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

1. Segment & Profile the Market

4. Evaluate

Design Communication and 2. Pricing Strategy

Implement 3.
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 CONTINUOUS IMC PLANNING PROCESS

Set Goals Make Adjustments Determine Communication Elements Create Message

Measure Results

Place Messages in Media

Exhibit 10-2
10-6

THE HIERARCHY OF EFFECTS MODEL

Action Desire Interest

Awareness
Exhibit 10-3
10-7

COMMUNICATION TOOL KIT

1. 2. ADVERTISINGDirected to a general audience, primarily through trade publications, the web, television, radio, billboards DIRECT MARKETINGDirected to a specific audience to generate leads and generate sales through the mail, by fax or Internet and catalogs

3.
4. 5. 6. 7.

PUBLIC RELATIONSFocuses on relationships to create goodwill and support relationships

INTERNETWebsite information and support and e-mail for communicating TRADE SHOWSExhibits and demonstrates products and services in a public venue with personal interaction TELEMARKETINGInbound and outbound electronic communication allowing greater feedback opportunities PERSONAL SELLINGAdaptable selling method established by one-on-one contact

8.

MARKETING RESEARCHCapturing information that will enable stronger

customer relationships

10-8

THE ROLES OF ADVERTISING

Close Sales Generate Sales Leads Create Favorable Climate for Salespeople Create or Strengthen Image
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

Direct Marketing Online Marketing Advertising Market Research Premiums & Incentives Other

7.7% 7.7% 5.8% 4.2% 4.4% 4.4% 16.9% 16.9%

24.8% 24.8% 3.1% 3.1% 3.1% 10.8% 10.8%

Public Relations Sales Force Management

Trade Shows

18.0% 18.0%
Sales Promotion

Exhibit 10-8
10-11

THE BUDGET BREAKDOWN METHOD (Allocates Total Available Budget)

TOTAL AVAILABLE BUDGET FUNDS

Allocated to:

Trade Show

Sales Force

Mail

Magazines

Internet

Radio

Newspaper
Exhibit 10-10
10-12

THE BUDGET BUILDUP (Creates Total Budget) How Much is Needed for Objective
Trade Shows Mail Radio Newspaper Sales Force

Magazines

Internet

Creates Total Budget

Exhibit 10-10
10-13