baxter) • Options for transaction location and time? (ATM) • A personalized relationship? (QVC)

10. Choosing infrastructures What infrastructure (ours, someone else’s, or combination) will best meet our business objective? • Internet/WorldWide Web (Baxter, QVC) • Broadcast/cable TV (QVC) • Proprietary networks (ATM) • Telecommunications networks (QVC) • Other infrastructures such as mail and fax machines

11. Do we have a Marketspace strategy? Questions to consider: How do we use the “Space” to improve access to, and communications with, customers? Acquisition  Retention  Revenue generation How does the “Space” fit in the overall company strategy? Do we integrate “Space” and “Place” efforts? Can customers move smoothly from one to the other? ? ? ?

12. Brainstorming a successful “Space” strategy • Identify current positions in the “Space” and “Place”. • Identify met and unmet customer needs. • Explore solutions in the “Space” (remember-consider content, context, and infrastructure separately as well as together)

13. Example: Department store Customer Acquisition (finding customers) Revenue Generation (selling, repeat sales) Customer Retention (service, support) Identifying current positionin the “Space” and “Place” Storefront display Face to face Interaction with salesperson Face to face interaction with customer service “Place” “Space” Advertising and promo (radio, newspaper, direct mail) Toll-free telemarketing, direct mail catalog Mailing coupons to customer list

14. Example: Department store Customer Acquisition (finding customers) Revenue Generation (selling, repeat sales) Customer Retention (service, support) Identifying current positionin the “Space” and “Place” “Place” “Space”

15. Possible next steps Develop new strategies to meet identified customer needs. • Could we meet the needs with information? • What other content might be appropriate? • What are customers seeking from the experience? What context will meat those needs? • What infrastructure would best support those business goals? Review current activities in the “Space” and “Place’ • Are our strategies integrated? • Would customers say so, based on their encounters with us in the “Space” and “Place”? Reach competitive activities in the ‘Space”.