MKTG 3596 Lecture Notes - Lecture 1: Budget Constraint, Direct Marketing, Contribution Margin
Document Summary
Helps identify those customers for whom the marketing effort will pay off, to minimize wasted marketing money (improve productivity of marketing) Eliminate product explosion, don"t force customers to sort through huge set of offerings. Know, using information what a particular customer/ segment will want and offer it. Customers are different and need different treatment. The use of customer databases to enhance marketing productivity through more effective acquisition, retention, and development of customers. Emphasizes analysis of customer data for segmentation and targeting. This is not traditional market segmentation such as based on demographics or heuristic rules of thumb . Focus on strategy development and analysis of the database for marketing purposes. It is empirically driven by statistical analysis of response rates. Crm can be done without customer databases (e. g. , hire more polite and knowledgeable sales reps) Direct marketing can address individual customers directly without customer databases (e. g. , purchase lists based on demographic characteristics for a mailing) (ex. census)
