Marketing Strategies for the New Economy Essay

Past paper Discuss the advantages and disadvantages of the newly deliverance for food food marketers (60%). How might companies develop a new economy strategy for their intersections or swear outs (40%)? Illustrate your answer with examples.* Does every comp any(prenominal) need a new-economy strategy* Definition new economy means the industries that stimulate the growing or play an important role in electronic transaction and the mesh, market computer hardware and software, and provide any of growing arrays of telecommunications services. E.g. dot-com retailersAmazon, web portalsGoogle and Yahoo* The growing adoption of new-economy technologies in consumer and commercial sectors illustrates the wideness of an internet strategy. E.g. high-speed broadband connection is revolutionizing the possibilities of what the internet stick out 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 different new-economy technologies and the inherent advantages that they lend suggest that nearly every company needs to examine how it leave al ane be affected by and butt joint take advantage of these new technologies.* Forms of e-commerce B2B (Cisco) C2B (Priceline/ www.elance.com) B2C (Amazon) C2C(eBay)* E business warnings 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 culture (lies at the heart of e-commerce business models) * Syndication involves the sales of the very(prenominal) good ( discipline good) to many guests, who may then combine it with information from other sources and distribute it. * Why syndication is importanta) Syndication delivers informational goods, variable cost of which is zero. b) Syndication touch on can be automated and digitized, enabling syndicated networks to be created, expanded, and flexibly adapted furthermost more quickly than physical goods. * Syndication via the internet opens up endless(prenominal) opportunities for markets, replenishment scarcity with abundance,processing the information timely and can be distributed everywhere. * However, companies should get word and occupy the most important niches in syndication networks, which can maximize the reckon and strength of links to other companies and customers. 2) Increasing returns to scale of network products* validating network effect (network externality) the characteristic of informational networksa product becomes more valuable as the number of users increases. * Companies that can identify and exploit opportunities where they benefit from the change magnitude returns to scale that result from positive network effects can sometimes grow quickly on relatively modest capital investment. * though some companies received lofty valuations, most are struggling to aline a business model that actually appoints any money. 3) The ability to efficiently personalize* Rules- found personalization collaborative filtering is one way of personalizing a market whirl to each customer, when formal rules can be identifies in the way customer be deplete, it is done. 4) customize market cracks* Customization technique is user-driven instead of marketer-driven, al number oneing users to specify the nature of what is offered to them. * Personalization and customization can be help build customer loyalty and take a leak it less likely that customers may switch to other suppliers. 5) Disintermediation and restructuring of distribution channels * The internet makes the distribution channels possible for marketers to reach customers directly, without expenses or complication of distribution channels (disintermediation). * Those who consider disintermediation their channels and swaping direct must correspond how they will perform these functions and must evaluate whether doing so is more hard-hitting and efficient tha n using intermediaries.* Web-based disintermediation has grown to fill new needs. E.g. eBay creates new sign of intermediary, the consignment seller. * Other new intermediaries gatherers and affiliate schemes. E.g. Kayak.com, a travel aggregator (seems like assist customers in finding the better(p) deal among hundreds of sites.) The aggregator sites canfocus on improving the technologies that allow customers to find hardly what they want, and publishers can specialize in promotion and attracting customers, since they are not concern in managing the product that the customer is actually buying. 6) Global reach, round-the-clock nettle* Global reach, making them available 24 hours per day, providing instantaneous economy. E.g. EasyJet airline, sells low cost tickets of flight, allowing customers from different continent confirm the deal instantly at any time. With mobile telephony and GPS technologies develop, such deals can be done via mobiles. 7) The threats of new-economy a nd defenses* launch complex ethical issues and present potentially significant threats * For most products, wrong usually is not far from variable cost in the want run, syndication implies that the variable of delivery of informational goods approach zero, then what about the price, how do the producers make money? * There are few barriers to entry and many internet strategies are easily imitated. * Privacy and security issues.* Two best defenses against these advantages one is through the patent and copyright system. The other one is through versioning. Shapiro and Varian vie that even for information products whose variable costs are zero, the value of information to different kinds of customers is likely to vary substantially. * Versioning dimensions time, convenience, comprehensiveness, manipulation, community and support * Skills in market segmentation and targeting, differentiation and positioning are needed to enable marketers to best take advantages of new-economy techno logies and mitigate their disadvantages.* growing a new-economy strategy a last framework* Steps for building trade strategies for new-economy* Assess the nature of environs* Audit environmental influences (using PEST)* find competitive position (strengths and weaknesses via a vis competitors and customers)* Identify key opportunities and threats* Strategic position* Marketing segmentation, targeting and positioning* Identify bases for segmenting the market* Develop profiles of resulting segments* Develop measures of segment attractiveness* Select target markets* Developing positioning for each target segment* Develop marketing fuse for each target segment* Marketing applications for new-economy tools* A six-stage consumer experience processa) Consumer insights consumer provides information about their need to sellers, which permits producers to develop goods and services intended to stir the customers needs. b) Promotion and brand building information about the new product flows to customers to inform and encourage them to buy c) Transaction requires that information about pricing, terms, delivery flows both ship canal. d) Product deliverye) Customer support or service in which case additional information may flow in either direction or additional goods and services may flow to the customers. f) Return, dispose the customer may need to return or weaken use of the good and service. * Impact of e-marketing on marketing strategy* business leader shift in supply chain (producers and retailers consumers) * More comparative information available to consumers. E.g. Amazon.com leads to higher purchasing power * Increase nature and screen background of competition in many industries * Impact of e-marketing on offerings* Atom based Still a physical product that needs to be shipped. * go based Digital data or information in electronic form. E.g. MP3 Implications Online customer has greater information, wider search, online recommendations and price comparis ons competitive strategy must search to avoid price competition and use web to augment the offering * Developing strategies to serve new-economy markets* What might tomorrows entrepreneurs do to imposture marketing strategies toserve new-economy markets? a) Would-be internet entrepreneurs should consider the various ways in which revenue can be generated on the web or in other new-economy settings. Understanding ones revenue model and being willing to change it as market and technological conditions rationalise are essential.b) Entrepreneurs must ask not what can I sell but what do new-economy customers and markets need, and how and where do new-economy consumers want to consume what I have to offer. c) Would-be entrepreneurs must realize that barriers to entry are incredibly low in the new economy. Conclusion execution is key and understanding customers and the markets they make up, understanding industries and the competitors that daily do battle in them, and developing marketi ng programs that can establish and maintain sustainable competitive advantage.