Major Drivers of Information Economy

Digitalization and Connectivity
Today most appliances and systems operate with digital information, which convert text, data, sound, and images into a stream of zeros and ones that can be combined into bits and transmitted from appliance to appliance.

Dissintermediation and Reintermediation
Oly system of distribution is gradually changed by new system of distribution. The brick and mortar distribution is gradually change by online distribution.

Customization and Customerization
The new economy is supported by information businesses. Information has the advantages of being easy to differentiated, customize, personalize, and dispatch over networks at incredible speed.

Philip Kotler, Marketing Management

Public Relations Functions

Press Relation
Presenting news and information about the organization in the most positive light.

Product Publicity
Sponsoring efforts to publicize spesific products.

Comporate Communication
Promoting understanding of the organization through internal and external communications.

Lobbying
Dealing with legislator and goverment officials to promote or defeat legislation and regulation.

Counseling
Advising management about public issues and company positions and image during good times and crises.

Philip Kotler, Marketing Management

Market Segmentation Process

Needs-Based Segmentation
Group customers into segments based on similar needs and benefits sought by customers in solving a particular consumption problems.

Segment Identification
For each needs-based segment, determine which demographics, lifestyles, and usages behaviour make the segment distint and identifiable and actionable.

Segment Attractiveness
Use the segment attractiveness such as market growth, competitive intensity, market access to determined the overall attractiveness of each segment.

Segment Profitability
Finding the lucrative niche market.

Segment Positioning
Apply the value proposition and product positioning strategy based on customers needs and characteristics.

Testing the Market Segment
Experimenting to test the market segment.

Marketing-Mix Strategy
Expand the segment positioning strategy to include the marketing-mix: product, price, promotion, place.

Robert J.Best Market-Based Management

Strategic Segmentation

Useful Segmentation must:

Measurable	The size, purchasing power, and characteristic of the segment must be measurable.
Substantial	The segment are large enough and profitable enough to serve.
Accessible	The segment can be effectively reached and served.
Differentiable	The segment are conceptually distinguisable and respond effectively to different marketing-mix elements and programs.
Actionable	Effective programs can be formulated for attracting and serving segments

Philip Kotler, Marketing Management Guru

Competitive Equilibrium in Marketing

If competitors are nearly identical and make their living in the same way, then their competitive equilibrium is unstable.

If a single major factor is the critical factor, then the competitive equilibrium is unstable.

If multiple factors may be critical factors, then it is possible for each competitior to have some advantage and be differentially attractive to some customers. The more factors that may provide an advantage, the more competitors who can coexist. Competitor all have their segment, defined by the preference fro the factor trade-offs they offer.

The fewer the number of critical competitive variables, the fewer the number of competitiors.

Philip Kotler