Designing Market Space Matrix
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Transcript of Designing Market Space Matrix
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Designing the Marketspace Designing the Marketspace MatrixMatrix
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Designing the Marketspace Matrix — Today’s Objectives
Objectives will be to:
Introduce the Marketspace Matrix
Examine the role of the 2Is across all categories of marketing levers
Review how the marketing levers are used to establish and maintain customer relationships
Examine the principles and guidelines firms can use when designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Chapter 13: Designing the Marketspace Matrix
Chapter 13: Designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Exhibit 13.1: The Marketspace MatrixRelationship Stages
Awareness Exploration Commitment Dissolution
Product
Price
Communication
Community
Distribution
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Branding
Chapter 13: Designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Exhibit 13.2: The 2Is
Branding
Individual Individual Interactivity Interactivity
1. More efficient advancing of customers through the relationship stages2. More possibilities to sustain commitment
Result
PricingPricingProductProduct CommunityCommunityCommunicationCommunication DistributionDistribution
Chapter 13: Designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Exhibit 13.3: Moving Through the Relationship Stages
Profitable Uncommitted
Customer
Profitable Uncommitted
Customer
CommitmentCommitment DissolutionDissolutionExploration/ Expansion
Exploration/ Expansion
Customers can advance through the stages in several different ways
AwarenessAwareness
Awareness Exploration / Expansion Commitment Dissolution
Product Packaging Attributes and features Fulfillment Mass customized product Breadth of inventory Upgrades Functionality Availability of complementary products
Customer-specific attributes and features Post-sales support Incremental allocated benefits Experience Customer enabling community Customer relationship management Customer care
Customer care
Price Click-through promotions Web referral promotions Bricks-and-clicks promotions Web price discounts Bundle Frenzy pricing Prestige Price as a sign of quality Hi-lo Dynamic pricing (as a novel approach — group
buying, C2C) EDLP
Targeted promotions Future price promotions Justify prices Loyalty programs
Tiered loyalty programs Wide variety of pricing plans Become evangelists (affiliate) Profit enhancing programs Volume discount promotions Targeted promotions Future price promotions Fairness Subscription EDLP Dynamic pricing (group buying, C2C)
Discontinue pricing promotions Reconfigure loyalty programs Decrease profit programs
Communication Television Magazines Radio Yellow pages Telemarketing Billboards / outdoor advertising Online billboards (banners / buttons) Search engines E-mail Viral marketing
Television Radio Newspapers Packaging Loyalty programs Customer service Loyalty programs Interactive online billboards lending to website Links from search lead to website E-mail with information and link to website Viral marketing leading to website and / or
download Website Serial marketing
Permission marketing with targeted offers Loyalty programs Customer service Loyalty programs Customer service Permission e-mail Personalized pages
Terminate direct marketing
Community Outline community benefits clearly and early on in the process
Anticipate and readily answer questions and concerns, quickly establishing a sense of trust
Establish a call for action and further exploration
Makes community exploration easy through efficient site structure
Show everyone individual attention (e.g., welcoming e-mails, guides for novices, chat conversations for new members, use of CRM marketing to tailor site functionality)
Begin the process of equity creation (e.g., member points and loyalty programs)
Increase equity building (e.g., through tiered loyalty programs, increased rewards)
Recognize individuals’ contributions and participation
Develop members (e.g., through leadership opportunities, community roles — guides or watch-persons)
Spot departing friends early and find solutions to prevent dissolution
Make the “leaving process” fair and efficient Seek and listen closely to feedback Allow the option of returning
Distribution Number of intermediaries Number of channels
Degree of integration Number of channels
Degree of interest Intermediary type Number of channels Internal function
Elimination of types Reduction of intermediaries Reduction of integration
Exhibit 13.4: The Marketspace MatrixRelationship Stages
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of
Le
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rs
Branding
Exhibit 13.6: Lever Selection Process
LeverLever
TargetingTargetingSegmentSegment
Current Relationship
Phase
Current Relationship
PhaseObjectiveObjective PositioningPositioning
Chapter 13: Designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Exhibit 13.7: Principles for Marketspace Matrix Design
Which levers work best together?
Which levers work best together?
Which levers are consistent with strategy?
Which levers are consistent with strategy?
Which levers are customers
most responsive to?
Which levers are customers
most responsive to?
Which levers are least likely to generate a competitive response?
Which levers are least likely to generate a competitive response?
• Principle 1: Base the levers on consumers behavior.
• Principle 2: Choose levers to effect change.
• Principle 3: Measure the impact of each lever.
• Principle 4: Overcome barriers to advancement.
• Principle 5: Anticipate your competitors’ likely responses.
• Principle 6: Build on your firm’s skills and resources.
• Principle 7: Look for interaction effects.
• Principle 8: Integrate across levers.
• Principle 9: Levers create the position.
• Principle 10: Focus on superior customer value.
Exhibit 13.8: Amazon’s 1-Click Ordering Process
Has to Enter Name,
Address, Credit Card
Has to Enter Name,
Address, Credit Card
CommitmentCommitment
User in Exploration/Expansion
Stage
User in Exploration/Expansion
Stage
Places Book in Shopping
Cart
Places Book in Shopping
Cart
1-click ordering bypasses barrier
Barrier
Exhibit 13.10: Integration of Levers
Targeted SegmentTargeted Segment
OnlineLeversOnlineLevers
Positioning and
Message
Positioning and
Message
OfflineLeversOfflineLevers
IntegratedLevers
IntegratedLevers
Exhibit 13.11: Functional, Symbolic, and Hedonic Explained
Product’s Ability to Provide Utility
Product’s Ability to Provide Utility
Benefits That Relate to the Anticipated Reaction of
Other Individuals
Benefits That Relate to the Anticipated Reaction of
Other Individuals
Sensual (Taste, Sound, Sight, Touch) Benefits
Derived From the Product
Sensual (Taste, Sound, Sight, Touch) Benefits
Derived From the Product
SymbolicSymbolic
HedonicHedonic
FunctionalFunctional
Exhibit 13.12: Marketspace Matrix for EBay, 1995
Relationship Stages
Ca
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of
Lev
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Awareness Exploration Commitment Dissolution
Product Features: Search, security, ease of use
Facilitate P2P community
Price Dynamic pricing
Communication Trade shows
Viral marketing
Website
Community Communicate benefits
Establish call to action
Easy to explore
Build user equity
Distribution
Branding
Exhibit 13.13: Marketspace Matrix for EBay, 1998–1999
Relationship Stages
Ca
teg
ori
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of
Lev
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Awareness Exploration Commitment Dissolution
Product Features: search, security, ease of use
Complementary Products: Escrow, Insurance
Enable Community
Customer Care
Customer-Specified Attributes
Upgrades
Customer Care
Price Dynamic Pricing Tiered Loyalty Programs
Communication Trade Shows
Trade Publication Ads
Radio Advertisements
AOL Banners
Viral Marketing
Publicity / Promotion
Website
User Notifications
Personalized Pages
Community Communicate benefits early
Establish Call to Action
Make Community Exploration Easy
Show Everyone Individual Attention
Begin the Process of Equity Creation
Increase Equity Building
Recognize Individual’s Contributions
Develop Members
Make Leaving Process Fair and Efficient
Distribution Number of Channels
Branding
Exhibit 13.14: Marketspace Matrix for EBay, 2000–Present
Relationship Stages
Ca
teg
ori
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of
Lev
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Awareness Exploration Commitment Dissolution
Product Features: search, security, ease of use
New Auction categories
Complementary Products: Escrow, Insurance, Billpoint
Facilitate P2P Community
Customer Care
Customer-specified Attributes
Upgrades
Price Dynamic Pricing
Promotions to Encourage New Product Adoption
Buy It Now!
Promotions to encourage trial
Tiered Loyalty Programs
Communication Trade Shows
Trade Publication Ads
Radio Advertisements
AOL Banners
Viral Marketing
Publicity / Promotion
Television Ads
Website
User Notifications
Television Ads
Personalized Pages
Community Outline Benefits Early
Establish Call to Action
Make Community Exploration Easy
Show Everyone Individual Attention
Begin the Process of Equity Creation
Increase Equity Building
Recognize Individual’s Contributions
Develop Members
Make Leaving Process Fair and Efficient
Distribution Number of Channels
Branding
Chapter 13: Designing the Marketspace Matrix
The Marketspace Matrix
Role of the 2Is Across All Categories of Marketing Levers
How Marketing Levers Are Used to Establish and Maintain Customer Relationships
Principles and Guidelines for Matrix Design
Conclusion
Designing the Marketspace Matrix — Conclusion
The Marketspace matrix is intended to help firms build a marketing plan within the context of moving customers through the relationship stages.
The 2Is allow firms to choose levers that can move customers through the relationship stages faster and more effectively than ever. Also, the 2Is offer firms new and improved possibilities to maintain commitment.
The 10 principles of matrix design can help marketing managers select and implement appropriate levers. The principles span four categories:
Which levers are customers most responsive to?
Which levers are least likely to generate a competitive response?
Which levers work best together?
Which levers are consistent with strategy?