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Personal Selling,Database Marketing,And Customer Relationship Management12
• Integrity – being honest with customers.• Diligence – working hard.• Resiliency – ability to bounce back and
not take “no” personally.• Intelligence
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Source: Jack Carroll, “The Four Attributes of Great Salespeople,” SalesLinks Bulletin, Mentor Associates Sales Training. (Http://www.saleslinks.com/sideline/sep-dec98/102698.htm)
Source: Based on James C. Anderson, “Relationships in Business Markets: Exchange Episodes, Value Creation, and their Empirical Assessment,” Journal of Academy of Marketing Science, Vol. 23 (19960, pp. 346-350.
Steps in Developing a Strategic Partnership
How to Build Trust in a Strategic Partnership- Thomas Wood-Young
• Communicate frequently.• Return all phone calls immediately.• Handle complaints promptly with empathy and
honesty.• Offer great customer service.• Understand your customer.• Become a valuable resource.• Create solutions that add value for your customers.• Partner with customers.• Create a customer, not a sale!
12-11Source: Thomas Wood-Young, “Building Trust Results in Customer Loyalty,” Sales Doctors Magazine (Http://www.salesdoctors.com/diagnosis/3trust2.htm)
• Determine objectives.• Collect data.• Build a data warehouse.• Mine data for information.• Develop marketing programs.• Evaluate marketing programs and
data warehouse.
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Steps in Developing a Database
F I G U R E 1 2 . 1 1
Determining Objectives
• Who will use the information?• What kinds of data are available?• When will data be collected and used?• Where will the data be located or stored?• Why do we need certain data and not other
• Internal customer data.• Survey data of customers.• Channel members.• Commercial data sources.• Government data sources.
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Sources of Data
F I G U R E 1 2 . 1 2
• Where are the customer located?• What have they purchased?• How often have they purchased?• How did they initially make contact?• How do they order or purchase? (in person, Web, mail, phone, etc.)• What is known about their families, occupations, payment
histories, interests, attitudes, etc.?• If B-to-B, who are the influencers, users, deciders and purchasers?• If B-to-B, is it a corporate office or branch offices?
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Internal Data Information
F I G U R E 1 2 . 1 3
The Data Warehouse
• Internal data• External data• Geocoding information• Data put into warehouse must be
relevant to objectives.
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Mining Data for Information
• Building profiles of customer groups• Preparing models that predict future purchase behavior• Examples
– First Horizon – profiles best prospects– American Eagle – price markdowns– Goody’s – shopper baskets– Staples – profiles of best customers
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Developing Marketing Programs
• Data can be used:– to develop advertising, sales promotion and
other marketing materials.– for sales support.– for direct marketing efforts.– to target specific customers.– by service support staff.
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Direct Marketing
• Direct Marketing Association– Prospecting 60%– Customer retention 40%
• Dell Computers– Catalog– TV and radio ads– FSI ads
• Mail• Catalogs• Telemarketing• Mass media• Alternative media• Internet• E-mail
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Methods of Direct Marketing
F I G U R E 1 2 . 1 4
Direct Mail
• High usage in B-to-B markets.• Success depends on quality of database.• Message must appeal to target group.• Digital direct-to-press.• Major problem is large volume of direct
mail received by both consumers and businesses.
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Catalogs
• Viewed as low-pressure sales tactics.• Catalogs saved for a longer period of
time.• Catalogs often passed along to others or
viewed by others.• Key is the use of enhanced database and
targeting of catalogs.
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Direct Marketing(cont.)
• Mass media– Broadcast (television, radio)– Print (magazines, newspapers)
• Alternative media– Package insert programs (PIPs)– Ride-a-longs– Card pack
70% of U.S. households participate in a frequent-shopper program. 59% of participating households belong to two or more programs. 82% use their frequent shopper card each time they shop. Primary reason for joining is to receive discounts. 60% say the reason they shop at a particular grocery store is because the store has a frequent shopper program.
• 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 frequency
program.
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Source: Grahame R. Dowling and Mark Uncles, “Do Customer Loyalty ProgramsReally Work?” Sloan Management Review, (Summer 1997), Vol. 38, No. 4, pp. 71-82.
Frequency Program Objectives
F I G U R E 1 2 . 1 5
Principles in BuildingFrequency Programs
Design the program to enhance the value of the product.
Calculate the full cost of the program.Design a program that maximizes the
• Identify the company’s customers.• Differentiate customers in terms of their needs and
their value to the selling company.– Lifetime value– Share of customer
• Interact with customers in ways that improve cost efficiency and the effectiveness of your interaction.– Improve cost efficiency– Enhance effectiveness of interaction.
• Customize some aspects of the goods or services being offered to the customer.
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Share of a Customer
• Customer spends an average of $24,000 per year with Company A.
• The customer purchases from two other vendors a total of $36,000 for the same materials or product.