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Internet Marketing Intelligence
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Kunnskapskilden – Internet Marketing Intelligence
Internet Situational Analysis of 1to1 Marketing/CRM
Research Project: Internet Situational Analysis of 1to1 Marketing/CRM from Jan Vig at Griffith University , Australia 1999/2000
Content
Chapter 5 |
Market Analysis |
Chapter 5 Market analysis5.1 Trends5.1.1 Mega trends 5.1.2 Emerging Web Trends 5.1.3 1999 Web Trends 5.1.4 Where in the world is the Net taking us? 5.1.5 Future.sri.com 5.1.6 Predictions for the Web in 1999 5.1.7 Other trend forecasts 5.1.8 E-Commerce 5.1.9 Trends Technology 5.1.10 Drivers for Change – Consumers 5.1.11 Demographics 5.2 Internet statistics5.2.1 Internetstatistic.com 5.2.2 E-Marketer STATISTIKK 5.2.3 NUA 5.2.5 Activmedia 5.2.6 Dataquest 5.2.7 Surveyn.Net – Internet User Survey #2 5.2.8 Other Statistik 5.2.9 Web shopping Statistics 5.3 One to One marketing / Relationship marketing5.3.1 Relationship Marketing 5.3.2 1:1 marketing 5.3.3 Permission marketing 5.3.4 Power tools for 1:1 5.3.6 Critical Questions 5.3.8 The state of one to one online, part II 5.4 Customer care/ customer service5.4.1 Customer Care Pricewaterhous & Coopers 5.4.2 Customer Relationship Management CRM 5.4.3 Customer service 5.4.4 Collect customer information 5.4.5 Customer service 5.4.6 Internet Customer Service 5.5 Personalization5.5.1 Personalization: Marketing to one: 5.5.2 There are 4 ways to ad personalization to the web site 5.5.3 Different articles about personalization 5.6 Privacy5.6.1 Information sources on Internet concerning privacy 5.6.2 Articles about privacy 5.7 Security5.7.1 Different articles concerning security 5.7.2 NUA Security Issues 5.8 The Market place 1to1 after Peppers & Rogers5.8.1 Communications and Media 5.8.2 Customer Knowledgebase 5.8.3 Mass Customization 5.8.4 Distribution and Channel 5.8.5 Organizational Structure 5.9 The future of One to One Web Technology5.9.1 The Future of One-to-One Web Interactivity 5.9.2 The Future of One-to-One E-Mail 5.9.3 The Future of One-to-One Web Site Personalization 5.9.4 The Future of One-to-One Push 5.2.5 The Future of One-to-One Community 5.9.6 The Future of One-to-One Web Presentation and Conferencing 5.9.7 The Future of One-to-One Advertising and Promotion 5.9.8 The Future of One-to-One Web Site Tracking and Analysis 5.9.9 The future of tracking in a word: databases. 5.10 Products and customers5.10.1 Who is buying what over the Internet? 5.10.2 Customer-business interaction 5.10.3 Business relationships and communications 5.11 Changes in the market place5.11.1 Drivers of Change 5.11.2 Consumer Behaviour 5.11.3 Industry Response 5.12 Changes in the market response5.12.1 Product & Service Offering 5.12.2 Relationship Marketing 5.12.3 One to One Marketing 5.12.4 Mass Customisation 5.12.5 Future Delivery Mediums 5.13 Changes in delivery mediums5.13.1 Post 5.13.2 Fax 5.13.3 CDs and Disks 5.13.4 Kiosks 5.13.5 Pagers and PDAs 5.13.6 Telephones and Smartphones 5.13.7 Interactive TV 5.13.8 Web TV 5.13.9 Internet E-mail 5.13.10 Internet World Wide Web 5.13.11 Proprietory ISPs 5.13.12 Summary |
5.12 |
Changes in the marketresponse |
Research Project: Internet Situational Analysis of 1to1 Marketing/CRM from Jan Vig at Griffith University , Australia 1999/2000
http://www.managingchange.com/simrep/content.htm
Use of direct telesales is raising customers’ confidence. Home shopping, entertainment on-demand, and home banking will pave the way for using the new mediums for more complex 1to1 products and services.
Relationship Marketing is still an objective but smarter and more fickle consumers, and diverse lifestyles, will make that objective more difficult to achieve and internal capabilities are lacking. Those with strong brands feel in the most advantageous position. They continue to make significant investments in Relationship Marketing.
1 to 1 Marketing is attributed to the ideas of Don Peppers and Martha Rogers. Its aim is to understand the particular needs of individuals, and then to meet those unique needs. The objective is a
significant share of each customer’s life time purchases.
Companies saw 1 to 1 Marketing as an ideal, but thought it too difficult and non profitable. There were issues of cost justification, privacy, process complexity, lack of internal capabilities (especially with technology), and the impact on existing distribution channels.
Companies appear to be locked into the mass market paradigm. Larger companies are making significant investments in data mining, kiosks, and interactive-TV.
Mass Customisation seeks to provide cost effective 1 to 1 Marketing in mass markets. Many ideas for Mass Customisation come from Joseph Pine II. Mass Customisation embodies Rapid New Product Development. It is an holistic approach that also includes the selling and servicing activities. Design, development and production are undertaken simultaneously.
Mass Customisation uses a component approach with a product database as its foundation.
Feedback loops ensure components continue to reflect customers’ changing needs. Staff and organisations need to become market focused. New «intelligent» technology, owned by the customer, will link to 1to1 systems. Mass Customisation meets the challenges of an increasingly demanding and fragmenting customer base.
Mass Customisation will become more relevant as customers focus on added value. Service elements are likely to be the first options.
Barriers to embracing Mass Customisation include a mass marketing culture, a population that is
mostly financially unsure, legacy systems, risks of new technology, and possible compliance difficulties.
In the One to One Industry industry, many companies are using the new interactive technologies to provide customisation. In an increasingly fast paced society, «time» is becoming an important element of the marketing mix: time to market, response time, delivery time, service time, timeliness, any time, my time!
Companies have concerns about too quickly embracing the new delivery mediums. Reasons are
manifold and extend right across the business. One of the biggest questions was whether consumers will
embrace these new mediums and if they did, which ones.
Never-the-less, most organisations are making substantial investments in pilots. Favourite mediums are telesales (well underway), followed by Kiosks, Interactive TV, and the Internet (WWW).
5.12.1 Product & Service Offering
http://www.managingchange.com/simrep/content.htm
If we take a look at the Industry mentioned in chapter 5.8 we see that the Industry is quite diversified.
We have companies who are offering:
The shift:
Direct sales through Internet demand simple products:
Over time customers will become familiar with the concept of buying direct, particularly over the Internet
Some of the tech products, which are offered are quite expensive and can not be afforded by smaller and middle sized companies today.
Many have concerns at selling commodity products in a mass market:
Many are doubtful whether there is a need within the mass market for the more comprehensive products:
Customers are just not asking for options, but rather the emphasis is on price. This suggests customers see:
Comprehensive also applies to the service offering. For example,
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5.12.2 Relationship Marketing
http://www.managingchange.com/simrep/content.htm
Relationship Marketing (RM) has for some years been the Nirvana but it is only being realised in part.
The benefit of RM is that it develops:
In theory, a relationship should prove to be a higher attractor than price. This is especially so if the relationship allows the consumer to experience added value, such as good after care service.
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However, the implicit trust in brands may be declining,
BT invests £30m on two call centres … each one is the size of one & half football pitches ….. «this is all about building relationships» Alan Cunningham, BT’s general manager ….
GTE Telesystems takes its call centre database displays visual icons on the screens of the customer service representatives. An algorithm rates each customer with one, two, or three calendar pages to indicate longevity, sticks of dynamite appear if there have been service problems, and moneybags show volume. Voila, an instant snapshot and a way to differentiate customers consistently, on-the-spot, for far better one-to-one marketing.
From Don Peppers’ 1:1 community discussions
5.12.3 One to One Marketing
http://www.managingchange.com/simrep/content.htm
The ultimate form of Relationship Marketing (RM) is 1-to-1 Marketing, though many might suggest that is simply an attempt to return to the earlier days prior to mass marketing.
The term 1-to-1 Marketing is attributed to Don Peppers and Martha Rogers. They describe it in their 1992 book The One to One Future. Their most recent book Enterprise One to One, provides practical ideas and examples of implementing 1-to-1, especially though using the new interactive mediums
(http://www.marketing1to1.com ).
1-to-1 is different from RM in that:
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To summarise, RM works in the product dimension whereas 1-to-1 works in the customer dimension. Don Pepper’s has created the Customer Differentiation Matrix to position an
enterprise’s customers:
Customer differentiate matrix (PEPPERS)
Customer Valuations refers to the value of the customer to the enterprise and is usually calculated on a Life Time Value (LTV) basis. Customer Needs refers both to the product and to the service element. For example, customers A & B both require a bank account but A values the ability to transact business 24 hours per day, 7 days a week. Whilst today few companies are in quadrant 4, Peppers provides strategies for moving one’s customer base to this quadrant.
The benefits of 1-to-1 are:
Barriers
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Companies are taking some 1-to-1 initiatives: or at least trying to work on a more 1-to-1 basis. How good is that withing the 1to1 Industry themselves
See http://www.1to1.com for examples.
- a number of banks are segmenting customers based on their profitability.
- Peppers & Rogers is doing that themselves.
Some of the larger companies are making significant investments in specific technological areas:
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Microsoft submits its push technology to the world wide web consortium …. called channel definition format (CDF) it allows web sites to personalise their content ….. AOL adopts CDF ….
5.12.4 Mass Customisation
http://www.managingchange.com/simrep/content.htm
Mass Customisation (MC) addresses the concerns expressed by many companies as to the expense of 1 to 1 Marketing and the difficulties in cost justifying such an approach.
The term was first coined by Stan Davis in his 1987 book Future Perfect. The further developments by
- Joseph Pine II are described in his 1993 book Mass Customization.
The post war years of high consumption and shortages of manufacturing capacity led to significant developments in automation of the production process. With Mass Production reaching a high level of sophistication, emphasis then switched to logistics, with concepts such as JIT. Only in recent years has attention been given to the product design and development process, particularly where time-to-market gives a competitive edge. This is typical in industries with fast technological developments, as well as those exhibiting the traits of fast changing consumer fashion and tastes, such as the music business.
Rapid New Product Development (NPD) has been the holy grail of the insurance industry for many years. The author’s experience suggests that earlier attempts to address this issue was due to the need to overcome long IT development times and high costs, rather than a marketing requirement. This is definitely changing as consumers become more financially astute, more fragmented in their needs, and more influenced by the fast changing world exhibited within other markets. Pine says today is an era of High Market Turbulence.
MC embraces in a holistic way the total business process from:
Like all businesses it must achieve all this profitably and speedily. |
The typical attributes of a MC environment are:
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The benefits of MC are:
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Compared to 1-to-1 Marketing
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Barriers to Mass Customisation:
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The use of MC and Mass Personalisation is becoming more prevalent:
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5.12.5 Future Delivery Mediums
http://www.managingchange.com/simrep/content.htm
Larger organisations are concerned about too quickly embracing the new distribution mediums
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Favourite mediums are telesales (well underway), followed by Kiosks, Interactive TV, and the Internet (WWW).
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