Chapter 2

Major drivers of the new economy

1.Digitalization and connectivity
bits will not reside in appliances unless connectivity is
established
intranet, extranet, internet
2.Disintermediation and reintermediation

E tailers disintermediate the others

Brick only
Click only
Brick and click

3.Customization and customerization

Produce individually differentiated goods
Operation and marketing customization
4.Industry Convergence
Opportunities lie at the intersection of two or more industries
How business practicing are changing
Table 2.1
Hybrid customer
How marketing practices are changing: E-business
E-business
E-commerce
E-purchasing
E-marketing

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How marketing practices are changing: Setting up websites

Designing and attractive website
Placing ad and promotion online
Building a revenue and profit model
How marketing practices are changing: Customer relationship
marketing

Table 2.3
Customer databases and data base marketing
Data warehousing and data mining
The downside of database marketing
Huge investment
Difficulty in getting everyone in the company to
be customer oriented
Not all customer want relationship with company

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