Download On eBay Savvy Sellers use each of these decision points to

Customer Driven Marketing: How
Consumers are Taking over the
Marketing Mix
Leyland Pitt
Lulea University of Technology
November 2009
Marketing’s Progression
Since
2005
1990’s
through
to 2005
Up to
1980’s
“To”
“At”
“With”
Traditional Marketing: Marketing AT the Customer
Product
Price
Firm
Promotion
Place
Marketing “at” the customer



Customer heterogeneity
confuses marketing
So customers are best
seen as homogenously
grouped – market
segments
“Target marketing” – but
more like hunting with a
shotgun and hoping to hit
something
Addressable Marketing: Marketing TO the Customer
Firm
Place
Place
Promoti
on
Price
Promoti
on
Price
Place
Place
Product
Product
Place
Promoti
on
Price
Promoti
on
Price
Promoti
on
Price
Place
Place
Product
Product
Product
Promoti
on
Price
Product
Promoti
on
Price
Product
Marketing “TO” the Customer
•
•
•
•
•
The age of addressability
Technology enables an understanding of the individual
customer
The customer becomes the “prey” and the marketer
becomes the “hunter”
Customer is targeted with laser precision
The era of “mass customization”
Marketing in the Age of the Network: Marketing WITH
the Customer
Pro
duc
t
Pri
ce
Cust
omer
Pla
ce
Pro
mo
tion
Pro
duc
t
Pri
ce
Cust
omer
Pro
duc
t
Pla
ce
Pri
ce
Pro
mo
tion
Cust
omer
Pla
ce
Pro
mo
tion
Prod
uct
Price
Plac
e
Firm
Prom
otion
Pro
duc
t
Pri
ce
Cust
omer
Pro
duc
t
Pla
ce
Pri
ce
Pro
mo
tion
Cust
omer
Pro
mo
tion
Pro
duc
t
Pri
ce
Cust
omer
Pro
mo
tion
Pla
ce
Pla
ce
The Consumer becomes a Marketer
•
•
•
The networked consumer uses
technology to perform marketing
functions previously the prerogative of
firms
The “4 P’s”
The consumer becomes part of a
marketing dialog, not the target of a
marketing monolog
Deighton and Kornfeld, 2007
 “The
really surprising and interesting
events of the last decade from the
perspective of marketing practice and
theory have not had to do with better
interaction between the marketer and the
consumer. They have had to do with
digitally enhanced communication among
consumers, and between people and
the world’s information, and marketing
has struggled to find a place on these new
communication pathways.”
Whereas the early promise of technology
……was to give marketers hitherto
undreamed of power over consumers by
using all the information that had been
gathered and processed on them to the
firm’s benefit (cf. Blattberg and Deighton,
1991) recent evidence suggests that the
opposite is occurring.
Deighton and Kornfeld (2007): “it's the
consumer who runs the show for the most
part, not the marketer—in fact, forget the
"consumer" label altogether”.
Technology is enabling consumers to
perform for themselves and others
•many of the marketing tasks and functions (the wellknown “4Ps”) that were previously the prerogatives of
organizations
•eBay
•Betfair
•ePinions
•redesigning
and
remanufacturing
products
for
themselves and others, and using internet technologies to
distribute their offerings (Mollick, 2005)
•There don’t seem to be any of marketing’s 4 Ps that are
immune to the consumer-technology onslaught
Clever
Customers
Messing with
Products
Jim Hill
•
barred from the Magic
Kingdom
• devoted Disney fan
writes a blog on Disney
• Offers guided but
unauthorized tours of
Disneyland, charging
$25 per person
• March 2005 security at
Disneyland in Anaheim,
California informed him
barred from the park
and all other Disney
venues
Jose Avila
•
Made furniture for his apartment exclusively from Federal
Express boxes
• displayed pictures on his website (www.fedexfurniture.com)
• FedEx promptly overnighted a cease and desist letter
• consumer comments on weblogs persist:
• “This really brightened my day! The letters are classic lawyer
exchange. My husband and I laughed and laughed. Lawyers jousting
at windmills...”,
• “FedEx needs to lighten up. Jose is a bright and innovative young man,
and instead of making his life miserable, they should give him a great
job.
Ron Gremban’s car
•
looks like a typical Toyota Prius hybrid
• an additional stack of 18 brick-sized batteries boosts the
car's already high mileage with an extra electrical
charge so it can burn even less fuel.
• spent several months and $3,000 tinkering with his car
• Toyota initially frowned on people altering their cars
• now say they may be able to learn from them
Consumers
Playing with
Prices
Identify Items to
Sell
Find &
Research
Similar
Items
(Product,
Price)
Decide
on
Specifics
for Price
& others
Decide
when to
list item
List Items
On eBay, sellers rely on each
other
•
•
Most sellers do research by reviewing other
sellers’ listing, primarily to set price
expectations for the item they are trying to sell
Sellers are using eBay to assess the true
market value of an item on eBay before they
sell, using the same “finding” experience that
buyers are using to find find value as well
Consumers
distributing
products and
themselves
The Power of Social Networking
•
Facebook – more members than the
populations of most of the world’s
countries (world’s number 2 website)
• In December 2008, the Supreme Court of the
Australian Capital Territory ruled that
Facebook is a valid protocol to serve court
notices to defendants.
•
•
Twitter: Your own moment of fame
LinkedIn
Consumers are
now
• Salespeople
• Advertisers
Selling the Self in Second
Life…and real and virtual
products too
The Consumer as Advertiser
•
Consumers now using
inexpensive software, and
websites such as YouTube
• To make and distribute ads
• About the brands they love
• And the brands they hate!
A spoof ad