Database Reference
In-Depth Information
Differentiated
One-to-one
customized
marketing
Key accounts
management
Mass
marketing
Target
marketing
Uniform
Low High
Diversity of customer needs
Figure 1.2
Marketing techniques for different types of customers.
Don Peppers and Martha Rogers pioneered the concept of one-to-one marketing made pos-
sible by the advent of computer-assisted database marketing. Figure 1.2 represents the entire spec-
trum of customers and the corresponding marketing techniques. The horizontal axis measures the
diversity of customer needs, and the vertical axis measures the differentiation in
customer valua-
tions
. The representative businesses for each of the quadrants are as follows: Gas Station, bookstore,
airlines, and a computer systems company.
According to Don Peppers and Martha Rogers, the following patterns have been observed:
1. Businesses with relatively undiversified customer needs and relatively uniform customer
valuations will do best with mass marketing techniques (refer to Section 1.2.7.1 “Customer
Va lue”)
2. Businesses with diversified customer needs but uniform valuations can benefit from target
marketing
3. Businesses with relatively undiversified customer needs but with highly differentiated cus-
tomer valuations will benefit immensely with a key account management approach
4. Businesses with highly diversified customer needs and highly differentiated customer valua-
tions will benefit from one-to-one customized marketing
How does one handle a set of highly differentiated customers having a large diversity of needs? It
is through customer responsiveness that is discussed later. In Chapter 2, Section 2.6 “Customer-
Triggered Company,” we describe the latest variation of the traditional CRM geared to handle
such customers. Section 1.3 “Management by Collaboration” introduces a unifying framework for
the various aspects of the CRM-enabled
extended collaborative enterprise
(ECE) and sets the tone
for the rest of the topic as well. We end the next chapter with a discussion of how CRM systems
such as SAP CRM provide the new organizational architecture essential for the extended enter-
prise of the twenty-first century.
The enterprises' business model governs both its business strategy and its use of IT. Figure
1.3 shows the product-process change matrix that illustrates the four distinct business models
based on
