Chapter 11 Database, Direct Response Marketing, and Personal Selling Flashcards
What are two things that successful database marketing emphasizes?
Identifies Customers, and builds relationships.
What is the primary benefit of database marketing?
Enhancement of Customer Loyalty
What does a marketing database contain?
Customer names, addresses, e-mail addresses, customer history, their preferences and profiles, and marketing campaign results.
Using geocoding, a company can add which of the following to each customer’s record?
Allows a company to add a customer’s address to be plotted on a map. Allows retailers to place stores based on customer location.
A lifetime value analysis creates a figure that represents what?
Creates a figure that represents the present value or future profits the individual or segment will generate over a lifetime relationship with a brand or firm.
What is location-data tracking?
Using gps technology to track customer locations and then using that information to market to consumers.
Be able to identify an example of trawling.
The process of searching the database for a specific piece of information for marketing purposes. (ex: Home Depot trawling their database to figure out who has recently moved.)
What are typical goals for frequency or loyalty programs?
When a company offers free or discounted merchandise or services for a series of purchases. Entices customers to make repeat purchases.
Goals Maintain or increase sales, margins, or profits Increase Loyalty of existing customers Preempt or match a competitor’s offer Encourage cross-selling Differentiate the brand Discourage entry of a new brand
What are the 2 primary metrics in customer relationship management (CRM) programs?
Lifetime Value of the Customer
Share of Customer - The percentage of expenditures a customer makes with one particular firm compared to total expenditures in that product’s category.
