McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 10 CREATING CUSTOMER DIALOGUE

FOUR STEPS IN THE CRM PROCESS Segment & Profile the Market Implement Evaluate Design Communication and Pricing Strategy EXHIBIT

IMC STRATEGY REQUIREMENTS 1.DETERMINE HOW WE WILL COMMUNICATE WITH OUR CUSTOMER 2.DETERMINE HOW OUR CUSTOMER WANTS TO COMMUNICATE WITH US 3.MEASURE COMMUNICATION AND FEEDBACK AND MAKE CHANGES WHERE NECESSARY 10-4

WHAT IS IMC? 1.IT PROVIDES TWO-WAY DIALOGUE BETWEEN SUPPLIER-CUSTOMER 2.IT PROVIDES FOR A UNIFORM MESSAGE DELIVERED THROUGH ALL COMPANY MEDIA (ADVERTISING, SELLING EFFORT, DIRECT MAIL, TRADE SHOWS) 3.IT FOCUSES ON MEETING THE INFORMATION NEEDS OF THE BUYER 10-5

THE CONTINUOUS IMC PLANNING PROCESS Set Goals Determine Communication Elements Create Message Place Messages in Media Measure Results Make Adjustments Exhibit

Action Desire Interest Awareness Exhibit 10-3 THE HIERARCHY OF EFFECTS MODEL 10-7

COMMUNICATION TOOL KIT 1.ADVERTISING—Directed to a general audience, primarily through trade publications, the web, television, radio, billboards 2.DIRECT MARKETING—Directed to a specific audience to generate leads and generate sales through the mail, by fax or Internet and catalogs 3.PUBLIC RELATIONS—Focuses on relationships to create goodwill and support relationships 4.INTERNET—Website information and support and for communicating 5.TRADE SHOWS—Exhibits and demonstrates products and services in a public venue with personal interaction 6.TELEMARKETING—Inbound and outbound electronic communication allowing greater feedback opportunities 7.PERSONAL SELLING—Adaptable selling method established by one-on-one contact 8.MARKETING RESEARCH—Capturing information that will enable stronger customer relationships 10-8

Create or Strengthen Image Create Favorable Climate for Salespeople Generate Sales Leads Close Sales THE ROLES OF ADVERTISING Exhibit

ACHIEVING CUSTOMER RETENTION THROUGH COMMUNICATION 1.COMMUNICATE PROACTIVELY AND REGULARLY TO YOUR CUSTOMERS 2.MAKE DIALOGUE EASY TO INITIATE BY YOUR CUSTOMERS 3.MAKE IT EASY TO RESPOND TO YOUR COMMUNICATION EFFORTS 10-10

WHERE MARKETING COMMUNICATION DOLLARS ARE SPENT 24.8% Direct Marketing Market Research Online Marketing Premiums & Incentives Public Relations 4.2% 5.8% 3.1% Sales Force Management Other Advertising Trade Shows Sales Promotion 18.0% 16.9% 4.4% 4.2% 4.3% 5.8% 7.7% 24.8% 3.1% 10.8% 18.0% 16.9% 4.4% 4.2% 4.3% 5.8% 7.7% 24.8% 3.1% 10.8% Exhibit

THE BUDGET BREAKDOWN METHOD (Allocates Total Available Budget) TOTAL AVAILABLE BUDGET FUNDS Trade Show Mail Radio Magazines Newspaper Internet Sales Force Allocated to: Exhibit

THE BUDGET BUILDUP (Creates Total Budget) Trade Shows Mail Radio Magazines Newspaper Internet Sales Force How Much is Needed for Objective Creates Total Budget Exhibit