Key Term Outline 4–14–1 Chapter 4: E-Marketing and Customer Relationship Management Pride/Ferrell Foundations of Marketing Third Edition

Key Term Outline 4–24–2 Copyright © Houghton Mifflin Company. All rights reserved. Part 2 Using Technology for Customer Relationships in a Global Environment Chapter 4 E-Marketing and Customer Relationship Management

Key Term Outline 4–3 Copyright © Houghton Mifflin Company. All rights reserved. Objectives 1.Define electronic marketing and electronic commerce and recognize their increasing importance in strategic planning. 2.Understand the characteristics of electronic marketing— addressability, interactivity, memory, control, accessibility, and digitalization—and how they differentiate electronic marketing from traditional marketing activities. 3.Examine how the characteristics of electronic marketing affect marketing strategy. 4.Understand how electronic marketing and information technology can facilitate customer relationship management. 5.Identify the legal and ethical considerations in electronic marketing.

Key Term Outline 4–4 Copyright © Houghton Mifflin Company. All rights reserved. 1.Marketing on the InternetMarketing on the Internet Basic Characteristics of E-Marketing Basic Characteristics of E-Marketing E-Marketing Strategies 2.Customer Relationship ManagementCustomer Relationship Management Database Marketing 3.Legal and Ethical Issues in E-MarketingLegal and Ethical Issues in E-Marketing Outline

Key Term Outline 4–5 Copyright © Houghton Mifflin Company. All rights reserved. accessibilitycookieinteractivity addressabilitydatabasememory blogsdigitalizationportal community electronic commerce (e-commerce) spam control electronic marketing (e-marketing) wikis Key Terms

Key Term Outline 4–64–6 Copyright © Houghton Mifflin Company. All rights reserved. 1. MARKETING ON THE INTERNET Electronic Commerce (E-Commerce) Sharing business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks Electronic Marketing (E-Marketing) The strategic process of creating, distributing, promoting, and pricing products for targeted customers in the virtual environment of the Internet

Key Term Outline 4–74–7 Copyright © Houghton Mifflin Company. All rights reserved. E-Marketing Through e-marketing companies can market to target audiences © Used By Permission.

Key Term Outline 4–84–8 Copyright © Houghton Mifflin Company. All rights reserved. Benefits of E-Marketing Open and Instantaneous Flows of Information Enhanced Customer Service Efficiencies Worldwide Scope Opens markets to firms of all sizes © Used By Permission.

Key Term Outline 4–94–9 Copyright © Houghton Mifflin Company. All rights reserved. Consumer-Generated Electronic Marketing Blogs Wikis Public Opinion websites Social Networks

Key Term Outline 4–10 Copyright © Houghton Mifflin Company. All rights reserved. Basic Characteristics of E-Marketing Addressability Interactivity Memory Control Accessibility Digitalization

Key Term Outline 4–11 Copyright © Houghton Mifflin Company. All rights reserved. Addressability A marketer’s ability to identify customers before they make a purchase How E-Merchants Attain Addressability Limit access to areas of their web site to encourage customer registration Offer contests and prizes in exchange for consumer information “Cookies”

Key Term Outline 4–12 Copyright © Houghton Mifflin Company. All rights reserved. Interactivity Allowing customers to express their needs and wants directly to the firm in response to the firm’s marketing communications Real-time interaction with customers Broader market coverage at a lower cost Community

Key Term Outline 4–13 Copyright © Houghton Mifflin Company. All rights reserved. Memory The ability to access databases or data warehouses containing individual customer profiles and past purchase histories and to use these data in real-time to customize a marketing offer. Database Data Mining © Used By Permission.

Key Term Outline 4–14 Copyright © Houghton Mifflin Company. All rights reserved. Control Customers’ ability to regulate the information they view and the rate and sequence of their exposure to that information. Portal Security plays a large role in control. © Used By Permission.

Key Term Outline 4–15 Copyright © Houghton Mifflin Company. All rights reserved. Accessibility The ability to obtain information available on the Internet. Informs and educates the inquiring consumer about competing products and prices Creates competition for the consumer’s attention

Key Term Outline 4–16 Copyright © Houghton Mifflin Company. All rights reserved. Digitalization The ability to represent a product, or at least some of its benefits, as digital bits of information. Digitalization has helped traditional businesses migrate to online services © Used By Permission.

Key Term Outline 4–17 Copyright © Houghton Mifflin Company. All rights reserved. E-Marketing Strategies Product Customized orders Services growing Distribution Order processing Synchronization Promotion Consumer in control Augments traditional forms Pricing More consumer information © Used By Permission.

Key Term Outline 4–18 Copyright © Houghton Mifflin Company. All rights reserved. 2. CUSTOMER RELATIONSHIP MANAGEMENT Focuses on using information about customers to create marketing strategies that develop and sustain desirable long-term relationships. Database Marketing Customer Lifetime Value Technology Driven  Customer support  Call-center software Customer Satisfaction

Key Term Outline 4–19 Copyright © Houghton Mifflin Company. All rights reserved. Marketing for Customer Relationship Management

Key Term Outline 4–20 Copyright © Houghton Mifflin Company. All rights reserved. Database Marketing Database Management Identify/build database Differentiate messages to consumers Track relationships Figure 4.1 Why Customers Defect

Key Term Outline 4–21 Copyright © Houghton Mifflin Company. All rights reserved. Customer Lifetime Value 80 percent of business profits come from 20 percent of customers. Advances in technology allow marketers to profile customers in real-time and thereby assess their lifetime value (LTV) to the firm. Some customers may be too expensive to retain given the low level of profits they generate. Focus on developing and managing long-term relationships with more profitable customers.

Key Term Outline 4–22 Copyright © Houghton Mifflin Company. All rights reserved. Technology Drives CRM Customer Contact Points M-commerce Data Analysis Customer support/call- center software Sales automation software © Used By Permission.

Key Term Outline 4–23 Copyright © Houghton Mifflin Company. All rights reserved. Customer Satisfaction and CRM CRM is about relationships, not technology Technology can help build long-term relationships

Key Term Outline 4–24 Copyright © Houghton Mifflin Company. All rights reserved. 3. LEGAL AND ETHICAL ISSUES IN E-MARKETING Privacy Issues Spam Misappropriation of Intellectual Property SurfControl stops unwanted s, block inappropriate content, and secures confidential data. © Used By Permission.

Key Term Outline 4–25 Copyright © Houghton Mifflin Company. All rights reserved. Legal and Ethical Issues © Used By Permission.

Key Term Outline 4–26 Copyright © Houghton Mifflin Company. All rights reserved. Code of Ethics (1)

Key Term Outline 4–27 Copyright © Houghton Mifflin Company. All rights reserved. Code of Ethics (2)

Key Term Outline 4–28 Copyright © Houghton Mifflin Company. All rights reserved. After reviewing this chapter you should: Be able to define electronic marketing and electronic commerce and recognize their increasing importance in strategic planning. Understand the characteristics of electronic marketing—addressability, interactivity, memory, control, accessibility, and digitalization—and how they differentiate electronic marketing from the traditional marketing environment. Have examined how the characteristics of electronic marketing affect marketing strategy. Understand how electronic marketing and information technology can facilitate customer relationship management. Be aware of legal and ethical considerations associated with electronic marketing.