1. Databases and Marketing Customer databases Data Warehouses Database Mining

2. Customer experience management (CEM) is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle. The goal of CEM is to optimize interactions from the customer's perspective and, as a result, foster customer loyalty. Why Customer Experience Management Is Important Strengthen brand preference. Boost revenue. Improve customer loyalty. Lower costs by reducing customer churn. Challenges Creating consistent brand experiences across channels. Consolidating data into a single view of the customer Create and maintain complete customer profiles. Personalize all customer interactions. Get the right information to the right place at the right time – every time

3. Data Marts and Data Warehouse

6. Data Mining

7. What is data mining? –Methods for finding interesting structure in large databases E.g. patterns, prediction rules, unusual cases –Focus on efficient, scalable algorithms Contrasts with emphasis on correct inference in statistics –Related to data warehousing, machine learning

8. DM Process Model

9. 9 Where Does Data Mining Fit In? Hindsight Foresight Insight Analysis and Reporting (OLAP) Statistical Modeling Data Mining

10. Common Data Mining Techniques Predictive modeling –Classification Derive classification rules Decision trees –Numeric prediction Regression trees, model trees Association rules Meta-learning methods –Cross-validation, bagging, boosting Other data mining methods include: –artificial neural networks, genetic algorithms, density estimation, clustering, abstraction, discretisation, visualisation, detecting changes in data or models

11. Overview of Database Marketing

12. What is Database Marketing? An information driven marketing process made possible by database technology that enables marketers to develop, test, implement, measure and modify customized marketing programs and strategies

13. Premise of Database Marketing Not all customers are alike (20-80-30 rule) Gathering, maintaining, and analyzing customer and prospect info allows marketers to - identify key mkt segments - optimize planning, pricing and promoting - close deals satisfying both buyers and sellers

14. What is required for Database Marketing? Relevant data about customers and prospect Database tech to transform raw data into powerful and accessible mkt info Statistical techniques to rank customers in terms of their likeliness to - respond to mkt communication - buy products - return products - pay for products - stay or leave

15. Uses of Database Marketing?

16. Strategic Marketing Planning & Marketing Process

17. What is Strategic Planning? It is the managerial process that helps to develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.

18. Organizational Levels The Corporate Level is the highest level in any organization. The Functional Level includes all the various functional areas within a business unit. The Business Level consists of units within the overall organization that are generally managed as self-contained businesses.

19. Corporate Mission This seeks to embody the entire goals of the organization and the objective of its existence. It seeks to provide a sense of purpose, direction and opportunity

20. Types of Strategic Plans

21. Business-Unit Composition Companies often organize around competency-based SBUs to establish Sustained Competitive Advantage.

22. Business Strategy Decisions Dimensions of Strategy: –Market scope. –How broadly the business views its target market. –Competitive advantage. Competitive Advantage: –The way a business tries to get consumers to purchase its products over those offered by competitors.

23. Marketing Strategy Decisions A Marketing Strategy Addresses: Selection of a target market. Development of a marketing mix. Functional strategies are at the business-unit level. Operating strategies are at the product level.

24. Levels of a Marketing Plan Strategic –Target marketing decisions –Value proposition –Analysis of marketing opportunities Tactical – Product features – Promotion – Merchandising – Pricing – Sales channels – Service

25. The Strategic Planning, Implementation, and Control Processes

26. Porter’s Generic Strategies Overall Cost Leadership Differentiation Focus

27. Categories of Marketing Alliances Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations

28. Product/Market Opportunity Matrix Market Product New Present New Market Penetration Strategy Market Development Strategy Product Development Strategy Diversification Strategy

29. How to Achieve a Differentiation-Based Advantage Incorporate product features/attributes that lower buyer’s overall costs of using product Approach 1 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 2 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 3 Compete on the basis of superior capabilities Approach 4

30. Competitive Advantage Cycle

31. Integrated Marketing Communications Challenges today: Customer is changing. Marketing strategies are changing. Communication Technologies are changing. Why does the need for an IMC arise???

32. Effective marketing Target Audience Communication Objective Message Design- Content, Format and Structure Choosing Media - Personal and Non-Personal Selecting Message Source Collecting Feedback

33. Promotion strategies

34. Promotion mix Advertising Sales Promotion Personal Selling Public Relations Direct Marketing

35. Communication Process Sender Feedba ck Respon se Receiv er Decodi ng Encodi ng Messag e Media

36. SETTING TOTAL PROMOTION BUDGET AND MIX 4 METHODS OF SETTING UP PROMOTION MIX  AFFORDABLE METHOD- Promotion budget at the level company can afford.  PERCENTAGE OF SALES METHOD-Promotion budget at the certain percentage of current or forecasted sales.  COMPETITIVE PARITY METHOD-Promotion budget to match competitors outlay.  OBJECTIVE AND TASK METHOD-Promotion budget based on what it wants to accomplish with promotion.

37. PROMOTION MIX STRATEGY  PUSH STRATEGY-Strategy that calls for using sales force and trade promotion to push product through channels.  PULL STRATEGY-Strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy product like creating demand vacuum.

38. ADVERTISEMENT Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.

39. MAJOR ADVERTISMENT DECISIONS SETTING ADVERTISEMENT OBJECTIVES communication objectives sales objectives BUDGET DECISION affordable approach percent of sales competitive parity objective & task ADVERTISMENT STRATEGY MESSAGE DECISION message strategy message evaluation MESSAGE DECISION reach, frequency, impact major media types media timing ADVERTISMENT EVALUATION communication impact sales & profit impact return on advertisement

40. PUBLIC RELATIONS Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events.

41. PR DEPARTMENT FUNCTIONS Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development

42. ADVERTISING APPEALS

43. ADVERTISING APPEAL Indispensable part of every advertisement. Central idea of an ad that elicits the much desired response. 2 techniques that can be identified in advertising response: ADVERTISING APPEAL & ADVERTISING EXECUTIONS. Every advertisement is an appeal to buy & use the product or the service supported by reasons to buy & use.

44. ESSENTIALS OF GOOD APPEAL It should be thematic. It should be communicative. It should be interesting. It should be believable. It should be complete.

45. ADVERTISING APPEALS & BUYING MOTIVES Advertising appeals are made to consumer motives. Buying motives are the consumer expectations or the buyer specifications. They tell us what each consumer wants to satisfy his needs. If the buying motives specify what consumer expect, the appeal speaks the degree to which such specifications are met.

46. APPEALS & SELLING POINTS An advertising appeal is the basic use of service or satisfaction which the product or the service can render and which the advertisement represents. What we call as the TALKING POINTS for the salesman, are the SELLING POINTS for an advertiser. An appeal is convincing on the basis of product characteristics, merits, satisfaction which we call as selling points.

47. CLASSIFICATION OF APPEALS Advertising appeals are broadly classified into 3 categories:  Product or Service related appeals  Consumer related appeals  Non-Consumer & Non-product Related appeal.

48. I.PRODUCT OR SERVICE RELATED APPEALS This type of appeal focuses on the product or service features, where some of the aspects of product classification are described. Such appeals do not state openly the consumer benefits as they are implied.  Product feature appeal  Product Competitive advantage appeal  Product price appeal  Product News appeal  Product popularity appeal  Product generic appeal

49. II. CONSUMER RELATED APPEALS These ads harp on the direct consumer benefits. Emphasis is on what the product or service does for the consumer, i.e. consumer satisfaction.  Consumer service appeal  Consumer savings appeal  Consumer self-enhancement appeal  Consumer fear appeal  Consumer subsidized product trial appeal

50. Measurement & Evaluation

51. Reasons for Measuring Campaign Effectiveness To help all brand stakeholders understand the link between marketing investment and return on investment To evaluate alternative strategies To increase the efficiency and effectiveness of the IMC campaign –In the immediate short term or in the future

52. Communication Evaluation Considerations Questions that could be asked: Is the advertising working? Is the message compelling given the target audience we’re trying to reach? Is the creative effective? Is the media strategy effective?

53. CONSUMER SUBSIDISED PRODUCT TRIAL APPEAL Whenever the advertiser is believing in generating initial or extra sales, he does it through the product trial strategy. The advertiser offers a free sample, a price reduction or some other purchase incentive to encourage consumer trial or use.

54. III. NON CONSUMER & NON PRODUCT RELATED APPEALS They are founded on the fine works of the company- may be profit making or non profit making or on some sort of organized activity for which public support is desired & accepted.  Corporate citizenship appeals  Investor solicitation appeals

55. CORPORATE CITIZENSHIP APPEALS They attempt to portray the company’s achievements or the contribution to the mankind or the society. It presents all that is done by the corporate house in the public interest- social, economic, philanthropic. It is used to create a favorable attitude towards the company.

56. INVESTOR SOLICITATION APPEALS This kind of appeal is addressed to the investment community, soliciting the benefits of investment in the company in question. Solicitation appeals say that the company is well managed, the line of activity undertaken is really profitable or makes widest range of products well known in the national or international markets.

57. Sales Promotion Why ? Types? How?

58. Whereas advertising gives a reason to buy, SP gives an incentive to buy It is part of the Marketing spend of all companies and these days SP spends in many companies exceed that of the adspends

59. SP is of two types Trade Consumer

60. Forms of trade promotion Bulk discounts Free materials Display windows Shelf hiring Lucky draws ‘Mystery’ customer Redistribution incentives Shop salesmen incentives

61. Forms of consumer promotion Free samples Free gifts Coupons In-packs Price packs Price-offs Sweepstakes Bundling offers

62. Promotion at different stages of the PLC Introduction – wise to use heavy promotion to induce trials and promote brand franchise Growth – promotion should be limited,if any Maturity – Higher promotions required since the brand is under attack from competitors or product quality or advertising effectiveness is tapering off Decline – Heavy promotions. Used only to retain a set of loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade

63. Essential elements for an effective SP programme Significant value before promotion is effective Promotions must be part of an overall plan Every brand must have a promotion objective and a strategy statement A written tactical plan – time frame, costs, evaluation yardsticks Factual knowledge must be gathered to plan Specialised professional skill and knowledge must be applied to every promotion operations

64. Final considerations Don’t promote if the product is not good Promotions rarely stop a declining sales curve Must be effective in retaining new customers. So the product has to speak for itself. The objective of the promotion is to wean away users from competition and create new users. Excessive promotions lead to diminishing returns and may devalue the brand Promotions may be used in conjunction with advertising and other marketing communication tools It should be novel and attractive Ensure supply lines are good and adequate stock is available right through the promotion Cater for contingencies. Have escape routes built into the plan Trade has to be handled tactfully Reimburse incentives/ rewards/ gifts promptly Must be within the legal boundaries

65. Advtg v/s WOM Word-of-mouth is actually the center of the marketing universe Much of marketing actually centers around illusion-creation. Word-of-mouth offers an authenticity effective tool; and best of all, it is absolutely free. Word-of-mouth can take on a life of its own. The most important way by which sales can increase is by increasing the speed Simplicity, ease, and fun with which decisions are made.

66. How to develop an effective WOM program Find some way to get the influencers to talk and get all fired up about your product. Create fun events to bring users together and invite non-users. Create a club with membership benefits. Pass out flyers. Tell friends. Offer special incentives and discounts for friends who tell their friends. Empower employees to go the extra mile.

67. Managing Campaigns

68. Advertising Planning Process Advertising Objectives Budget Decisions Creative Strategy Campaign Evaluation Media Strategy Brand Positioning Target Market

69. A Campaign Management Outline i.Where are we? ii.Why are we there? iii.Where could we be? iv.How could we get there? v.Are we getting there? i.Develop a situation analysis. ii.Identify Problems. iii.Identify Opportunities. iv.Develop message, media, and marketing communications strategy and tactics. v.Develop a plan to measure (track) campaign effectiveness.

70. Campaign Tasks include Identifying the problem The budget Target audience Pretesting Message The language The visual and the copy Media selection Timing and duration Post testing Effect on sales