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Databases and Marketing

Databases and Marketing. Customer databases Data Warehouses Database Mining. Customer experience management (CEM) is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle.

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Databases and Marketing

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  1. Databases and Marketing Customer databases Data Warehouses Database Mining

  2. Customer experience management (CEM) is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. The goal of CEM is to optimize interactions from the customer's perspective and, as a result, foster customer loyalty. • Why Customer Experience Management Is Important • Strengthen brand preference. • Boost revenue. • Improve customer loyalty. • Lower costs by reducing customer churn. • Challenges • Creating consistent brand experiences across channels. • Consolidating data into a single view of the customer • Create and maintain complete customer profiles. • Personalize all customer interactions. • Get the right information to the right place at the right time – every time

  3. Data Marts and Data Warehouse

  4. Data Mining

  5. What is data mining? • Methods for finding interesting structure in large databases • E.g. patterns, prediction rules, unusual cases • Focus on efficient, scalable algorithms • Contrasts with emphasis on correct inference in statistics • Related to data warehousing, machine learning

  6. DM Process Model

  7. Where Does Data Mining Fit In? Hindsight Analysis and Reporting (OLAP) Foresight Insight Statistical Modeling Data Mining

  8. Common Data Mining Techniques • Predictive modeling • Classification • Derive classification rules • Decision trees • Numeric prediction • Regression trees, model trees • Association rules • Meta-learning methods • Cross-validation, bagging, boosting • Other data mining methods include: • artificial neural networks, genetic algorithms, density estimation, clustering, abstraction, discretisation, visualisation, detecting changes in data or models

  9. Overview of Database Marketing

  10. What is Database Marketing? • An information driven marketing process made possible by database technology that enables marketers to develop, test, implement, measure and modify customized marketing programs and strategies

  11. Premise of Database Marketing • Not all customers are alike (20-80-30 rule) • Gathering, maintaining, and analyzing customer and prospect info allows marketers to - identify key mkt segments - optimize planning, pricing and promoting - close deals satisfying both buyers and sellers

  12. What is required for Database Marketing? • Relevant data about customers and prospect • Database tech to transform raw data into powerful and accessible mkt info • Statistical techniques to rank customers in terms of their likeliness to - respond to mkt communication - buy products - return products - pay for products - stay or leave

  13. Uses of Database Marketing?

  14. Strategic Marketing Planning & Marketing Process

  15. What is Strategic Planning? It is the managerial process that helps to develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.

  16. Organizational Levels The Corporate Level is the highest level in any organization. The Functional Level includes all the various functional areas within a business unit. The Business Levelconsists of units within the overall organization that are generally managed as self-contained businesses.

  17. Corporate Mission This seeks to embody the entire goals of the organization and the objective of its existence. It seeks to provide a sense of purpose, direction and opportunity

  18. Types of Strategic Plans

  19. Business-Unit Composition • Companies often organize around competency-based SBUs to establish Sustained Competitive Advantage.

  20. Business Strategy Decisions • Dimensions of Strategy: • Market scope. • How broadly the business views its target market. • Competitive advantage. • CompetitiveAdvantage: • The way a business tries to get consumers to purchase its products over those offered by competitors.

  21. Marketing Strategy Decisions • A Marketing • Strategy Addresses: • Selection of a • target market. • Development of a • marketing mix. Functional strategies are at the business-unit level. Operating strategies are at the product level.

  22. Levels of a Marketing Plan • Strategic • Target marketing decisions • Value proposition • Analysis of marketing opportunities • Tactical • Product features • Promotion • Merchandising • Pricing • Sales channels • Service

  23. The Strategic Planning, Implementation, and Control Processes

  24. Porter’s Generic Strategies Overall Cost Leadership Differentiation Focus

  25. Categories of Marketing Alliances Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations

  26. Product/Market Opportunity Matrix Market New Present Market Penetration Strategy Market Development Strategy Present Product Product Development Strategy Diversification Strategy New

  27. How to Achieve aDifferentiation-Based Advantage Approach 1 Incorporate product features/attributes that lower buyer’s overall costs of using product Approach 2 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 3 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 4 Compete on the basis of superior capabilities

  28. Competitive Advantage Cycle

  29. Integrated Marketing Communications Challenges today: Customer is changing. Marketing strategies are changing. Communication Technologies are changing. Why does the need for an IMC arise???

  30. Effective marketing • Target Audience • Communication Objective • Message Design- Content , Format and Structure • Choosing Media - Personal and Non-Personal • Selecting Message Source • Collecting Feedback

  31. Promotion strategies

  32. Promotion mix

  33. Communication Process Encoding Message Sender Media Decoding Receiver Response Feedback

  34. SETTING TOTAL PROMOTION BUDGET AND MIX 4 METHODS OF SETTING UP PROMOTION MIX • AFFORDABLE METHOD- Promotion budget at the level company can afford. • PERCENTAGE OF SALES METHOD-Promotion budget at the certain percentage of current or forecasted sales. • COMPETITIVE PARITY METHOD-Promotion budget to match competitors outlay. • OBJECTIVE AND TASK METHOD-Promotion budget based on what it wants to accomplish with promotion.

  35. PROMOTION MIX STRATEGY • PUSH STRATEGY-Strategy that calls for using sales force and trade promotion to push product through channels. • PULL STRATEGY-Strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy product like creating demand vacuum.

  36. ADVERTISEMENT Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.

  37. MAJOR ADVERTISMENT DECISIONS • SETTING ADVERTISEMENT OBJECTIVES communication objectives sales objectives • BUDGET DECISION affordable approach percent of sales competitive parity objective & task • ADVERTISMENT STRATEGY MESSAGE DECISION message strategy message evaluation MESSAGE DECISION reach, frequency, impact major media types media timing • ADVERTISMENT EVALUATION communication impact sales & profit impact return on advertisement

  38. PUBLIC RELATIONS Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events.

  39. PR DEPARTMENT FUNCTIONS • Press relations or press agency • Product publicity • Public affairs • Lobbying • Investor relations • Development

  40. ADVERTISING APPEALS

  41. ADVERTISING APPEAL • Indispensable part of every advertisement. • Central idea of an ad that elicits the much desired response. • 2 techniques that can be identified in advertising response: ADVERTISING APPEAL & ADVERTISING EXECUTIONS. • Every advertisement is an appeal to buy & use the product or the service supported by reasons to buy & use.

  42. ESSENTIALS OF GOOD APPEAL • It should be thematic. • It should be communicative. • It should be interesting. • It should be believable. • It should be complete.

  43. ADVERTISING APPEALS & BUYING MOTIVES • Advertising appeals are made to consumer motives. • Buying motives are the consumer expectations or the buyer specifications. They tell us what each consumer wants to satisfy his needs. • If the buying motives specify what consumer expect, the appeal speaks the degree to which such specifications are met.

  44. APPEALS & SELLING POINTS • An advertising appeal is the basic use of service or satisfaction which the product or the service can render and which the advertisement represents. • What we call as the TALKING POINTS for the salesman, are the SELLING POINTS for an advertiser. • An appeal is convincing on the basis of product characteristics, merits, satisfaction which we call as selling points.

  45. CLASSIFICATION OF APPEALS • Advertising appeals are broadly classified into 3 categories: • Product or Service related appeals • Consumer related appeals • Non-Consumer & Non-product Related appeal.

  46. I.PRODUCT OR SERVICE RELATED APPEALS This type of appeal focuses on the product or service features, where some of the aspects of product classification are described. Such appeals do not state openly the consumer benefits as they are implied. • Product feature appeal • Product Competitive advantage appeal • Product price appeal • Product News appeal • Product popularity appeal • Product generic appeal

  47. II. CONSUMER RELATED APPEALS • These ads harp on the direct consumer benefits. • Emphasis is on what the product or service does for the consumer, i.e. consumer satisfaction. • Consumer service appeal • Consumer savings appeal • Consumer self-enhancement appeal • Consumer fear appeal • Consumer subsidized product trial appeal

  48. Measurement & Evaluation

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