Marketing Research Aaker, Kumar, Day Seventh Edition Instructor’s Presentation Slides

Chapter Twenty-Six Emerging Applications of Marketing Research: Database Marketing and Relationship Marketing

© Marketing Research 7th EditionAaker, Kumar, Day Database Marketing Database Definition A customer list to which has been added information about the characteristics and the transactions of these customers. Businesses use it to cultivate customers and develop statistical profiles of prospects most like their present customers

© Marketing Research 7th EditionAaker, Kumar, Day Need Define your target group Go into your database Create a matched set Expose the test variable Minimize other marketing efforts while the test is going on Allow test program enough time to work Measure results by comparing the two groups’ sales Take action. If test results warrant going ahead, then Implement it Database Marketing (Cont.)

© Marketing Research 7th EditionAaker, Kumar, Day Elements A unique identifier such as an ID or match code Name and title of individual and/or organization Mailing address, including ZIP Code Telephone number Source of order, inquiry, or referral Date and Purchase details of first transaction Recency/frequency/monetary transaction history Credit history and rating Relevant demographic data for consumer buyers Relevant organizational data for industrial buyers Database Marketing (Cont.)

© Marketing Research 7th EditionAaker, Kumar, Day Benefits Customers are easier to retain than acquire Determine their “lifetime value” Developing relationships with customers Database Marketing (Cont.)

© Marketing Research 7th EditionAaker, Kumar, Day Ways to Gather Consumer Data Rebate Cards Suggestion Cards Warranty Registration Cards Free Subscription Offer Cards Directly Ask Consumers

© Marketing Research 7th EditionAaker, Kumar, Day Guerilla Tactics Get the product right Use low-tech targeting and creative thinking Use other people’s data (OPD) first Buy new media Ways to Gather Consumer Data (Cont.)

© Marketing Research 7th EditionAaker, Kumar, Day Types of Databases Active Inactive Inquiries Value Added Databases Overlay of multiple databases

© Marketing Research 7th EditionAaker, Kumar, Day Identifying Most Profitable Customers Recency of Purchase Frequency of Purchase Monetary Value of Purchase Validating Prospect Profiles Benefits of Database Marketing

© Marketing Research 7th EditionAaker, Kumar, Day E-Commerce Fundamentals E-commerce influence The impact of the net on purchases made entirely off-line E-commerce ordering Captures the orders that are placed on-line but paid for later via telephone or in-store E-commerce buying Combines ordering and paying on-line

© Marketing Research 7th EditionAaker, Kumar, Day Real-time marketing The marketing process of personally customizing goods or services that continuously update themselves to track changing customer needs, without intervention by corporate personnel, and often without conscious or overt input from the customer E-Commerce (Cont.)

© Marketing Research 7th EditionAaker, Kumar, Day Relationship Marketing Relationship Marketing Incorporates Three Elements Identifying and building a database of current and potential consumers which records and cross- references a wide range of demographic and purchase information Delivering differential messages to these people through established and new media channels based on consumers' characteristics and preferences Tracking each relationship to monitor the cost of acquiring the consumer and the lifetime value of his/her purchases

© Marketing Research 7th EditionAaker, Kumar, Day Integrated Marketing Communications The process of developing and implementing various forms of persuasive communications programs with customers and prospects over time The goal of the IMC is to influence or directly affect the behavior of the selected communications audience

© Marketing Research 7th EditionAaker, Kumar, Day Forecasting Qualitative Methods Jury of Executive Opinion Sales Force Estimates Surveys of Customer Intentions Delphi Approach

© Marketing Research 7th EditionAaker, Kumar, Day Forecasting (Contd.) Quantitative Methods Time-series Extrapolation Trend projection Causal Models Leading indicators Regression models