Theories of Network (or
Interactive) Marketing
What is Interactive Marketing?
Is it perhaps...
…selling over the Net?
…advertising over the Net?
…distributing over the Net?
…producing using the Net?
…others? What do you think?
My Definition:
Network Marketing is the Process
of Building and Maintaining
Customer Relationships Through
Building and Maintaining Valueadding Electronic Product and
Service Networks using the
Power of Information.
Concepts of Networked Marketing
Information as “Dematerialization”
Coproduction
Product Ecologies
Dematerialization: The informational
mode of production
Information management has been
labor intensive, therefore high cost,
high overhead.
The IT revolution makes knowledge
work productive through automation.
“network marketing”
When messages are transported at
network speed, and production is
decentralized, the result is FLEXIBILITY!
Flexibility: Doing Networked
Marketing
Customization: Change segments on the
fly—even make segments of one!
Co-production: Bring in the customer
Multi-channel solutions: real-time click
and brick sales pitch.
For each of these marketing innovations,
find examples and evidence in the
readings for this week. Where?
Link Concepts:
What is the glue for



the multi-channel retail system
Customization of segments
And co-production?
Ask yourself:
In this brand new world of flexible marketing through
co-production
How does branding change?
How does new product introduction change?
How does new product development change?
How does channel strategy change?
How does promotion change?
How does pricing strategy change?
Value Types
•liberate trapped value
•introduce new-to-the-world value
Create More Efficient
Markets
Enable Ease of Access
Liberate
Trapped
Value
Look at Value
System to
Discover New
Business
Opportunities
Create More Efficient
Systems
Disrupt Current Pricing
Power
• eBay
•craigslist
• monster.com
• Ofoto.com
• FedEx
• Carpoint.com
• Priceline.com
Customize Offerings
Introduce
New-to-theWorld Value
Extend Reach and
Access
• MyYahoo
• Amazon personalized page
• Keen.com (Advertise
yourself)
Build Community
• MyFamily.com
• Epinions.com
Enable Collaboration
• weboffice.com
So why do Network Marketing?
Because the NEW NETWORK supports one or
more of these efforts:
Enhance Customer
Relationships
Improve Profitability
E-Business
Increase Market Share
Increase Product Cycle
Times
Can the Internet Help Innovate?
Example: Carrier
Carrier: Smart
Products
carrier.com,
totaline.com,
hvacpartners.com,
myappliance.com
Do We Need “Central Internet Air Conditioning”?
The Product: A Internet-Enabled Comfort Choice Thermostat
What are the Benefits for Consumers?
1)
Web-Enabled Micromanagement of
Temperature.
2)
Added-Value Through Cost Saving.
And for Carrier?
1)
Bundling Smart Services allows
to Maintain Prices in Competitive
Market.
2)
Carrier, a B2B Company, is now VERY Close to
the Customer (User Data).
3)
Last but not Least: Image of Being Cutting-Edge
Does Carrier Make Anyone Else Happy?
Yes, Long Island Power Authority...
Get 45,000 customers into the Carrier program and it'll
conserve the equivalent of a small power plant…