Continuum from Mass Marketing toRelationshipMarketingMass marketingRelationship marketingDiscrete transactionsContinuing transactionsShort-term emphasisLong-term emphasisTwo-wayOne-waycommunicationcommunicationand collaborationAcquisition focusRetention focusShare of marketWallet shareProduct differentiationCustomerdifferentiation100000700107010011170100001001011010010C2006PrenticeHall00O
©2006 Prentice Hall 14-6 Continuum from Mass Marketing to Relationship Marketing Mass marketing Relationship marketing Discrete transactions Continuing transactions Short-term emphasis Long-term emphasis One-way communication Two-way communication and collaboration Acquisition focus Retention focus Share of market Wallet share Product differentiation Customer differentiation
Stakeholders. Firms can establish and maintain relationshipswithdifferent stakeholdergroups throughInternettechnologies.Employeeswhoneedtrainingand accessto dataand systems usedforrelationship managementBusinesscustomersinthesupplychain.Lateralpartners,suchasotherbusinesses,not-forprofit organizations,orgovernments.Consumers who are end users of products andservices.7001070100111101000010010111010010C2006PrenticeHal
©2006 Prentice Hall 14-7 Stakeholders • Firms can establish and maintain relationships with different stakeholder groups through Internet technologies: • Employees who need training and access to data and systems used for relationship management. • Business customers in the supply chain. • Lateral partners, such as other businesses, not-forprofit organizations, or governments. • Consumers who are end users of products and services
Customer Relationship Management.CRMistheprocessofacquiring,servicing,retaining and building long-term relationshipswithcustomersThebenefitsof CRMinclude:Increased revenuefrombettertargetingIncreasedwalletshare withcurrentcustomers·Retention of customers for longer time periodsThecost of acquiringa new customeristypically 5 times higher than the cost ofretaining a current customer.1001010001111010000100101110100102006PrenticeH
©2006 Prentice Hall 14-8 Customer Relationship Management • CRM is the process of acquiring, servicing, retaining and building long-term relationships with customers. • The benefits of CRM include: • Increased revenue from better targeting. • Increased wallet share with current customers. • Retention of customers for longer time periods. • The cost of acquiring a new customer is typically 5 times higher than the cost of retaining a current customer
Customer Relationship Management.cont..CRMhas3facets·Salesforceautomation(SFA)·Marketing automation.·Customer service.UsedprimarilyintheB2Bmarket,SFAhelpssalespeopleto·Build,maintain,andaccess customerrecords.ManageleadsandaccountsManagetheirschedules1010000001000007000700070C2006PrenticeHa
©2006 Prentice Hall 14-9 Customer Relationship Management, cont. • CRM has 3 facets: • Sales force automation (SFA). • Marketing automation. • Customer service. • Used primarily in the B2B market, SFA helps salespeople to: • Build, maintain, and access customer records. • Manage leads and accounts. • Manage their schedules