G3-Riding The Marketing Information Wave
G3-Riding The Marketing Information Wave
G3-Riding The Marketing Information Wave
Information Wave
Harvard Business Review
Dr.Mohamed Radwan
Group Members
Norhan Ayman | Yara Mostafa
Micro-marketing techniques are critical to the survival of large players, since they allow big companies to own niches in the manner of smaller,
more flexible competitors.
Large companies without the vision to develop their own marketing IT – or the niche-oriented strategy of a successful small company – will drown in the
wake of smarter competitors.
Information Overload
Reaching the consumer with Yet when the number of market segments and the
appropriate information in the Positioning information to establish image, brand, number of products dramatically increase,
form of advertising, store and detailed product specifications. traditional means of exchanging this information
displays, and retail concepts become overloaded.
- The average grocery store now stocks around 20,000 items, with larger stores carrying two or three times that amount.
- Given the enormous variety of weights, flavors, colors, and sizes, the total number of stock-keeping units at a supermarket may run to several hundred thousand.
- This creates an information crisis for retail managers and for manufacturers in the buying process.
- Surveys of supermarket executives show that they expect technologies like point-of-sale scanning to help allocate shelf space and optimize product mix.
- The U.S. airline industry exemplifies the devastating leverage of customer information technology and the advantages of size in getting such expensive systems off the ground.
- Deregulation created information overload, customer reservation systems became the key to competitive survival.
- Now the industry is dominated by just a few large airlines, the two largest being the pioneers of computerized reservation systems.
Building Databases to
Own Customers
Where marketers once aimed to build market share, they now aim to own a market niche.
- A&P planned to use customer purchasing profiles to aim promotions at individual consumers. The Bonus Saver cards already allow A&P to offer individualized incentives based on purchasing
histories.
- A&P may use advanced advertising technologies to reach households with direct marketing like versioning management programs.
The New Marketing
Laboratory
As for the size and depth of its database, Finger- hut In general, FingerHut’s primary marketing programs are
captures as many as 1,400 pieces of information about a divided into three broad groups: front-end programs for
household. These include typical demographic items like acquiring new customers, transition programs for
income and home ownership, appliance ownership, and evaluating new purchasers and selecting those who may
purchasing histories for various categories of products. become valuable customers, and back-end programs for
maximizing the value of proven long-term customers.
The Curse of Irrelevant
Advertising
Since advertising noise levels have made it increasingly Advertisers are looking for new ways to reach individuals
difficult to differentiate brands and retail merchandise more effectively through “narrowcasting” rather than
buyers have become overwhelmed with the selection traditional broadcast media like TV commercials and
manufacturers have shifted their marketing budgets saturation newspaper ads. Examples: In-store coupons,
drastically from advertising to promotional discounts and special monitors that display advertisements in
and slotting allowances doctor’s offices, cash-register waiting lines, and airport
lounges and interactive kiosks.
A New Balance of Power
In a jumbled information economy of niche players and electronic shoppers, only one thing is certain: the current revolution in customer
information technology is fundamentally changing the nature of competition.