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Marketing Management
One to One Marketing
M-9
Tony Soebijono
1
Learning Objectives
1. Define one-to-one marketing and discuss its dependence on
database technology.
2. Discuss the forces that have influenced the emergence of oneto-one marketing.
3. Compare the one-to-one marketing communications process
with the traditional mass marketing communications process.
4. List eight common one-to-one marketing applications.
5. Discuss the basics of one-to-one marketing database
technology
6. Describe one-to-one marketing using the Internet.
7. Discuss privacy issues related to one-to-one marketing.
Tony Soebijono
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Define one-to-one marketing and discuss its
dependence on database technology.
1
An individualized marketing method that utilizes customer information to build
long-term, personalized, and profitable relationships with each customer.
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1
What is One-to-One Marketing?
One-to-One
Marketing is...
With a
Focus
on...
Share of
Customer
Customer-Based
Information-Intensive
Long-Term Oriented
Individualized
Tony Soebijono
Through
Use of...
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Database
Technology
1
Different of …
Focuses on Share of Customer
One-to-One
Marketing
Develops Customers
Finds Products for Customers
Focuses on Share of Market
Mass
Marketing
Develops Products
Finds Customers for Products
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The Evolution of One-to-One Marketing
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1
Discuss the forces that have influenced the
emergence of one-to-one marketing.
Increasing Diversity
More Demanding,
Time-Poor Consumers
Decreasing Brand Loyalty
Emergence of New
Media Alternatives
Demand for Accountability
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2
2
Marketing Impact of Trends
Consumer recognition
as unique individuals
More direct and personal
marketing efforts
Marketing
Impact of
Trends
Rewards for loyalty
Increased importance of
One-to-One Marketing
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Compare the one-to-one marketing communications
process with the traditional mass marketing
communications process.
Message is Personalized
Channel is Direct
Noise is not present
Individual Response is captured
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3
List eight common one-to-one marketing
applications.
1. Identify the best customers
2. Retain loyal customers
3. Cross-sell other products or services
4. Design targeted marketing communications
5. Reinforce consumer purchase decisions
6. Induce product trial by new customers
7. Increase the effectiveness of distribution channel marketing
8. Improve customer service
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4
Other Marketing Applications through Databases
• Match profiles to cross-sell other products to customers
• Modify marketing messages based on customer profiles
• Reach out to customers to reinforce the purchase decision
• Find new customers
• Gain insight into who is purchasing products
• Improve customer service
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4
Discuss the basics of one-to-one marketing
database technology.
Data-Driven Marketing
The process of gathering, maintaining, and analyzing information about customers and
prospects to implement more efficient and effective marketing communications.
Marketing Database
The compilation of names, addresses, and other pieces of pertinent information about
individual customers
and prospects that affects what and how marketers
sell to them.
Data Warehouse
A large corporate-wide database in which the data are culled from a number of legacy
systems that are already in place within the organization.
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5
Building a Marketing Database 5
Analyze information
to find answers
Enhance customer data
Collect the right data
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Building a Marketing Database 5
Response Lists
Compiled Lists
Collect the right data
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Building a Marketing Database 5
Compiled
Data
Modeled
Data
Enhance customer data
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Custom
Data
Building a Marketing Database 5
Analyze information
to find answers
Customer
Segmentation
RFM
Lifetime
Value Analysis (LVA)
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Data Mining
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Customer Segmentation
Demographics
Geographics
Segmentation
Bases
Purchase Behavior
Psychographics
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5
Analysis model
5
Recency-Frequency-Monetary Analysis (RFM)
A data manipulation technique that determines the firm’s best customers by
identifying those customers who have purchased most recently, most frequently,
and who have spent the most money.
Lifetime Value Analysis (LVA)
A data manipulation technique that projects the future value of the customer over
a period of years using the assumption that marketing to repeat customers is
more profitable than to first-time buyers.
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Data Mining
The process of using statistical analysis to detect relevant
purchasing behavior patterns in a database.
Create customer profiles
Determine the reason
for customer loyalty
Uses of
Data Mining
Analyze the potential
return for strategies
Help forecast sales
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5
Describe one-to-one marketing
using the Internet.
Create a Multimedia Marketing Initiative
Deliver Personalized Messages
Establish Enduring Customer Relationships
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6
Discuss privacy issues related to one-to-one
marketing.
Unawareness
of information collected
Invasion of
Privacy
Misunderstanding about
privacy laws and regulations
Popularity of Internet for data
collection
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7
• Thx
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