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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
