New Age Strategies

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation Slides1Chapter Twenty-five2New Age StrategiesMarketing Research 12th Edition /The Need for DatabasesTo test a program prior to rolling it out:Define your target groupGo into your databaseCreate a matched setExpose the test variableMinimize other marketing efforts while the test is going onAllow test program enough time to workMeasure results by comparing the two groups’ salesTake action. If test results warrant going ahead, thenImplement it3Marketing Research 12th Edition /Elements of a Database1A unique identifier such as an ID or match code2Name and title of individual and/or organization3Mailing address, including ZIP Code4Telephone number5Source of order, inquiry, or referral46Date and Purchase details of first transaction7Recency/frequency/monetary transaction history8Relevant demographic data for consumer buyers9Credit history and rating10Relevant organizational data for industrial buyersMarketing Research 12th Edition /Ways to Gather Consumer DataRebate CardsSuggestion CardsWarranty Registration CardsFree Subscription Offer CardsDirectly Ask Consumers5Marketing Research 12th Edition /Ways to Gather Consumer Data (Cont.)Guerilla TacticsGet the product rightUse low-tech targeting and creative thinkingUse other people’s data (OPD) firstBuy new media6Marketing Research 12th Edition /Types of DatabasesActive customersInactive customersInquiriesModeling customers serves to:Identify most typical customers and so become more effective in prospecting.Identify best customers to prospectIdentify niche markets to add to the marketing universe.Develop more effective marketing tools (materials and media).7Marketing Research 12th Edition /Benefits of Database MarketingCustomers are easier to retain than acquireDetermine their “lifetime value” to decide whether or not to encourage greater lifetime durationDevelop relationships with customers across a family of related products and services8Marketing Research 12th Edition /E-CommerceE-commerce influenceThe impact of the ‘Net on purchases made entirely off-line’E-commerce orderingCaptures the orders that are placed on-line but paid for later via telephone or in-storeE-commerce buyingCombines ordering and paying on-line9Marketing Research 12th Edition /2011 Holiday Season to Date vs. Corresponding Days* in 201010E-Commerce (Contd.)Marketing Research 12th Edition /11E-Commerce (Contd.)Marketing Research 12th Edition /E-Commerce (Contd.)Retailer responses to e-commerce are: Selective price discountsConcentrating attention on late adopters of technology Creating and staging experiences Partially adapting the Internet into a hybrid system12Marketing Research 12th Edition /Future of E-CommerceE-commerce will represent 8 percent of total U.S. retail sales in 2014.Travel will remain the largest online retail category, growing from $98 billion in 2009 to $144.7 billion in 2015.General merchandise (all retail categories excluding auto, food and beverage, and travel) will top $250 billion by 2014.An increase in the number of women shoppers will contribute to 14 percent of jewelry sales moving online by 2010. Online sales of health and beauty products will grow at an annual rate of 22 percent.Twenty-nine percent of small appliance sales will migrate online by the end of the decade as a generation that grew up with Internet access begins to get married and attend weddings.13Marketing Research 12th Edition /Mobile MarketingMobile marketing is an important application that is poised to emerge as a medium that offers a quantifiable reach, rich experience as well as targeted marketing opportunities14Marketing Research 12th Edition /Wide presenceInteractionImpactCommunication featuresAdvantages of Mobile MarketingMobile Marketing (Contd.)Mobile marketing is being implemented as an innovative way to extract maximum revenue from each customerDirect and Indirect values are measured by the following indicators:Customer Lifetime Value (CLV)Customer Referral Value (CRV)Customer Influence Value (CIV)Customer Knowledge Value (CKV)15Marketing Research 12th Edition /Mobile Marketing (Contd.)Potential development areas of mobile marketing research are:16Marketing Research 12th Edition /Enhancing Customer Knowledge Value (CKV).Enhancing Customer Referral Value (CRV) and Customer Influence Value (CIV).Enhancing Customer Engagement Value (CEV).Social MarketingThe numbers of online social networks and blogs are expanding at a feverish pace, attracting consumers from a wide range of demographic segmentsSome of the popular social media channels:BlogsSocial networks: such as Facebook, Myspace, LinkedIn.Content Communities: such as Youtube, Google Video (video sharing), or Flickr (photo sharing).Social Coupons: such as Groupon and Living Social17Marketing Research 12th Edition /Social Marketing (Contd.)18Marketing Research 12th Edition /Experiential Marketing19Marketing Research 12th Edition /Experiential marketing connects customers and brands in encounters designed to turn consumers into advocates.While experiential marketing may sound synonymous with word-of-mouth and event marketing, in reality it is narrowly defined and aimed at niche audiences, generating a higher return on the investment.Relationship Marketing Keys to Relationship Marketing:Identify and build marketing databases of present and potential purchasers.Deliver differentiated messages to targeted households.Track the relationship to make media expenditures more effective and more measurable.20Marketing Research 12th Edition /21Metrics to Manage Customer LoyaltyDevelopments in Relationship MarketingCustomer lifetime value (CLV) Calculated as the sum of cumulated cash flows —discounted using the Weighted Average Cost of Capital (WACC) or discount rate — of a customer over his or her entire lifetime with the company Customer equity (CE)The total of the discounted lifetime values summed over all of firm’s current and potential customers 22Marketing Research 12th Edition /23Customer Lifetime ValueDevelopments in Relationship Marketing (Contd.)Aggregate-level approachCE framework can be used to:Formulate firm/segment level strategies concerning investments in acquisition, retention, and add-on selling.As a surrogate measure of the market worth of most firms and for comparing competing firms.24Marketing Research 12th Edition /Developments in Relationship Marketing (Contd.)Disaggregate-level approachCLVs of each customer can help to formulate customer-specific marketing strategies for:Customer selectionCustomer segmentationOptimal resource allocationPurchase sequence analysisTargeting profitable prospects based on CLV25Marketing Research 12th Edition /26Word‐of‐Mouth MarketingThe art and science of building active, mutually beneficial consumer‐to‐consumer and consumer-to‐marketer communications27Customer intelligence frameworkCustomer DNA Model28Marketing Research 12th Edition /Customer DNA model.SOURCE: AnalysisCustomer acquisitionCustomer cross-sellCustomer up-sellCustomer retention29Marketing Research 12th Edition /30End of Chapter Twenty FiveMarketing Research 12th Edition /