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Part FourUsing Technology And Information To Build Customer Relationships

Chapter 8E-Marketing And Customer Relationship Management

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Objectives

• Define electronic marketing and commerce and recognize increasing importance in strategic planning

• Understand characteristics of electronic marketing and differentiate them from traditional marketing

• Examine how characteristics of electronic marketing affect strategy

• Understand how electronic marketing and information technology facilitate customer relationship management

• Identify legal/ethical considerations in electronic marketing

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Electronic Marketing

• E-commerce – conducting business through telecommunications networks

• E-marketing – creating, distributing, promoting, and pricing products for targeted customers over the Internet

E-Commerce Analysis Tools

Electronic Economy In Perspective

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Consumer-GeneratedElectronic Marketing

• Desire to learn about consumers’ opinions and experiences

• Increased ability to exchange information between consumers

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Blogs

Web-based journals in which people can editorialize and interact with other Internet users.

The State of Blogging

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Wikis

Software that create an interface that enables users to add or edit the content of some types of websites (also called wikis or wikipages).

Wikipedia.org

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Technologies That ProvideConsumers Marketing Information

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Characteristics OfElectronic Marketing

• Addressability

• Interactivity

• Memory

• Control

• Accessibility

• Digitalization

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Addressability

A marketer’s ability to identify customers before they make a purchase.

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Cookie

An identifying string of text stored on a website visitor’s computer.

What is an Internet cookie?

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Interactivity

The ability to allow customers to express their needs and wants directly to the firm in response to the firm’s marketing communications.

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Community

A sense of group membership or feeling of belonging by individual members.

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Memory

The ability to access databases or data warehouses containing individual customer profiles and purchase histories and use these data in real time to customize a marketing offer.

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Companies like Iomega provide software to help create memory for saving data

Reprinted with permission from Iomega Corporation

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Database

A collection of information arranged for easy access and retrieval.

Data Mining

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Control

Customers’ ability to regulate the information they view and the rate and sequence of their exposure to that information.

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Portal

A multiservice website that serves as a gateway to other websites.

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Accessibility

The ability to obtain information available on the Internet.

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Digitalization

The ability to represent a product, or at least some of its benefits, as digital bits of information

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E-Marketing StrategiesAnd Considerations

• Product– Computers and related accessories

biggest seller online– Customized orders– Services growing

• Distribution– Order processing– Synchronization

• Promotion– Augments traditional forms– Consumer in control

• Pricing- More consumer information

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Types OfAdvertising On Websites

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CustomerRelationship Management

• Database Marketing

• Customer Lifetime Value

• Technology Driven

– Customer support

– Call-center software

• Customer Satisfaction

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Elements OfDatabase Marketing

1. Identify/build database

2. Differentiate messages to consumers

3. Track relationships

Database Marketing Overview

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Types Of Databases

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Questions For CLV

• Which customers receive preferential treatment?

• What channels used to interact with customer?

• Timing of offering to customer?

• Which are good prospects?

• Allocation of resources?

• Method of monitoring customers?

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Technology Drives CRM

• Customer Contact Points– Telephone– Fax– Online– Personal

• Data Analysis

• Customer support/call-center software

• Sales automation software

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Customer Satisfaction and CRM

CRM is about relationships, not technology

– technology can help build long-term relationships

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Legal/Ethical IssuesIn E-Marketing

• Privacy

• Spam- unsolicited commercial e-mail

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Goods And ServicesMarketed Through Spam

Source: Ferris Research, in “Spam for Everyone,” The New York Times, Jan. 31, 2005, www.nytimes.com.

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AMA Code Of Ethics For Marketing On The Internet