E-marketing tools

Business-to-business (B2B)
describes commerce transactions between businesses, such as between a manufacturer and
awholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C)
and business-to-government (B2G). B2B branding is a term used in marketing.
The overall volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C
transactions. The primary reason for this is that in a typical supply chain there will be many B2B
transactions involving sub components or raw materials, and only one B2C transaction, specifically sale
of the finished product to the end customer. For example, an automobile manufacturer makes several
B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final
transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction.
B2B is also used in the context of communication and collaboration. Many businesses are now using
social media to connect with their consumers (B2C); however, they are now using similar tools within the
business so employees can connect with one another. When communication is taking place amongst
employees, this can be referred to as "B2B" communication.
Consumer-to-business (C2B)
is a business model in which consumers (individuals) create value, and firms consume this
value. For example, when a consumer writes reviews, or when a consumers gives a useful idea
for new product development, then this individual is creating value to the firm, if the firm adopts
the input. Excepted concepts are crowd sourcing and co-creation.
C2B model, also called a reverse auction or demand collection model, enables buyers to name their own
price often binding, for a specific good or service generating demand. The website collects the demand
bids and then offers the bids to the participating sellers.
Another form of C2B is the electronic commerce business model, in which consumers can offer products
and services to companies and the companies pay them. This business model is a complete reversal of
traditional business model where companies offer goods and services to consumers (business-to-
consumer = B2C). We can see this example in blogs or internet forums where the author offers a link
back to an online business facilitating the purchase of some product (like a book onAmazon.com), and
the author might receive affiliate revenue from a successful sale. .
This kind of economic relationship is qualified as an inverted business type. The advent of the C2B
scheme is due to major changes:
Connecting a large group of people to a bidirectional network has made this sort of commercial
relationship possible. The large traditional media outlets are one direction relationship whereas
the internet is bidirectional one.
Decreased cost of technology: Individuals now have access to technologies that were once only
available to large companies (digital printing and acquisition technology, high performance
computer, powerful software).
Consumer-to-consumer (C2C)
(or citizen-to-citizen) electronic commerce involves the electronically facilitated transactions
between consumers through some third party. A common example is the online auction, in which
a consumer posts an item for sale and other consumers bid to purchase it; the third party
generally charges a flat fee or commission. The sites are only intermediaries, just there to match
consumers. They do not have to check quality of the products being offered. Consumer-to-
consumer (C2C) marketing is the creation of a product or service with the specific promotional
strategy being for consumers to share that product or service with others as
brand advocates based on the value of the product. The investment into concepting and
developing a top of the line product or service that consumers are actively looking for is equitable
to a Business-to-consumer (B2C) pre-launch product awareness marketing spends.
CRM - Customer Relationship Management
CRM is the abbreviation for customer relationship management. It entails all aspects of
interaction that a company has with its customer, whether it is sales or service-related. hile
the phrase customer relationship management is most commonly used to describe a business-
customer relationship, CRM systems are used in the same way to manage business contacts,
clients, contract wins and sales leads. !he principles, practices, and guidelines that an
organi"ation follows when interacting with its customers. #rom the organi"ation$s point of view,
this entire relationship not only encompasses the direct interaction aspect, such as sales and%or
service related processes, but also in the forecasting and analysis of customer trends and
behaviors, which ultimately serve to enhance the customer$s overall e&perience.
CRM is often thought of as a business strategy that enables businesses to'
(nderstand the customer
Retain customers through better customer e&perience
)ttract new customer
in new clients and contracts
Increase profitably
*ecrease customer management costs
How CRM is Used Today
Customer relationship management solutions provide you with the customer business data to help you provide
services or products that your customers want, provide better customer service, cross-sell and up sell more
effectively, close deals, retain current customers and better understand who your customer are.
Organizations frequently looing for ways to personalize online e!periences "a process also referred to as mass
customization# through tools such as help-des software, email organizers and different types of enterprise
applications.
The Impact of Technology on CRM
$echnology and the %eb has changed the way companies approach CRM strategies because advances in
technology have also changed consumer buying behavior and offers new ways for companies to communicate with
customers and collect data about them. %ith each new advance in technology&especially the proliferation of self-
service channels lie the %eb and smartphones, customer relationships is being managed electronically.
Many aspects of CRM relies heavily on technology' however the strategies and processes of a good CRM system will
collect, manage and lin information about the customer with the goal of letting you maret and sell services
effectively.
The Benefits of CRM
$he biggest benefit most businesses realize when moving to a CRM system comes directly from having all your
business data stores and accessed from a single location. (efore CRM systems, customer data was spread out over
office productivity suite documents, email systems, mobile phone data and even paper note cards and Rolode!.
)toring all the data from all departments "e.g. sales, mareting, customer service and *R# in a central location gives
management and employees immediate access to the most recent data when they need it. +epartments can
collaborate with ease and CRM systems and it helps and organization to develop efficient automated process to
improve business processes.
Other benefits include a ,-.-degree view of all customer information, nowledge of what customers and the general
maret wants and integration with your e!isting applications to consolidate all business information.
Importance of CRM
1. A CRM system consists of a historical view and analysis of all the acquired or to be
acquired customers. This helps in reduced searching and correlating customers and to
foresee customer needs effectively and increase business.
2. CRM contains each and every bit of details of a customer hence it is very easy for trac! a
customer accordingly and can be used to determine which customer can be profitable and
which not.
". #n CRM system customers are grouped according to different aspects according to the
type of business they do or according to physical location and are allocated to different
customer managers often called as account managers. This helps in focusing and
concentrating on each and every customer separately.
$. A CRM system is not only used to deal with the e%isting customers but is also useful in
acquiring new customers. The process first starts with identifying a customer and
maintaining all the corresponding details into the CRM system which is also called an
&'pportunity of (usiness). The *ales and +ield representatives then try getting business
out of these customers by sophistically following up with them and converting them into
a winning deal. All this is very easily and efficiently done by an integrated CRM system.
,. The strongest aspect of Customer Relationship Management is that it is very cost-
effective. The advantage of decently implemented CRM system is that there is very less
need of paper and manual wor! which requires lesser staff to manage and lesser resources
to deal with. The technologies used in implementing a CRM system are also very cheap
and smooth as compared to the traditional way of business.
.. All the details in CRM system is !ept centrali/ed which is available anytime on
fingertips. This reduces the process time and increases productivity.
0. 1fficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. This increases the chance of getting more business
which ultimately enhances turnover and profit.
2. #f the customer is satisfied they will always be loyal to you and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth of
business.
#n today)s commercial world practice of dealing with e%isting customers and thriving business
by getting more customers into loop is predominant and is mere a dilemma. #nstalling a CRM
system can definitely improve the situation and help in challenging the new ways of mar!eting
and business in an efficient manner. 3ence in the era of business every organi/ation should be
recommended to have a full-fledged CRM system to cope up with all the business needs.
ERP
A process by which a company (often a manufacturer) manages and integrates
the important parts of its business. An ERP management information system
integrates areas such as planning, purchasing, inventory, sales, marketing,
finance, human resources, etc. ERP is most freuently used in the conte!t of
software. As the methodology has become more popular, large software
applications have been developed to help companies implement ERP in their
organi"ation.
#hink of ERP as the glue that binds the different computer systems for a large
organi"ation. #ypically each department would have their own system optimi"ed
for that division$s particular tasks. %ith ERP, each department still has their own
system, but they can communicate and share information easier with the rest of
thecompany.
BENEFITS
/ true 0nterprise Resource 1lanning "0R1# system integrates both internal and e!ternal information
flows used by the organization within a single, comprehensive solution.
$ighter controls for financial compliance declaration "e.g. )arbanes-O!ley and (asel 22# as well as
other forms of compliance reporting.
$he single data source for product and services information - such as information related to
suppliers, vendors, customer orders and the products themselves - drive rapid product development
and launch cycles which increases a company3s overall maret share.
2ncreased access to valuable corporate data delivers a clear, global view of the business that
drives continuous improvement strategies and establishes common performance metrics and
measures to gauge the health of the business.
0ffectively managing pro4ects holistically fosters decision maing at critical levels in the
development and5or manufacturing process.
)upport for streamlined sourcing and procurement processes drive alignment to customer
demands, and also deliver a centralized buying model to reduce unauthorized and unnecessary
e!penses.
1roviding sales and operations planning with access to critical information fosters 6closed loop6
processes that ensures the business does not overpromise and5or underdeliver to customers.
/utomating business processes such as invoicing and sales and purchase orders within one
systems improves forecasting accuracy and reduces inefficiencies.
7sing a single base of information for billing and other customer interactions improves service
levels and increases customer retention.
Database marketing
is a form of direct marketing using databases of customers or potential customers to generate
personalized communications in order to promote a product or service for marketing purposes. The
method of communication can be any addressable medium, as in direct marketing.
The distinction between direct and database marketing stems primarily from the attention paid to the
analysis of data. Database marketing emphasizes the use of statistical techniques to develop models of
customer behavior, which are then used to select customers for communications. As a consequence,
database marketers also tend to be heavy users of data warehouses, because having a greater amount
of data about customers increases the likelihood that a more accurate model can be built.
There are two main types of marketing databases, 1) Consumer databases, and 2) business databases.
Consumer databases are primarily geared towards companies that sell to consumers, often abbreviated
as [business-to-consumer] (B2C) or BtoC. Business marketing databases are often much more advanced
in the information that they can provide. This is mainly because business databases aren't restricted by
the same privacy laws as consumer databases.
The "database" is usually name, address, and transaction history details from internal sales or delivery
systems, or a bought-in compiled "list" from another organization, which has captured that information
from its customers. Typical sources of compiled lists are charity donation forms, application forms for
any free product or contest, product warranty cards, subscription forms, and credit application forms.
The communications generated by database marketing may be described as junk mail or spam, if it is
unwanted by the addressee. Direct and database marketing organizations, on the other hand, argue that
a targeted letter or e-mail to a customer, who wants to be contacted about offerings that may interest the
customer, benefits both the customer and the marketer.
Some countries and some organizations insist that individuals are able to prevent entry to or delete their
name and address details from database marketing lists.
UNIQUE SELLING PROPOSITIONS
4roduct 4ositioning
#t5s not sufficient for a business to manufacture pac!age and distribute innovative products. The business also must
communicate its product5s attributes to targeted customers in ways that confirm the value of the product to those
customers. 6oing so positions the product in customers5 minds relative to other products. According to Ries product
positioning requires that corporate values mission and culture be distilled to one word that represents the !ey
benefit of a product7 this is the reason the customer will buy the product. +or e%ample whereas 8safety8 is
associated with some automobiles 8speed8 is lin!ed with others. 8+arm-fresh8 often is associated dairy products
and 9quality: is lin!ed with some diamonds.
;nique *elling 4roposition
A product5s sales revenues are determined in part by the ability of a company to claim a particular product benefit
that prompts the consumer purchase. This unique selling proposition -- identified via mar!et research --is the focus
of product advertising that enables a company to claim a si/able share of the target mar!et increase sales and
ma%imi/e profits. +or e%ample 8fast relief8 is a ;*4 of a popular pain relief medication which appeals to
consumers who see! prompt headache relief.
Related Reading: 4roduct 4ositioning *trategy
4roduct 4ositioning *tatement
4roduct positioning is formali/ed in a product positioning statement. Creating this statement requires the
identification of the product5s li!ely customers referred to as a target mar!et. The product attributes that appeal to
the target -- those that specifically address the customer5s problem to be solved -- are then identified. +or e%ample
8software for the small business owner who oversees a mar!eting program8 confirms a software product will
support a business owner who must create a mar!eting program. The product category is then defined which
conveys to the customer what the product is and is not. +or e%ample statements including the phrase 8unli!e our
competitors8 differentiates a product from competing products. The product5s !ey benefit such as 8a system for
scheduling the mar!eting process8 is then identified. 4otential customers are then queried to determine the relative
ability of each product of a set of competitive products to address customer need. The product attributes most li!ely
address this need is then identified. #n turn those attributes are selected for emphasis in a product5s mar!eting
campaign.
Creation of ;*4
Creating a ;*4 requires the identification of the product5s target mar!et the consumer5s issue to be solved or the
consumer5s need to be met by the product. The product5s primary unique benefits to a customer with particular issues
or needs are then identified. The commitment of the company to provide a product that solves the consumer5s issue
or meet the consumer5s need is then stated in one concise statement.
*ponsored <in!s
Some good current examples of products with a clear USP are:
Head & Shoulders : "You get rid of dandruff"
Unique propositions that were pioneers when introduced include:
Anacin "Fast, fast, incredibly fast relief." In 1952, Rosser Reeves created a TV commercial that
capitalized on Anacin's "special ingredient," caffeine, by suggesting limitations of other aspirin and
repeating, three times, the differentiation proposition: fast.
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Domino's Pizza : "You get fresh, hot pizza delivered to your door in 30 minutes or lessor it's
free."
FedEx : "When your package absolutely, positively has to get there overnight."
M&M's : "Melts in your mouth, not in your hand."
Metropolitan Life : "Get Met. It Pays."
Southwest Airlines : "We are the low-fare airline."
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