1-1 Vijay Bhandari - Senior Faculty-Consultancy - NMIMS [email protected]Adapting Marketing to the Adapting Marketing to the New Economy New Economy Major Drivers of the New Economy – Digitalization and Connectivity Digitalization and Connectivity – Disintermediation and Disintermediation and Reintermediation Reintermediation – Customization and Customization and Customerization Customerization – Industry Convergence Industry Convergence
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1-1Vijay Bhandari - Senior Faculty-Consultancy - NMIMS [email protected] Adapting Marketing to the New Economy Major Drivers of the New Economy –Digitalization.
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Adapting Marketing to the Adapting Marketing to the New EconomyNew Economy
How Marketing Practices are Changing: Customer Relationship Marketing– Reduce rate of customer defection– Increase longevity of customer relationship– Enhance growth potential through cross-
selling and up-selling– Make low profit customers more profitable
or terminate them– Focus disproportionate effort on high value
Advances in transport and manufacturingStrategic resources are capital and natural resourcesProducts and factories define the businessSales success means meeting quotas
Advances in information technologyStrategic resource is information
Business defined by customer relationsSales success depends on adding value
MARKETING – Sales team as source of strategic Sales team as source of strategic
information on…product--market--information on…product--market--serviceservice
CONSULTATIVE– Emphasis on need identificationEmphasis on need identification– Transactional sellingTransactional selling– Information sharing & negotiation Information sharing & negotiation
STRATEGIC – Emphasis on strategic market plan Emphasis on strategic market plan – Tactics to achieve strategic planTactics to achieve strategic plan– Product positioning vital Product positioning vital
PARTNERING– Customer, not product, as driving Customer, not product, as driving
forceforce– Emphasis on strategies that create Emphasis on strategies that create
Complex sales involve several forms of information technology
supportTools include:– electronic product catalogselectronic product catalogs– contact management systemscontact management systems– Internet applicationsInternet applications– presentation packages like this onepresentation packages like this one
Value = creative improvements enhancing customer experience Consumer economy rewards sales people who add value at each stepWhen customer not aware of value added by salespeople – focus may shift to price
Customers perceive value added when they feel comfortable with salespersonCertain salesperson traits help create perception of value– AccountabilityAccountability– HonestyHonesty– Sincere concern for customer welfareSincere concern for customer welfare
Buzzword of 1990s, business reality in 2000s“Strategically developed long-term relationship that solves customer’s problems”Relationship selling relies on customized approach to each clientEnhanced with high ethical standards and sales automation