The document discusses how marketing practices are changing in the 21st century new economy. Key changes include a greater amount of information available to consumers, more communication channels between businesses and customers, and the rise of e-commerce platforms like B2C, B2B, C2C, and C2B. Effective marketing now requires approaches like customer relationship management to enhance customer retention and lifetime value through customized experiences.

1. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 0 in Chapter 2
Marketing in
21st Century

2. ©2003 Prentice Hall, Inc.
The New Economy
 Substantial increase in buying power
 A greater variety of goods and services
 A greater amount of information about
practically anything
 A greater ease in interacting and placing and
receiving orders
 An ability to compare notes on products and
services
To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 2

3. ©2003 Prentice Hall, Inc.
The New Economy
 Websites can provide companies with
powerful new information and sales channels.
 Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
 Companies can facilitate and speed up
communications among employees.
 Companies can have 2-way communication
with customers and prospects
To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 2

4. ©2003 Prentice Hall, Inc.
The New Economy
 Companies can send ads, coupons, samples,
information to targeted customers.
 Companies can customize offerings and
services to individual customers.
 The Internet can be used as a communication
channel for purchasing, training, and recruiting.
 Companies can improve logistics and
operations for cost savings while improving
accuracy and service quality.
To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 2

5. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 2
Changes in Business Practices
Old Economy
– Product unit
organization
– Profitable
transactions
– Financial scorecard
– Stockholders
– Marketing does the
marketing
New Economy
– Customer segment
organization
– Lifetime value of
customer
– Marketing scorecard
– Stakeholders
– Everyone does the
marketing

6. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 2
Changes in Business Practices
Old Economy
– Build brands via
advertising
– Customer acquisition
– No customer
satisfaction
measurement
– Overpromise,
underdeliver
New Economy
– Build brands via
performance
– Customer retention
– Measure customer
satisfaction and
retention rates
– Underdeliver,
overpromise

7. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 2
How Marketing Practices Are
Changing: E-business
Internet Domains
 B2C
 B2B
 C2C
 C2B
 B2C = Business-to-
Consumer
 Benefits include:
greater ordering
convenience, lower
cost, easier
information and price
gathering

8. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 2
How Marketing Practices Are
Changing: E-business
Internet Domains
 B2C
 B2B
 C2C
 C2B
 B2B = Business-to-
Business
 Volume is 10-15%
higher than B2C.
 Benefits include:
lower costs via
B2B auctions,
buying alliances,
greater access to
information.

9. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 2
How Marketing Practices Are
Changing: E-business
Internet Domains
 B2C
 B2B
 C2C
 C2B
 C2C = Consumer-to-
Consumer
 Consumers are creating
product information
online via newsgroup
and chat room
dialogues.
 Transactions occur via
online trading
sites such as
eBay.

10. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 2
How Marketing Practices Are
Changing: E-business
Internet Domains
 B2C
 B2B
 C2C
 C2B
 C2B = Consumer-
to-Business
 Facilitate
communication
between
customer and
businesses.

11. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 2
B2B Vs. B2C
B2B B2C
Small/Focused Target Market Large Target Market
Features/Functional/Education Benefits/Symbolic/Appeal
Rational….mostly Emotional…mostly
Less/Selective Media Consumption Multiple Touch Points
Long Lead Time/Multi Step Process
Short Lead Time/Single Step
Process
Long Term Relationship Instantly Interesting
Create and Support Demand Drive Demand

12. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 2
How Marketing Practices Are
Changing: CRM
 Customer Relationship Marketing
(CRM) allows companies to:
–Deliver real-time customer service
–Customize market offerings,
products, services, media, and
messages

13. ©2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 2
How Marketing Practices Are
Changing: CRM
 Effective Customer Relationship
Marketing requires:
– Reducing customer defection rates
– Extending the life of the customer
relationship
– Enhancing customer sales / profit potential
– Making low-profit customers MORE
profitable or terminating them
– Focusing on high value customers

14. ©2003 Prentice Hall, Inc.
Marketing
Typically seen as the task of
creating, promoting, and
delivering goods and services to
consumers and businesses.
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 2

15. ©2003 Prentice Hall, Inc.
How Business and
Marketing are Changing
 Customers
 Brand manufacturers
 Store-based retailers
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 2

16. ©2003 Prentice Hall, Inc.
How Business and
Marketing are Changing
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 2
 Company responses and adjustments
 Reengineering
 Outsourcing
 Partner-suppliers
 Market-centered
 E-commerce
 Benchmarking
 Alliances
 Global and local
 Decentralized

17. ©2003 Prentice Hall, Inc.
How Business and
Marketing are Changing
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 2
 Marketer Responses and Adjustments
 Customer relationship Marketing
 Integrated marketing communications
 Customer lifetime value
 Customer share
 Target marketing
 Customization
 Customer database
 Channels as partners
 Every employee a marketer
 Model-based decision making