Don peppers and Martha Rogers list the main differences between mass marketing one to one marketing companies that know their individual customer customize their product, offer, message, shipment method, and payment method maximize customer appeal. Today’s companies are building customer database.
A customer database is an organized collection of comprehensive data about individual customer or prospect that is current, accessible and for such marketing purposes as lead generation, lead qualification sale of a product or service, or maintenance of customer relationship. Data base marketing is the process of building, maintenances, and using customer database and other database (products, suppliers, and resellers) for the purpose of contracting and transacting.
The marketing model for integrated marketing.
Rapp and Collins’s maxi marketing model consists of nine steps.
1. Maximized targeting calls upon the marketer to define and identify the best prospects for offer. The marketer either buys mailing lists or searches the customer database for characteristic that point to high interest, ability to pay, and readiness to buy. “Best customer” includes those who buy with some frequency, don’t return many orders, don’t complain and pay on time.
Mass marketers can go fishing for prospects with direct response advertising in such mass media as television, newspaper supplements, and magazine insert card.
2. Maximized media lead the direct marketer to examine the exploding variety of media and choose those that allow for convenient two-way communication and measurement of results.
3. Maximized accountability calls for evaluating campaigns on the base of cost-per-prospect response rather that on the cost-per-thousand exposures.
4. Maximized awareness involves searching for message that will break through the clutter and reach the prospects’ hearts and minds by means of “whole brain” advertising that appeals tp a person’s rational and emotional sides.
5. Maximized activation means that advertising must trigger purchase or at least advance prospects to a measurably higher stage of buying readiness. Activation devices include statements such as “send for information” and “reply coupon must be returned by September 30”.
6. Maximized synergy involves finding ways of doing double duty with the advertising –for instances, combining awareness building with direct response, promoting other distribution channels and sharing cost with other advertisers.
7. Maximized linkage calls for linking the advertising to the sale by concentrating on the better prospects and spending more on the total budget to convert them.
8. Maximized sales through database building calls on the marketer directly to know customer by cross-selling, upgrading and introducing new products. The marketer keeps enhance the database with more customer information and ends ups with a rich private advertising medium.
9. Maximized distribution involves building additional channels to reach prospects and customer- for instance, when a direct marketer opens retail stores, or when a manufacture such as general food decides to sell a premium brand of coffee directly to the customer.
Many companies confuse a customer mailing list with a customer database. A customer mailing list is simply a set of names, addresses and telephone numbers. A customer database contains much more information.
In business marketing the customer profile contains the products and services the customer has brought; past volumes, prices, and profits; tam member names (and their age, birthday and hobbies and favorite foods); status of current contracts; an estimates of the supplier’s shares of the customer business; competitive suppliers; assessment of competitive strengths and weakness in selling and servicing the account; and relevant buying practice, patterns and polices.
In consumer marketing the customer database contains demographics (age, income family members birthdays) psychographics (activities, interest and opinions), past purchase, and other relevant information about an individual.
For example the catalog company Fingerhut possesses some 1,400 pieces of information about each of the 30million customer database.
Database marketing is mostly frequently used by business marketers and service retailers (hotels banks and airlines) it is used less often by packaged goods retailers and consumer packaged goods companies, though some (Quaker oats, Ralston Purina and Nabisco among them) have been experimenting in this area.
A well-developed customer database is a proprietary asset that can give the company a competitive edge.
Armed with the information in its database, a company can achieve much more precision that it can with mass marketing segment marketing or niche marketing.
The company can identify small groups of customer who receive fine tuned marketing offers and communication.
A customer database is an organized collection of comprehensive data about individual customer or prospect that is current, accessible and for such marketing purposes as lead generation, lead qualification sale of a product or service, or maintenance of customer relationship. Data base marketing is the process of building, maintenances, and using customer database and other database (products, suppliers, and resellers) for the purpose of contracting and transacting.
The marketing model for integrated marketing.
Rapp and Collins’s maxi marketing model consists of nine steps.
1. Maximized targeting calls upon the marketer to define and identify the best prospects for offer. The marketer either buys mailing lists or searches the customer database for characteristic that point to high interest, ability to pay, and readiness to buy. “Best customer” includes those who buy with some frequency, don’t return many orders, don’t complain and pay on time.
Mass marketers can go fishing for prospects with direct response advertising in such mass media as television, newspaper supplements, and magazine insert card.
2. Maximized media lead the direct marketer to examine the exploding variety of media and choose those that allow for convenient two-way communication and measurement of results.
3. Maximized accountability calls for evaluating campaigns on the base of cost-per-prospect response rather that on the cost-per-thousand exposures.
4. Maximized awareness involves searching for message that will break through the clutter and reach the prospects’ hearts and minds by means of “whole brain” advertising that appeals tp a person’s rational and emotional sides.
5. Maximized activation means that advertising must trigger purchase or at least advance prospects to a measurably higher stage of buying readiness. Activation devices include statements such as “send for information” and “reply coupon must be returned by September 30”.
6. Maximized synergy involves finding ways of doing double duty with the advertising –for instances, combining awareness building with direct response, promoting other distribution channels and sharing cost with other advertisers.
7. Maximized linkage calls for linking the advertising to the sale by concentrating on the better prospects and spending more on the total budget to convert them.
8. Maximized sales through database building calls on the marketer directly to know customer by cross-selling, upgrading and introducing new products. The marketer keeps enhance the database with more customer information and ends ups with a rich private advertising medium.
9. Maximized distribution involves building additional channels to reach prospects and customer- for instance, when a direct marketer opens retail stores, or when a manufacture such as general food decides to sell a premium brand of coffee directly to the customer.
Many companies confuse a customer mailing list with a customer database. A customer mailing list is simply a set of names, addresses and telephone numbers. A customer database contains much more information.
In business marketing the customer profile contains the products and services the customer has brought; past volumes, prices, and profits; tam member names (and their age, birthday and hobbies and favorite foods); status of current contracts; an estimates of the supplier’s shares of the customer business; competitive suppliers; assessment of competitive strengths and weakness in selling and servicing the account; and relevant buying practice, patterns and polices.
In consumer marketing the customer database contains demographics (age, income family members birthdays) psychographics (activities, interest and opinions), past purchase, and other relevant information about an individual.
For example the catalog company Fingerhut possesses some 1,400 pieces of information about each of the 30million customer database.
Database marketing is mostly frequently used by business marketers and service retailers (hotels banks and airlines) it is used less often by packaged goods retailers and consumer packaged goods companies, though some (Quaker oats, Ralston Purina and Nabisco among them) have been experimenting in this area.
A well-developed customer database is a proprietary asset that can give the company a competitive edge.
Armed with the information in its database, a company can achieve much more precision that it can with mass marketing segment marketing or niche marketing.
The company can identify small groups of customer who receive fine tuned marketing offers and communication.