Marketing Management One to One Marketing M-9 1Tony Soebijono.

Marketing Management

One to One MarketingM-9

1Tony Soebijono

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Learning Objectives1. Define one-to-one marketing and discuss its dependence on

database technology.

2. Discuss the forces that have influenced the emergence of one-to-one marketing.

3. Compare the one-to-one marketing communications process with the traditional mass marketing communications process.

4. List eight common one-to-one marketing applications.

5. Discuss the basics of one-to-one marketing database technology

6. Describe one-to-one marketing using the Internet.

7. Discuss privacy issues related to one-to-one marketing.

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Define one-to-one marketing and discuss its dependence on database technology.

An individualized marketing method that utilizes customer information to build

long-term, personalized, and profitable relationships with each customer.

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What is One-to-One Marketing?

IndividualizedIndividualized

Information-IntensiveInformation-Intensive

Customer-BasedCustomer-Based

Long-Term OrientedLong-Term Oriented

Share of CustomerShare of Customer

With a Focuson...

DatabaseTechnologyDatabaseTechnology

One-to-OneMarketing is...One-to-OneMarketing is...

Through Use of...Through Use of...

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Different of … 11

One-to-One Marketing

One-to-One Marketing

Focuses on Share of CustomerFocuses on Share of Customer

Develops CustomersDevelops Customers

Finds Products for CustomersFinds Products for Customers

Mass Marketing

Mass Marketing

Focuses on Share of MarketFocuses on Share of Market

Develops ProductsDevelops Products

Finds Customers for ProductsFinds Customers for Products

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Mas

s P

rodu

ctio

n

“One-to-One”

Benefit of

Technology

“One-to-O

ne”

Before Industrial

Revolution

The Evolution of One-to-One Marketing 11

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Discuss the forces that have influenced the emergence of one-to-one marketing.

Demand for AccountabilityDemand for Accountability

Emergence of New Media Alternatives

Emergence of New Media Alternatives

Decreasing Brand LoyaltyDecreasing Brand Loyalty

More Demanding, Time-Poor Consumers

More Demanding, Time-Poor Consumers

Increasing DiversityIncreasing Diversity

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Marketing Impact of Trends

Consumer recognitionas unique individuals

Consumer recognitionas unique individuals

Marketing Impact ofTrends

Marketing Impact ofTrends

More direct and personal marketing efforts

More direct and personal marketing efforts

Rewards for loyaltyRewards for loyalty

Increased importance ofOne-to-One Marketing

Increased importance ofOne-to-One Marketing

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Compare the one-to-one marketing communications process with the traditional mass marketing communications process.

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Message is Personalized

Channel is Direct

Noise is not present

Individual Response is captured

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List eight common one-to-one marketing applications.

1. Identify the best customers 1. Identify the best customers

2. Retain loyal customers2. Retain loyal customers

3. Cross-sell other products or services3. Cross-sell other products or services

4. Design targeted marketing communications4. Design targeted marketing communications

5. Reinforce consumer purchase decisions5. Reinforce consumer purchase decisions

6. Induce product trial by new customers6. Induce product trial by new customers

7. Increase the effectiveness of distribution channel marketing7. Increase the effectiveness of distribution channel marketing

8. Improve customer service 8. Improve customer service

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Other Marketing Applications through Databases 44

• Match profiles to cross-sell other products to customers

• Modify marketing messages based on customer profiles

• Reach out to customers to reinforce the purchase decision

• Find new customers

• Gain insight into who is purchasing products

• Improve customer service

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Discuss the basics of one-to-one marketing database technology.

Data-Driven Marketing

The process of gathering, maintaining, and analyzing information about customers and

prospects to implement more efficient and effective marketing communications.

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Marketing Database

The compilation of names, addresses, and other pieces of pertinent information about

individual customers

and prospects that affects what and how marketers

sell to them.

Data Warehouse

A large corporate-wide database in which the data are culled from a number of legacy

systems that are already in place within the organization.

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Building a Marketing Database

Enhance customer data

Analyze information to find answers

Collect the right data

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Collect the right data

Response ListsResponse Lists Compiled ListsCompiled Lists

Building a Marketing Database 55

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Building a Marketing Database 55

Enhance customer data

CompiledData

CompiledData

ModeledData

ModeledData

CustomData

CustomData

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LifetimeValue Analysis (LVA)

LifetimeValue Analysis (LVA) Data MiningData Mining

CustomerSegmentation

CustomerSegmentation RFMRFM

Analyze information to find answers

Building a Marketing Database 55

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Customer Segmentation 55

Segmentation Bases

Demographics

Geographics

Purchase Behavior

Psychographics

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Analysis model

Recency-Frequency-Monetary Analysis (RFM)

A data manipulation technique that determines the firm’s best customers by

identifying those customers who have purchased most recently, most frequently,

and who have spent the most money.

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Lifetime Value Analysis (LVA)

A data manipulation technique that projects the future value of the customer over

a period of years using the assumption that marketing to repeat customers is

more profitable than to first-time buyers.

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Data Mining

Create customer profilesCreate customer profiles

Uses ofData Mining

Uses ofData Mining

Determine the reasonfor customer loyalty

Determine the reasonfor customer loyalty

Analyze the potential return for strategies

Analyze the potential return for strategies

Help forecast sales Help forecast sales

55The process of using statistical analysis to detect relevant

purchasing behavior patterns in a database.

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Establish Enduring Customer RelationshipsEstablish Enduring Customer Relationships

Create a Multimedia Marketing InitiativeCreate a Multimedia Marketing Initiative

Deliver Personalized MessagesDeliver Personalized Messages

Describe one-to-one marketing using the Internet. 66

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Discuss privacy issues related to one-to-one marketing.

Invasion ofPrivacy

Invasion ofPrivacy

Popularity of Internet for data collection

Popularity of Internet for data collection

Unawarenessof information collected

Unawarenessof information collected

Misunderstanding about privacy laws and regulations

Misunderstanding about privacy laws and regulations

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• Thx

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