2. Rest of
semester class
Outline and
sickness details
Introducing Cuauhtemoc
3. What happened to
Prof.
Cielak?
• The pancreas is a
large gland behind the stomach and
next to
the
small intestine.
The pancreas does two main things:
• It releases powerful digestive
enzymes into the small intestine to
aid
the digestion of
food.
• It releases the hormones insulin and
glucagon into the bloodstream.
These hormones
help the body control
how it uses
food for energy.
• Pancreatitis is a
disease in
which the pancreas becomes inflamed.
Pancreatic damage happens when the digestive enzymes are
activated before they are
released into the small intestine and
begin
attacking the pancreas.
4. What happened to
Prof. AY Cielak?
• Acute pancreatitis. Acute pancreatitis
is a
sudden inflammation that
lasts for a
short
time.
It may range from mild discomfort to
a
severe,
life-‐threatening illness.
Most people with acute pancreatitis
recover
completely after getting the right treatment.
In
severe cases,
acute
pancreatitis
can
result in
bleeding into the gland,
serious tissue
damage,
infection,
and cyst formation.
Severe pancreatitis
can
also
harm other vital
organs such as
the heart, lungs,
and kidneys.
5. 4. Factors that affect the activities of businesses in the global
environment.
4.1 Economic factors.
4.2 Political factors.
4.3 Legal factors.
4.4 Financial factors.
4.5 Geographic factors.
4.6 Cultural factors.
5. Methods to select target markets according to the type of
business.
6. Formal entry methods using Internet and modern technology
tools
7. Buiding Commercial Plans using E Commerce Platforms
8. Content marketing and the social media
9. Innovation using disruptive tactics
10. VRIO: a framework for Building Competitive Advantage
6. Factors impacting entering markets
• The segmentation of
customers process
• Methods of
integration
• Culture
• Economics
• PEST
• AIDA
7.
8. • Why
do
some
customers
cost
more
than
others
to
serve?
• Are
loyal
customers
more
profitable
than
others?
• What
is
the
process
companies
use
to
manage
customer
relationships?
9. Knowledge-‐Based
Economy
• Intangible
resources
are
the
source
of
competitive
advantage
• Information
and
knowledge
can
be
shared
• These
resources
grow
through
use
and
application
• Communication
is
fundamental
to
knowledge
flows.
• Factors
influencing
social
relations
are
of
fundamental
importance.
10. Knowledge-‐Based
Economy
• The
effect
of
geographic
location
varies:
• Diminished
when
using
technology,
say,
virtual
marketplaces
and
virtual
organizations
• Reinforced
by
the
creation
of
industry
clusters
to
achieve
world-‐
wide
excellence.
11. Knowledge-‐Based
Economy
• Knowledge
and
information
"leak"
to
where
demand
is
highest
and
the
barriers
are
lowest.
• The
value
of
knowledge
is
higher
embedded
in
systems
or
processes
• Don’t
let
it
"walk
out
of
the
door"
in
people's
heads
12. Knowledge-‐Based
Economy
• Products/services
with
embedded
knowledge
command
price
premiums.
• Pricing
and
value
depends
heavily
on
context.
• The
same
information
or
knowledge
can
have
vastly
different
value
depending
on
the
person
and
the
time.
• Human
capital
(competencies)
are
a
key
component
of
value
• Yet
downsizing
is
often
seen
as
a
positive
"cost
cutting"
measure.
13. Globalization
• “Flattening”
of
the
world
• Computer
networking
• Communications
technologies
• The
Internet
• Enhanced
transportation
• Globalization
+
Knowledge
based
economy
=
COLLABORATION
14. Partnering
and
Strategic
Alliances
• “Flatteners”
with
specific
implications
for
high-‐
tech
partnerships:
1.Outsourcing
2.Offshoring
3.Global
technology-‐enabled
supply
chains
4.Insourcing
5.Open
source
innovation
Thomas
Friedman
16. Types
of
Partnerships
Vertical
• Vertical
partnerships:
formed
between
different
levels
of
the
supply
chain
• Buyer-‐supplier
relationships
• Supplier
– OEM
customers
• Efficiencies
in
accessing
materials
• Collaborate
to
innovate,
differentiating
end
product
• Outsource
service
providers
– business
customers
17. Types
of
Partnerships
Vertical
• Manufacturers
– distribution
channel
members
• Access
to
downstream
markets
• Relay
market
information
• Companies
– customers
(end-‐users)
• Relationship
marketing
• Long-‐term
revenue
stream
• Source
of
market
information
18. Types
of
Partnerships
–
Horizontal
• Horizontal
partnerships
formed
between
firms
that
operate
at
the
same
level
of
the
supply
chain
• Complementors
• Competitors
19. • Complementary
Alliances
• Form
with
companies
offering
different
components
of
the
end-‐to-‐end
solution
• Allows
each
to
maintain
focus
on
own
core
competencies
• Stimulates
demand
through
greater
customer
value
• Competitive
Alliances
• “Competitive
collaboration;”
“co-‐opetition”
• Compete
in
some
market
domains,
collaborate
in
others
20. Horizontal
Partnerships
and
Financial
Performance
• Higher
financial
performance
from
competitive
alliance
activity
when:
• Moderate
level
of
competitive
alliance
activity
(versus
low
or
high)
• More
sophisticated
competitor
strategies/knowledge
• Win/win
approach
(versus
win/lose)
21. Types
of
Partnerships
–
Horizontal
• Industry
consortium:
industry-‐wide
coalition
typically
comprised
of
competitors
who
have
a
shared
interest
• Set
industry
standards
• Influence
government
regulations
• Pursue
international
markets
• Develop
metrics
for
sustainability
22. Reasons
for
Partnering
• Gain
access
to
resources
and
skills
in
a
timely,
more
cost-‐efficient
manner
• Reasons
vary
over
the
product
life
cycle
(next
slide)
23. Kickstart a discussion on a Private FB Group
• Which partners to
choose
• Where to
land them
• Where to
find information
• Names,
companies,
places….
• Choose a
Brand
• Send a
profile
24. The Product Life Cycle, Innovation, and the
Role of Alliances
Emergence Growth Maturity Decline
Process
Innovation
Product
Innovation
Standards
Licensing
Technology
Licensing
R&D
Marketing
Manufacturing
Marketing
Process R&D
Attacker
Incumbent
High
Low
Rate of
Major
Innovation
Stage of Product Life Cycle
Alliance Types
25. The Product Life Cycle-
Emergence Stage
• Uncertainty
surrounds
product
• Purchasers
are
innovators
and
technology
enthusiasts
• Willing
to
take
risks
• Require
accurate
portrayal
of
benefits
and
liabilities
of
the
innovation
• Require
technically
knowledgeable
support
• Want
new
technology
early
and
at
a
low
cost
26. The Product Life Cycle-
Emergence Stage
• Why
Partner?
• Alliances
are
valuable
among
potential
competitors
to
establish
industry
standards
with:
• Licensing
agreements
• Strategic
alliances
• Diversification
into
complementary
products
• Aggressive
product
positioning
(details
on
following
slides)
27. The Product Life Cycle-
Partnering in the Emergence Stage
• Advantages
of
licensing
strategy
• Ensures
a
wide
supply
base
for
the
technology
• Limits
the
number
of
technologically
incompatible
product
choices
for
customers
• Hastens
market
acceptance
• Signals
the
possibility
of
a
larger
installed
base
• Provides
incentives
for
suppliers
of
complementary
products
to
pursue
development
28. The Product Life Cycle-
Partnering in the Emergence Stage
• Drawbacks
of
licensing
strategy
• May
attempt
to
alter
the
technology
to
avoid
paying
licensing
fees
or
royalties
• Original
developer
loses
a
possible
monopoly
position
• Competition
may
lead
to
lower
prices
in
the
market
29. The Product Life Cycle-
Partnering in the Emergence Stage
• Strategic
Alliance:
cooperative
agreement
with
actual/potential
competitor(s)
to
jointly
sponsor
development
of
a
technological
standard
Advantages:
• Help
ensure
a
wide
supply
base
for
the
technology
• Build
positive
expectations
for
market
demand
• Co-‐opt
competitors
• Reduce
confusion
in
marketplace
• Combined
knowledge
may
produce
superior
product
30. The Product Life Cycle-
Partnering in the Emergence Stage
• Strategic
Alliance
Drawbacks:
• Partner
may
appropriate
the
firm’s
know-‐how
in
an
opportunistic
fashion
31. “Go
it
alone”
strategies
for
standard-‐setting
• Diversification
• Company
offers
multiple
elements
of
the
whole
product
solution
• Ex:
iPod/iTunes
• Aggressive
Product
Positioning
• Company
maximizes
size
of
installed
base
by
penetration
pricing,
wide
distribution,
and
many
models/versions
of
product
Both
strategies
have
pros/cons
32. Which
Strategy
to
Set
Industry
Standard?
Barriersto
Imitation
Firm hasRequisite
Skills
Existence ofCapable
Competitors
Aggressive Sole Provider High Yes No
Passive Multiple Licensing Low No Yes
Aggressive Positioning +
Licensing
Low Yes Yes
Selective Partnering High No Yes
33. The Product Life Cycle-
Growth Stage
• Dominant
design
becomes
industry
standard
• License
to
competitors
• Form
R&D
alliances
to
develop
product
extensions
• Form
marketing
alliances
to
access
new
markets
• Early
adopters
• Needs
increasingly
clear
• Can
envision
the
potential
of
the
new
technology
• Least
price
sensitive
• In
a
hurry
to
reap
rewards
• Process
technology
replaces
innovation
in
importance
34. The Product Life Cycle-
Maturity Stage
• High
sales
volume
and
revenue
but
slower
growth
• Mass-‐market
adopters
• Process
innovation
dominates
to
achieve
cost
controls
• Outsourced
relationships
• Marketing
alliances
35. The Product Life Cycle-
Decline Stage
• Product
replaced
by
new
technologies
• License
disruptive
technology
from
a
new
competitor
• Cycle
begins
again
36. Reasons
to
Partner
• Access
resources
and
skills
• Gain
cost
efficiencies
• Speed
time-‐to-‐market
• Access
new
markets
• Define
industry
standards
37. Reasons
to
Partner
(cont.)
• Develop
innovations
and
new
products
• Develop
complementary
products
• Gain
market
clout
• Maintain
focus
on
core
competencies
• Learn
from
partners
38. Risks
in
Partnering
• Increase
project
complexity
• Loss
of
autonomy
and
control
• Decisions
must
be
made
jointly
• Success
dependent
on
another’s
efforts
• Loss
of
trade
secrets
• Attempts
to
“disarm”
competition
• Dilution
of
competitive
advantage/
“de-‐skilling”
39. Risks
in
Partnering
• Legal
issues
and
antitrust
concerns
• Collaboration
is
necessary
to
compete
globally
• Therefore,
antitrust
laws
may
encourage
partnering
• Collaboration
may
decrease
domestic
competition
• Partnerships
may
come
under
scrutiny,
• Especially
if
they
have
an
indirect
impact
on
pricing
40. Risks
in
Partnering
• Failure
to
achieve
objectives
• Incompatible
cultures
• Lack
of
attention/resources
in
managing
the
relationship
• Trust
issues
41. Factors
Contributing
to
Partnership
Success
• Interdependence
• Shared
mutual
dependencies
provide
motivation
for
partnership
success
• Asymmetrical
dependence
leads
to
vulnerability
and
possible
exploitation
• Caution
warranted
with
partners
of
unequal
size
• Low
levels
of
interdependence
provide
no
motivation
to
relationship
42. Factors
Contributing
to
Partnership
Success
• Governance
Structure
• Terms,
conditions,
systems,
and
processes
used
to
manage
the
alliance
• Unilateral:
one
party
has
authority
to
make
decisions
• Bilateral:
governance
based
on
mutual
expectations
regarding
behaviors
and
activities
• Commitment
• Trust
• Communication
• Governance
structure
should
match
the
partnership’s
risk
level
43. Factors
Contributing
to
Partnership
Success
• Commitment
• Desire
to
continue
the
relationship
• Committed
members
are
less
likely
to
• take
advantage
• make
decisions
that
sabotage
viability
of
relationship
• Demonstrated
by
• Investments
dedicated
solely
to
the
relationship
44. • Types
of
Commitment
• Economic
need
(“have
to
be
committed”)
• Does
not
lead
to
partnership
success
• Voluntary
desire
(“want
to
be
committed”)
• Based
on
positive
feeling
and
regard
for
partner’s
contributions
• Associated
with
partnership
success
• Moral
obligation
(“ought
to
be
committed”)
45. Factors
Contributing
to
Partnership
Success
• Trust
• Belief
that
partner’s
decisions
will
serve
best
interest
of
the
partnership
• Partner
will
act
honestly
and
benevolently
• Trust
in
the
partner’s
motives
and
intents
• Trust
contributes
to
• Effective
information
sharing
• Willingness
to
share
scarce/sensitive
resources
• Sense
of
mutual
benefit
46. Factors
Contributing
to
Partnership
Success
• Effective
Communication
• Frequent
sharing
• Includes
proprietary
information
• Bidirectional
(two-‐way)
communication
• Credible
and
reliable
• Both
structured
and
ad
hoc
communication
47. Factors
Contributing
to
Partnership
Success
• Perceived
relationship
fairness
3
Types
of
fairness
• Distributive:
fairness
in
the
distribution
of
awards
• Procedural:
fairness
of
the
process
to
determine
distribution
of
rewards
• Interactional:
fairness
of
the
nuances
of
interpersonal
treatment
Procedural
fairness
more
important
than
distributive
fairness
for
long-‐term
relationship
success.
48. Factors
Contributing
to
Partnership
Success
• Compatible
Corporate
Cultures
• Different
values
and
beliefs
about
how
things
are
done
• Some
companies
have
reputations
as
being
hard
to
partner
with
• If
corporate
cultures
clash,
hard
to
realize
partnership
benefits.
49. Factors
Contributing
to
Partnership
Success
• Integrative
conflict
resolution
and
negotiation
techniques
• Conflict
resolution
technique
more
important
than
the
level
of
conflict
per
se.
• Integrative
resolution
based
on:
• Both
parties
have
a
shared
stake
in
the
outcome
• Addressing
needs
of
both
parties
• Identifying
mutually
beneficial
solution
(win/win)
• Escalate
conflict
beyond
the
operational
level
to
senior
level
• Negotiation
is
cheaper
than
legal
recourse
50. Factors
Contributing
to
Partnership
Success
• Judicious
Use
of
Legal
Contracts
• Contracts
may
violate
the
spirit
of
cooperation,
but
• Contracts
may
also
clarify
obligations
and
expectations
• Contracts
should
be
used
in
combination
with
bilateral
governance
51. • “Spirit
of
cooperation”
is
key
• Develop
competency
in
partnering
• “cooperative
competency;”
“alliance
competence;”
“partnering
orientation”
52. Outsourcing
• High
Risk/High
Opportunity
Vertical
Partnerships
• Transfer
an
entire
business
function
to
a
partner
• Types
of
Outsourcing
• Contract
manufacturing
• BPO:
Business
Process
Outsourcing
• ITO:
Information
Technology
Outsourcing
• Innovation
Outsourcing
• R&D,
Product
development,
Design
• ODM
Model:
Original
design
manufacturer
53. Outsourcing
• Benefits: Gain
access
to
expert
performance
• Provider
has
refined
knowledge
in
a
specific
function
• Scale
economies
• Cost
efficiencies
• Maintain
focus
on
true
core
competencies
54. Global
spending
on
outsourcing
for
various
business
functions
(2005)
$0 $100 $200
Logistics
and
Procurement
Electronics
Manufacturing
Information
Technology
Customer
Care
Engineering
Finance
and
Accounting
Human
Resources
Analytics
Dollar
amount
in
billions
55. Business
Services
Outsourcing
by
Region India
Middle
East
and
Africa
Latin
America
and
Caribbean
Central
and
Eastern
Europe
China
and
Southeast
Asia
56. Outsourcing
• Offshoring
• Performing
functions
outside
of
client’s
home
country
• Captive
Offshoring
• Company-‐owned
facilities
in
another
country
• Reverse
outsourcing
• An
outsourced
company
opens
an
office
in
original
country
57. Outsourcing
• Nearshore
outsourcing
• Outsource
provider
is
near
company’s
own
boundaries,
same
time
zone
• Home
shoring
• Domestic
outsourcing,
or
• Hiring
domestic
workers
in
their
own
home
• Farm
Shoring
• Outsourcing
to
domestic,
rural
areas
60. Outsourcing:
Reasons
• Capabilities
of
Outsource
Providers
• Skilled,
low-‐cost
talent
pool
• Technology
Developments
• Easier
for
companies
to
communicate
with
remote
outsource
providers
• Mitigate
HR
Management
Issues
• Overhead-‐ pension
plans,
insurance,
etc.
61. Outsourcing:
Reasons
• Other
general
trends
• Globalization
• Competitive
intensity
• Time/Cost
pressures
62. Outsourcing:
Risks
• Cost
Savings
Don’t
Materialize
• Difficult
to
calculate
true
cost
in
advance
• Quality
Concerns
• 1-‐800
numbers:
endless
transfers,
confusion
• Suppliers
don’t
understand
customer’s
business
• Dependence
on
Vendor
• “Switching
costs”
63. Outsourcing:
Risks
• Dilution
of
Competitive
Advantage
• Less
differentiation
from
competitor
• “hollowed
out”
• Risk
of
Fostering
New
Competition
• Sharing
trade
secrets
• Public
Backlash
• Political
issue
64. Outsourcing:
Contingency
Approach
Success of Outsourcing:
- Cost savings
- New insights
Contingency Factors:
- Criticality of business function
- Nature of business process/
Degree of customization
- Task Characteristics
- Vendor capabilities
- Governance
Outsourcing:
- Whether to outsource
- The degree of outsourcing
- Type of outsourcing
65. Outsourcing:
Criticality
of
the
Business
Function
• Define
mission-‐critical
business
processes;
break-‐through
innovations
• Core
intellectual
property
and
skills
• è Keep
in-‐house
• For
incremental
innovation
and
non-‐critical
processes
• Commodity
knowledge
and
skills
• è Outsource
66. Outsourcing:
Nature
of
Business
Process
PROCESS COMPLEXITY
Simple Complex
Standardized
Process
Outsource
Captive offshoring,
selective outsourcing
Customized
Process
Selective
Outsourcing,
Automation
In-house, selectively
outsource some
components
67. Outsourcing:
Task
Characteristics
• Economies
of
scale
• Can
the
function
be
aggregated
across
customer/OEM
businesses?
• If
not:
don’t
outsource
• Transfer
of
explicit,
codified
knowledge
• Can
the
function
be
clearly
mapped
and
communicated
to
outsource
provider?
• If
not:
don’t
outsource
• Clearly
specified
ownership
of
intellectual
property
rights/risks
• Can
intellectual
rights/responsibilities
be
clearly
articulated?
• If
not:
don’t
outsource
68. Outsourcing:
Task
Characteristics
• Vendor
Capabilities
• What
are
the
specific
capabilities
to
perform
the
task?
• Does
the
provider
have
the
requisite
capabilities
to
perform
them?
• Governance
• Particularly
important
for
R&D
alliances
• Controls
can
limit
innovation
but
are
necessary
• Controls
should
be
“ex
ante”
(before
the
work)
rather
than
“ex
post”
(during
the
work)
69. Outsourcing:
Best
Practices
• Have
clear
reasons
to
outsource
• Not:
“my
competitors
are”
• Don’t
outsource
a
mess
• Map
workflow/process
carefully
• Set
up
the
right
type
of
outsource
relationship
• Maybe
captive
offshoring,
etc.
• Be
ready
for
possible
backlash
• Invest
time
and
effort
to
make
it
work
• Treat
partners
as
equals
70. Outsourcing:
Future
Outlook
• Continued
evolution
• Globally
• Migration
to
low-‐cost
areas
• Politically
• Rhetoric
of
lost
jobs
• Mitigate
with
educated
work
force
• Managerially
• Balance
in-‐house,
strategic
alliances,
outsourcing
71. Open
Innovation
• Breakthrough
innovations
developed
by
an
“innovation
ecosystem”
• A
global
network
of
partners
– suppliers,
customers,
competitors
• Innovation
based
on
collaboration
and
sharing
of
expertise
and
knowledge
between
partners
• Innovation
processes
transcend
local
industry
clusters
and
national
boundaries
• Driving
Factors
• Complexity
and
uncertainty
of
R&D
• Globalization
of
industries
• Convergence
of
technologies
• Resource
constraints
72. New
Product
Alliances
• Unique
form
of
strategic
alliance
to
generate
innovation
• Paradox:
• “Logic
of
innovation”
• Spontaneous,
serendipitous
insights
• “Logic
of
alliances”
• Detail
roles
and
responsibilities
• Formalized
collaborative
arrangements
• Sharing
of
knowledge
and
expertise
requires
trust,
but:
• Many
strategic
alliances
lack
trust
73. New
Product
Alliances
• Success:
• Spirit
of
cooperation
• Governance
• Horizontal
(competitive)
partners
reluctant
to
share
knowledge,
but
their
innovations
exhibit:
• High
levels
of
product
creativity
• Fast
development
speed
• Geographic
proximity
does
not
inhibit
information
sharing
as
long
as:
• Partners
have
close,
relational
ties
74. Industry
Clusters
• Geographic
concentrations
of
companies
in
a
particular
industry
• Silicon
Valley
in
California
• Often
highly
innovative,
due
to:
• Enhanced
knowledge
sharing
• Economies
in
infrastructure,
talent,
and
social
relationships
75. Learning
from
Partners
• Knowledge
sharing
key
to
success
of
open
innovation
model
• Learning
can
contribute
to
positive
relationship
outcomes,
but:
• Can
also
result
in
“de-‐skilling”
of
partner
with
loss
of
proprietary
information.
• To
learn
“tacit
knowledge,”
firms
must
have
close
partnering
relationships—
• Which
increases
the
risk
of
those
partnerships
Use
caution
and
appropriate
governance
structures.
76. Customer
Relationship
Management
(CRM)
• Marketing
is
used
to
develop
close,
long-‐term
relationships
with
customers
• Win-‐win
solutions
• Customers
as
investments
• Acquisition
cost/customer=
(total
cost
of
marketing
campaign)
/
(#
of
prospects
who
become
customers)
77. CRM
• Customer
equity:
• net
present
value
of
the
cash
flows
associated
with
a
customer
• Lifetime
value
=
customer
equity
• Net
present
value
cash
inflows
>
present
value
of
cash
outflows
(illustration
on
following
slide)
78. Computing
Customer
Equity
Computing Customer Equity
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
Year 1 Year 2 Year 3 Year 4 Year 5
Profit from Referrals
Profit from Increased
Purchases
Base Profit
Acquisition Cost
79. Data
to
Quantify
CRM
1. Total
marketing
cost
to
acquire
new
customers
2. Number
of
prospects
reached
during
the
campaign
3. Number
of
prospects
who
became
customers
4. Revenue
from
a
new
customer’s
initial
purchase
}
80. Data
to
Quantify
CRM
5. Expected
retention
duration
for
a
customer
6. Annual
revenues
expected
from
the
customer
7. Costs
to
serve
a
customer
8. Firm’s
cost
of
capital
9. Present
value
chart
82. CRM:
Step
1
Identify
“high
potential”
customers
• Generate
profitable
revenue
stream
over
time,
NPV
>
0
• Identify
the
key
characteristics
among
loyal,
profitable
customers
• Target
others
who
share
similar
characteristics
83. CRM:
Step
1
Identify
“high
potential”
customers
• Predictors
of
Potential:
• Customer
share
of
wallet:
%
of
business
in
a
specific
category
that
a
customer
does
with
a
particular
vendor
• Large
share
of
wallet
=
prospect
• Cross-‐buying:
purchasing
products
from
multiple
categories
84. CRM:
Step
2
Develop
a
Customer
Acquisition
Strategy
• How
much
money
should
be
spent
pursuing
a
customer?
• Depends
on
likelihood
of
realizing
cash
flows
• Balance
time
horizon
to
recoup
customer
acquisition
costs
against
lifetime
value
• Four
generic
strategies
(see
next
slide)
85. CRM:
Step
2
Develop
a
Customer
Acquisition
Strategy
Retention
Profitability (LTV)
Low High
Time Horizon
to Recoup
Customer
Acquisition
Costs
Short
Pay as
You Go
Full Throttle
Long
Divest/
Restructure
Slingshot
These strategies are also affected by differentiation and pricing.
86. CRM:
Step
2
Develop
a
Customer
Acquisition
Strategy
• Differentiation
• Service
support,
personal
interaction,
expertise,
efficiency
• More
important
than
quality
and
delivery
performance
in
B2B
settings.
• Price
• Pricing
tactics
a
double-‐edged
sword
in
customer
acquisition
• Risk
of
acquiring
bargain
hunters
87. CRM:
Step
2
Develop
a
Customer
Acquisition
Strategy
• Clearly
articulate
superiority
of
non-‐price
elements
in
value
proposition
• Offer
modest
price
inducement
• Encourages
trial
and
switching
88. CRM:
Step
3
Develop
the
Customer
Portfolio
Management
Strategy
• Assess
customer
profitability
&
projected
duration
of
relationship
• Not
all
customers
are
equally
valuable
• Some
loyal
customers
may
be
more
costly
to
serve
• See
loyalty
strategies
on
following
slide
89. Loyalty
Strategies
Butterflies:
Good fit
High profit potential
Transaction satisfaction
Milk active accounts
Cease investing
Strangers:
Little fit
Lowest profit potential
Make no investment
Max transaction profit
True Friends:
Good fit
Best profit potential
Consistent communication
Attitudinal & behavioral loyalty
Delight customers
Barnacles:
Limited fit
Low profit potential
Measure size and share of wallet
Low share, up- and cross-sell
Small wallet, strict cost control
High Profit
Low Profit
Transaction Relationship
90. CRM:
Step
3
Develop
the
Customer
Portfolio
Management
Strategy
TRUE
FRIENDS
• The
most
valuable
customer
group
• Highly
profitable
and
loyal
• Relationship-‐oriented
• Seek
social,
economic,
and
technical
ties
• Risk:
Overkill
• Keep
relationship
fresh
with
open,
frequent
communication
91. CRM:
Step
3
Develop
the
Customer
Portfolio
Management
Strategy
BUTTERFLIES
• 2nd most
valuable
customer
group
• Transient,
and
highly
profitable
• Shoppers
• Seek
the
best
value
• Risk:
continued
investment
after
they’ve
“flown”
• Capture
as
much
of
their
business
as
possible
in
the
short
time.
92. CRM:
Step
3
Develop
the
Customer
Portfolio
Management
Strategy
BARNACLES
• Loyal,
desire
long-‐term
relationship
• Not
very
profitable
• Low
size/volume
of
transactions
• Cost
to
serve
them
may
be
high
• Risk:
create
drag
• Renegotiation
may
be
required
93. CRM:
Step
3
Develop
the
Customer
Portfolio
Management
Strategy
STRANGERS
• Lowest
Profit
Potential
• Transaction-‐oriented
• Focus
on
price
instead
of
value
• Limited
buyer-‐seller
communication
• Risk:
wasted
resources
• company
should
not
invest
by
marketing
to
strangers
• Ever
transaction
must
produce
a
profit
94. Which
Customers
Are
Really
Profitable?
Service provider 20%
Grocery retail 15%
Mail-order 19%
Brokerage 18%
Service provider 29%
Grocery retail 34%
Mail-order 29%
Brokerage 33%
Service provider 30%
Grocery retail 36%
Mail-order 31%
Brokerage 32%
Service provider 21%
Grocery retail 15%
Mail-order 21%
Brokerage 17%
High Profit
Low Profit
Transaction Relationship
95. CRM
Software
• Used
to
capture
data
about
customers
from
any
contact
within
the
enterprise
• Provide
the
ability
to:
• Track
profitability
• Detect
dissatisfaction
before
customer
is
lost
• Improve
• Product
selling
• Retention
• Loyalty
• Revenue
96. CRM
Software
• Software
includes
• Sales
force
automation
• Call-‐center
automation
• Marketing
automation
• Web
sales
• Web
configurators
• Web
analysis
and
marketing
• CRM
software
revenue
is
projected
to
surpass
$7.8
billion
worldwide
in
2008.
97. CRM
Software
Despite
all
that…
• Nearly
1/3
of
CRM
deployments
fail*
• Sale
representatives
may
reject
CRM
• Lack
of
training
and
understanding
• Top
management
goals
must
be
aligned
with
CRM
goals
• Relationship
marketing
philosophy
must
come
before
CRM
system
*according
to
AMR
Research
98. • Objetivos
• Visibilizar
a UBSA ante
grupos
clave
(medios
de
comunicación,
líderes
de
opinión,
industria,
recursos
humanos,
responsabilidad
social,
arquitectura,
otros)
99. • Estrategia
• Desarrollar
un
plan
de
comunicación
que
visualice
los
proyectos,
recursos
humanos,
tecnología,
otros.
• Gestionar
casos
de
éxito
de UBSA.
Compartir
con
medios
de
comunicación
de
las
fuentes
clave.
100. • Audiencia
• Industria
de
la
construcción
• Cámara
Mexicana
de
la
Industria
de
la
Construcción
y
filiales
en
los
estados
del
país
• Medios
de
comunicación:
construcción,
arquitectura,
tecnología,
recursos
humanos,
negocios,
otros
• *Toda
la
comunicación
será
nacional
y
se
contemplarán
medios,
así
como
audiencias
en
los
principales
estados
en
los
que UBSA tenga
intereses.
101. • Tácticas
• 1.
Oficina
de
Prensa
• Desarrollo
de
materiales
para
el
kit
de
prensa
• Internos
• Desarrollo
de
Mensajes
clave
• Construcciòn
de
listado
de
Talking
points
• Hojas
de
datos
(corporativo
y
servicios
principales)
• Externos
• Hoja
de
datos
• Biografía
de
Ejecutivos
• Releases
para
Medios
102. • Tácticas
• 1.
Oficina
de
Prensa
• Distribución
continua
de
materiales
e
información
general
a
medios
• Comunicados
de
prensa
• Casos
de
éxito
•
• Distribución
de
información
• Desarrollo
y
distribución
de
boletines
de
prensa
sobre
anuncios
relevantes
(corporativos,
de
mercado,
de
tendencias)
• Desarrollo
y
distribución
de
información
para
prensa
sobre
proyectos,
alianzas,
certificaciones,
recursos
humanos,
otros
103. • Tácticas
• 1.
Oficina
de
Prensa
• Construcción
de
Casos
De
éxito
• Diseño
de
casos
de
éxito
y
filmación
de
entrevistas
con
clientes
embajadores
• Comunicación
estratégica
• Planeación
estratégica
y
acercamiento
para
el
desarrollo
de
iniciativas
puntuales
• Evaluación
sobre
el
carácter
noticioso
de
diversas
comunicaciones
de UBSA,
por
ejemplo:
responsabilidad
social,
certificaciones,
alianzas,
otros
• Inteligencia
de
medios
para
buscar
la
mejor
manera
de
posicionar
los
mensajes
de UBSA
104. • 2.
Plan
de
Exposición
• ·∙ Plan
de
entrevistas
uno
a
uno
y
reuniones
de
“buena
voluntad”
con
editores
y
líderes
de
opinión
• ·∙ Desarrollo
de
media
brief
ejecutivo
que
incluye
perfil
del
medio,
del
periodista
(en
casos
específicos),
preguntas
anticipadas,
mensajes
clave
a
destacar
• ·∙ Reunión
previa
con
voceros
para
recibir
entrenamiento
puntual
sobre
la
entrevista
que
realizarán,
así
como
cobertura
de
apoyo
durante
la
entrevista
• ·∙ Seguimiento
con
reporteros
para
aclarar
puntos
o
proporcionar
información
complementaria
a
la
entrevista
• ·∙ Al
menos
2
al
mes
(entre
entrevistas
y
goodwill
meetings)
• ·∙ Gestión
de
alianzas
con
los
segmentos
de
interés
de UBSA
• § Participación
en
conferencias
(eventos
de
interés)
• § Participación
en
pláticas
en
Universidades
(definir)
105. • 4.
Evaluación
y
reporte
de
resultados
• ·∙ Se
elaborará
un
reporte
mensual
de
cobertura,
que
contiene
un
análisis
de
las
notas
generadas
y
se
compartirán
las
oportunidades
de
comunicación
106. • 4.
Costos
Se
sugiere
un
esquema
de
iguala,
la
cual
se
pactará
de
acuerdo
al
nivel
de
intensidad
de
los
resultados
a
corto
y
mediano
plazo
Se
dispondrá
un
equipo
consistente
en:
• La
supervisión
de
un
socio
director
• Un
ejecutivo
SR.
A
cargo
de
la
cuenta
• Un
ejecutivo
SR.
a
cargo
de
la
comunidad
digital
,
contenido
y
social
media