1
Customer Relationship Marketing 10-May-19
&
Philips Brand Equity BoardWhy Relationship Marketing
A consumer perspective CRM as sustainable competitive advantage Media effect and media efficiency CRM: A consumer perspective
The consumer (in Europe) is changing: Feel unconfident about their future * Need a feel of trust to buy * Trust from a brand will grow when the brand is more open and ‘on level’ with the consumer * If customers trust you, it will be easier to sell and they will come back for more... * = source: The Henley CentreCRM: Competitive advantage
Where products become more and more similar, communication becomes the differentiating factor In every category, very few households make or break a brand (the high spending minority) The most successful brands are those with the most loyal heavy users (Garth Hallberg) CRM aims to build better bonds with this segment The advertiser who finds a direct way to the hearts and minds of these people winsfromcounting the people you reachtoreaching the people who count
CRM: Competitive advantageCRM: Media perspective
The number of brands is still increasing in almost every market (e.g. Korean brands) Mass communication gets less efficient due to media-fragmentation Mass communication gets less effective due to increasing mass media and outdoor information-pressure; outspending the competition is not the solution Consumers ‘zap’ in TV and print more than ever。