Case Study Eight Chapter 12 Remi Roy Intro to E-Marketing.
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Case Study Eight Chapter 12 Remi Roy Intro to E-Marketing
Company Overview Case #8 represents a company’s online failure A financial services firm providing consumer banking services Case focuses on a failed new product development (NPD) Company failed ? Failed to acknowledge its core competencies and new entrants into the marketplace. Furthermore, it failed to monitor the environment by not gathering sufficient best practices and competitive benchmarking Mission Focus on the online environment for the e-commerce and CRM components of e-business to the customer marketplace
Company Information Predominant bank measured by household market share statistics 2 million retail banking customers Third largest home owner equity lender 200 retail locations Two competitors
Bank’s Image In the last three quarters, company’s technology image, overall satisfaction and willingness to recommend were gradually declining
Marketing Strategies Develop a new high-tech retail banking product (NPD Process) First two steps are: Idea generation Idea screening Synticated research on consumer’s interest in technology banking products (survey, brainstorming, research) High level of interest in the market segments that company serves Invest heavily in technology for its extranet & intranet Concept testing Market strategy development Business analysis Product development market Market testing Commercialization News strategies from NPD’S about the risk of not performing or a low product demand
Performance & Improvisation High levels of internal knowledge and expertise Trained & developed a state-of-the-art intranet and extranet Real-time communication among product team members Online conferencing & video Outside-looking-in information source Maintain a steady stream of research Testing on electronic store product
Four steps of technology map (by Capou & Glazer) Step1- Technology Ressources Available Involves an internal audit of the company’s technological resources Ressources: Existing products, internal experts, and business processes Major income: indentify the gaps between existing resources Step2- Adress Resource Gaps Analysed the gaps and alternatives for closing them are determined Three alternatives: Internal production External purchase Strategic alliance Step3- Determine What to sell High tech environment has five options License or sell the technology Sell a prototype Sell components Sell a final product Sell a complete solution
Step4- Evaluation of New Product Develop its promotional strategies Create a direct marketing program to solicit sign-ups for the electonic store First sign-up was lower than expected Focus group Customer did not understand technology Difficult customization & no technical support Target 300 e-stores at the end of the second year Real 75 e-store at the end of the second year
Primary Stakeholders Main stakeholder group: Customer (existing & potential) Second group: Shareholders
Value Bubble 1- ATTRACTING Make the site more attractive Use metatags to help search engines find the site by name or products 2- ENGAGING The web site contains a whole set of information gathering activities to engage the viewer Has a series of calculators written in Java Customers can access and manage the resources they have with the company
Value Bubble Step -3- RETAINING Browser retain account numbers & log-in information (Simple for customers to access his account) Good retain technology Messages associated with technology were bland at best Log-in process (get the customer’s financial records information)
Summary Good strategies to integrate NPD (high tech services) Follow the technology evolution (Extranet & Intranet) Focus on online environment & CRM Failed!!!! Company #8 over evaluated customer’s technology knowledge Did not gathering sufficient best practices and competitive benchmarking Questions ?