Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Relationship Marketing by any other name -most commonly known as CRM (Customer Relationship Management) -also known as •One-to-One Marketing •Permission Marketing •Customer Intimacy •Communities of Commerce -focus on understanding and responding to the customer - database software and the internet are a means to this end High -maintaining long-term customer relationships increases profitability Profitability -costs less to serve existing customers (don’t have to spend money to identify and persuade) Low -some evidence that established customers will pay higher prices than new customers (reward program with superior customer service helps take customer’s eyes off price) Short Long Customer Lifetime -strong (and trusting) buyerseller relationship increases likelihood that customer will disclose personal information which makes it easier to target and lowers cost Moving Through the Relationship Stages Customers can advance through the stages in several different ways Awareness Exploration/ Expansion Commitment -no communication yet -first visits -registration -largely through traditional awarenessgenerating marketing levers (ex. advertising) Attraction - perceive value through better function, prestigious brand and emotional connection Emotional - ex. HarleyDavidson and Apple lifestyle and evangelism -simple web site address is easier to remember (ex. monster.com) -maintain consistency between mother brand and web brand (ex. bmw.com, sears.com) Trust - “currency of the web” -Brand-established brand or partnered brand (ex. IBM Business Partner, Microsoft Certified) -Security and Privacy (ex. Verisign credit card protection) -Technology -Order Fulfillment Customer Service and Support -Communication - ex. Yahoo email and chat -also related to community and sociability -Customizationcustomers who take the time to customize a home page display a high level of commitment Dissolution -customers might switch to better or different service -purchasing decreases over time -inconsistent service -customer outgrows service (ex music or video games) -bad behaviour (cheating, meanness) Four Key Stages of Customer Relationships Awareness No. 1 general auction service on the Internet Exploration/ Expansion EBay encourages browsing before registration for the purpose of exploration Commitment EBay offers (1) community, (2) individualization, and (3) interaction Dissolution Users can stop buying or selling at any time Level of intensity determined by: of connection (# of site visits) Scope of connection (# of points of contact) Depth of contact (thoroughness of site use) Level of Intensity Frequency Intensity Awareness Exploration Commitment Dissolution Stages of Customer Relationships The customer relationship stages are: 1. Awareness — The customer recognizes that the firm is a possible exchange partner, but has not initiated any communication with the firm or purchased its products 2. Exploration — The customer considers the possibility of exchange, gathers information and perhaps initiates trial purchases 3. Commitment — The parties in a relationship feel a sense of obligation or responsibility toward each other 4. Dissolution — This stage signals the separation of buyer and seller — the loss of connection The Internet allows firms to interact and to individualize in powerful ways. As a result, firmcustomer relationships can be formed and can progress very quickly Firms don’t always want a relationship with all customers . . . and vice versa Relationship Stages Awareness Product Categories of Levers Price Commun ication Commun ity Commitment Attributes and featu res Custome r-specific attributes an d featu res Fulfillment Post-sales suppo rt Mass customized p roduc t Incremental allocated benefit s Breadth of invento ry Experience Upgrade s Custome r enab ling commun ity Funct iona lity Custome r relationsh ip manag ement Availabi lity of compl ementa ry p rodu cts Custome r care Dissolution Custome r care Click- through promoti ons Targeted p romot ions Tiered loya lty p rograms Discontinue pricing promoti ons Web referral promotion s Future price pr omotion s Wide variety of pr icing plans Reconfigure loya lty programs Bricks-and -clicks promotion s Justify p rices Become e vangelists (affiliate) Decrease profit prog rams Web price discount s Loyalty programs Profit enhan cing programs Bundle Volume d iscount p romot ions Frenzy pricing Targeted p romot ions Prestige Future price pr omotion s Price as a sign of quality Fairness Hi-lo Subscription Dynami c pricing (as a nove l app roach С group buying, C2C) EDLP Dynami c pricing (group bu ying, C2C) Terminate direct marketing EDLP Television Television Permission marketing with ta rgeted offe rs Magazines Radio Loyalty programs Radio Newspape rs Custome r service Yellow p ages Packaging Loyalty programs Telemarketing Loyalty programs Custome r service Billboa rds / o utdoo r adve rtising Custome r service Permission e-mail Online bi llboards ( banne rs / b uttons ) Loyalty programs Personal ized pages Search eng ines Inte ractive onl ine b illboar ds lending to webs ite E-mail Links from sea rch lead to webs ite Viral ma rketing E-mail with inf ormation and link to website Viral ma rketing lead ing to website an d / or download Website Serial ma rketing Outline co mmunit y benef its clearly a nd ea rly on in the p rocess Makes commu nity exp loration e asy thr ough efficient s ite structure Increase equ ity bui lding (e.g., throu gh tie red loya lty programs, increased rewards) Spot depa rting friends early a nd find solutions to preve nt di ssolution Ant icipate an d readily answer quest ions and concerns, quickly e stablishing a sense of t rust Show eve ryo ne ind ividual attenti on (e.g., welcoming e-mai ls, guide s for nov ices, chat conve rsations for new memb ers, use of CRM marketing to tailor site funct ional ity) Recognize individua lsХcont ribution s and participation Make the Тleavi ng processУfair and effi cient Seek and listen closely to feedba ck Develop membe rs (e.g., th rough leade rship oppo rtunities, commun ity roles С guides or watchpersons) Allow the option of r eturning Distribution Packaging Exploration / Ex pansion Establish a ca ll for action and fu rther exp loration Begin the process of equ ity creatio n (e.g., membe r points a nd loyalty programs ) Numbe r of intermed iaries Degree of integ ration Degree of interest Eliminat ion of t ypes Numbe r of channe ls Numbe r of channe ls Inte rmed iary t ype Redu ction of inte rmed iaries Numbe r of channe ls Redu ction of integ ration Inte rnal funct ion Branding Taking full advantage of the 2Is can move users through the customer relationship stages much faster than traditional media. Individualization Interactivity Individual controls information flow Allows consumers to specify preferences Allows more targeted communications Individualized marketing communications are more relevant to the consumer Facilitates relationship building through twoway communication Allows tracking of consumer response to marketing communications Communication The 2Is Streamline Advancement Through the Stages One Seamless Experience 2Is Banner Ad (to promote awareness) 2Is Website User can set up the webpage according to personal preferences, register for e-mails, give feedback, or make a purchase User clicks on banner to find out more Awareness Personalized Website Permission emails Individualized offerings Exploration Commitment Online and Offline Levers -all points of contact with the firm Offline Outdoor Advertising (Billboards) Radio Yellow Pages Public Relations Televisio n Telemarketing Brochure s Direct Mailings Newsletter s Magazine s Newspapers Point-ofPurchase Displays Sponsorship s Websites Banner Ads Online Sales force/Faceto-Face Customer Service -can help move customer into committment Personal Websites Wireless Devices Interstitials -between pages; includes pop-up windows -strong brand recall and better click throughs than banners Rich Media Classifieds & Listings Search Engines Mass Dynamic Ads Interactiv e Television Personal E-Mail Marketing Profiles of Online Media Types Medium Advantages Disadvantages Websites/Personalized websites Communicate rich, detailed information that users can navigate at will; can track users and customize site accordingly. Narrow reach Banner ads Link directly to buying opportunity; easy to measure effectiveness; wide reach; potential for effective targeting Low attention and click-through rates; short life; limited “pass-along” audience; very high clutter; fleeting exposure Interstitials Catch users’ attention; link to buying opportunity Can annoy users; limited “pass-along” audience Rich media Attention-getting; link to buying opportunity Can annoy users without broadband access Dynamic ad placement Serves up customized ads to users in real time Difficult to execute well; can annoy users, other advertisers Search engines Good credibility; high believability; guarantee of position available; significant audience at major sites High competition; information overload; limited “pass-along” Classifieds and listings Relatively inexpensive, potential for wide exposure; qualified audience Clutter Opt-in e-mail High demographic selectivity; high credibility; significant flexibility; proven high click-through rates; absolutely inexpensive; some pass-along Requires substantial user base before effective; high clutter Mass e-mail High reach; inexpensive; flexible Low attention and significant resentment (spam image) Customer service Interested parties asking for help, thus high targeting value; generates loyal customers Very expensive to provide comprehensive telephone, e-mail, and online support Internet Ad Terms Ad Views (Impressions) Number of times a banner ad is downloaded to a user’s browser and presumably looked at Click-Through Percentage of ad views that are clicked upon; also “Ad Click Rate” CPC (Cost-per-Click) Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500) Measurement recorded in server log files that represent each file downloaded to a browser; since page design can include multiple files, hits are not a good guide for measuring traffic at a website Number of individuals who visit a website in a specified period of time; requires the use of registration and cookies to verify and identify unique users A series of requests made by an individual at one site; if no information is requested for a certain period of time, a “time-out” occurs and the next request made counts as a new visit — a 30 minute time-out is now standard CPM Hit Unique Users Visits Six Steps of the Communication Process Step 1 Identify the Target Audience Step 2 Determine the Communication Objective Step 3 Develop the Media Plan Step 4 Create the Message Step 5 Execute the Campaign Step 6 Evaluate the Effectiveness of the Campaign A Process for Defining Media Choice and Mix Communication Criteria Behavioral objectives Available spending Customer segments Media Criteria Ability to further behavioral objectives CPM Ability to reach target segments Choose Media Mix Direct mail, Internet, broadcast, print, pointof-sale, etc. Tie Back to Overall Plan Allocate Spending Allocation of spending across media mix elements and time periods based on relative priority Tie media plan back to communications plan (e.g., make sure the media plan will drive the trial or awareness required) Exhibit 9.13: Exploring the Levers Across the Relationship Stages Exploratory / Expansion Awareness Television, iTV Magazines and newspapers Radio Yellow pages Billboards / outdoor advertising Banner ads Rich media ads and dynamic ad placement Website Search engines Listings Classifieds E-mail Direct mail Telemarketing Public relations Sales force Commitment Television, iTV Magazines and newspapers Radio Dissolution Website Personalized pages E-mail Permission e-mail Direct mail Permission direct mail Telemarketing Customer service Customer service Sales force Sales force Terminate marketing Communication — Conclusion Effective marketing communications must be integrated and work together with synergy, and they must be consumer-centric The communication marketing levers include various communication types that can be organized into the following categories: mass offline, personal offline, mass online, personal online The communication process involves six steps: 1) Identify the target audience, 2) determine the communication objective, 3) develop the media plan, 4) create the message, 5) execute the campaign and 6) evaluate the effectiveness of the campaign Specific levers can be applied that are appropriate for each relationship stage