Academic journal article Academy of Marketing Studies Journal

Value Based Marketing: A New Perspective

Academic journal article Academy of Marketing Studies Journal

Value Based Marketing: A New Perspective

Article excerpt

NEW ECONOMY: NEW EXPECTATIONS

The International Herald Tribune recently (20 December 2000) asked a number of CEOs of "new economy" companies for their visions of the future. Geoffrey Baehr, chief network officer for Sun Microsystems offered:

"I can't wait for the day when there are tools to sift, analyze and adapt the data to my job, my function, my life ... ... when there is a relevancy test on the data I get. I think 5 percent of the data floating around the world is valuable, and the rest is junk"

Judy Neuman, chief operating partner of Maveron LLC, a venture capital firm commented:

"I can't wait for the day when have one device that is fully voice-enabled so I never have to look at a phone number to make a call--a machine that could provide real-time e-mail, wireless access to the Web, be a cell phone and come with all the accoutrements of a Palm Pilot or Blackberry. Clearly, people are trying to get there. But in the meantime, my purse--and my life--is complicated because I have all these technology accoutrements."

Cyrus Harmon, general manager of Affymetrix, a genomics company contributed:

"I am waiting for the day when we recognize as a society what a destructive force traffic is and build a transportation system that deals with it."

And, Jonathan Rothberg, chairman and chief executive of CuraGen, another genomics company said that he could not wait for the development of drugs that would wipe out a number of deadly diseases.

Four visions with three underlying forces driving these and other changes that have occurred in the 1990s. There has been considerable social, economic and technological change in recent years such that old structures have been challenged, concepts revisited and revised. New concepts such as smokeless factories, screwdriver assembly plants and corporations without tangible assets have become realities. Knowledge management, technology management and relationship management are three concepts, or disciplines underlying theses changes.

The segmentation of markets in the 1970s and 1980s was followed by fragmentation during the 1990s. It was fragmentation that required a flexible response if customer expectations were to be met. There have been two responses. One has been an increase in alliances and partnerships and the other has been from manufacturing technology which offers the ability to meet customer expectations for variety without the accompanying increases in product cost.

These arguments suggest alternative organisational structures with which to take full advantage of the market place opportunities should develop. At the beginning of the 1990s, Davidow and Malone (1992) suggested:

"The complex product-markets of the twenty first century will demand the ability to deliver, quickly and globally a high variety of customised products. These products will be differentiated not only by form and function, but also by the services provided with the product, including the ability for the customer to be involved in the design of the product.... a manufacturing company, will not; be an isolated facility in production, but rather a node , in the complex network of suppliers, customers; engineering and other 'service' functions".

"..... profound changes are expected for the company's distribution system and its internal organisation, as they, evolve to become more customer driven, and customer managed. On the upstream side of the firm, supplier networks will have to be integrated with those of customers often to the point where the customer will share its equipment, designs, trade secrets and confidences with those suppliers. Obviously, suppliers will become very dependent upon their downstream customers; but by the same token customers will be, equally trapped by their suppliers. In the end, unlike its contemporary predecessors, the virtual corporation will appear, less a discrete enterprise and more an ever-varying cluster of common activities in the midst of a vast fabric of relationships". …

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