Page 38 - Marketing Management

DEFINING MARKETING FOR THE 21ST CENTURY | CHAPTER 1 15

communities. Word-of-mouth marketing agency BzzAgent has assembled a nationwide
volunteer army of 600,000 consumers who join promotional programs for products and
services they deem worth talking about. 29 In 2005, Dunkin’ Donuts hired BzzAgent to help
launch a new espresso beverage, Latte Lite. Three thousand trained volunteers (called
BzzAgents) in 12 test markets experienced the Latte Lite, formed their opinions, engaged in
natural conversations about the product, and reported back to BzzAgent via the company’s
reporting interface. After four weeks, product sales had increased by more than 15 percent
in test markets. 30
• Marketers can send ads, coupons, samples, and information to customers who have re-
quested them or given the company permission to send them. Micro-target marketing and
two-way communication are easier thanks to the proliferation of special-interest magazines,
TV channels, and Internet newsgroups. Extranets linking suppliers and distributors let firms
send and receive information, place orders, and make payments more efficiently. The com-
pany can also interact with each customer individually to personalize messages, services, and
the relationship.
• Marketers can reach consumers on the move with mobile marketing. Using GPS technol-
ogy, marketers can pinpoint consumers’ exact location and send them messages at the mall
with coupons good only that day, a reminder of an item on their wish list, and a relevant
perk (buy this book today and get a free coffee at the bookstore’s coffee shop). Location-
based advertising is attractive because it reaches consumers closer to the point of sale. Firms
can also advertise on video iPods and reach consumers on their cell phones through mo-
bile marketing. 31
• Companies can make and sell individually differentiated goods. Thanks to advances in fac-
tory customization, computer technology, and database marketing software, customers can
buy M&M candies, TABASCO jugs, or Maker’s Mark bottles with their names on them;
Wheaties boxes or Jones soda cans with their picture on the front; and Heinz ketchup bottles
32
with customized messages. BMW’s technology allows buyers to design their own car models
from among 350 variations, with 500 options, 90 exterior colors, and 170 trims. The company
claims that 80 percent of the cars bought in Europe and up to 30 percent bought in the United
States are built to order. Companies are increasingly allow-
• Companies can improve purchasing, recruiting, training, and internal and external ing customers to customize their
communications. Firms can recruit new employees online, and many have Internet training products, such as with personalized
products for their employees, dealers, and agents. Retailer Patagonia has joined Walt Disney, messages on the front labels of
General Motors, and McDonald’s in embracing corporate blogging to communi- Heinz ketchup bottles.
cate with the public and employees. Patagonia’s The Cleanest Line posts environ-
mental news, reports the results of its sponsored athletes, and posts pictures and
descriptions of employees’ favorite outdoor locations. 33
• Companies can facilitate and speed up internal communication among
their employees by using the Internet as a private intranet. Employees can
query one another, seek advice, and download or upload needed information
from and to the company’s main computer. Seeking a single online employee
portal that transcended business units, General Motors launched a platform
called mySocrates in 2006 consisting of announcements, news, links, and
historical information. GM credits the portal with $17.4 million in cost
savings to date. 34
• Companies can improve their cost efficiency by skillful use of the
Internet. Corporate buyers can achieve substantial savings by using the
Internet to compare sellers’ prices and purchase materials at auction, or by
posting their own terms in reverse auctions. Companies can improve logistics
and operations to reap substantial cost savings while improving accuracy and
service quality.

Marketing in Practice
Not surprisingly, these new marketing forces and capabilities have profoundly
changed marketing management. In theory, the marketing planning process consists
of analyzing marketing opportunities, selecting target markets, designing marketing
strategies, developing marketing programs, and managing the marketing effort.