Abstract
This chapter describes how, over the past century, marketing has splintered into numerous subfields and identifies market forces that are now forcing them to re-converge. Subfields such as advertising, direct marketing, CRM, and marketing research are expanding their scope and borrowing approaches from sibling fields. We propose a process for managing across all customer touch points that incorporates key concepts and methods from the converging subfields.
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Notes
- 1.
The definition of direct marketing varies by author, but most definitions usually include three characteristics (1) messages are usually addressed at individual consumers, (2) messages generally seek to drive a specific “call to action,” and (3) outcomes are tracked at the individual level. Addressable media include direct mail, telemarketing, email, mobile, and personalized web pages (when customers can be identified by, e.g., logging in or cookies). The responses of individual consumers are tracked and stored in databases. See Roberts and Berger (1999) or Kotler and Keller (2006, Chap. 19).
- 2.
“The term interactive, as we interpret it, points to two features of communications: the ability to address an individual and the ability to gather and remember the responses of that individual. Those two features make possible a third: the ability to address the individual once more in a way that takes into account his or her unique response.” (Deighton 1996, p. 151).
- 3.
It could be that not investing resources in a high-value customer causes the customer to defect. In this case CLV would decrease, suggesting the company should have invested in the high-value customer. Again, the rule is to invest resources where they will increase CLV.
References
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Appendices
Exercise Questions
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1.
What current developments characterize the changing marketplace?
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2.
Which process is outline in the text to describe an approach to managing market communications?
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3.
Which future scenario is drawn?
Discussion Questions
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1.
Select a brand that interests you. This exercise works best if you pick one that has a well-developed brand and a customer database. Consumer package goods, for example, are usually not a good choice because they often have well-developed brands, but lack access to customer data. Retailers (e.g., Tesco, Starbucks, Nordstrom, supermarkets), financial services (e.g., banks, credit cards, brokerage firms), travel (airlines and hotels), technology firms (e.g., Apple), and media companies work well.
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2.
Analyze the brand and write a positioning statement. You will have to read what the media has said about the brand, visit its Web site, and experience various contact points in developing the positioning statement. The positioning statement should include the targeted market segment, the category in which the brand competes, points of difference from other brands in the category, and reasons to believe that the brand is different.
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Identify and critique-specific contact points. Which contact points convey the brand concept and which ones, if any, undermine the brand?
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Discuss what data the organization has available and discuss how it uses the data to create more relevant interactions with customers.
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Identify at least a few distinct subsegments of customers that have different wants and needs, and possibly deserve different levels of marketing investments.
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Set objectives for at least two of your subsegments, e.g., increase retention, cross-sell, up-sell, reduce costs. Discuss how achieving this objective will increase CLV (e.g., by how much?).
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7.
Propose contact points to achieve your objectives. How does the cost of your proposed contact points compare with the expected increase in CLV? How do your contact points build the brand?
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8.
Discuss how you will measure the effectiveness of your contact points?
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Malthouse, E.C. (2013). A Process for Managing the Re-convergence of Marketing Functions. In: Diehl, S., Karmasin, M. (eds) Media and Convergence Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36163-0_8
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DOI: https://doi.org/10.1007/978-3-642-36163-0_8
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