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1,customer relationship marketing 4-mar-19,&,philips brand equity board,2,why relationship marketing,a consumer perspective crm as sustainable competitive advantage media effect and media efficiency,3,crm: a consumer perspective,the consumer (in europe) is changing: feel unconfident about their future * need a feel of trust to buy * trust from a brand will grow when the brand is more open and on level with the consumer * if customers trust you, it will be easier to sell and they will come back for more. * = source: the henley centre,4,crm: competitive advantage,where products become more and more similar, communication becomes the differentiating factor in every category, very few households make or break a brand (the high spending minority) the most successful brands are those with the most loyal heavy users (garth hallberg) crm aims to build better bonds with this segment the advertiser who finds a direct way to the hearts and minds of these people wins,5,from counting the people you reach to reaching the people who count,crm: competitive advantage,6,crm: media perspective,the number of brands is still increasing in almost every market (e.g. korean brands) mass communication gets less efficient due to media-fragmentation mass communication gets less effective due to increasing mass media and outdoor information-pressure; outspending the competition is not the solution consumers zap in tv and print more than ever,7,crm: media efficiency felix tv commercial,split run test on users database: 50% no mailing (control), 50% received a mailing that announced a new tv commercial. announcement mailing was sent 1 week before broadcasting.,8,results felix: (after broadcasting 15 spots),effect: just tv dm+tv reach 26 % 56 % spont. awareness 44 % 77 %,9,from mass media to integrated media,crm: media perspective,10,what is crm about?,reaching the people who count profiting from multimedia synergies growing the right relationships,more bang for the buck requires building your own media,11,growing the right relationships,a dialogue - a concrete result of a relationship - will only be fruitful if the timing and the message is right and relevant. we call this commitment - and the underlying process - to build profitable relationships: customer ownership. because, in the end it is about creating a sense of ownership in the customers mind: my shop, my bmw, my philips.,12,first principle of a philips crm program: dfm (differential marketing). focus on the best (potential) customers.,growing the right relationships,13,all consumers are not created equal: focus on best customers,in the relationship, were able to determine the actual and/or the potential value of the customer this value is the determining variable for investment every brand, product and category has low and high profit consumers “fish where the big fish are”,14,high,medium,low,no-volume,sales & profit,total market,the pareto principle,15,differential marketing: credit card spending,% adults,transactions,spend per year,$ 5,090,$ 1,080, $ 100,0,95%,5%,1%,0%,11%,3%,1,85%,16,differential marketing: audio (u.s. market, source mediamark),% adults,spend last 12 months,total sales,40.3 %,31.1 %,28.6 %,0,$ 1.900,$ 800,$ 150,0%,0.6%,1.1%,6.4,91.9%,h,m,l,non,17,second principle of a philips crm program: the sales cycle. focus on the low hanging fruit,growing the right relationships,18,sales cycle,prospect,buyer,after market,market,loyal customer,investment,profit,19,the three opportunities in the sales cycle,customer equity,20,following the low hanging fruit,best customers,roi,other customers in the database,outside list,targeted mass media,high,low,retail partner lists,21,third principle of a philips crm program: represent the private face of the philips brand.,growing the right relationships,22,growing the right relationships,create a communication platform, the philips way to speak with its best customers understand who we are talking to and how close they are to philips,23,there are 3 routes, in principle, to bond with your customers: you can create financial, social, structural bonds - or a combination of these.,growing the right relationships,24,growing the right relationships,fourth principle of a philips crm program: bridges that work internet databases call centres mail retail,25,brand,customer,company,growing the right relationships,we dont know yet which bridges exist and how well they function. we build, repair, maintain as we go along.,26,value added by growing the right relationships,identifying the most profitable customers; getting a higher share of their business; reducing both the expense of communicating to the wrong people and defections from your brand; and turning loyal customers into brand advocates.,27,(why) crm for philips,4 principles best customers low hanging fruit private face functioning bridges,focus during the first 16 months,will analyse, develop and fix,remember: its a journey,28,ii. how to get started,the next 16 months,29,how to get started,1. testmatrix 2. evaluation 3. cost & timing 4. year 2000 event,30,objectives,improve marketing efficiency increase effectiveness of communications improve loyalty degree (retention) learn what works and where,31,strategy,testing campaigns in 6 countries evaluation and refining crm approach exportation approach to other markets learning while earning.,32,test matrix,business units international: tv (renewal) audio (cdr) videq (vcr) local: audio (mp3) videq (dvd),33,test matrix,moments of truth & target groups tv renewal of existing tv to widescreen moving households secondary house owners marriage/divorce intention to buy tv children in household philips tv owners (approximately 6 years old),34,test matrix,moments of truth & target groups audio cross sell cdr students/young professionals secondary house owners new car buyers philips car cd owners philips cd owners,35,test matrix,local campaigns mp3 uk & usa music & pc enthusiasts philips owners dvd france & usa philips owners,36,after first half year,analysis of q1 and q2 results refine and redefine programmes and objectives,37,campaign evaluation: basics,1. 0-measurement 2. set goals for the campaign 3. including tests - per campaign - per country per campaign : 90% campaign, 10% control 4. evaluation q1 and q2 5. 1-measurement & evaluation of the (series of) campaign(s) 6. export of campaigns to other philips markets a continuing process .,38,iii. why ogilvyone worldwide,39,how to measure experience working across borders:,four good indicators network of offices across the regions how the network “nets” our clients the company we keep our expertise in handling international accounts,40,we are where our clients need us to be.,worlds strongest, most experienced direct network,singapore,lisbon,milan,dublin,paris,zrich,caracas,sydney,hobart,chicago,los angeles,mexico city,guayaquil,santiago,buenos aires,montevideo,rio de janeiro,so paulo,miami,new york,toronto,buffalo,cape town,johannesburg,madrid,barcelona,athens,istanbul,kuala lumpur,london,copenhagen,oslo,stockholm,helsinki,amsterdam,vienna,frankfurt,brussels,rodgau,bangalore,bangkok,hong kong,jakarta,taipei,tokyo,manila,auckland,wellington,budapest,bombay,new delhi,seoul,beijing,prague,warsaw,montral,41,market leadership,in 14 of the 30 largest markets we are ranked the #1 agency. our nearest competitor is ranked #1 in two markets.,42,market-by-market leadership,belgium 1 france 1 germany 2 ireland 1 italy 1 netherlands 1 portugal 1 scandinavia 2 s. africa 1 spain 1 switzerland 2 united kingdom 2,argentina 1 brazil 1 canada 1 chile 1 mexico 1 uruguay 1 united states 5,europe/africa,americas,australia 4 hong kong 1 india 1 malaysia 1 new zealand 1 singapore 1 south korea 1 taiwan 1 thailand 1 japan 8,asia/pacific,43,consulting,through our consulting services, we define the customer relationship and devise programs to increase customer loyalty our decidedly “customer-centric” approach utilises the most advanced technologies to research our clients most valuable customers: their buying dynamics, profitability, and where and how to get more like them.,44,communications,we develop creative communications that move consumers into deeper, more valuable relationships with a brand-translating strategic thinking into big ideas weve always provided higher-quality creative work. it is our most visible product and, in many ways, the summation of all our marketing thinking weve won almost 5 times as many awards (the kind based on results) as our closest competitor,45,connections,using a series of interrelated disciplines across all media, including data services and contact centre-services, we build bridges that connect our clients brands with their customers-constantly seeking new and innovative ways to give customers reasons to buy, to buy more, and to stay loyal to a brand. we currently operate 11 contact/call centres worldwide and we are the largest call centre network in the asia pacific region,46,interactive,today ogilvyinteractive is the largest integrated interactive agency in the world, with 22 offices servicing more than 40 countries and the largest media buyer on the web. with the full leverage of a global communications agency, we produce one-to-one marketing solutions online that build brands, as well as customer equitywith cutting-edge interactive technologies.,47,interactive,ranked #1 new media agency by advertising age in 1999 named one of the best top ten interactive agencies by adweek named one of the top five leading agencies by the red herring (1998 & 1999) winner of the 1999 grand clio winner of three 1999 cyberlions at cannes including the cyberlion grand prix,48,how the network “nets”,worlds strongest, most experienced network international thinkers, attracted to the ogilvyone network by our global reach trained to “think globally, act locally” international transfers and exchanges adopt-a-country programs worldwide training and creative directors meetings united in a common discipline: customer ownership connected instantaneously by technology,49,common processes: knowledge sharing,common and consistent brand image delivered by: brand teams made of specialists who arent forced to specialize. knowledge flows from individuals to brand teams via most up to date it lotus notes: ibm/american express/unilever solution centers on-line creative libraries truffles,50,how we handle international accounts: three approaches,central coordination central development central execution local implementation,central coordination central development local execution local implementation,i,ii,central coordination local development local execution local implementation,iii,51,how we handle international accounts: three approaches,central coordination central development central execution local implementation,i,advertising and direct marke
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