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Theories of Network (or Interactive) Marketing. What is Interactive Marketing? Is it perhaps. …selling over the Net?. …advertising over the Net?. …distributing over the Net?. …producing using the Net?. …others? What do you think?. My Definition:

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What is Interactive Marketing?

Is it perhaps...

…selling over the Net?

…advertising over the Net?

…distributing over the Net?

…producing using the Net?

…others? What do you think?



Network Marketing is the Process of Building and Maintaining Customer Relationships ThroughBuilding and MaintainingValue-adding Electronic Product and Service Networks using the Power of Information.


So why does a company like Carrier do Network Marketing?

Because the NEW NETWORK supports one or

more of these efforts:

Enhance Customer


Improve Profitability


Increase Product Cycle Times

Increase Market Share


Carrier: Smart Products

Do We Need “Central Internet Air Conditioning”?


The Product: A Internet-Enabled Comfort Choice Thermostat

What are the Benefits for Consumers?

1) Web-Enabled Micromanagement of


2) Added-Value Through Cost Saving.

And for Carrier?

1) Bundling Smart Services allows

to Maintain Prices in Competitive


2) Carrier, a B2B Company, is now VERY Close to

the Customer (User Data).

3) Last but not Least: Image of Being Cutting-Edge


Does Carrier Make Anyone Else Happy?

Yes, Long Island Power Authority...

Get 45,000 customers into the Carrier program and it'll conserve the equivalent of a small power plant…

concepts of networked marketing
Concepts of Networked Marketing
  • Information as “Dematerialization”
  • Coproduction
  • Product Ecologies
the informational mode of production
The informational mode of production
  • Information management has been labor intensive, therefore high cost, high overhead.
  • Castells: The IT revolution makes knowledge work productive through automation.
network marketing
“network marketing”
  • When messages are transported at network speed, and production is decentralized, the result is FLEXIBILITY!
doing networked marketing
Doing Networked Marketing:
  • Customization: Change segments on the fly—even make segments of one!
  • Co-production: Bring in the customer
  • Multi-channel solutions: real-time click and brick sales pitch.
  • For each of these marketing innovations, find examples and evidence in the readings for last week and this week.
link concepts
Link Concepts:
  • How can you conceptually combine
    • the multi-channel retail system
    • Customization of segments
    • And co-production?
network products in networked markets
Network Products in Networked Markets
  • The last decade has witnessed a shift from a focus on the value created by a single product to an examination of the value created by networks of products (product ecosystems or NETWORKED PRODUCT).
  • Network products emerge at the intersection of three types of networks:
    • User network
    • Complements network
    • Producer network

Key Claims:

  • Any or all of these networks add value or enhance the attractiveness of the associated focal product.
  • Consumers allocate resources among competing products based on the perceived value added of any or all of these networks.
The Networked Product:
  • Complements network
  • Services that permit consumption

Focal Product

    • User network
  • Other consumers

Producer network

Other companies producing the same or

similar product or service

Linux as Networked Product:
  • Complements network
  • Application developers
  • Maintenance and Repair
  • Service Companies

Ex.: Linux

Operating System

    • User network
  • number of other companies that are using Linux (moderated by size, reputation, industry, etc. of these companies)

Producer network

Other companies producing the same or

similar product or service

  • If you are dealing with a focal product that is a networked product
    • Consumers allocate resources not only based on the objective and perceived quality of the focal product but based on the perceived value added to the focal product by the networks it has.
    • Marketing of a networked product therefore is no longer limited to developing a marketing mix and a strategic position for the focal product. Rather, marketing needs to support network strength as well.

…think imode…

midterm prep questions linux versus microsoft server os
Midterm Prep Questions:Linux versus Microsoft Server OS
  • What is the focal product?
  • What constitutes the:
    • User network
    • Complements network
    • Producer network
  • Which one adds most value to the focal product?
  • What are the marketing implications of your analysis?