Jeffrey F. Rayport

Marketspace: The New Locus of Value Creation

Publisher Summary New products and services―some real and some virtual― are created to dramatically affect how business is being transacted and, consequently, where value increasingly will be created. This is called a transition from the marketplace to the market space. The transition occurs at three levels of economic activity. The first is products and services, which will be reshaped to accommodate a market space whose salient characteristic is that it is information-based. The second level is marketing management systems. Managers communicate with customers and organize their selling efforts via systems that are significantly different from those in current use. The third level is the markets themselves, affected because of the changes at the first two levels. Transformations at each of these levels profoundly affect the subject of all marketing efforts. The market space provides a new way to customers to learn about purchase and consumer products and services in entirely new ways. It is a more effective means of responding to customer needs and executing related transactions. The market space is the place where economic value is realized for large numbers of people consuming a wide range of real and virtual products and services.