Spring 2001
Direct
Marketing & Internet Marketing
3 Hours
Answer any 3
questions
All questions
carry equal marks.
·
The Internet
is a useful tool for acquiring and retaining customers in the financial
services sector. Discuss.
·
Outline and
discuss the key stages of the “Spiral of Prosperity” applying the process to
the marketing of an organisation of your choice.
·
With
reference to a company that you have studied make immediate recommendations on
ways to attract new customers to the company in the short term (i.e. the next
12 months). Comment on and prioritise the various customer groups you might
target.
·
Identify and
evaluate the advantages and disadvantages to the consumer of Internet on-line
shopping.
·
A customer
database may hold FRAC information for each customer. Outline the key elements
of FRAC and discuss why they are important.
Comment on David Sainsbury’s quote in relation to the introduction of the Tesco Clubcard: “Why Introduce a Loyalty Card? It’s Just an Electronic Form of Green Shield Stamps.”
·
For an
organisation of your choice, outline, detail and justify key methods of
retaining customers.
1. The internet is a useful tool for acquiring and retaining customers
in the financial services sector. Discuss.
Good answers will make use of the
AIMRITE (Audience, Impact, Message, Response, Internal Management, The…End
Result) model in relation to
§
Acquisition,
§
Retention of customers for
this sector.
2. Outline the key stages of the “Spiral of Prosperity” applying the process to the marketing of an organisation of your choice.
o
Identify Prospects
o
Target Media
o
Sell Products
o
Get Customer Information
o
Build Database & Analyse
o
Talk to Customers Regularly
o
Cross-Sell, Up-Sell, Renewal
o
Increase Customer Value
o
More Profits/Analyse Database
Good answers will clearly place
each of the stages in the context of the chosen organisation.
3. With reference to
a company that you have studied make immediate recommendations on ways to
attract new customers to the company in the short term (i.e. the next 12
months). Comment on and prioritise the various customer groups you might
target.
Good answers will prioritise:
o
Present Customers &
Member-Get-Member
o
Former Customers
o
Unconverted Enquirers
o
Profiled Groups through
Selective Media
o
Unprofiled groups through
Broadscale Media
4. Discuss the advantages and disadvantages to the consumer of internet on-line shopping.
Advantages:
·
Choice - Product Depth,
Global Reach, Price Choices
·
Information - Detailed
Product Info. Inventory, Order Status
·
Interactive, Online Support
·
No Travel and Parking
·
Timing - Opening Hours
·
Privacy
Disadvantages:
·
Technophobia
·
Security Fears
·
Technology not User Friendly
·
Slow Download
·
Inertia
5. A customer database may hold FRAC information for each customer. Using examples from an industry sector of your choice, outline the key elements of FRAC and describe why they are important.
Good answers
will comment on:
·
Frequency
·
Recency
·
Amount
·
Category
and their
use in profiling customers and determining how to communicate with various
types of customer.
6. Comment on David Sainsbury’s quote in relation to the introduction of the Tesco Clubcard: “Why Introduce a Loyalty Card? It’s Just an Electronic Form of Green Shield Stamps.”
Good answers
will focus on the value of the data captured by the Clubcard system enabling
Tesco to discover:
·
Visit Patterns
·
Departmental Usage
·
Spend Levels
·
Purchase Types
·
Lifestage
·
Coupon Redeemers/Non
Redeemers
and thus to
determine:
·
Who to Target
·
What to Offer
·
How to Talk to Them
Effect Over Time
7. For an organisation of your choice, outline, detail and justify key methods of retaining customers in order to increase profits.
Good answers
will relate various methods, e.g.
·
Membership Clubs
·
Loyalty Schemes
·
Customer Care
·
Sales Promotion
To the key
areas of retention:
·
Up-selling
·
Cross-selling
·
Renewal
·
Extending lifetime and
therefore lifetime value
Resit Summer 2001
MKT359
Direct Marketing & Internet Marketing
3 Hours
Answer any 3 questions
All questions carry equal marks.
· In addition to basic contact and customer information, customer databases contain FRAC information. What does FRAC stand for and why is this information useful?
· Retaining customers is 5 times cheaper than acquiring new ones. What techniques and strategies might you use to retain customers? Illustrate your answer with examples from an organisation of your choice.
·
Identify the Direct Marketing process and the steps you
could take to increase profits using the Spiral of Prosperity model.
·
With reference to a company that you have studied discuss
which customer groups you would target as a first priority in an effort to
generate short term sales increase? Which customer groups might be less of a
priority?
·
Outline reasons for the growth of internet on-line shopping
and discuss any factors inhibiting this growth, focusing on the consumer’s
viewpoint.
·
Your Marketing Director has asked you to outline the
advantages of the Internet as a means of i) acquiring new customers and ii)
retaining existing customers. Outline your report to her.
·
Comment on Safeway’s decision to scrap their supermarket
loyalty scheme on the basis that they “provide discounts to all customers, all
the time so we don’t need a loyalty card.”
Marking
Guidelines
Summer
2001 Resit Paper
1. In addition to basic contact and customer information, customer databases contain FRAC information. What does FRAC stand for and why is this information useful?
Good answers
will comment on:
o
Frequency
o
Recency
o
Amount
o
Category
and their
use in profiling customers and determining how to communicate with various
types of customer.
2. Retaining customers is 5 times cheaper than acquiring new ones. What techniques and strategies might you use to retain customers? Illustrate your answer with examples from an organisation of your choice.
Good answers
will relate various methods, e.g.
·
Membership Clubs
·
Loyalty Schemes
·
Customer Care
·
Sales Promotion
To the key
areas of retention:
·
Up-selling
·
Cross-selling
·
Renewal
·
Extending lifetime and
therefore lifetime value
3. Identify the Direct Marketing process and the steps you could take to increase profits using the Spiral of Prosperity model.
o
Identify Prospects
o
Target Media
o
Sell Products
o
Get Customer Information
o
Build Database & Analyse
o
Talk to Customers Regularly
o
Cross-Sell, Up-Sell, Renewal
o
Increase Customer Value
o
More Profits/Analyse Database
Good answers
will clearly place each of the stages in the context of the chosen
organisation.
4. With reference to a company that you have studied discuss which customer groups you would target as A first priority in an effort to generate short term sales increase? Which Customer groups might be less of a priority?
Good answers
will prioritise:
o
Present Customers &
Member-Get-Member
o
Former Customers
o
Unconverted Enquirers
o
Profiled Groups through
Selective Media
o
Unprofiled groups through
Broadscale Media
5. Outline reasons for the growth of internet on-line shopping and discuss any factors inhibiting this growth, focusing on the consumer’s viewpoint.
Advantages:
·
Choice - Product Depth,
Global Reach, Price Choices
·
Information - Detailed
Product Info. Inventory, Order Status
·
Interactive, Online Support
·
No Travel and Parking
·
Timing - Opening Hours
·
Privacy
Disadvantages:
·
Technophobia
·
Security Fears
·
Technology not User Friendly
·
Slow Download
·
Inertia
6. Your Marketing Director has asked you to outline the advantages of
the Internet as a means of i) acquiring new customers and ii) retaining
existing customers. Outline your report to her.
Good answers will make use of the AIMRITE (Audience, Impact, Message, Response, Internal Management, The…End Result) model in relation to
§
Acquisition,
§
Retention of customers for
this sector.
7. Comment on Safeway’s decision to scrap their supermarket loyalty
scheme on the basis that they “provide discounts to all customers, all the time
so we don’t need a loyalty card.”
Good answers
will focus on the value of the data captured by the loyalty card system
enabling Tesco to discover:
·
Visit Patterns
·
Departmental Usage
·
Spend Levels
·
Purchase Types
·
Lifestage
·
Coupon Redeemers/Non
Redeemers
and thus to
determine:
·
Who to Target
·
What to Offer
·
How to Talk to Them
Effect Over Time