Final Relationship Marketing and E- Comm FILEminimizer

8/2/2019 Final Relationship Marketing and E- Comm FILEminimizer

1/55

Free Powerpoint Templates

Page 1Free Powerpoint Templates

Interactive technologies andRelationship Marketing

Daksha Dixit - PG-11-072Khushboo Kothari PG-11-086Mihir Madia PG-11-090Khushboo Nisar PG-11-096Sumaiya Patel PG-11-099
http://www.powerpointstyles.com/http://www.powerpointstyles.com/http://www.powerpointstyles.com/http://www.powerpointstyles.com/


2/55


Page 2

What is Relationship marketing?Relationship Marketing strategies (or one to one strategies ) are

those that embrace the idea of treating each customer in an individualizedway

Marketing strategyIt is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage.

What is transactional marketing?Transactional marketing is a business strategy that focuses on single,

"point of sale" transactions. The emphasis is on maximizing the efficiencyand volume of individual sales rather than developing a relationship with the

buyer.
http://www.powerpointstyles.com/http://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://en.wikipedia.org/wiki/Competitive_advantagehttp://www.powerpointstyles.com/


3/55


Page 3

TRADITIONAL TRANSACTION MARKETING versusRELATIONSHIP MARKETING

TRANSACTION MARKETING

One off exchanges,Brand Management

Short term Focus

Mass Communication

Isolated Market Research

Mass Market or MarketSegment

Market Share

Ongoing Exchanges,Customer Management

Long term Focus

Personal Communication

Ongoing Dialogue

Markets -of -One

Mind Share (share ofcustomer)

RELATIONSHIP MARKETING

Focus

Time

Perspective

Primary

CustomerFeedbackMechanism

Market Size

Criterion forSuccess
http://www.powerpointstyles.com/http://www.powerpointstyles.com/


4/55


Page 4

Relationship marketing strategies are not new; several factorincluding increased fragmentation of market, more intense

competition, a generally high level of product quality, more demandingcustomer etc to seek competitive advantage by focusing on thedevelopment of enduring relationship with customer.

However information technologies in particular the Internet, have

provided additional incentives for firms to adopt such strategies.

It is important to recognize that network technology can not only beused to manage information, but also be used to manage relationship.


5/55


Page 5

Learning about customers

1. Knowledge Acquisition2. Customer Differentiation

Customization of MarketingMix

1. Product/ Services

2. Communications3. Channels4. Price

Interactions

Interactions

THE RELATIONSHIP MARKETINGPROCESS


6/55


Page 6

LEARNING ABOUT CUSTOMER

Knowledge Acquisition

The key to any successful relationship marketing progream isinformation. Some types of information gathering are less intrusive

than others.

Eg: 1. MatchLogic, Inc2. Stolichnaya Vodka website


7/55

Free Powerpoint Templates Page 7

CUSTOMER DIFFERENTIATION

Different customers have different needs.

Different customers add different level of value to a firm.

Firms decide allocation of resources using value level.

Firms focus their efforts on providing greatest amount of value tovaluable customers.


8/55


9/55


WHY LOYAL CUSTOMERS ARE MORE PROFITABLE?

PROFI

T

Years
http://www.powerpointstyles.com/http://www.powerpointstyles.com/http://www.powerpointstyles.com/


10/55


CUSTOMIZATION OF MARKETING MIX

Marketing Mix include:

Products and Services

Communications

Channels

Price


11/55


PRODUCT AND SERVICES

1. Creating What Customers Want

Mass Customization

Eg. Personal Journal from Wall Street Journal, iGoogle

Use of outsourcing technique.

Customers interact directly through interface.

Eg. Dell Computers, Cisco, Holiday Inn


12/55


LEVI STRAUSS & CO.

Levis Stores have Original Spin kiosk.

It creates unique pair of custom fit jeans.

Precise measurements are given to sales associate and stored forfuture reference.

Demand is transmitted to Levi factory and order is shipped within10-15 days.

Sanjay Choudhuri says The goal is not to sell a pair of jeans; its tobuild a relationship. The customer is starting to design


13/55



14/55



15/55


2. Remembering What Customers Want

Customers do not like to give same information again and again.

Remembering information reduces transaction costs.

Customers teach and Firms learn.

Increases customer switching costs.

Increases customer retention rates.



16/55


3. Anticipating What Customers Want

Firms extrapolate customer needs based on previouspurchasing, demographics, etc.

Information technology has made Outsourcing to Customerspossible.

IT helps store customer preferences and analyze the entirecustomer base.

It helps establish relationship among users and their needs.

Eg: Amazon.com, Yahoo.com



17/55


COMMUNICATIONS

1. Banner Advertisements

Banners are directly linked to advertisers website

Enables direct interaction with the customers

Direct Advertisements

Indirect Advertisements via Third Party

Eg. DoubleClick


18/55


2. Email

A form of Direct Marketing

Direct emails to customers using database

Low cost and High Customized messages

Response rate only 30%

Eg. Egghead.com

COMMUNICATIONS


19/55


3. Experiential Marketing

Nikes NikeTowns

Land Rovers Land RoverCentres

COMMUNICATIONS


20/55



21/55


4. Viral Marketing

Technique of using internet to accelerate word-of-mouth

Eg: Hotmail, Amazon.com

COMMUNICATIONS


22/55


CUSTOMIZING CHANNEL

In traditional markets, dual distribution systems are notuncommon; there are numerous examples of companies using morethan one channel of distribution to sell to different groups ofcustomer.

However the process of managing multiple distribution system canbe both tricky and risky.

Interactive technology is posing new challenges in this regard.

Eg: Norwest Mortgage

American Airlines


23/55


CUSTOMIZING PRICING

Personalized Pricing

Price depending on the customer

Customer has the complete control over the terms of saleEg. Airlines, Priceline.com, eBay, Onsale


24/55


Versioning

Different prices for different versions of the product

Create high end and low end versions to sell at different levels of

willingness to pay

Many software companies price lower versions low and higherversions with additional features high

Eg. Sony Xperia, Wolfram Research

CUSTOMIZING PRICING


25/55


LEVELING THE FIELD

Companies have taken advantage of customer ignorance in the pastresulting huge profits.

Interactive technologies have made customers more aware of

various versions, models and options available to them.

Virtual databases analyze various options in seconds.


26/55


SUMMARY : A LEARNING RELATIONSHIP

The relationship marketing process involves an interactive cycle pfknowledge acquisition, customer differentiation, and customization ofthe entire marketing mix. This process is sometimes referred to as a

LEARNING RELATIONSHIP

A Learning relationship between a customer and an enterprisegets smarter and smarter with each individual interaction, defining inever more detail the customers own individual needs and tastes.


27/55


E-Coms and Their

Marketing Strategies


28/55


Most e-commerce firms fail

sooner than later......

But how do their strategies

affect those failures?


29/55


US department of defence developed internet

technology in 1960.

E commerce has been one of the fastest growingmarketing innovations.

Increasing trend of the internet economyDouble to 4.2 tn in 2016 from 2.3 tn currently.

-BCG


30/55


E-COMS AND DIFFERENT

MARKETING STRATEGIES

Barnes & Noble (bricks and mortar)

Dell corporations for B2B and B2C


31/55


3 STAGES OF E- COMMERCE


32/55


BENEFITS OF E- COMMERCE


33/55


BENEFITS TO CONSUMERS

Convenience

Information

Fewer hassles

Wide product range

Lower prises


34/55


BENEFITS TO MARKETERS

Quick adjustment to market conditions

Lower costs

Relationship building Audience sizing

???


35/55


???


36/55


GOALS AND EXPECTATION OF

E- COMS

TARGET CUSTOMERS:

Distinction among consumer, industrial andpublic sector.

Study show that e coms concentrate

predominantly on one sector.

???


37/55


???


38/55


PRODUCT:

Have rapid product development and tend to forgo thetraditional multistep process.

Discovering user needs and altering this gives:-> flexibility> faster market feedback> e- tailing> service> e- marketing> e- communication

Study the extent to which e coms engage in productsor market types

???


39/55


???


40/55


PRICING:

One of the dynamic marketing tool enablingthem to use real- time prises.

e- coms have lower prises because of

comparison shopping. Study seeks to recognize the different prising

strategies used

???


41/55


???

PROMOTION


42/55


PROMOTION

By use of mix of advertising , personal selling,

sales promotion & public relation

Promotion mix depend on target markets

e-coms are likely to use adverting to capture

awareness before going to persuade their

customers.

Study seeks

1. The extent to which e- coms use different

promotion tools2. To compare how B2C and B2B co. use these

tools

???


43/55


???


44/55


DISTRIBUTION

Two types of distribution process

> store distribution> non store distribution

E-coms non store or electronic distribution

eg. Dell and Casio

Study seeks to establish the extent to which e comsuse net , in person, mail, parcel delivery firms to

distribute their products


45/55


E-COMS: THE STUDY & ITS

FINDINGS


46/55


Primary & secondary data of 151companies were collected.

Primary data: contacting marketingdirector of each company & a request foran interview.

Secondary data: startup date, IPO date,number of employees, profit/loss & thenature of the business.

Secondary data was gathered from theWeb sites of the 151 e-coms.


47/55


Out of 151, 136 marketers were willing tointerview.

Interview data was recorded by speciallytrained interviewers on a pretested &refined 2-page questionnaire.

They were asked about to provideinformation about the domestic &international marketing strategies of their

companies, including their target markets& product, promotion & distributiondecisions,as well as profit & lossinformation.


48/55


FINDINGS OF TABLE 1

E-commerce is a nascent,fragmentedindustry made up of many just hatched e-coms.

In total, the 136 companies employ 82,321employees, ranging from 8 employees to12,100 employees.

The employment contribution of e-coms isquiet small.

FINDINGS OF TABLE 2


49/55


FINDINGS OF TABLE 2(TARGET CUSTOMERS)

44% - consumer sector 40% - provides products & services to

other firms

6% - public sector Rest target different combinations.

These findings suggests that different

target markets may need differentmarketing strategies.

B2C- advertising

B2B- ersonal sellin


50/55


FINDINGS OF TABLE 3

What e-coms do? 33%- provide various internet services

11%- e-tailers

10%- software providers 9%- build internet infrastructures

10%- offers a combination of the above

8%- e-marketers

New products- building e-communities &Net infrastructure.

FINDINGS OF TABLE 4


51/55


FINDINGS OF TABLE 4(PRICING METHODS)

38%- cost plus pricing

29%- demand based pricing

26%- negotiate their prices

7%- use a combination of the above threemethods

FINDINGS OF TABLE 5


52/55


FINDINGS OF TABLE 5(PROMOTION TOOLS)

Half of the firms useadvertising

About a quarter use sales representatives

About 9% rely on public relations or salespromotion

About 15% use combination of the abovetools.

FINDINGS OF TABLE 6 (METHODS


53/55


FINDINGS OF TABLE 6 (METHODSOF DISTRIBUTION)

41%- through net

28%- postal services or FedEx

17%- deliver in person

14%- use combination of the abovedistribution channels


54/55


Conclusions

Pricing products & services below present cost (butabove the lower cost expected in the future as a result ofthe principle of economy of scale) in order to capturemarket share has created large & growing losses inalmost all the firms studied.

E-coms will likely use comparative advertising thatcontrasts their products with the competitions coupons &

other price discounts to increase sales.

E-coms interested in targeting more than one market

should develop a different strategy for each one.


55/55
http://www.powerpointstyles.com/

Documents

Final Relationship Marketing and E- Comm FILEminimizer