Outline Dr. Chen; Information Systems Theory and Practice Marketspace Professor Chen School of Business Administration Gonzaga University Spokane, WA

Dr. Chen; Information Systems Theory and Practice 2 Agenda at a Glance Introduction 5 minutes Video Presentation 15 minutes Response to Video 5 minutes Review of Concepts 10 minutes Group Discussion 25 minutes

Dr. Chen; Information Systems Theory and Practice 3 Meeting goals Explore how information technologies (cable, Internet, etc.) can be used to increase profits by managing customer relationships in new ways. Get beyond technology issues to business issues. We will see: What the Marketspace is Real Markespace successes A framework for thinking about managing customer relationships in the Marketspace Consider these questions: Do we have a Marketspace strategy? Does our strategy optimize the potential of the Marketspace? Have we integrated our strategies in “Space” and “Place”?

Dr. Chen; Information Systems Theory and Practice 4 Understanding the Marketspace It is: Technology-enabled, not technology-driven It offers: Opportunity-Totally new and often better ways of attracting and retaining customers and of facilitating customer interactions Risks-New tools our competitors can use to chip away at our core customer franchise

Dr. Chen; Information Systems Theory and Practice 5 Meeting customer needs with information Product descriptions and photos on-line, linked to an ordering system A broad selection of products and fast, easy, ordering Inspectors examine and photograph cars; information distributed and auctions conducted on-line Dealer-Sell cars without having to ship them to a central auction site Retailers-Get car information without traveling Product pictures and specifications, charismatic studio host, and friendly telephone staff Learn about products, interact with friendly people, without leaving home Baxter AUCNET QVC Marketspace solutionCustomer need

Dr. Chen; Information Systems Theory and Practice 6 A way to think about transactions  Content- What companies are offering  Context- How they are offering it-the look and feel of the customer’s experience when finding out about and obtaining the content  Infrastructure- What enables the transaction to occur (including the technology platform)or the distribution of content and context to occur Component, usually linked in the “Place,” can be separated in the “Space”. Both “Place” and “Space” transactions have 3 components Marketplace Brand Content Context Infrastructure Marketplace Content Context Infrastructure Brand

Dr. Chen; Information Systems Theory and Practice 7 Examples:Content, Context, and Infrastructure BaxterQVCATMs Information about products and services Information about merchandise Cash and account transactions On-line interactive access, screen design Programming, charismatic hosts, friendly ordering environment, screen design 24-hour accessibility, choice of locations, screen and keypad design Internet, CD-ROM, warehouse and delivery services Cable and telecommunications networks, warehouse, delivery service, and customer information systems ATM network for electronic and physical funds transfer Content Infrastructure Context

Dr. Chen; Information Systems Theory and Practice 8 Defining content Content can be  Information about products and services – Demonstrations and data about product (QVC) – Product specifications (Baxter)  The product itself – Information:Bank balances (ATM) –Tangible product:Cash (ATM)  Transactions –Account transfers (ATM) –Ordering product (Baxter)  Community –Customers talking to customers (QVC)

Dr. Chen; Information Systems Theory and Practice 9 The role of context Transaction speed? (Baxter) A fun and friendly experience? (QVC) Scope of information? (Baxter) Options for transaction location and time? (ATM) A personalized relationship? (QVC) Key question : What does the customer want from the transaction experience?

Dr. Chen; Information Systems Theory and Practice 10 Choosing infrastructures Internet/WorldWide Web (Baxter, QVC) Broadcast/cable TV (QVC) Proprietary networks (ATM) Telecommunications networks (QVC) Other infrastructures such as mail and fax machines What infrastructure (ours, someone else’s, or combination) will best meet our business objective?

Dr. Chen; Information Systems Theory and Practice 11 Do we have a Marketspace strategy? Questions to consider: How do we use the “Space” to improve access to, and communications with, customers?  Acquisition  Retention  Revenue generation How does the “Space” fit in the overall company strategy? Do we integrate “Space” and “Place” efforts? Can customers move smoothly from one to the other? ? ? ?

Dr. Chen; Information Systems Theory and Practice 12 Brainstorming a successful “Space” strategy 1.Identify current positions in the “Space” and “Place”. 2.Identify met and unmet customer needs. 3.Explore solutions in the “Space” (remember-consider content, context, and infrastructure separately as well as together)

Dr. Chen; Information Systems Theory and Practice 13 Identifying current position in the “Space” and “Place ” Mailing coupons to customer list Toll-free telemarketing, direct mail catalog Advertising and promo (radio, newspaper, direct mail) Face to face interaction with customer service Face to face Interaction with salesperson Storefront display Customer Retention (service, support) Revenue Generation (selling, repeat sales) Customer Acquisition (finding customers) Example: Department store “Place” “Space”

Dr. Chen; Information Systems Theory and Practice 14 Identifying current position in the “Space” and “Place ” Customer Retention (service, support) Revenue Generation (selling, repeat sales) Customer Acquisition (finding customers) Example: Department store “Place” “Space”

Dr. Chen; Information Systems Theory and Practice 15 Possible next steps Develop new strategies to meet identified customer needs. Could we meet the needs with information? What other content might be appropriate? What are customers seeking from the experience? What context will meat those needs? What infrastructure would best support those business goals? Review current activities in the “Space” and “Place’ Are our strategies integrated? Would customers say so, based on their encounters with us in the “Space” and “Place”? Reach competitive activities in the ‘Space”.