New Marketing for the New Economy

Paul J. Solomon, Ph.D. Professor of Marketing University of South Florida

Marketings FAQ
How can we spot and choose the right market

segments? How can we differentiate our offerings? How should we respond to customers who buy on price? How far can we go in customizing our offering for each customer? How can we grow our business? How can we build stronger brands? How can we reduce the cost of customer acquisition? How can we keep our customers loyal for longer? How can we tell which customers are more important? How can we measure the results of marketing? How can we establish multiple channels and yet manage channel conflict? How can we get the other company departments to be more customer-oriented?

Dr. Paul J. Solomon-Marketing Notes

Characteristics of Todays Economy

Hypercompetition Nanosecond Culture Digitalization Globalization Empowered Customer Connected Customer Shock
Dr. Paul J. Solomon-Marketing Notes 3

We Are Entering a New Economy

Old Economy was based on Manufacturing:

standardization scale replication efficiency hierarchy

The New Economy is based on Information:

differentiation Mass customization personalization

Networks and networking

speed

Dr. Paul J. Solomon-Marketing Notes

Old Economy - (Supply-side Marketing)

Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising

Focus on customer acquisition

No customer satisfaction measurement Over-promise, under-deliver

Dr. Paul J. Solomon-Marketing Notes

New Economy - (Demand-side Marketing)

Organize by customer segments

Focus on customer lifetime value

Look at Balanced Scorecard Focus on stakeholders Everyone does the marketing Build brands through behavior Focus on customer retention and growth Measure customer satisfaction and

retention rate
Under-promise, over-deliver

Dr. Paul J. Solomon-Marketing Notes

Traditional Marketing Skills

Sales management

Advertising management
Sales promotion management Marketing research Pricing

Dr. Paul J. Solomon-Marketing Notes

Competencies Needed by Todays Marketers

Database marketing and data-

mining Telemarketing and call center management Public relations marketing (including event and sponsorship marketing) Customer relationship management (CRM) Brand building Experiential marketing Profitability analysis applied to customers, market segments, channels, and order sizes Marketing in a down economy

Dr. Paul J. Solomon-Marketing Notes

New Marketing Rules for the New Economy

Exploit e-commerce and e-business. Build and use a customer database to

manage the customer portfolio. Focus on customer lifetime value, customer value management, customer share, and customer profitability. Shift promotion funds away from broad advertising toward more direct promotion. Build brands in new ways Use social media to build brands Go electronic and paperless. Partner with your employees, customers, suppliers, and distributors.

Dr. Paul J. Solomon-Marketing Notes