chapter 13 Designing the Marketspace Matrix 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

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 Matrix Relationship Stages Categories of Levers 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 Interactivity 1. More efficient advancing of customers through the relationship stages 2. More possibilities to sustain commitment Result Pricing Product Community Communication Distribution

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 Commitment Dissolution Exploration/ Expansion Customers can advance through the stages in several different ways Awareness

Exhibit 13.4: The Marketspace Matrix Relationship Stages Categories of Levers Branding

Exhibit 13.6: Lever Selection Process Lever Targeting Segment Current Relationship Phase Objective Positioning

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 are consistent with strategy? Which levers are customers most responsive to? 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 Commitment User in Exploration/ Expansion Stage User in Exploration/ Expansion Stage Places Book in Shopping Cart 1-click ordering bypasses barrier Barrier

Exhibit 13.10: Integration of Levers Targeted Segment Online Levers Positioning and Message Offline Levers Integrated Levers

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 Sensual (Taste, Sound, Sight, Touch) Benefits Derived From the Product Symbolic Hedonic Functional

Exhibit 13.12: Marketspace Matrix for EBay, 1995 Relationship Stages Categories of Levers Branding

Exhibit 13.13: Marketspace Matrix for EBay, 1998–1999 Relationship Stages Categories of Levers Branding

Exhibit 13.14: Marketspace Matrix for EBay, 2000–Present Relationship Stages Categories of Levers 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?