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1、&1Philips Brand Equity BoardCustomer Relationship Marketing 12- Oct-18&Why Relationship MarketingA consumer perspectiveCRM as sustainable competitive advantageMedia effect and media efficiency&3CRM: A consumer perspectiveThe consumer (in Europe) is changing:Feel unconfident about their future * Need

2、 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&4CRM: Competitive advantageWhere products become more and more similar, c

3、ommunication becomes the differentiating factorIn 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 segmentThe advertiser who finds a dire

4、ct way to the hearts and minds of these people wins5&CRM: Competitive advantagefromcounting the people you reachtoreaching the people who count&6CRM: Media perspectiveThe number of brands is still increasing in almost every market (e.g. Korean brands)Mass communication gets less efficient due to med

5、ia-fragmentationMass communication gets less effective due to increasing mass media and outdoor information-pressure; outspending the competition is not the solutionConsumers zap in TV and print more than ever&7CRM: Media efficiency Felix TV commercialSplit run test on users database: 50% no mailing

6、 (control), 50% received a mailing that announced a new TV commercial.Announcement mailing was sent 1 week before broadcasting.&8Results Felix:(after broadcasting 15 spots)EFFECT:just TV 26 %44 %DM+TV 56 %77 %ReachSpont. awareness&9CRM: Media Perspectivefrommass mediatointegrated media&10What is CRM

7、 about?&11 Reaching the people who count Profiting from multimedia synergies Growing the right relationships More bang for the buck Requires building your own mediaGrowing the right relationshipsA dialogue - a concrete result of a relationship - will only be fruitful if the timing and the message is

8、 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&Growing the right relationshipsFirst principle of a Phili

9、ps CRM program:DFM (Differential Marketing).Focus on the best (potential) customers.&13All consumers are not created equal: focus on best customersIn the relationship, were able to determine the actual and/or the potential value of the customerThis value is the determining variable for investmentEve

10、ry brand, product and category has low and high profit consumers&“Fish where the big fish are”14The Pareto principleSales & ProfitHighMediumLowNo-Volume&Total Market15Differential Marketing: credit card spendingTransactionsSpend per year&% adults1695%11%$ 5,0905%3%$ 1,0801%1 $ 1000%85%0Differential

11、Marketing: Audio(U.S. market, source Mediamark)Spend last 12 monthsTotal sales&% adults17H$ 1.9000.6%40.3 %M$ 8001.1%31.1 %L$ 1506.428.6 %Non0%91.9%0Growing the right relationshipsSecond principle of a Philips CRM program:The sales cycle.Focus on the low hanging fruit&18Sales cycleProspectInvestment

12、BuyerMarketAfter marketLoyal CustomerProfit&19Thethree opportunities in thesales cycleValueB. Sales gap: Selling to existing customersis up to 7 times less expensive.C. Retention gap:A 5% improvement in the defection rate boosts profits by a multiple of up to 10.Time&A. Acquisition gap:Winning new c

13、ustomers costs money.20Customer equityFollowing the low hanging fruitROIhighbest customersother customers in the databaseretail partner listsoutside listTargeted mass medialow&21Growing the right relationshipsThird principle of a Philips CRM program:Represent the private face of the Philips brand.&2

14、2Growing the right relationshipsCreate a communication platform, the Philips way to speak with its bestcustomersUnderstand who we are talking toand how close they are to Philips&23Growing the right relationshipsThere are 3 routes, in principle, to bond with your customers: You can create financial,

15、social, structural bonds - or a combination of these.HighBehavioural Loyalty&LowHighEmotional Loyalty24PrisonersHappy marriagesStrangersDistant loversGrowing the right relationshipsFourth principle of a Philips CRM program:Bridges that work Internet DatabasesCall Centres Mail&Retail25Growing the rig

16、ht relationshipsBrandWe dont know yet which bridges exist and how wellthey function.CompanyCustomerWe build, repair, maintain as we go along.&26Value added by growing theright relationshipsIdentifying the most profitable customers;Getting a higher share of their business;Reducing both the expense of

17、 communicating to the wrong people and defections from your brand;And turning loyal customers into brand advocates.&27(Why) CRM for Philips4 principlesbest customerslow hanging fruitprivate facefunctioning bridges&Remember: Its a journey28Will analyse, develop and fixFocus during the first 16 months

18、II. How to get startedThe next 16 months&29How to get started1. Testmatrix2. Evaluation3. Cost & Timing4. Year 2000 event&30ObjectivesImprove marketing efficiencyIncrease effectiveness of communicationsImprove loyalty degree (retention)Learn what works and where&31StrategyTesting campaigns in 6 coun

19、triesEvaluation and refining CRM approachExportation approach to other marketslearning while earning.&32Test matrixBusiness UnitsInternational:TV (Renewal) Audio (CDR)Videq (VCR)Local:Audio (MP3)Videq (DVD)&33Test matrixMoments of truth & target groupsTVRenewal of existing TV to widescreenMoving hou

20、seholds Secondary house owners Marriage/divorce Intention to buy TV Children in householdPhilips TV owners (approximately 6 years old)34&Test matrixMoments of truth & target groupsAudioCross sell CDRStudents/young professionals Secondary house owners New car buyersPhilips car CD ownersPhilips CD own

21、ers&35Test matrixLocal campaignsMP3UK & USAMusic & PC enthusiasts Philips ownersDVDFrance & USAPhilips owners&36After first half yearAnalysis of Q1 and Q2 resultsRefine and redefine programmes and objectives&37Campaign evaluation: basics1. 0-measurement2. Set goals for the campaign3. Including tests

22、- per campaign- per country: 90% campaign, 10%Per campaign control4. Evaluation Q1 and Q25. 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&39How to measure experience working across border

23、s:Four Good IndicatorsNetwork of offices across the regions How the network “nets”Our clients the company we keepOur expertise in handling international accounts&40Worlds strongest,most experienced direct networkWe are where our Clients need us to be.Stockholm OsloCopenhagenAmsterdamHelsinkiLondonFr

24、ankfurtMontralDublin Warsaw TorontoBrusselsRodgauParisPragueSeoulChicagoBuffaloZrichBudapestBeijingLos AngelesNew York MadridMilanVienna New DelhiTokyoLisbonIstanbulHong KongMiamiBarcelona AthensBangkokTaipeiMexico CityBombay CaracasManilaBangaloreGuayaquilKuala LumpurSingaporeJakartaRio de JaneiroS

25、antiagoSo PauloJohannesburgAuckland MontevideoBuenos AiresCape TownSydney HobartWellingtonMarket leadershipIn 14 of the 30 largest markets we are ranked the #1 agency.Our nearest competitor is ranked #1 in two markets.&42Market-by-Market LeadershipEurope/AfricaAmericasAsia/PacificBelgium France Germ

26、any Ireland ItalyNetherlands Portugal ScandinaviaS. Africa Spain SwitzerlandUnited Kingdom112111121122ArgentinaBrazil Canada Chile Mexico UruguayUnited States1111115AustraliaHong Kong India Malaysia New Zealand Singapore South Korea4111111118ThailandJapanConsultingThrough our consulting services, we

27、 define the customer relationship and devise programs to increase customer loyaltyOur 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.&44Commun

28、icationsWe develop creative communications that move consumers into deeper, more valuable relationships with a brand- translating strategic thinking into big ideasWeve always provided higher-qualitycreative work. It is our most visible product and, in many ways, the summation of all our marketing th

29、inkingWeve won almost 5 times as many awards(the kind based on results) as our closest&competitor45ConnectionsUsing a series of interrelated disciplines across all media, including data services and contact centre-services, we buildbridges that connect our clients brands with their customers-constan

30、tly 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 region46&InteractiveToday OgilvyInteractive is the largest integrated

31、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 interact

32、ive technologies.&47InteractiveRanked #1 New Media Agency by Advertising Age in 1999Named one of the Best Top Ten Interactive Agencies by AdweekNamed one of the Top Five Leading Agencies by The Red Herring (1998 & 1999)Winner of the 1999 Grand ClioWinner of three 1999 Cyberlions at Cannes including

33、the Cyberlion Grand Prix&48How the Network “Nets”Worlds Strongest, Most Experienced NetworkInternational thinkers, attracted to the OgilvyOne network by our global reachTrained to “think globally, act locally” International transfers and exchanges Adopt-A-Country programs Worldwide training and Crea

34、tive Directors meetingsUnited in a common discipline: Customer OwnershipConnected instantaneously by technology49&Common processes: knowledge sharingCommon and consistent brand image delivered by: Brand teams made of specialists who arent forced to specialize. Knowledge flows from individuals to bra

35、nd teamsvia most up to date IT Lotus Notes: IBM/American Express/UnileverSolution Centers On-line Creative libraries Truffles50&How we handle international accounts: three approachesIIIIIICentral CoordinationCentral CoordinationCentral CoordinationCentral DevelopmentCentral DevelopmentCentral ExecutionLocal ImplementationLocal ExecutionLocal ImplementationLocal Development Local ExecutionLocal ImplementationHow we

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