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2. chapter McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. 13 Designing the Marketspace Matrix

3. Designing the Marketspace Matrix — Today’s Objectives • Objectives will be to: • Introduce the Marketspace Matrix • Examine the role of the 2Is across all categories of marketing levers • Review how the marketing levers are used to establish and maintain customer relationships • Examine the principles and guidelines firms can use when designing the Marketspace Matrix

4. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

5. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

6. Exhibit 13.1: The Marketspace Matrix Relationship Stages Categories of Levers Branding

7. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

8. Exhibit 13.2: The 2Is Interactivity Individual Pricing Communication Product Community Distribution Branding Result 1. More efficient advancing of customers through the relationship stages 2. More possibilities to sustain commitment

9. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

10. Customers can advance through the stages in several different ways Exhibit 13.3: Moving Through the Relationship Stages Awareness Exploration/ Expansion Commitment Dissolution Profitable Uncommitted Customer

11. Exhibit 13.4: The Marketspace Matrix Relationship Stages Categories of Levers Branding

12. Exhibit 13.6: Lever Selection Process Objective Positioning Current Relationship Phase Lever Segment Targeting

13. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

14. Exhibit 13.7: Principles for Marketspace Matrix Design Which levers are customers most responsive to? Which levers are least likely to generate a competitive response? Which levers work best together? Which levers are consistent with strategy? • Principle 7: Look for interaction effects. • Principle 8: Integrate across levers. • Principle 5: Anticipate your competitors’ likely responses. • Principle 6: Build on your firm’s skills and resources. • Principle 1: Base the levers on consumers behavior. • Principle 2: Choose levers to effect change. • Principle 3: Measure the impact of each lever. • Principle 4: Overcome barriers to advancement. • Principle 9: Levers create the position. • Principle 10: Focus on superior customer value.

15. Exhibit 13.8: Amazon’s 1-Click Ordering Process Barrier User in Exploration/ Expansion Stage Places Book in Shopping Cart Has to Enter Name, Address, Credit Card Commitment 1-click ordering bypasses barrier

16. Exhibit 13.10: Integration of Levers Targeted Segment OnlineLevers IntegratedLevers Positioning and Message OfflineLevers

17. Exhibit 13.11: Functional, Symbolic, and Hedonic Explained Functional Product’s Ability to Provide Utility Symbolic Benefits That Relate to the Anticipated Reaction of Other Individuals Hedonic Sensual (Taste, Sound, Sight, Touch) Benefits Derived From the Product

18. Exhibit 13.12: Marketspace Matrix for EBay, 1995 Relationship Stages Categories of Levers Branding

19. Exhibit 13.13: Marketspace Matrix for EBay, 1998–1999 Relationship Stages Categories of Levers Branding

20. Exhibit 13.14: Marketspace Matrix for EBay, 2000–Present Relationship Stages Categories of Levers Branding

21. Chapter 13: Designing the Marketspace Matrix • The Marketspace Matrix • Role of the 2Is Across All Categories of Marketing Levers • How Marketing Levers Are Used to Establish and Maintain Customer Relationships • Principles and Guidelines for Matrix Design • Conclusion

22. Designing the Marketspace Matrix — Conclusion • The Marketspace matrix is intended to help firms build a marketing plan within the context of moving customers through the relationship stages. • The 2Is allow firms to choose levers that can move customers through the relationship stages faster and more effectively than ever. Also, the 2Is offer firms new and improved possibilities to maintain commitment. • The 10 principles of matrix design can help marketing managers select and implement appropriate levers. The principles span four categories: • Which levers are customers most responsive to? • Which levers are least likely to generate a competitive response? • Which levers work best together? • Which levers are consistent with strategy?