November 3, 2008

Today We discussed Relationships and Pricing.

Relationships create a bond. In marketing Firm and Client have relationships.

Pricing on the internet is dynamic, such as auctions (EBAY).  Types are Pricing are: cost plus, competitive, demand, loss leader, luxi?, EDLP, Frenzy, high/low.

Dynamic Pricing Strategy

1. Dynamic pricing is one of the most significant contribution the internet and the 21% have made to pricing strategy.
2. The internet has enhanced dynamic pricing in two ways; (1) it decreased menu costs, and (2) interactivity.

The types of Auction are: English auction, RFP, Dutch Auction, First Price Sealed-bid auction (securities), Group buying, Exchange.

Visit one B2C and one B2B Web site. Examine each carefully, identifying as many relationship building techniques as possible. Do you find extensive differences between the B2C and B2B sites? Be prepared to discuss your findings, and the similarities and differences between programs on the two sites, in class.

Keep a log of the contacts from a particular site for a week. In general, what are they learning about you from these interactions? Specifically, what data might they have added to your record in their database.

Chapter8:

CRM strategy and programs. The steps are as follows:

• Identify your customers by individual or household name and address or e-mail address.
• Differentiate them according to their needs and their actual or potential value.
• Interact with customers based on their own needs. From the organization’s perspective, the interactions should become more cost-effective. Each interaction should be used as an opportunity to increase the store of data about the individual or household.
• Customize at least some aspects of the organization’s dealings with the customer. This could be things such as tailored communications and specialized offers that allow the enterprise to recognize the customer as a valued supporter and that present opportunities for growing the value of the individual customer.

Transactional marketing is centered around products and single economic exchanges. Marketers engage in one-way communication in the mass media, targeting market segments identified by conventional marketing research

Traditional marketing is generally stated in terms of market share. The approach is product-focused, not focused on a customer-oriented value proposition.

Sales force automation: processes and the software that supports them, that permit salespeople to work more effectively both in and out of their offices by providing electronic access to important documents and customer data.

The Process of Customer Relationship Management

1. Relationship marketing requires significant changes in the way marketing is done. The emphasis must move from promotional campaigns and marketing research projects to ongoing dialog that is captured and stored in a customer database.
2. It must be treated and managed as an ongoing process, not as a series of discrete events.

Targeting, Personalization, and customization