Marketing
Adapting Marketing to the New Economy
In this chapter, we will address the following questions:
1. What are the major forces driving the new economy? 2. How are business and marketing practices changing as a result of the new economy? 3. How has the Internet changed the way marketers use customer databases and practice customer relationship management?
MARKETING MANAGEMENT AT NTT DOCOMO
All over Japan, NTT (Nippon Telephone and Telegraph) DoCoMo makes money when mobile phones ring. Loosely translated, docomo means “everywhere”—an apt description of the service’s pervasive reach. More than 31 million customers use the DoCoMo phone service for Internet access as well as telephone calls. On the Web, they can subscribe to the latest installment of a manga graphic story, send and receive instant messages from friends and relatives, subscribe to weather reports, and even order goods. Rather than browse in a store, a customer can use the phone’s compact Web viewing screen to look for a particular item (such as running shoes), choose a brand from among thousands listed, select a particular style and size, and place an order. Because the customer’s address is already in the system’s memory, the order will be sent automatically to a nearby 7-11 store for pickup or, for an extra fee, delivery. DoCoMo uses its technology and networks to track the goods and services accessed by each customer and summarize all transactions into a single monthly bill listing subscriber fees, usage fees, and all purchases. Content providers charge the equivalent of a few dollars for monthly subscriptions; DoCoMo profits by collecting these fees from customers and subtracting a 9 percent commission before sending the remainder to the providers. These commissions add up, given that the average mobile 23
ISBN: 0-536-55105-7
A Framework for Marketing Management, Second Edition, by Philip Kotler. Copyright © 2003 by Pearson Education, Inc. Published by Prentice Hall.
24
Part I
In this chapter, we will address the following questions:
1. What are the major forces driving the new economy? 2. How are business and marketing practices changing as a result of the new economy? 3. How has the Internet changed the way marketers use customer databases and practice customer relationship management?
MARKETING MANAGEMENT AT NTT DOCOMO
All over Japan, NTT (Nippon Telephone and Telegraph) DoCoMo makes money when mobile phones ring. Loosely translated, docomo means “everywhere”—an apt description of the service’s pervasive reach. More than 31 million customers use the DoCoMo phone service for Internet access as well as telephone calls. On the Web, they can subscribe to the latest installment of a manga graphic story, send and receive instant messages from friends and relatives, subscribe to weather reports, and even order goods. Rather than browse in a store, a customer can use the phone’s compact Web viewing screen to look for a particular item (such as running shoes), choose a brand from among thousands listed, select a particular style and size, and place an order. Because the customer’s address is already in the system’s memory, the order will be sent automatically to a nearby 7-11 store for pickup or, for an extra fee, delivery. DoCoMo uses its technology and networks to track the goods and services accessed by each customer and summarize all transactions into a single monthly bill listing subscriber fees, usage fees, and all purchases. Content providers charge the equivalent of a few dollars for monthly subscriptions; DoCoMo profits by collecting these fees from customers and subtracting a 9 percent commission before sending the remainder to the providers. These commissions add up, given that the average mobile 23
ISBN: 0-536-55105-7
A Framework for Marketing Management, Second Edition, by Philip Kotler. Copyright © 2003 by Pearson Education, Inc. Published by Prentice Hall.
24
Part I