MKTM511 –MARKETING MANAGEMENT-II

Lecture 16

MKTM511
Marketing Management-II

Marketing mix in Digital World

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Lecture Outcome

• Learning about the application of Customer co-creation

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PRODUCT THROUGH CUSTOMER CO-

CREATION
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Let Us Start With a Story

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What is Co-Creation?
• Co-creation is when businesses
include outsiders in the ideation
and development process.
• But co-creation lets companies
collaborate outside the business
to gather fresh ideas 
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Consumers
Employees
Fans
Prospective Buyers
Suppliers
Who can
Competitors
Contribut
e? Influencers
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Co-Creation Addresses 3 Main Issues

relationship between a company and a group of stakeholders, most of the time it’s
customers

involves working with end-users of a product or service, sharing knowledge,

experience and resources to finally offer a unique experience using the company's
value proposition

involve customers directly, even in product development processes

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Client Knowledge Management Approach

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The 5 COs
of
Innovation –
Working
Together
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DECOY
PRODUCT
PRICING
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Pick Your Tub

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The Decoy
Effect
Decoy pricing is a
strategy that aims to
guide a potential
customer towards a
specific product by
presenting an inferior
choice.
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Which Plan
is Right for
You?
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SHARING
ECONOMY
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The Shared economy or the Sharing Economy

is a framework of a highly flexible economic
model in which assets and services are
provided, acquired, or shared between private
individuals – basically a peer-to-peer (P2P)
model. The Sharing Economy often involves a
community-based online platform that connects
What is It? buyers and sellers.
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Synonymous
Terms
This concept is also referred to as:
• Sharing Economy
• Collaborative Economy
• Collaborative Consumption
• Peer Economy 
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Co-Working Spaces

P2P Lending

Crowd Funding

Sharing Ride Sharing and Car Sharing

Freelancing
Economy Parking Space Rental
Business Education Sharing

Models Apartment/House Renting

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The technology is leading to paradigm shifts in the Shared Economy

business models of the companies. Business Models SEBMs

the business models based on sharing economy

or called here as Shared Economy Business
Models (SEBMs) have shown huge potential and
opportunities.
The term sharing economy is also known as
collaborative consumption, peer economy, and
collaborative economy (DaSilva, 2013).

The sharing economy is an ‘economic activity of

giving or taking the rights’ of ownership, usage,
enjoyment of products, services or ideas.
According to PWC (2015), five key sectors; ride-
sharing, travel, staffing, finance, music, and video
streaming have tremendous potential to raise
global revenues via shared economy based
business models (SEBMs).
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growth
Revenue B2C (provider
CAGR 2013 C2C or P2P (user, platform & with platform
Good / Services – 2025] [ provider) and user) B2B
Transportation/ Car +23% Blablacar Zipcar, Uber, Lyft  
renting/Sharing/ Turo
delivery
Accommodation/ Hotel, +31% Airbnb/, Wework Regus
SEBM in office or space sharing
renting, Parking
Onefinestay,
HomeAway,
Workspade or
other Leasing
different Sharemystorage
Couchsurfing, HomeExchange,
companies

Industries KAPTÁR, JustPark

 
Payments/money +15% Currencyfair,   Visa
transfers Transferwise
Retailing +8% Ebay, Amazon Ebay, Amazon  
Bike renting / sharing +10% MOL Bubi JC Decaux,  
CitiBike, Barclays
equipment +5% Miutcánk.hu. Getable  
Luxury or hand made +10% Etsy The Real, Real  
good Rent the
resale and • Typology buyer and suppliers transactions. (Jeune,
Runaway2016 and
rental PWC, 2015)
Video games +17% Gloss, Netflix, GameFly, Netflix,  
, music and books PirateBay, Gamefly, Kickstarter. Rukkola.hu
  (books)
Apparel +15% Swap.com, Rent the Runaway,    
and accessories Gwynnie Bee,
Rehashclothes.com. Le Tote,
Buymyheels.com
 Good / Services Expected C2C or P2P (user, platform & B2C (provider B2B
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growth provider) with platform
Revenue and user)
CAGR
2013 –
2025]
Staffing/ +37%   Skillsshare,  
Recruiting LinkedIn,
Lynda,

SEBM in 'Freelancer 'and +20% Yummber (cooking) Sitters.co.uk  

professional
different services
Industries Education and skills +15% Home advisor, LinkedIn, Chegg  
TaskRabbit, Skillset, Upwork,
Freelancer,
Skillshare
Finance, +63% LendingClub, Crowdcube,  
Crowdfunding and Lendico, Lufax, Fundingcircle
lending Prosper, Jimubox,
Lendinvest

Insurance +15% Inspeerme, heyguevara,    

friendsurance,
inshared

Miscellaneous +10-20% WattPad (media).    

Stubhub (Entertainment),
Myways (delivery/logistics),
Szatyorbolt (picking delivery)

• Typology buyer and suppliers transactions. (Jeune, 2016 and PWC, 2015)
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Demand-side
and Supply-side
factors
for adoption of
Shared economy
models
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New Pricing Models

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Impact of Changed Corporate Environment on Pricing Models

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Any Question
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Dr. Pawan Kumar

Thank You