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Customer Relations Marketing

 

Companies are now able to collect data about their customers that when analyzed and utilized properly, can result in a competitive advantage. Online shopping is a prime example. If a customer makes a purchase, then the transaction is completed and revenue is generated. However, if a sales transaction is not made, the company still collects the shopper's behavioral data and stores it in a marketing database. The company then has the opportunity to segment and analyze this data in order to learn more about that particular customer shopping habits. An analysis can then be performed to determine why this person did not make a purchase as well as what can be done differently to persuade this person to buy their product. The company can now position the four Ps of marketing: product, price, promotion, and place to better serve this customer. This process the company has taken ultimately succeeds in developing a relationship with the customer. The company now knows more about what the customer's preferences are and how to offer them. Consequently, the customer has a vested interest in the relationship as well, and is more likely to conduct business with that company in the future. The Shift to Relationship Marketing Though many of today's marketing practices have evolved due to increasing technology, the marketing environment still centers around the four Ps of marketing described above. However, in order to remain competitive, companies must create a unique set of those four Ps, which appeal to each individual customer and sets them apart from their competitors. Target marketing is no longer an efficient use of marketing efforts because a great deal of resources can be lost to uninterested individuals while in the process of trying to capture potential customers. Because of the potential loss of resources, there is now a movement away from targeting markets to specific individual customers.


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