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CustomerDrivenMarketing:HowConsumersareTakingovertheMarketingMixLeylandPittLuleaUniversityofTechnologyNovember2009Marketing’sProgression“At”“To”“With”Upto1980’s1990’sthroughto2005Since2005TraditionalMarketing:MarketingATtheCustomerFirmProductPlacePromotionPriceSegmentsTargetsMarketing“at”thecustomerCustomerheterogeneityconfusesmarketingSocustomersarebestseenashomogenouslygrouped–marketsegments“Targetmarketing”–butmorelikehuntingwithashotgunandhopingtohitsomethingAddressableMarketing:MarketingTOtheCustomerProductPlacePromotionPriceFirmProductPlacePromotionPriceProductPlacePromotionPriceProductPlacePromotionPriceProductPlacePromotionPriceProductPlacePromotionPriceProductPlacePromotionPriceMarketing“TO”theCustomerTheageofaddressabilityTechnologyenablesanunderstandingoftheindividualcustomerThecustomerbecomesthe“prey”andthemarketerbecomesthe“hunter”CustomeristargetedwithlaserprecisionTheeraof“masscustomization”MarketingintheAgeoftheNetwork:MarketingWITHtheCustomerCustomerProductPlacePromotionPriceCustomerProductPlacePromotionPriceCustomerProductPlacePromotionPriceCustomerProductPlacePromotionPriceCustomerProductPlacePromotionPriceCustomerProductPlacePromotionPriceFirmProductPlacePromotionPriceTheConsumerbecomesaMarketerThenetworkedconsumerusestechnologytoperformmarketingfunctionspreviouslytheprerogativeoffirmsThe“4P’s”Theconsumerbecomespartofamarketingdialog,notthetargetofamarketingmonologDeightonandKornfeld,2007“Thereallysurprisingandinterestingeventsofthelastdecadefromtheperspectiveofmarketingpracticeandtheoryhavenothadtodowithbetterinteractionbetweenthemarketerandtheconsumer. Theyhavehadtodowithdigitallyenhancedcommunicationamongconsumers,andbetweenpeopleandtheworld’sinformation,andmarketinghasstruggledtofindaplaceonthesenewcommunicationpathways.”Whereastheearlypromiseoftechnology

……wastogivemarketershithertoundreamedofpoweroverconsumersbyusingalltheinformationthathadbeengatheredandprocessedonthemtothefirm’sbenefit(cf.BlattbergandDeighton,1991)recentevidencesuggeststhattheoppositeisoccurring.DeightonandKornfeld(2007):“it'stheconsumerwhorunstheshowforthemostpart,notthemarketer—infact,forgetthe"consumer"labelaltogether”.Technologyisenablingconsumerstoperformforthemselvesandothersmanyofthemarketingtasksandfunctions(thewell-known“4Ps”)thatwerepreviouslytheprerogativesoforganizationseBayBetfairePinionsredesigningandremanufacturingproductsforthemselvesandothers,andusinginternettechnologiestodistributetheirofferings(Mollick,2005)Theredon’tseemtobeanyofmarketing’s4Psthatareimmunetotheconsumer-technologyonslaughtCleverCustomersMessingwithProductsJimHillbarredfromtheMagicKingdomdevotedDisneyfanwritesablogonDisneyOffersguidedbutunauthorizedtoursofDisneyland,charging$25perpersonMarch2005securityatDisneylandinAnaheim,CaliforniainformedhimbarredfromtheparkandallotherDisneyvenues

JoseAvilaMadefurnitureforhisapartmentexclusivelyfromFederalExpressboxesdisplayedpicturesonhiswebsite()FedExpromptlyovernightedaceaseanddesistletterconsumercommentsonweblogspersist:“Thisreallybrightenedmyday!Thelettersareclassiclawyerexchange.MyhusbandandIlaughedandlaughed.Lawyersjoustingatwindmills...”,“FedExneedstolightenup.Joseisabrightandinnovativeyoungman,andinsteadofmakinghislifemiserable,theyshouldgivehimagreatjob.RonGremban’scarlookslikeatypicalToyotaPriushybridanadditionalstackof18brick-sizedbatteriesbooststhecar'salreadyhighmileagewithanextraelectricalchargesoitcanburnevenlessfuel.spentseveralmonthsand$3,000tinkeringwithhiscarToyotainitiallyfrownedonpeoplealteringtheircarsnowsaytheymaybeabletolearnfromthemConsumersPlayingwithPrices

OneBaySavvySellersuseeachofthesedecisionpointstomaximizeprofitIdentifyItemstoSellFind&ResearchSimilarItems(Product,Price)DecideonSpecificsforPrice&othersDecidewhentolistitemListItemsOneBayOffeBayOneBayOneBayOneBay,sellersrelyoneachotherMostsellersdoresearchbyreviewingothersellers’listing,primarilytosetpriceexpectationsfortheitemtheyaretryingtosellSellersareusingeBaytoassessthetruemarketvalueofanitemoneBaybeforetheysell,usingthesame“finding”experiencethatbuyersareusingtofindfindvalueaswellConsumersdistributingproductsandthemselvesThePowerofSocialNetworkingFacebook–moremembersthanthepopulationsofmostoftheworld’scountries(world’snumber2website)InDecember2008,theSupremeCourtoftheAustralianCapitalTerritoryruledthatFacebookisavalidprotocoltoservecourtnoticestodefendants.Twitter:YourownmomentoffameLinkedInConsumersarenowSa

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