MCS 4370 Lecture Notes - Lecture 15: Secret Affair, American Airlines, Loyalty Program

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 4370
• Professor: Tanya Mark

Document Summary

Return on marketing: using customer equity to focus marketing strategy. Lots of different factors in determining the roi for marketing. Understanding and measuring who you"re able to influence to purchase. Quantify what you"re spending you"re money on. Marketers can speak finance language (that everyone understands) in order to get the funding they require. Research suggests we should spend more on marketing when business is poor. Customer loyalty program? (figure 1) return on marketing framework: driver improvements. Reasons why consumers would buy a product. Individual measure of monetary value of customers: increased customer equity. Sum of total customer base value: return on marketing investment. Classifying consumer purchasing with different relationships: secret affair: Food you shouldn"t be eating: addiction: Alcohol: best friend loyal relationship, abused spouse.