mba570.marapr09.class4

+

MBA/570

Sustainable Customer Relationships

December / January 2009

+Agenda

Housekeeping / Mind-Map

Marketing in the news

Review: major concepts

Segmentation, Perceptual Mapping & Forecasting

Classic Airlines review

Classic Airlines benchmarking - groups

Next time…

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Week 4 Mind Mapping

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Week 4 Concepts

Analyze customer needs, behaviors and trends

Analyze industry/competitive trends

Leverage customer feedback

Understand key drivers of customer value

Establish long-term customer acquisition and retention objectives

Perform customer segmentation analysis

Evaluate customer/segment profitability metrics

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Housekeeping

Z-Wing papers

Week 6 Assignment: Classic Airlines

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Happy New Year?

January 5th the most stressful of the year Noisy eating Sniffing Loud phone talkers

January 19th most depressing day broke your resolutions bills for Christmas

Feel free to rant

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

You Can Stop Exercising Now. . .

+Something to Cheer You Up

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Subliminal Marketing

Widely quoted study in movie theaters

Flashed “Drink Coca-Cola”, “Hungry?”, and “Eat Popcorn” messages for 1/3000th second

Sales of popcorn increased 57.8%

Nobody could replicate it

Study author finally admitted he made it up

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Subliminal Marketing

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Marketing in the news

Academy Award: Product

Placement

+

Workshop III Review

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

4 a.m. Conspirac

y

Ice Cream & Shark Attacks

ice cream sales

shar

k at

tack

s

Remember the Otaku?

The Perfect Pickle

+Workshop IV Major Concepts

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Rollerblade Case Study

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Rollerblade Quiz

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Customer Segmentation

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Customer Segmentation

What is segmentation?

Consumer segmentation Demographics, psychographics, behavioral

Business segmentation Company size, industry, geography

Benefits segmentation & needs-based segmentation

Profitability of segments: 80 – 20 rule

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+

Psychographics Explained

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Keds

Sneakers

Adidas

Tennis Shoes

Converse All-Stars

Basketball Shoes

Nike Air Jordans

Expensive Shoes!

Sneakers Gone Wild

Incredible Selection

Nike Studio

Custom Shoes

Original Reebok

Reebok Market Segmentation

Apple Computer

iBookiMac

PowerBookPower Mac G5

Apple Computer

One More Example. . .

Have your customers segment themselves!

+Nokia Case Study

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+

Segmentation Quiz

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Perceptual Mapping & Positioning

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Perceptual Mapping

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Perceptual Mapping

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Positioning – Children's Drinks

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Packaging & Targeted Promotion

+Positioning – Adult Milk Drinks

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Packaging & Targeted Promotion

Positioning Map

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Perceptual Mapping

Perceptual Mapping

Perceptual Mapping

A Unique Perceptual Mapping Tool

+Exercise: Classic Airlines Market Segmentation

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Case Study: “Song” Airlines

+Song Airlines Part 1

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What do you think of their strategy?

What would Levitt think?

+Song Airlines Part 2

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What are they doing right?

What are they doing wrong?

+Song Airlines Part 3

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What was Song’s biggest mistake?

What happens when you give marketers $20M to start an airline? great branding, no product! you get and airline about nothing!

+Utilizing Customer Feedback

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Source of Customer Feedback

Customer support calls

Surveys

Web sites – reviews, ihateyourcompany.com

Product registration

Employees, management

Classic Airlines

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Relationship Marketing

Use customer feedback

Integrated marketing

Retention vs. Acquisition

Genesis: Frequent Flier Programs

Other examples

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Sales Forecasting

Most popular method: what did we sell last year?

Better method: drivers of revenue demographics, economics

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Sales Forecasting

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+

Classic Airlines Review

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Classic Airlines Review

Situation Analysis problems, opportunities

Framing the problem: the 4 P’s

End state goals

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Groups: Classic Airlines Benchmarking

DEC / JAN 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Next Week

Identify best practices in customer relationship management

Propose customer acquisition and retention initiatives

Evaluate customer risk

Align customer relationship initiatives and organizational goals

Classic airlines benchmarking due

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Next Time. . .

Classic Airlines benchmarking

DEC / JAN 2009MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS