Chapter Eleven (11)Lecturer Md Shahedur Rahman Database Marketing and Direct Response Marketing Remember this !!IMC program relies heavily on the employees who have the most interactions with customers. These individuals are the face of the company.A positive experience may cause the buyer to provide positive WOM to as many as 6 other people, while a negative experience will result in another 11 people knowing about it.

Personal SellingPersonal SellingThe last 3 feet of marketingA bond of partnership between a sales rep and a client is a valuable asset.Personal selling can be classified into:Retail salesSelling in retail outletsSelling services TelemarketingBusiness to Business sellingRetail SalesSelling in retail outletsSingle transactionOrder-takers only filling orders, or order taking and cashierSelling servicesSales representatives driving the relationship. Single, repeat or problem solving ( Insurance Selling ) Selling and providing services selling car oil and provide oil change serviceTelemarketingIn-bound telemarketingOut-bound telemarketing

Cross SellingCross-selling involves the marketing of other items following the purchase of a good or serviceBanks selling insurance, loans and other financial solutions

Database Marketing

Database MarketingDatabase development and database marketing programs are often used to supplement personal selling activities.

Database development refers to the creation of a database to support the overall company, IMC program and the total marketing effort.Database MarketingSteps of developing such a database are:Determine objectivesCollect dataBuild the data warehouseMine data for informationDevelop marketing programsEvaluate marketing programs and data warehouses

9Determining ObjectivesWhat kinds of data are currently available?When (or how often) will information be collected?What additional data are needed?Where will the data be located or stored?Why do we need certain data and not other types?How will the data be used and who will use it?

Typical Objectives for an IMC DatabaseProvide useful information about a firms customersCreate information about why customers purchase the productsShare information about customers with creatives as they prepare advertisements and promotional materialsReveal contact points to be used in direct-marketing programsYield information about members of various buying centers in B2B operationsTrack changes in purchasing behaviors and purchasing criteria used by customersCollecting DataInternal customer data customers and survey data collected from customersMore than just name and addressScanning technology allows us to track purchasing behavior of buyersHelps marketing team identify and profile companys best customersHelps them develop ways to cross-sell and create profiles of prospects

Collecting DataExternal data psychographic, lifestyle, and attitudinal informationSecondary data like commercial database servicesInformation collected from channel members (wholesalers and retailers)Government data sourcesBuilding a Data WarehouseDeveloping a useful data warehouse requires an understanding of all the various ways members of the organization might use data.Some typical uses can be:Targeting customers for a direct marketing programSalespeople have access to important customer information while making sales callsGiving the service department and customer relations department access to customer data as they deal with inquiries and complaints

Data MiningData mining usually has either of the following 2 approaches:

Building profiles of customer groups

Preparing models that predict future purchase behaviors based on past purchases

Developing Marketing ProgramsOnce the data have been mined for information, individual marketing programs can be designedThe data provides clues about the best approach for each customer group ( What appeal or message strategy to use ?)A Quality database helpsMarketing team decide on types of sales promotions to be usedAdvertising media to be selectedType of information that will spark the interest of a particular group of customers

Evaluating Marketing Programs and Data WarehousesA high-quality database will contain information about as many customers as possible, where each transaction will be recorded. This allows for the analysis of various purchasing trends among customer groups and even individual customers.

Evaluating Marketing Programs and Data WarehousesQuestions to be answered can be like the following:Do our customers know our overall theme and image?Have we moved toward greater brand equity in the past year?Which items are our customers most inclined to buy?Which are not selling well? Do we know why?Is our customer base changing? Is it because we have changed, or is it because the new group is better suited to our products?

Direct MarketingDirect MarketingDirect marketing is vending products to customers without the use of other channel members.60% of the direct marketing budget is used for prospecting40% is directed towards retaining current customersTypical forms of direct marketing include:MailMail-order CatalogsMass Media TV, radio, magazines and newspapersAlternative MediaMail

Catalogue

Mass Media

Alternative Media

Internet

Email

Permission MarketingA relatively new form of direct marketingHere, information is only sent to consumers who give the company permission to do so.Can be offered on the internet, over phone, or through direct mailResponse rates tend to be higher, because consumers are receiving only marketing materials they have asked for

Permission MarketingSteps to a successful permission marketing program are:Obtain permission from customerOffer the customer an ongoing curriculum that is meaningfulReinforce the incentive to continue the relationshipIncrease the level of permissionLeverage the permission to benefit both the partiesCustomer Relationship Marketing

Customer Relationship ManagementThese programs are designed to build long-term loyalty and bonds with customers through the use of a personal touch facilitated by technologyCRM programs go beyond database management and regular selling tactics

CRM has 3 technological underpinnings:Database technology, including the ability to analyze and map dataInteractivity through web sites, call centers, and other means of contacting customersMass customization technology, or the ability to customize a good or service to better meet a customers needs

Steps in Customer Relationship ManagementIdentify the firms customers using standard data collection techniques and the firms databaseDifferentiate customers in terms of their needs and their value to the selling companyLifetime value of the customerShare of customerInteract with customers in ways that improve the cost efficiency and the effectiveness of these contactsCustomize some aspects of the goods and services being offered to the customerInstead of trying to find customers for the products you have got, you find new products for the customers you have already got. Seth Godin