18. chapter. ONE-TO-ONE MARKETING. Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University. You Will Learn To. 1. Define one-to-one marketing and discuss its relationship to database technology.
Angela Zigras, Seneca College
Deborah Baker, Texas Christian University
1. Define one-to-one marketing and discuss its relationship to database technology.
2. Discuss the forces that have influenced the emergence of one-to-one marketing.
3. Describe the one-to-one marketing communications process.
4. List the advantages and disadvantages of one-to-one marketing.
5. List eight common one-to-one marketing applications.
6. Discuss the basics of one-to-one marketing database technology.
7. Discuss privacy issues related to one-to-one marketing.
A customer-based, information-intensive, long-term-oriented, and individualized marketing method that focuses on share of customer rather than share of market.
Decreasing Brand Loyalty
Emergence of New
Demand for Accountability
Know thy customer and communicate with him or her based on what you know.
2. Retain loyal customers
3. Cross-sell other products or services
4. Design targeted marketing communications
5. Reinforce consumer purchase decisions
6. Induce product trial by new customers
7. Increase the effectiveness of distribution
8. Improve customer serviceEight Common One-to-One Marketing Applications
Retaining an additional 5% of customers each year increases profits by 25%
Improving customer retention by 2% can decrease costs by 10%
The process of gathering, maintaining, and analyzing information about customers and prospects to implement more efficient and effective marketing communications.
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.
Database Enhancement involves:
The collection of detailed information about the consumer.
The overlay of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects.
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.
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.
The process of using statistical analysis to detect relevant purchasing behaviour patterns in a database.