Marketing shift: C2C reversal of strategic orientation in 2.0 era

Preface: When it comes to C2C, most people’s first feeling is that it is a mode of e-commerce.But the C2C we say here is not in terms of e-commerce mode, but in terms of the pertinence of business strategy, which refers to the reversal from competitor orientation to consumer orientation.To be successful nowadays, a company must face its competitors.He must find his opponent’s weaknesses and launch a marketing campaign against them.The essence of marketing today is a corporate struggle, not to meet people’s needs and needs.From the reality of commercial competition, competition-oriented marketing strategy is popular.Many large companies with abundant resources are very fond of this marketing strategy.From their point of view, they are willing to wear their competitors down and drive them out, no matter what the cost.On the face of it, this marketing strategy seems to be more beneficial to consumers.But in fact, the competition-oriented marketing strategy implies a terrible basic assumption, that is, consumers are weak, especially individual consumers, no matter they know information or rights protection resources, are not enough to affect the behemoth enterprises.Therefore, the feelings and reactions of consumers can be ignored.Riess and Trout helped make competitor-based marketing a mainstream approach for most companies.It is based on this basic assumption that the enterprise has no worries, and will be confident to launch attacks against competitors.Companies can monopolize markets, fix prices and do whatever they want simply by crushing existing competitors.As for the needs of consumers do not have to consider, when the time comes, what products to provide them with what products, anyway, they have no choice.Furthermore, in order to eliminate competitors, enterprises can fight price war and attrition war with rivals at all costs. As long as they win the market, even if they suffer serious losses at present, they can get double repayment in the future.In fiscal 2007 — 2008, for example, SONY posted record sales of $88.7 billion and net profits of nearly $3.7 billion — the best in its history.The VAIO PC, Cyber Shot digital camera and Handycam digital camera businesses, which contributed to SONY’s profits for the fiscal year, performed well in the results.In the TV business, dubbed “SONY’s Renaissance without them”, BRAVIA beat its arch-rival Samsung to the top spot in North American sales in the crucial fourth quarter of 2007.BRAVIA went on to become the world’s no. 1 LCD TV seller by the end of its fiscal year ended March 31, 2008, with 10.6 million units shipped.In fact, SONY lost money on the business for nearly three years.SONY beat all competitors to become the world’s top seller in fiscal 2007-2008 with a 19.5% market share and nearly 1.8 times the previous fiscal year’s shipments (more than 4 million units were sold).But sales losses more than doubled during that time (from $300 million last fiscal year to $7.30 this year).The bigger the sales, the bigger the loss, which means the bigger the loss.Where in the world is such a business?But under the competitive marketing strategy, there is bound to be such enterprises, and SONY is far from alone.Their basic strategic logic is to crush the competition and take over the market, and then sit on the gravy train for good.SONY was the first among LCD brands to launch a price war, according to IDC, a market research firm.Soon after the BRAVIA hit the market, SONY was the first to drop the price of a large-size LCD TV below $10,000.From July to October of 2007, SONY had an average of 8 products on sale every month, and the price cut was also rising.Less than two months after SONY launched an even stronger price campaign, SONY became the top seller of LCD TVS.SONY’s biggest price drop since 2007 propelled it to the top spot in global sales.But that’s not the worst thing that can happen with a competitive marketing strategy, because it’s only the company that gets hurt.Like SONY, it pays for all its losses.

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