Relationship Marketing Information Technology and Forecasting IRWIN a

Relationship Marketing, Information Technology, and Forecasting © IRWIN a Times Mirror Higher Education Group, Inc. , company 1997 1

Definition of relationship marketing RELATIONSHIP MARKETING is an organization’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit. © IRWIN a Times Mirror Higher Education Group, Inc. , company 1997 2

Relationship marketing builds on information technology and micromarketing to develop links with individual customers • Relationship Marketing Goal is to have the organization develop a long-term, cost-effective individual relationship with customers. • Database Marketing Goal is to provide the organization with continuously updated demographic, media and consumption information about households and individuals. • Information technology Goal is to design and manage the computer and communications system of a firm to support its micromarketing and relationship marketing actions. © IRWIN a Times Mirror Higher Education Group, Inc. , company 1997 3

Factors that makes relationship marketing necessary Excessive business costs • • New product failure Poor quality Costly distribution Misdirected promotional efforts Marketing manager and information technology More demanding consumers • • “Personalized” offerings High quality and value Good customer service Reduced “loyalty” Note: Blue boxes show consumer and business factors that have made relationship marketing necessary, while green boxes show the data and data collection methods that have made relationship marketing possible. © IRWIN a Times Mirror Higher Education Group, Inc. , company 1997 4

An organization’s marketing department relates to many people, groups, and forces The Organization Society Alliances Research and Development Other Organizations Manufacturing Human Resources Management Society Ownership Information Systems Partnerships Relationships Suppliers Finance Environmental Social Shareholders (owners) Economic © IRWIN Marketing Customers Forces Technological Competitive a Times Mirror Higher Education Group, Inc. , company 1997 Regulatory 5

Forecasting Approaches Top-down forecast • Take aggregate • Subdivide into components Buildup forecast • Sum individual components • Derive at total forecast © IRWIN a Times Mirror Higher Education Group, Inc. , company 1997 6