VALIDATED TASK LISTS

Validated Task Lists

Validated Task Lists

Research indicates that companies should consider the variety of models of customer management that might work in their market, identifying which might be best for their market as a whole and for particular segments. They should review the extent to which these approaches have really been successful in their own and parallel markets. This review should take place as part of a general corporate strategy review, for each paradigm requires its own operational structure, processes, systems, and policies. There's no point choosing a marketing model that sits badly with other functional strategies. Perhaps most important of all, companies should keep a close watch on the preferred paradigms of their most valued customers—but with a skeptical eye. Often a paradigm works only because customers have been offered nothing better. A fundamental purpose of business is to increase sales, gain customers and improve its market position, that is, do better with respect to competition. To achieve this, we must design strategies that allow more people to become customers and, better yet, repeat customers. The most common strategies for this are the advertising and promotion.

Sub Area1: Direct customer contacts

Task 1 of sub area 1:

Customer profiles contain full details of a client, usually stored in an electronic database. At the simplest level, in business travel, the profile has their seating preferences, smoking/non-smoking, dietary requirements and perhaps reference to a company travel policy concerning class of travel. But, for example, airlines may have databases running into six or seven figures of those in their frequent-flyer schemes. Offers can be specifically targeted to groups of these people by sophisticated management of the database. Maintenance of an up-to-date list of current and past customers for CRM purposes is not particular to the travel field; but it is widely used by travel businesses. Campaign selection and tailored packaging of standard offers are examples of personalized communication and marketing. The practice grew from good practice in direct mail and telemarketing. The first step in creating database is to determine the purpose of database usage, or better said defining data that it will contain, which is followed by determining of methods and techniques for data collecting and analysis. The objectives of making and using database are: (Dobrinic, et.al, 2005, Pp. 25)

Identifying potential customers

Defining the customers who will receive a

Personalized offer

Updating customer orders

Increasing customer loyalty etc.

The important role of database marketing is to increase marketing productivity, which is manifested by reduction of marketing activities costs to increase return on investment. At the end, probably the most important determinant of database marketing is customer management, which includes acquiring, retaining and developing relationships with customers. From the foregoing it can be concluded that the company, establishing effective database marketing, beam their marketing activities to customers, with the aim of increasing productivity and long-term success of whole company (Blattberg, et.al, 2008, Pp. 4). From the very definition (Blattberg, et.al, 2008, Pp. 13) of database marketing three basic reasons arise:

Enhancing marketing productivity

Enabling the development of a ...