Download - Master C R M 01 M K T Basics C R M
Hanoï 2008
MBis Marketing & Technology
Marketing Basics
Master Master On our menu today
Definition: what’s marketing ? Marketing Basics
The market placeThe consumerStrategic approachesBrand buildingSegmentation Some marketing golden rulesSome marketing golden rules
CRM is direct marketing What is CRM all about?
Master Master One of the marketing definition
« Set of activities of a company that will insure its survival by finding the adequation between market needs and its offer of products or services »Needs identification of potentials
consummers Brand building, communication of the added
valueDeliverRelationship management
Master Master
Behaviour : Adaptive energy investment which serves to reduce the tension between internal and external world
Need coincides with
satisfaction
(birth)
Source of needs Source of satisfaction
Internal world External world
MARKETINGConstructing a bridge of
recognition for the individualbetween problem (need) andsolution (commercial product)
= SATISFACTION
What is marketing all about ?
PRENATAL DEVELOPMENT
PERSONNALDEVELOPMENT
Master Master The market place
Finished & open setN
ew p
rodu
cts
End
of
avai
labi
lity
Product life cycle
New customers
Customer Churn
Con
sum
ptio
n pe
riod
Master Master Actors on the market
Partner
Prospects
Customer
Supplier Company
Legal & commercial environment
Master Master Actors on the market
In function of the type of relationship between the actors the business model can changeBusiness to Consumer
(B-to-C)Business to Business
(B-to-B)Business to Business to Consumer
(B-to-B-to-C)
Master Master What’s the marketing mix ?
The 4 P’sProduct strategy
The portfolioProduct life cycle
Place strategyDistribution strategyLocations / territory management
Price strategyPromotion strategy
Communication strategyPromotions
Master Master The product
The product (or service) proposed by a company will have a life cycle
Launch Development Saturation Death
Master Master The product port-folio
The Boston Consulting Group model
New born
Prod. in development
«Cash cows»
«Dogs»
Master Master Changes on the marketChanges on the market
Global economyThreat & opportunity
Intense competitionFord is dead !Economic elasticity increases
Production processes are changing Technology driven marketsMass customization
New distribution and communication channels are rising
Master Master Customers on the market place
Attidude toward new products or media
16%
Laggards
34%
Late majority
34%
Early majority
13,5%
Early adopters
2,5%
Innovators
Master Master Consumer behaviorConsumer behavior
Environment
AttentionComprehension
Interpretation processes
Memory
Behavior
Knowledge, meaningsAnd beliefs
Knowledge, meaningsAnd beliefs
Attitudes and intentionsDecision making
Integration processes
Cognitive processes
(1) (2)
(3)
Master Master Customer evolutionCustomer evolution
Critères 1998 1997
Quality 77 % 47 %
Aimability 58 % 35 %
After sales 56 % 36 %
Price 48 % 26 %
Speed 39 % 27 %
Product info. 37 % 33 %
Promotions 35 % 20 %
Advices 32 % 24 %
Proximity 31 % 24 %
Qualit
y
Aimab
ility
After
sales Pr
ice
Spee
d
Prod
uct in
fo.
Prom
otion
s
Advic
es
Prox
imity
0%10%20%30%40%50%60%70%
80%
Source: Carré Jaune
Master Master Summary marketing evolution
Product oriented
R & D .
Mass Production
Price Advertising
. Sales Volume
Market oriented
Market Surveys .
Segmentation .
Quality Communication
. Distribution Market Share
Cutomer oriented
Databased information
Mass Customization
Service Real Time
Interaction Logistic Customer Share
Master Master Strategic approachesStrategic approaches
Perceptual & StrategicPerceptual & StrategicPositionningPositionning
Market Market segmentationsegmentation
Product Product differenciationdifferenciation
PushPush
PullPull
Master Master Strategic approachesStrategic approaches
Whatever the « Pull » or « Push » approach, there is still an option in the focusThe product centricThe customer centric
Push Pull
Product centric
Most of the time
Very rare
Customer centric
Often New trend
Master Master
Brand Retention Awareness Segment Test
Unless you have unlimited budget you have to find a balance
More strategic optionsMore strategic options
Master Master What is a Brand?
Brand has been called the most powerful idea in the commercial world
A brand is the proprietary visual, emotional, rational, and cultural image that you associate with a company or a product.
Brand identity includes the brand idea brand names logos positioning brand associations personality the company wants to show.
Master Master Why a Brand in a on-line world?
« If you launch a web site on the Internet today, it ’s like opening up a store on the North Pole - without a brand you are in serious trouble … »
Gerry McGovern, CEO Nua
Master Master A brand name has to be...
Easily spelled top priority because of e-commerce. If your customer
can't spell you, they may not find you.
Easily pronounced In your market language Internationnaly (in English, Spanish, ...)
Reflects your market objective attach yourself to the frontrunner's coattails and
erode some of their equity (the cola wars) boldly create your own category (Yahoo!, Amazon)?
Carefull with new words, acronyms & initials
Master Master Key elements in brand building
VitalityDifferenciation: brand positionningRelevance: perceived value(s)
Status creates attitudeFamiliarity:
frequence personnalized relationship
Estime: meanings & beliefs knowledge & experience quality of the relation
Master Master Sample communication plan
Brand Asset Valuator
Launch campaignAwareness - Differenciation
0
50
100
50
Status: Estime + Familiarity
Vit
alit
y: D
iffe
ren
ciat
ion
+ R
elev
ance
Post launch year 1Positionning +
Relevance
Year 2Values
DifferenciationPost launch year 1
Content + Attachement
Year 2Values
Relevance
Source: Young & Rubicam
Master Master Segmentation
Segmentation is finding the best target audience for your products or services in function ofYour brand valuesYour products or servicesYour budgetsYour strategic objectives
There is a need for segmentation becauseAll consumers do not have the same needs or
tasteYou don’t have an unlimited marketing budgetYour role is to optimize budget allocation &
results
Master Master Strategy & Communication
Strategy is aboutDefine your focus
« where to go »Eg. branding, lotalty, …
The ways to reach your objectives « the way to get there »Targets, distribution channels, …
« If you don’t know where to go, any road will lead you there »
Master Master Strategy & Communication
Communication is aboutMake the consumers perceive your valuesMake your customer understand what your
company stands forBuilding long term relationships
“Advertising is a science, but the limitations of the media turned it into art”
(K. O’Connor, Doubleclick)
Master Master Some marketing golden rulesSome marketing golden rules
THE priority is: client perception There is a difference between the value and the
perception of this value Perceived value depend of many variables
Internal: Auto satisfaction, taste, believes … External: Social “pressure”, information, … Time based
There is also a difference between knowledge and beliefs
Knowledge is about information from previous experiences and intentionally verified information
Beliefs are made of unverified data, communication, heard about, word of mouth…
Perception is combination of both elements Marketing is not made for selling bad products
Master Master Some marketing golden rulesSome marketing golden rules
THE priority is: client perception
Master Master Some marketing golden rulesSome marketing golden rules
A product is not a product & a service is not a serviceunless somebody needs it
Sales precedes productionAnswer the market needs instead of offer
what you produceE.g. niche marketing
Master Master Impact of different communication techniques
Coverage
Top of mind & reactivity
Loyalty & relationship building
Mass media
Direct Marketing
CRM
Key advantages :
Cost/targeted contact Stronger “call to
action” Personalized
communication
Direct Marketing “top of mind” Reactivity Creates loyalty Impact on image Respons cost (ROI)
C.R.M. Coverage Visual communication Cost per contact
Mass Media
Master Master
UK & Ireland population : 63 672 903 *
Sources: * www.statistics.gov.uk ** Vogue
Females 25-64 years o. : 15 872 000
Class A+B : 3 763 000
Living in the region of a POS : 782 000 (London, West Midlands, Dublin)
Potentially visiting POS (30%) in one year : 258 200
Clients
Vogue : 199 152 issues ** (without repetitions)
UK A+B class females reading Vogue : 39 489UK A+B class females reading Vogue potentially visiting a POS : 2 709
Data:
CRM vs. Mass media ?
Master Master
Cost per contact:
Mass Media0,08 €
Acquisition0,98 €
Loyalty2,68 €
Example of an ad in Vogue:One page in 199 152 exemplars is costing 15 646 €
Actions:
An acquisition action:11 500 mailings has been send for a cost of 11 251 €
A loyalty action :
3 000 mailings has been send for a cost
of 8 052 €
Cost useful contact: (targeted & near a POS)
Mass Media5,78 €
Acquisition1,22 €
Loyalty2,74 €
Cost generated traffic: (In function of the reactivity of the media)
Mass Media1155 €
Acquisition138 €
Loyalty103 €
CRM vs. Mass media ?
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Marketing evolution
Master Master
Information volume
Market size
Mass marketing
SegmentsTargeted marketing
Micro targets Individual
Marketing
From product centric to customer centric
Marketing evolutionMarketing evolution
Master Master
Maximarketing (Stan Rapp & Tom Collins)
Customer centric approachesCustomer centric approaches
Maximized TargetingProspecting for your most
desirable customers
Maximized MediaNew ways to reach the customer
Maximized AccountabilityProving it works
Maximized AwarenessAppealing to the whole brain
Maximized ActivationInquiries and sales promotion
Maximized SynergyDouble-duty advertising
Maximized LinkageEncouraging interested prospects
Maximized SalesShare of mind & customer database
Maximized DistributionAdding new channels
Max
iMark
eting
Mod
el
Master Master
Differential Marketing (Garth Hallberg)
All consumers are not created equalDifferential marketing strategy
Brand loyaltyProfits
Customer centric approachesCustomer centric approaches
8%
8%
8%
76%
84%
13%
3%
% total U.S. Houseolds
% brand volume
HIGH
MEDIUM
LOW
Master Master
One to One marketing (Peppers & Rogers)
Identify & capitalize on customer differencesThe key is customizationBuild a relation
interactivelyon one to one bases
Expand the “Need set”
Customer centric approachesCustomer centric approaches
Low
High
High
Com
mu
nic
atio
n f
lexi
bil
ity
Production & logistics flexibility
Cu
stom
er v
alu
atio
ns
Customer needs
Master Master
Customer Relationship Management Closed loop strategic thinking
Acquire through sales Retain through services Identify & Attract through marketing
Customer focused Build a relation that adds value KPI’s = Life Time Value, retention, churn, ... Multi-channels communication Technology integration needed
Customer centric approachesCustomer centric approaches
Master Master
MaximarketingStan Rapp & Tom Collins
Differential MarketingGarth Hallberg
One to One marketingDon Peppers & Martha Rogers
CRM
All are data based approaches!
Customer centric approachesCustomer centric approaches
Master Master All made possible by …
Technology convergence and integrationComputer & Networks
Datawarehouse Internal TCP/IP networksThe Web
Telephony & computersCTI, ACD, …MobilesPalms
Cards, etc, …
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DIRECT MARKETING IS APHILOSOPHY
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
Learning relationships
Mesure your treasure
Customer equity Efficiency = large number of contacts Effectiveness = targeted & useful contacts transform suspects into prospects, prospects into customers
Master Master Extreems
No communication is communicatione.g. Job.com ’s, waiting list in call centersAffect your imageMake the consumer interpret your non
communication behavior Over communication kills the
communicatione.g. Computer listings, insurance contracts Blur the consumer perceptionDistant the consumer from your product
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
Direct RELATIONSHIP marketing
Direct SUPPORT marketing
Direct ORDER marketing
Brand image
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
SMART method
SSelective targetingelective targeting MMeasurable interactionseasurable interactions AAccountable resultsccountable results RRelationship drivenelationship driven TTailor-made promotionsailor-made promotions
Master Master MMeasurable interactionseasurable interactions
Before Direct Marketing time :“I know that half the money I spend on
advertising is wasted … but I can never figure out which half” (John Wanamaker)
TodayTechnology changed the ways to measure
customer reactionsCards used in POS,Single source studies,Clicks path on web sites,Clicks on e-mail, …
Master Master DM is an interactive technique
Why you should go interactive?Customer demandBuild relationship
Loyalty & prospection One to One Real-Time
The real world is real time !Need for speed
In responseCompetitive advantage
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
Mailings Coupons in mass media Cards Kiosks Call Center & IVR Internet & Extranet e-mails DR-TV & Radio SMS Shopper surveys ...
Master Master
Every increase in connectivity creates an increase in value.
E.g. each individual fax machine plugged in somewhere, adds value to all fax machine connected.
Each new web site adds value to the whole web. Each new e-mail address ...
An additional communication channel adds value not only to the channel but also to the target.
Information about communication behavior“Comm. means / Objectives” cost optimization
opportunities
The law of plenitudeThe law of plenitude
Master Master Direct Marketing it’s about
Mentality
Mission
Method
Marketing
DBMedia
Relevant & populated data Grouped all the data arround customer id
Keeping track of all interaction Structure focused on marketing
Transform data into customer knowledge with appropriate DBMS & tools
Master Master The most strategic question
WhoWho WhatWhat
WhereWhere WhyWhy
Buys/Buys/Calls/Calls/InteractionInteractionss
Who buys what, where, when and why ?Who buys what, where, when and why ?
Master Master Close loop thinkingClose loop thinking
DataData
Action
Action
Info
rmat
io
Info
rmat
io
nn CustomerCustomerKnowledgeKnowledge
BaseBase
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What is CRM all about ?
Master Master A generic definition for CRM
Key words in this definition Startegic objectives : customer satisfaction, customer profitability,
new channel, productivity, … Customer centric => impacts company’s processes Interactions => means and mentality
Customer centric, Strategic, Cultural and Operational Initiatives concerning interactions between the
company and its market to achieve strategic objectives
Master Master The two different time dimensions of CRM
Customer Relationship & Customer Management
Instant InteractionsCustomer relationship Channels
In time Customer Management Strategy
ObjectivesDrivers & KPI’s
Master Master CRM Strategy & Communication
CRM is a business strategy Made of
360° View on the customer Customer centric organization & processes Business objectives
Influenced by Business drivers Controlled with KPI’s
Touches all departments of the company
Communication in CRM Has to be interactive (bi-directional) Is multi-channel Has to be integrated
Master Master
“Marketing’s future lies in database marketing where we know enough about each customer to make relevant and customised offers to each.”
Ph. Kotler
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CRM is a data basedbusiness process ...
Master Master CRM closed loop
CustomerdatabaseIde
ntify
& At
tract Acquire
Retain
Master Master
Internal use
(employees & management)
Information technology back-bone
CustomersCustomersservicesservices
CustomersCustomersdatadata
MarketingMarketing SalesSales
PartnersPartners
CustomersCustomers
ProspectsProspects
Partners portal
Extranet
C.R.M.Direct sales
e-marketingDirect sales
Master Master CRM global architecture
Market placeLegal environementTargets & Segments
Frontoffice
Backoffice
Supplier PartnerEDI EDI
Company
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Thanks again for your attention !
Hanoï 2008
Annexes
Master Master Mailings & Coupons
Strength Coverage Low cost
Weakness Slow Needs encoding
Opportunities Accessibility Image
Threats Postal services
Master Master Cards & POS
Strength Source of information Image Life Time
Weakness Relevance
Opportunities Affinity marketing New strategies: category management, RFM, Churn
Threats Concurrence
Master Master Call Center
Strength Coverage Ease to use Human touch Immediate interaction
Weakness Cost Operators (week-days - audiotext 24h/24)
Opportunities Consumer will for immediate response Image (070, 0800, …)
Threats Disturbing (outbound)
Master Master Internet & Extranet
Strength Visual Immediate interaction World wide accessibility
Weakness Coverage (in Belgium) Confidence
Opportunities Image new way to do business (channel, mass customization, …)
Threats Overload (speed, mess, privacy, …)
Master Master Interactive tools for CRMInteractive tools for CRM
Marketing Intelligence = Analytical CRM Marketing analyses (Olap, Data Mining) Campaign results
Operational CRM Campaign Management
DRTV & DRRadio spotsCall - Mail - Call actionsWeb publishing, e-mailing, ...
Sales Force Automation