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

2. 2 Learning Objectives 1.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.

3. Tony Soebijono3 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. 1 1

4. Tony Soebijono4 What is One-to-One Marketing? Individualized Information-Intensive Customer-Based Long-Term Oriented Share of Customer With a Focus on... DatabaseTechnologyDatabaseTechnology One-to-One Marketing is... One-to-One Through Use of... Through 1 1

5. Tony Soebijono5 Different of … 1 1 One-to-One Marketing Focuses on Share of Customer Develops Customers Finds Products for Customers Mass Marketing Focuses on Share of Market Develops Products Finds Customers for Products

6. Tony Soebijono6 Mass Production “One-to-One” Benefit of Technology “One-to-One” Before Industrial Revolution The Evolution of One-to-One Marketing 1 1

7. Tony Soebijono7 Discuss the forces that have influenced the emergence of one-to-one marketing. Demand for Accountability Emergence of New Media Alternatives Emergence of New Media Alternatives Decreasing Brand Loyalty More Demanding, Time-Poor Consumers More Demanding, Time-Poor Consumers Increasing Diversity 2 2

8. Tony Soebijono8 Marketing Impact of Trends Consumer recognition as unique individuals Consumer recognition as unique individuals Marketing Impact of Trends Marketing Impact of Trends More direct and personal marketing efforts More direct and personal marketing efforts Rewards for loyalty Increased importance of One-to-One Marketing Increased importance of One-to-One Marketing 2 2

9. Tony Soebijono9 Compare the one-to-one marketing communications process with the traditional mass marketing communications process. 3 3 Personalized Message is Personalized Direct Channel is Direct Noise Noise is not present Response Individual Response is captured

10. Tony Soebijono10 List eight common one-to-one marketing applications. 1. Identify the best customers 2. Retain loyal customers 3. Cross-sell other products or services 4. Design targeted marketing communications 5. Reinforce consumer purchase decision s 6. Induce product trial by new customers 7. Increase the effectiveness of distribution channel marketing 8. Improve customer service 4 4

11. Tony Soebijono11 Other Marketing Applications through Databases 4 4 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

12. Tony Soebijono12 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. 5 5 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.

13. Tony Soebijono13 Building a Marketing Database Enhance customer data Analyze information to find answers Collect the right data Collect the right data 5 5

14. Tony Soebijono14 Collect the right data Response Lists Compiled Lists Building a Marketing Database 5 5

15. Tony Soebijono15 Building a Marketing Database 5 5 Enhance customer data Compiled Data Compiled Data Modeled Data Modeled Data Custom Data Custom Data

16. Tony Soebijono16 Lifetime Value Analysis (LVA) Lifetime Value Analysis (LVA) Data Mining Customer Segmentation Customer Segmentation RFM Analyze information to find answers Building a Marketing Database 5 5

17. Tony Soebijono17 Customer Segmentation 5 5 SegmentationBases Demographics Geographics Purchase Behavior Psychographics

18. Tony Soebijono18 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. 5 5 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.

19. Tony Soebijono19 Data Mining Create customer profiles Uses of Data Mining Uses of Data Mining Determine the reason for customer loyalty Determine the reason for customer loyalty Analyze the potential return for strategies Help forecast sales 5 5 The process of using statistical analysis to detect relevant purchasing behavior patterns in a database.

20. Tony Soebijono20 Establish Enduring Customer Relationships Create a Multimedia Marketing Initiative Deliver Personalized Messages Describe one-to-one marketing using the Internet. 6 6

21. Tony Soebijono21 Discuss privacy issues related to one-to-one marketing. Invasion of Privacy Privacy Popularity of Internet for data collection collection Unawareness of information collected Unawareness Misunderstanding about privacy laws and regulations Misunderstanding about privacy laws and regulations 7 7

22. Thx Tony Soebijono22