Chapter 11 Database and Direct Response Marketing and Personal Selling


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Chapter 11 Database and Direct Response Marketing and Personal Selling

  1. 1. Database and Direct ResponseMarketingAnisaOsariana201080016
  2. 2. Developing Loyal Customers• The 3 R’s• Recognition• Relationship• Rewards
  3. 3. Database MarketingBuilding relationshipsDatabase Analytics• Data-Driven Programs• Data-DrivenCommunications• Direct ResponseMarketingIdentifying customersDATABASE
  4. 4. Tasks in Database Marketing•Building a data warehouse•Database coding and analysis•Data mining•Data-driven marketing communications•Data-driven marketing programs
  5. 5. Building the Data Warehouse•Operational database•Customer transactions•Follows accounting rules•Marketing database•Current customer information•Former customer information•Prospect information
  6. 6. Marketing Data Warehouse•Customer names and addresses•E-mail addresses•Record of visits to the firm’s Web site•History of every purchase transaction•History of customer interactions•Inquiries•Complaints•Returns
  7. 7. Marketing Data Warehouse• Customer survey results• Preferences and profilessupplied by the customer• Response history frommarketing campaigns• Appended data• Demographic andpsychographic data(Knowledge BaseMarketing or Claritas)• Geocoding(CACI Coder Plus)• Database coding throughcustomer analyses• Lifetime value• Customer segmentcluster• RFM (recency, frequency,monetary) analysis
  8. 8. Database Coding and Analysis•Personalized communications•Marketing campaigns•Common forms of coding•Lifetime value analysis•Customer Clusters
  9. 9. Lifetime Value Analysis• Represents the profit revenue of a customerthroughout the lifetime of the relationship• Individual lifetime value• Customer segment lifetime value• Key figures•Revenue and costs•Retention rate•Visits or purchases per time period
  10. 10. Data Mining• Building profiles ofcustomer groups• Preparing models thatpredict future purchasebehavior• Drives• Marketingcommunications• Marketing programs
  11. 11. Why the Internet is Important inCustomer Communications• Low cost• Available 24/7.• Metric analysis• If the message was read• Time it was read• How much time was spent• Customers access to additional information• Build a bond with customers.
  12. 12. Why build a datawarehouse? Whycode data?Why mine the data?• Establish One-on-OneCommunications• Build Relationship• Repeat Purchase (CustomerLoyalty)
  13. 13. Database-DrivenCommunications• Identification codes• Customer IDs/passwords• Personalized greetings• After-sale communications• Customer profile information• In-bound telemarketing• Trawling
  14. 14. Database-Driven MarketingPrograms• Permission marketing• Frequency/loyaltyprograms• Customer relationshipmanagement
  15. 15. Steps in Building a PermissionMarketing Program• Obtain permission• Offer a curriculum over time• Reinforce incentives to continue the relationship• Increase level of permission• Leverage the permission to benefit both parties
  16. 16. Successful Permission Marketing• Ensure recipients have granted permission• Make e-mails relevant• Customize program by tracking member activity• Empowerment• Reciprocity
  17. 17. Frequency Program Objectives• Maintain sales, margins, or profits• Increase loyalty of existing customers• Induce cross-selling to existing customers• Differentiate a parity brand• Preempt the entry of a new brand• Preempt or match a competitor’s program
  18. 18. Frequency ProgramGoals• Develop customerloyalty• Matching orpreempting thecompetition• Target higher incomehouseholdsPrinciples• Design the program toenhance the value of theproduct.• Calculate the full cost ofthe program.• Design a program thatmaximizes thecustomer’s motivation tomake the next purchase.
  19. 19. Customer RelationshipManagement• Database technology• Customize products• Customize communications• Many CRM programs failed• Built on two primary metrics• Lifetime value• Share of customer
  20. 20. Steps to DevelopCustomer Relationship Management• Identify the company’s customers• Differentiate customers in terms of needs and value• Lifetime value• Share of customer• Interact with customers• Improve cost efficiency• Enhance effectiveness of interaction• Customize goods or services
  21. 21. Customer RelationshipManagement Reasons for Failure• Implemented before a solid customer strategy iscreated• Rolling out a CRM program before changing theorganization to match the CRM program• Becoming technology driven rather than customerdriven• Customers feel like they are being stalked insteadof being wooed
  22. 22. Direct Response Marketing• Direct ResponseMarketing is thetargeting of products tocustomers without theuse of other channelmembers• Direct MarketingAssociation• Prospecting 60%• Customer retention40%
  23. 23. Direct Mail• Most common form ofdirect marketing• Types of lists• Response list• Compiled list• Advantages• Target mailings(consumer, b-to-b)• Measurable• Driver of online sales• Disadvantages• Clutter• Costs• Digital direct-to-press
  24. 24. Catalogs• Long-term impact• Low-pressure salestactics• First stage in buyingcycle• Database• Specialty catalogs• Business-to-business
  25. 25. Direct Response MarketingDirect Response Media• Television• Radio• Magazines• NewspapersInternet• Direct response to ads• Cost-effective• Builds relationships• Personalization ofcommunication• Customization of offer• Search engine ads
  26. 26. Direct Response MarketingDirect Sales• In the consumer sector,several companies usedirect sales• The sales personcontacts friends,relatives, coworkers, andothers and provide themwith small catalogs ormarketing brochuresTelemarketing• Inbound telemarketing• Cross-selling• Outboundtelemarketing• Cold calling• Database• Prospects
  27. 27. Personal Selling• Personal selling offers a face-to-face opportunity tobuild relationship with consumers• Personal selling should not be limited to simplymaking sales, but an additional objective should beto develop longer-term relationship with customers
  28. 28. Personal Selling• Generating leads• Qualifying prospect• Knowledge acquisition• Sales presentation• Handling objectives• Sales closing• Follow-up
  29. 29. THANK YOU