Guideline for Midterm Exam As you've probably already seen (if you've looked at the exam), the four key areas to focus on are: 1. The new, dynamic realities of marketing in today's ever-changing environment 2. Defining and targeting high-value customer segments 3. The critical role that - data/information plays in modern-day marketing 4. The importance and ROI of investing in customer loyalty and retention Again, my apologies for having to cancel tonight's Zoom session, Dr. Stephenson Beginning in Chapter 1, the text discusses the "New Marketing Realities” that characterize our modern business environment. 1.) Identify and briefly describe four (4) of these key new marketing realities. 2.) Pick two of these new marketing realities and explain in detail how they impact marketing decision-makers in modern organizations. 3.) Provide at least two actual examples from current real-world organizations (e.g., Apple, Tesla, Amazon, NetFlix, Disney, Google, Zoom, Hilton, Southwest Airlines, etc.). Provide outside reference sources to support your answer. 1. Four (4) Key New Marketing Realities Due to the rapid innovations and development in technology the modern market is changing at a fast pace. This leads to a new form of consumer behavior and presents new challenges and opportunities for marketers. The 4 key aspects of the new marketing realities are Digital Revolution, Retail Transformation, Intensifying Competition, and Increased Customer Sophistication (Ismail, 2021). Digital Revolution includes the rapid development and popularization of mobile technology, social media, and the Internet. Retail Transformation has changed the way how consumers buy products online and how companies can reach out to consumers directly. The increase in competition is also a part and parcel of every organization in the modern market. Consumers can instantly check the prices and features of a product and compare it with other products. Lastly, the increased capability of customers to research a product before buying has made the market more competitive in terms of achieving market share (Ismail, 2021). 2. Two (2) Key Features Details in New Marketing Reality Out of the 4 key concepts discussed above, I want to elaborate on Digital Revolution and Increased competition in the new marketing era. In the era of the industrial revolution, the increased usage of modern technology has reduced the human effort in making a transaction due to automation carried out by machines. Consumers do not necessarily have to buy a product from an offline retail store. Consumers can buy products from online stores, social media, and the internet. Consumers can also compare prices and product reviews quickly while making a purchasing decision. Therefore, consumer behavior data can be utilized to make strategic marketing decisions. By monitoring consumer purchasing history and behavior, consumers can market their products effectively. By using digital technology like social media platforms, website marketers can market their products online. With the advancement of credit card payments online, consumers can conveniently make purchases from the comfort of their homes. The advancement in the banking system is making the seller aware of the instant transaction that has been made online from a product sale. This digital marketing technique has not only led to national economic growth but also affected the global economy positively. The Digital revolution has affected people’s lifestyles where consumers do not have to go to a store to sort which clothes to buy. Consumers are facilitated by purchasing online. Therefore, it has most important for any business to keep track of consumers’ internet usage history and gather data from them to find out consumer interests and customize the marketing ads accordingly. Businesses in the modern era not only have to be present offline but also online to create brand awareness and increase sales. In the modern era, using the digital revolution as an advantage, marketers must strategically market their products to achieve sustainable competitive advantage (Zulianti, Khaerul, Dewi, Izza, & Suhairi, 2022). Another new marketing reality is the increase in competition for market share in every industry. Brand new markets are like science fiction where the rules of time and space do not apply. The forces of competition are more and more intense, and it is increasingly more unclear who are the customers of the business, and the competitors can be from an industry that nobody could predict. For example, Airbnb has become a competitor in the hotel industry. In the new market, the conventional strategies of achieving a competitive position in the market do not seem to work. When a company is growing, they do not exactly know what components are most important to its customers by using conventional strategy. Therefore, with the intense competition in the market, the only way the business model will survive the competition is by creating value for the customer, being more flexible to change, and adapting to changes quickly. Every company that hopes to achieve sustainable profitability in the long-term will eventually need one or more sources of differentiation (Eisenhardt & McDonald, 2020). 3. Two (2) Real-Life Examples of New Marketing Reality I researched Apple and Disney to understand how they have adapted themselves to the new marketing realities. Apple is the most successful company in terms of building a brand and creating value. Therefore, it is important to understand how they are surviving in the ever-changing marketplace. Apple’s strategy to obtain market share is to keep its product simple, smooth, and minimal. Apple does not overwhelm tech customers with numerous options. Apple also focuses on customer experience which is consistent and creates value among consumers. Apple also comprehends its customer’s behavior deeply by using simple words on their websites like LED backlighting, and retina display. This strategy of Apple works which is seen in their financials and increased market share. Apple also focuses on building its fan bases worldwide and its marketing strategies make customers want to belong to the Apple community. Apple strategically avoids price wars and prices itself higher than competitors like Samsung. Apple believes in the strategy of you getting what you pay for. Apple has continuously adapted to the changing market and has focused on a consumer behavior database to monitor the actual purchasing history of its customers strategically target segments and position itself in the market. These strategies have helped Apple achieve a higher return on investment (ROI) from its high-value customer segment and gave them a competitive advantage and sustainable profitability (Ellie, 2022). Disney is an icon of all US Brands. The business is highly scalable, and it is impossible to reach these heights without having a clear and critically thought marketing strategy. However, the best marketing strategy Disney has taken is the continuous adaptation to the rapidly changing market. Disney has continuously adapted itself to new stories that resonate and inspire its fan base and followers. Disney’s unique story-telling strategy influences its consumers to the core and provides meaningful lessons which touch the emotions of its consumers. Disney also builds Disney world and Disneyland destinations as iconic and sacred destinations and quickly adapts to the trending movies that have disrupted the industry like Harry Potter, Marvel, etc. Disney also generates an emotional impression on the lives of millions of people by employing nostalgia which reinforces customer loyalty and retention. Disney also keeps its theme simple but dreamy and continuously adapts to the needs of the consumers. All these strategies make Disney unique to achieve brand awareness and equity in the continuously changing market. Also, the return on investment (ROI), made on marketing and sales from Disney’s high-value customer segments, has seen rapid growth over the years (Ellie, Disney Marketing Strategy: How Disney Becomes The Entertainment King?, 2022). References AWS. (2022, NA NA). AWS Cloud Databases. Retrieved from AWS: https://aws.amazon.com/products/databases/ Burdick, M. (2019, May 14). Understanding the Challenges of Amazon Marketing Optimization. Retrieved from TotalRetail: https://www.mytotalretail.com/article/understanding-thechallenges-of-amazon-marketing-optimization/ Eisenhardt, K. M., & McDonald, R. (2020, May 15). The New-Market Conundrum. Retrieved from Harvard Business Review: https://hbr.org/2020/05/the-new-market-conundrum Ellie. (2022, July 01). Apple Marketing Strategy: 8 Precious Lessons to Learn. Retrieved from MegaPlaza: https://www.mageplaza.com/blog/apple-marketing-strategy.html Ellie. (2022, July 01). Disney Marketing Strategy: How Disney Becomes The Entertainment King? Retrieved from Megaplaza: https://www.mageplaza.com/blog/disney-marketing-strategy.html Green, S. (2021, NA NA). The Ultimate Guide to Database Marketing. Retrieved from Hubspot: https://blog.hubspot.com/marketing/database-marketing Indeed Editorial Team. (2021, June 15). Guide to Marketing Information Systems and Why They Matter. Retrieved from Indeed.com: https://www.indeed.com/career-advice/careerdevelopment/marketing-informationsystem#:~:text=A%20marketing%20information%20system%2C%20or,data%20to%20analyze%2 0and%20interpret. Ismail, S. (2021, January 21). The New Marketing Realities. Retrieved from Linkedin.com: https://www.linkedin.com/pulse/new-marketing-realities-sabran-ismailManancourt, V. (2021, February 24). ‘Millions of people’s data is at risk’ — Amazon insiders sound alarmed over security. Retrieved from Politico: https://www.politico.eu/article/data-at-riskamazon-security-threat/ Zulianti, D., Khaerul, M., Dewi, S. K., Izza, V. N., & Suhairi. (2022, January 28). THE EFFECT OF THE DIGITAL REVOLUTION IS TO CONQUER GLOBAL. International Journal of Social Research, 1(2), 128-133. At the Beginning of Chapter 3, the text discusses the use and importance of "Marketing Information Systems". 1.) Explain what a “Marketing Information System” is - And why it is important to you as a marketer. 2.) If you are an Amazon marketing decision-maker, identify and describe four (4) major categories of critical information you should maintain in your marketing database(s)? 3.) Describe two (2) major risks incurred by Amazon by operating a large, extensive marketing database? Provide outside reference sources to support your answer. 1. Marketing Information System and Its Importance: A system that is used for gathering, analyzing, and distributing marketing data and to help marketers make better decisions is called a Marketing Information System (MIS). Marketers use the data, collected by the MIS from relevant internal and external records, to analyze, interpret, and make marketing decisions (Indeed Editorial Team, 2021). An MIS aids effective communication within the organization. From MIS, team members obtain valuable and reliable information. This information keeps the internal teams aware of the marketing behavior of consumers and also keeps them motivated on the specific tasks and goals. MIS also prevents miscommunication as it provides the same access to shared information to all levels within the organization. Therefore, MIS can aid the overall performance of the organization. Using MIS, employees can access well-organized data, analyze, and interpret it and help shape the strategic decisions of the organization in the right direction. MIS also helps an organization identify new ways to upgrade and expand the existing system. This, as a result, helps the organization to further collect and analyze data to build a more efficient business (Indeed Editorial Team, 2021). 2. Four (4) Major Critical Information for Amazon’s Marketing Database: As an Amazon marketing manager, I would use the following four (4) major critical information for creating our database: Update customer contacts regularly and get feedback from customers; identify potential and valuable buyers; Segment the buyers; Create a loyalty program and provide superior customer service (Green, 2021). As a marketing manager, I want to be in control of my customer contacts and not rely upon social media. Social media is a strong tool. However, the database will soon disappear if a media entity like Facebook disappears suddenly. Therefore, I would choose Amazon’s databases like Aurora, RDS, or Redshift (AWS, 2022) to create my customer database; regularly update the data of new and existing customers. I would also send out surveys for customer experience and make a gauge of customer satisfaction. I would also keep a track of the real buying behavior of my customers and create a database out of it (Green, 2021). By analyzing the database, I will find a list of the best customers. I will look for where they live. I will research what problems they have and whether Amazon is contributing to solving their problems. I will also try to find customers with similar purchasing behavior. Database marketing will allow me to understand my ideal customers and then help target individuals who behave similarly to them on paper (Green, 2021). The third thing I will consider is segmenting my buyers based on purchasing behavior, demographics, and buying history. This will help me understand my customers better and offer them more of what they want and less of what will lose their attention (Green, 2021). Lastly, I will create a marketing channel and loyalty program for my customers to provide the best offerings and value to retain and repeat their engagement with Amazon. I will make this information open to all levels of employees so that Amazon employees can understand what the goal is and provide superior customer service for loyal customers to retain their business. Once, this can be achieved, Amazon can focus on its high-value customer segments and the return on investment (ROI) done on marketing and sales will grow quickly (Green, 2021). 3. Two (2) Major Risks of Amazon with Large Database System The two major risks that Amazon is facing with the large database system are- Increased Competition and Database Security Issues. Amazon.com has become the most widely used search engine as of 2021 for any product. People Skip Google and go directly to Amazon to search for products when shopping online. As a result, Amazon has become one of the key product marketing battlegrounds along with Google. Therefore, to minimize this risk of losing customers, Amazon requires an increasingly high level of active, real-time campaign management. This is putting an increasing amount of pressure on brands and marketers to stay on top of their game. Amazon has launched its Marketing and Search Engine Optimization strategy to overcome this increased competition from different players in the market such as Google, Facebook, Shopify, etc. (Burdick, 2019). The other major risk that Amazon is facing is protecting its consumer data and compliance (Manancourt, 2021). Amazon can track our order history, save our credit card information, and even have access to our health data. Amazon has an empire of data that covers a lot more areas of our lives. However, according to experts, the efforts of Amazon to protect the information it collects are insufficient. This leads to an increased risk of potential data breaches, theft, and exploitation. Amazon prioritizes growth over other factors which lead to an increased threat of sensitive customer information. Although experts have shared their concerns, Amazon representatives have been strong in their statement that ensuring security and protecting the privacy of consumer data is Amazon’s long-standing top priority (Manancourt, 2021). References AWS. (2022, NA NA). AWS Cloud Databases. Retrieved from AWS: https://aws.amazon.com/products/databases/ Burdick, M. (2019, May 14). Understanding the Challenges of Amazon Marketing Optimization. Retrieved from TotalRetail: https://www.mytotalretail.com/article/understanding-thechallenges-of-amazon-marketing-optimization/ Eisenhardt, K. M., & McDonald, R. (2020, May 15). The New-Market Conundrum. Retrieved from Harvard Business Review: https://hbr.org/2020/05/the-new-market-conundrum Ellie. (2022, July 01). Apple Marketing Strategy: 8 Precious Lessons to Learn. Retrieved from MegaPlaza: https://www.mageplaza.com/blog/apple-marketing-strategy.html Ellie. (2022, July 01). Disney Marketing Strategy: How Disney Becomes The Entertainment King? Retrieved from Megaplaza: https://www.mageplaza.com/blog/disney-marketing-strategy.html Green, S. (2021, NA NA). The Ultimate Guide to Database Marketing. Retrieved from Hubspot: https://blog.hubspot.com/marketing/database-marketing Indeed Editorial Team. (2021, June 15). Guide to Marketing Information Systems and Why They Matter. Retrieved from Indeed.com: https://www.indeed.com/career-advice/careerdevelopment/marketing-informationsystem#:~:text=A%20marketing%20information%20system%2C%20or,data%20to%20analyze%2 0and%20interpret. Ismail, S. (2021, January 21). The New Marketing Realities. Retrieved from Linkedin.com: https://www.linkedin.com/pulse/new-marketing-realities-sabran-ismailManancourt, V. (2021, February 24). ‘Millions of people’s data is at risk’ — Amazon insiders sound alarmed over security. Retrieved from Politico: https://www.politico.eu/article/data-at-riskamazon-security-threat/ Zulianti, D., Khaerul, M., Dewi, S. K., Izza, V. N., & Suhairi. (2022, January 28). THE EFFECT OF THE DIGITAL REVOLUTION IS TO CONQUER GLOBAL. International Journal of Social Research, 1(2), 128-133.
