McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 10

CREATING CUSTOMER DIALOGUE

FOUR STEPS IN THE CRM PROCESS

Segment &Profile the Market

Implement

EvaluateDesign

Communication andPricing Strategy

1.

4.

3.

2.

EXHIBIT 10-1

10-3

IMC STRATEGY REQUIREMENTS

1. DETERMINE HOW WE WILL

COMMUNICATE WITH OUR CUSTOMER

2. DETERMINE HOW OUR CUSTOMER

WANTS TO COMMUNICATE WITH US

3. MEASURE COMMUNICATION AND

FEEDBACK AND MAKE CHANGES WHERE

NECESSARY

10-4

WHAT IS IMC?

1. IT PROVIDES TWO-WAY DIALOGUE BETWEEN SUPPLIER-CUSTOMER

2. IT PROVIDES FOR A UNIFORM MESSAGE DELIVERED THROUGH ALL COMPANY MEDIA(ADVERTISING, SELLING EFFORT, DIRECT MAIL, TRADE SHOWS)

3. IT FOCUSES ON MEETING THE INFORMATION NEEDS OF THE BUYER

10-5

THE CONTINUOUSIMC PLANNING PROCESS

Set Goals

DetermineCommunication

Elements

Create Message

Place Messagesin Media

Measure Results

Make Adjustments

Exhibit 10-2

10-6

Action

Desire

Interest

Awareness

Exhibit 10-3

THE HIERARCHY OF EFFECTS MODEL

10-7

COMMUNICATION TOOL KIT

1. ADVERTISING—Directed to a general audience, primarily through trade publications, the web, television, radio, billboards

2. DIRECT MARKETING—Directed to a specific audience to generate leads and

generate sales through the mail, by fax or Internet and catalogs

3. PUBLIC RELATIONS—Focuses on relationships to create goodwill and support

relationships

4. INTERNET—Website information and support and e-mail for communicating

5. TRADE SHOWS—Exhibits and demonstrates products and services in a public

venue with personal interaction

6. TELEMARKETING—Inbound and outbound electronic communication allowing

greater feedback opportunities

7. PERSONAL SELLING—Adaptable selling method established by one-on-one contact

8. MARKETING RESEARCH—Capturing information that will enable stronger

customer relationships

10-8

Create or Strengthen Image

Create FavorableClimate for Salespeople

GenerateSales Leads

CloseSales

THE ROLES OF ADVERTISING

Exhibit 10-6

10-9

ACHIEVING CUSTOMER RETENTION THROUGH COMMUNICATION

1. COMMUNICATE PROACTIVELY AND REGULARLY TO YOUR CUSTOMERS

2. MAKE DIALOGUE EASY TO INITIATE BY YOUR CUSTOMERS

3. MAKE IT EASY TO RESPOND TO YOUR COMMUNICATION EFFORTS

10-10

WHERE MARKETING COMMUNICATION DOLLARS ARE SPENT

24.8%

Direct Marketing

MarketResearch

OnlineMarketing

Premiums & Incentives

PublicRelations

4.2%

5.8%

3.1%

Sales ForceManagement

Other

Advertising

TradeShows

Sales Promotion

18.0%

16.9%

4.4%

4.2%4.3%

5.8%7.7%

24.8%

3.1%

10.8%

18.0%

16.9%

4.4%

4.2%

4.3%

5.8%7.7%

24.8%

3.1%

10.8%

Exhibit 10-8

10-11

THE BUDGET BREAKDOWN METHOD(Allocates Total Available Budget)

TOTAL AVAILABLE BUDGET FUNDS

Trade Show

Mail

Radio

Magazines

Newspaper

Internet

Sales Force

Allocated to:

Exhibit 10-10

10-12

THE BUDGET BUILDUP(Creates Total Budget)

Trade Shows

Mail

Radio

Magazines

Newspaper

Internet

Sales Force

How Much is Needed for Objective

Creates Total BudgetExhibit 10-10

10-13