5.11 Changes in the market place


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Kunnskapskilden –  Internet Marketing Intelligence

Bench on the pier


Internet Marketing Intelligence




Kunnskapskilden – Internet Marketing Intelligence
Internet Situational Analysis of 1to1 Marketing/CRM


Research Project: Internet Situational Analysis of 1to1 Marketing/CRM  from Jan Vig  at Griffith University , Australia  1999/2000



Chapter 1 Introduction/overview

Chapter 2 Search Strategy

Chapter 3 One to One Marketing and its environment

Chapter 4 Environmental Scan

Chapter 5 Market analysis

Chapter 6 Competitors Analyses

Chapter 7 SWOT

Chapter 8 Critical Success factors

Chapter 9 Segmentation, Customer analysis and target markets

Chapter 10 Business Objectives and Strategies

Chapter 11 Marketing Mix tactics and Conclusions



Chapter 5

Market Analysis



Chapter 5 Market analysis

5.1 Trends

5.1.1 Mega trends

5.1.2 Emerging Web Trends

5.1.3 1999 Web Trends

5.1.4 Where in the world is the Net taking us?

5.1.5 Future.sri.com

5.1.6 Predictions for the Web in 1999

5.1.7 Other trend forecasts

5.1.8 E-Commerce

5.1.9 Trends Technology

5.1.10 Drivers for Change – Consumers

5.1.11 Demographics

5.2 Internet statistics

5.2.1 Internetstatistic.com

5.2.2 E-Marketer STATISTIKK

5.2.3 NUA

5.2.5 Activmedia

5.2.6 Dataquest

5.2.7 Surveyn.Net – Internet User Survey #2

5.2.8 Other Statistik

5.2.9 Web shopping Statistics

5.3 One to One marketing / Relationship marketing

5.3.1 Relationship Marketing

5.3.2 1:1 marketing

5.3.3 Permission marketing

5.3.4 Power tools for 1:1

5.3.6 Critical Questions

5.3.8 The state of one to one online, part II

5.4 Customer care/ customer service

5.4.1 Customer Care Pricewaterhous & Coopers

5.4.2 Customer Relationship Management CRM

5.4.3 Customer service

5.4.4 Collect customer information

5.4.5 Customer service

5.4.6 Internet Customer Service

5.5 Personalization

5.5.1 Personalization: Marketing to one:

5.5.2 There are 4 ways to ad personalization to the web site

5.5.3 Different articles about personalization

5.6 Privacy

5.6.1 Information sources on Internet concerning privacy

5.6.2 Articles about privacy

5.7 Security

5.7.1 Different articles concerning security

5.7.2 NUA Security Issues

5.8 The Market place 1to1 after Peppers & Rogers

5.8.1 Communications and Media

5.8.2 Customer Knowledgebase

5.8.3 Mass Customization

5.8.4 Distribution and Channel

5.8.5 Organizational Structure

5.9 The future of One to One Web Technology

5.9.1 The Future of One-to-One Web Interactivity

5.9.2 The Future of One-to-One E-Mail

5.9.3 The Future of One-to-One Web Site Personalization

5.9.4 The Future of One-to-One Push

5.2.5 The Future of One-to-One Community

5.9.6 The Future of One-to-One Web Presentation and Conferencing

5.9.7 The Future of One-to-One Advertising and Promotion

5.9.8 The Future of One-to-One Web Site Tracking and Analysis

5.9.9 The future of tracking in a word: databases.

5.10 Products and customers

5.10.1 Who is buying what over the Internet?

5.10.2 Customer-business interaction

5.10.3 Business relationships and communications

5.11 Changes in the market place

5.11.1 Drivers of Change

5.11.2 Consumer Behaviour

5.11.3 Industry Response

5.12 Changes in the market response

5.12.1 Product & Service Offering

5.12.2 Relationship Marketing

5.12.3 One to One Marketing

5.12.4 Mass Customisation

5.12.5 Future Delivery Mediums

5.13 Changes in delivery mediums

5.13.1 Post

5.13.2 Fax

5.13.3 CDs and Disks

5.13.4 Kiosks

5.13.5 Pagers and PDAs

5.13.6 Telephones and Smartphones

5.13.7 Interactive TV

5.13.8 Web TV

5.13.9 Internet E-mail

5.13.10 Internet World Wide Web

5.13.11 Proprietory ISPs

5.13.12 Summary




Changes in the market place


Research Project: Internet Situational Analysis of 1to1 Marketing/CRM  from Jan Vig  at Griffith University , Australia  1999/2000




Society is changing rapidly in all dimensions but it is the pace of change and the unpredictability that makes the future difficult to deal with.


Technology is providing freedom and choice of place, time, methods (ways), and content. Society, and therefore consumers, are having to adopt new modes of behaviour. There are business opportunities in helping customers, and the same new technology mediums, like the Internet and Web-TV, can deliver this help.


As consumers gain confidence with the new mediums they will use them to define their requirements and their terms for doing business. We are entering an era of Pull Marketing. Companies will need to change their methods if they are to serve informed and pro-active customers. Collaboration with customers is the future for building trust and strong life long relationships.


Businesses, have a problem in meeting these new demands:

  • Customers will adopt the new modes of behaviour at different rates.
  • existing infrastructures and distribution cannot be eliminated overnight.
  • which mediums will dominate is unclear.
  • new technology is risky.




Business needs to adapt, but there are many barriers to change:

  • structural and image problems across the industry.
  • an emphasis on cost reduction, cost justification and on delivering results in the short term.
  • internal problems with existing technology, the caliber of staff and culture.
  • Unavoidable external pressures include Year 2000 and closer regulation.




There are numerous choices with technology, business models and organisational structures. There is a need for strategic decisions. Meanwhile, customers demand more!


5.11.1  Drivers of Change

http://www.managingchange.com/simrep/content.htm Political

  • Free market economics and reduced state intervention.
  • Emphasis on self reliance and responsibility.
  • For further information see chapter 4 Economic

  • Dominance of the retailers and power of the brand.
  • Increasing competition, often from new directions.
  • An increasing variety of distribution mechanisms.
  • Many 1st World markets are becoming saturated.
  • For further information see chapter 4 Social

  • Increasing numbers of elderly and smaller households.
  • A society that is active 24 hours per day, 7 days per week.
  • More fragmented and disjointed life-styles.
  • A more polarised society, with a decline in the C2’s (a mass market attracted to traditional brands) now at only 23%.
  • For further information see chapter 4 and trends chapter 5 Technological

  • Increasing pace of technological innovation delivering increase power and lower costs.
  • Significant increase in communications bandwidth with competition leading to a reduction in unit costs.
  • Advent of the global wired society. A trend towards narrow casting.
  • For further information see chapter 4 and trends chapter 5



5.11.2 Consumer Behaviour



Inter@ctive WeekSeptember 7, 1998


Buyer Behavior Is Key To Market Success By Kevin Jones


«We looked for ways that the market could create customer loyalty through community for the service centers, which are subject to price-sensitive spot buying; ways to help people do favors for each other through collaboration on answering questions, to use information to build alliances,» Sato says.


Consumer Acceptance of Technology


SRI’s Consumer Acceptance of Technology (CAT) is designed to increase new product success by analyzing the human and social aspects of new technology products and services. It is based on research about change leaders—consumers who are most positively responsive to new products and services.


CAT is designed to assist product designers, R&D managers, planners, market communications managers, and marketing and brand managers:

  • Profile early adopters of new products Idenfity other key user groups later in the diffusion process
  • Estimate market potential
  • Target advertising and communications
  • Identify social resistance early and take appropriate action
  • Design, redesign, and position products effectively  




How are consumers reacting to these dynamic forces? The use of a behavioural model helps to clarify what is occurring to people. Confusion



  • Historically, most people have led stable lives both with respect to employment and to their family situation.
  • Market and social forces are producing a de-stabilising impact resulting in the appearance of new models. Learning



  • People turn to a variety of sources to try to make sense of the situation and, more importantly, identify coping strategies.
  • Initial sources of information are likely to include less threatening ones such as friends and family and the media.
  • An increasingly technologically familiar society is using the Internet and other mediums as a rich hunting ground for anonymous fact finding. Experimentation



  • Consumers will try new patterns of behaviour, giving rise to new requirements. In the first instance they are likely to turn to the well-established brands, though not necessarily long established. Newer brands, with their open and fresh approach, are proving an attraction for many.
  • Products at this stage are likely to be basic commodity products with limited options. As a form of risk management, consumers may have a preference for low cost, short term products. Confidence



  • The prior stage leads to a greater awareness of, and increasing expertise in different services.
  • Some use their new found confidence to deal with professionals, whilst others will deal direct with manufacturers. This has given rise to the term Pull marketing.
  • Increasing knowledge and experience is likely to lead to a shift from quantity (i.e. must get some cover) to quality plus service (must get good cover) but all at a competitive price.

Increasing Confidence


A 1996 study by Deloitte & Touche Consulting found 44% of PC owners (that subscribe to an on-line

service provider) have made an on-line purchase in the last 12 months. When looking at the buying habits of young people they found 77% of those consumers under the age of 25 were shopping on-line.


Especially with Brands

In another survey, consumers said they were confident in purchase leading brands electronically, even when the product is outside the normal market for that supplier. Recent Consumer Net Stats

See Chapter 5.2



5.11.3 Industry Response




All the stages outlined above provide increased opportunities for the diversified business within the 1to1 Marketplace, but equally failure to adapt to these changes could lead to loss of market share. Changes occur over time, probably in a fragmented way:


  • different consumers move at different rates.
  • early adopters demonstrate new ways of buying and followers quickly replicate these.
  • laggards may be a problem for established players
  • new technology provides opportunities for innovative delivery of information, products and services.
  • some new technology leads to cul-de-sacs and write-offs.
  • unclear legislation does not inhibit adventurous suppliers. They aim to establish new consumer behaviours both as a lever to update legislation as well as ratifying their tactics. Opportunities include

  • an education role to help consumers adjust to the new era.
  • collaborative working with businesses, consumers and retailers to identify emerging and unsatisfied needs.
  • developing a range of simple commodity products that consumers find easily to purchase.
  • greater transparency to raise consumer confidence.
  • developing a range of more complex products that are easily customised to suit business and individual needs and aspirations. Failure by providers to adapt could be due to a number of reasons.

As well as the failure to seize the opportunities, other reasons may include:

  • being unable to justify value for money.
  • not providing consumer choice in product and service delivery.
  • not adapting internal organisational structures, business processes and IT systems to support the new delivery mechanisms.
  • not exploiting the mass of existing customer data.
  • not changing the organisational culture so that all parts of the organisation feel responsible for customer service.
  • not ensuring that all customer contact points understand that they have a marketing role both in:
    – realising the expectations of the marketing messages, and
    – being a conduit for ensuring that the activities of the organisation stay abreast of customer needs.
  • not incorporating greater flexibility and faster speed of response for the development of new product and new delivery systems.
  • spreading resources too thinly.
  • dabbling in new developments without clear objectives.
  • not developing suitable strategic alliances with both suppliers and distributors and perhaps even competitors.
  • not outsourcing or withdrawing from activities no longer appropriate or economic. Recent Net Commerce Stats

See Chapter 5.2 Count of 1to1 Marketing companies within the Industry

No time at the moment to investigate that, but it is quite easily for some parts of the Industry. Look at the yellow pages and bigger professional database company.



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