Marketing Strategies for the New Economy
Chapter 11 marketing strategies for the new economy
Past paper: Discuss the advantages and disadvantages of the new economy for marketers (60%).
How might companies develop a new economy strategy for their products or services
(40%)? Illustrate your answer with examples. * Does every company need a new-economy strategy * Definition: new economy means the industries that stimulate the development or play an important role in electronic commerce and the internet, market computer hardware and software, and provide any of growing arrays of telecommunications services. E.g. dot-com retailers—Amazon, web portals—Google and Yahoo! * The growing adoption of new-economy technologies in consumer and commercial sectors illustrates the importance of an internet strategy. E.g. high-speed broadband connection is revolutionizing the possibilities of what the internet can offer, in U.S. 2010, more than 70% households wanted to be broadband connected, compared to 31% in 2004. * The growing market acceptance of the internet and other new-economy technologies and the inherent advantages that they bring suggest that nearly every company needs to examine how it will be affected by and can take advantage of these new technologies. * Forms of e-commerce: B2B (Cisco) C2B (Priceline/ www.elance.com) B2C (Amazon) C2C(eBay) * E business models: Bricks and Mortar only; Bricks and back up clicks; Bricks and clicks and clicks only. * Threats or opportunities? (seven attractive elements) 1) The syndication of information (lies at the heart of e-commerce business models) * Syndication involves the sales of the same good (information good) to many customers, who may then combine it with information from other sources and distribute it. * Why syndication is important: a) Syndication delivers informational goods, variable cost of which is zero. b) Syndication process can be automated and digitized, enabling syndicated networks to be created,
Past paper: Discuss the advantages and disadvantages of the new economy for marketers (60%).
How might companies develop a new economy strategy for their products or services
(40%)? Illustrate your answer with examples. * Does every company need a new-economy strategy * Definition: new economy means the industries that stimulate the development or play an important role in electronic commerce and the internet, market computer hardware and software, and provide any of growing arrays of telecommunications services. E.g. dot-com retailers—Amazon, web portals—Google and Yahoo! * The growing adoption of new-economy technologies in consumer and commercial sectors illustrates the importance of an internet strategy. E.g. high-speed broadband connection is revolutionizing the possibilities of what the internet can offer, in U.S. 2010, more than 70% households wanted to be broadband connected, compared to 31% in 2004. * The growing market acceptance of the internet and other new-economy technologies and the inherent advantages that they bring suggest that nearly every company needs to examine how it will be affected by and can take advantage of these new technologies. * Forms of e-commerce: B2B (Cisco) C2B (Priceline/ www.elance.com) B2C (Amazon) C2C(eBay) * E business models: Bricks and Mortar only; Bricks and back up clicks; Bricks and clicks and clicks only. * Threats or opportunities? (seven attractive elements) 1) The syndication of information (lies at the heart of e-commerce business models) * Syndication involves the sales of the same good (information good) to many customers, who may then combine it with information from other sources and distribute it. * Why syndication is important: a) Syndication delivers informational goods, variable cost of which is zero. b) Syndication process can be automated and digitized, enabling syndicated networks to be created,