8 | 2Copyright © Houghton Mifflin Company. All rights reserved. Part Four Using Technology And Information To Build Customer Relationships

Chapter 8 E-Marketing And Customer Relationship Management

8 | 4Copyright © Houghton Mifflin Company. All rights reserved. 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

8 | 5Copyright © Houghton Mifflin Company. All rights reserved. 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

8 | 6Copyright © Houghton Mifflin Company. All rights reserved. Consumer-Generated Electronic Marketing Desire to learn about consumers’ opinions and experiences Increased ability to exchange information between consumers

8 | 7Copyright © Houghton Mifflin Company. All rights reserved. Blogs Web-based journals in which people can editorialize and interact with other Internet users. The State of Blogging

8 | 8Copyright © Houghton Mifflin Company. All rights reserved. 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

8 | 9Copyright © Houghton Mifflin Company. All rights reserved. Technologies That Provide Consumers Marketing Information

8 | 10Copyright © Houghton Mifflin Company. All rights reserved. Characteristics Of Electronic Marketing Addressability Interactivity Memory Control Accessibility Digitalization

8 | 11Copyright © Houghton Mifflin Company. All rights reserved. Addressability A marketer’s ability to identify customers before they make a purchase.

8 | 12Copyright © Houghton Mifflin Company. All rights reserved. Cookie An identifying string of text stored on a website visitor’s computer. What is an Internet cookie?

8 | 13Copyright © Houghton Mifflin Company. All rights reserved. Interactivity The ability to allow customers to express their needs and wants directly to the firm in response to the firm’s marketing communications.

8 | 14Copyright © Houghton Mifflin Company. All rights reserved. Community A sense of group membership or feeling of belonging by individual members.

8 | 15Copyright © Houghton Mifflin Company. All rights reserved. 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.

8 | 16Copyright © Houghton Mifflin Company. All rights reserved. Companies like Iomega provide software to help create memory for saving data Reprinted with permission from Iomega Corporation

8 | 17Copyright © Houghton Mifflin Company. All rights reserved. Database A collection of information arranged for easy access and retrieval. Data Mining

8 | 18Copyright © Houghton Mifflin Company. All rights reserved. Control Customers’ ability to regulate the information they view and the rate and sequence of their exposure to that information.

8 | 19Copyright © Houghton Mifflin Company. All rights reserved. Portal A multiservice website that serves as a gateway to other websites.

8 | 20Copyright © Houghton Mifflin Company. All rights reserved. Accessibility The ability to obtain information available on the Internet.

8 | 21Copyright © Houghton Mifflin Company. All rights reserved. Digitalization The ability to represent a product, or at least some of its benefits, as digital bits of information

8 | 22Copyright © Houghton Mifflin Company. All rights reserved. E-Marketing Strategies And 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

8 | 23Copyright © Houghton Mifflin Company. All rights reserved. Types Of Advertising On Websites

8 | 24Copyright © Houghton Mifflin Company. All rights reserved. Customer Relationship Management Database Marketing Customer Lifetime Value Technology Driven –Customer support –Call-center software Customer Satisfaction

8 | 25Copyright © Houghton Mifflin Company. All rights reserved. Elements Of Database Marketing 1.Identify/build database 2.Differentiate messages to consumers 3.Track relationships Database Marketing Overview

8 | 26Copyright © Houghton Mifflin Company. All rights reserved. Types Of Databases

8 | 27Copyright © Houghton Mifflin Company. All rights reserved. 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?

8 | 28Copyright © Houghton Mifflin Company. All rights reserved. Technology Drives CRM Customer Contact Points –Telephone –Fax –Online –Personal Data Analysis Customer support/call-center software Sales automation software

8 | 29Copyright © Houghton Mifflin Company. All rights reserved. Customer Satisfaction and CRM CRM is about relationships, not technology –technology can help build long-term relationships

8 | 30Copyright © Houghton Mifflin Company. All rights reserved. Legal/Ethical Issues In E-Marketing Privacy Spam- unsolicited commercial

8 | 31Copyright © Houghton Mifflin Company. All rights reserved. Goods And Services Marketed Through Spam Source: Ferris Research, in “Spam for Everyone,” The New York Times, Jan. 31, 2005,

8 | 32Copyright © Houghton Mifflin Company. All rights reserved. AMA Code Of Ethics For Marketing On The Internet