Brand Relationships

Brand relationships go through a series of phases.
Four stages of Customer Relationship

  • Awareness  – customer recognizes the firm but has not initiated any transactions.
  • Exploration/Expansion – customer gathers information about the firm which determines whether repeated transactions will occur
  • Commitment– Customer and firm feel a sense of obligation or responsibility to one another
  • Dissolution- total loss off commitment and relations ,maybe the one we want to get rid of .. Not lose them just not take care of with relationship building gifts and promotions.

 

Note: Your will need to go through the first three (3) to get an action

You want to build longstanding relationships as they may lead to positive feelings leading to a loyal customers. Loyal customers are more profitable.

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Distribution

Internet is a distribution channel because it is one of many ways that makes products and services available to consumers. It facilitates the exchange of goods and services between buyers and sellers without the restraints of distance, status, location or language.

Intermediary functions provide an increase in efficiency (reduce # of interaction channel member must undertake) and effectiveness to create value for customers: increase convenience, offer easy returns, credit, delivery service.

2012 Update: Intermediary functions are now provided by many apps (smart phone applications) now available to many mobile phones subscribers. Mobile internet access and mobile email access has reached a 50% penetration and is being seen to increase as more and more brands provide intermediary functions of apps to customers.

Disintermediation is the elimination of channel intermediaries – eliminating retailers and shipping products directly from manufacturer to consumer. The “Internet” enables firms to interact with customers at a much lower cost (inventory and shipping) and higher speed. Example: Dell transfer products directly from manu-consumer and functions from retailer is shifted to manufacturers.

2012 Update: Fresh Direct ships groceries directly from warehouse to customer doorsteps without the need need for stores in every neighborhood that supply to.

Distribution levers: are activities that affect buyer seller relationship through types and number of intermediary, intermediary functions, number of channels, degree of channel integration. These stimulates customers to become aware, explore, or commit to firm and also weaken or dissolve relationships.

2012 Update: Email Marketing has become the most effective and efficient distribution lever today. Email newsletters cause customers to become aware of and give them the immediate opportunity to explore new products and services they care about. Email campaigns are opt-in only thus spam has been reduced significantly making consumers less weary of opening marketing emails. Commitments, sales and feedback has increased through email campaigns because of immediate response capabilities. The dissolution of a email list relationship is also as easy and simple as a single click.
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Community

Community is a set of interwoven relationships built upon shared interests, which satisfies members’ needs otherwise unattainable individually

Criteria for true communities:
People criteria: membership is a conscious choice, member base has achieved critical mass sustainability, and members feel trusted.
Process: members achieve benefits, roles are not imposed(voluntary), effective facilitation and site structure to keep community activities on track
Culture: participation and feedback cultivated, sense of affiliation achieved through ownership of equity within community
Technology: efficiency in interaction maximized, community is easy to navigate

Different types of interest in forming community
Shared interest in information(stock trade tips-info driven communities), activity(buy/sell antiques-activity driven), commonality(being a doctor)

Communities function in real time formats(immediate communication, msg send/read/replied instantaneously) or asynchronous formats(delayed communication, time b/w msg send/read/replied vary greatly)

3 primary ways value is created in a community:
User to user: user generated content (member written articles, opinion, advice)
Administrator-to-user: administrator created content (exclusive research and reports, activities like scheduled chats with special guests
User to admin: user generated value such as revenue from product sales, content fees, usage fees, commission, and advertising sales

Benefits community generate for parent firm:
Cost benefit: reduce cs cost, customer acquisition cost, cost from decrease product flaws and marketing mistakes, marketing cost
Revenue benefits: increased customer segmentation and customization, increased branding, deepened customer relationships

Levels of community:
Nascent level: communities at their inception, marked and driven by community founders and small number of core participants
Formative: growing and developing communities, marked by growing membership and evolving goals and functionality
Mature level: near critical mass and sustainability. Community survival no longer depends on original founders and core participants. Structures exist to ensure feedback, maintenance, and change

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Product

The key marketing levers for products?
Customers service programs
– postsales support, customer care & customer realationship management.
Loyalty programs and Privileges
Availabllity of complementry products
Upgrades
Enabling community
Additional funcationality
Fullfillment capablity

Products is defined as “anything that is created expressly from 1 party to another and typically involves some type of reciprocity in terms of money, goods, attention or service. Product is generally offered to market for attention, acquisition, use or consumption to satisfy customers needs. 2 types of products: physical goods and services

2Is impact products in various ways, it allows company to learn about customers, personalize products to meet customer preferences and offer CRM tools to provide more value for customers and cut cost for product sellers

Marketing levers for products: packaging, attributes, features, mass customization, cs programs, loyalty programs, complementary products, upgrade, community features, enhanced functionalities, fulfillment capabilities

Overall product development process: before developing a product, managers must first understand the needs and wants of a consumer and then design the product to satisfy that need. It also needs to identify the production needs and capabilities and determine firm’s competitive position. Then these 7 steps should be followed, idea generation, idea screening, product design, prototype development, business analysis, test marketing, and commercialization.

companies manage their product portfolios risk profile, time horizon, potential payout, investment requirement, development and innovation. Enhancement of existing products and line extension, support of current products and services.

Marketing research fit with product development: gathers data on consumer needs and wants, evaluate production capabilities, and judge firm’s competitive position.

Products help enable a customer relationship: by deploying product development levers appropriate for existing relationship, and emphasizing the elements of value proposition relevant to given stage of relationship

Customer informed approach to product development can create strategic advantages by securing a market position that matches up with customer needs wants and expectation

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Communication

Relationship Management
                    Awareness Exploration Commitment 
Thegoal of marketing communciations is to convey relevant messages to the right consumers as the right time. The role of the Internet in a marketing communications campaignis to reach customers and send a message while incresing awareness.
Communication requires relationship.The big question is How to get awareness, get attention, get response, get information and not look like your trying to get it. 

 

Communication  

 

  1. Marketing communications is important to establish realtionships with consumers. Through communcation the creation of relationships leads cunsumers through the custmors stages and on to the commitment stages.
  2. To reach customers and send a message while increasing awareness. The internet can aid in identifying target customers analyzing and evaluating the performance of the campaign. Internet marketing campaigns are interactive and individual and have the ability to track and measure efforts in real-time.
  3. Mass online,

Basic Online Tools: banners, interstitials, search engines, point-of-purchase displays

Applications of Basic Online Tools: partnerships and affiliate programs, sponsorships, chat rooms, serial marketing

Personal Online,

Personalized Commercial Websites

E-mail Marketing: viral marketing, loyalty programs, customer service

Mass Offline

Broadcast Media: television, radio, outdoor & public relations

Print Media: newspapers, magazines, yellow pages, brochures, newsletters

Point-of-Purchase Displays

Personal Offline

Telemarketing

Direct Mail

Statement Stuffers

Customer Service

  1. Communication Process

Identifying the target audience

Determining the communication objective

Developing the media plan

Creating the massage

Executing the campaign

Evaluation the effectiveness of the campaign

  1. The 2I’s allow for high-intensity interactive and individualizes relationships between firm and consumer and it helps streamline the advancement of the awareness phase to commitment quickly.
  2. Awareness= bill boards search and viral marketing emails and commercials, Exploration/ Expansion=trial samples packaging loyalty programs and customers service, Commitment= personalized WebPages permission marketing and offers, and Dissolution=termination of permission marketing and a pull back on special offers
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