This is why it is worth investing in the development of the relationships with the already existing valuable clients from this point-of-view, it would be a right time to bring into discussion the concept of empowerment. Well chosen representatives of the organization can be given the power to establish and negotiate relationships of commitment with the customers. The organization must nevertheless keep in mind the fact that the relationship must be mutually advantageous. Consequently, a constant development of the products and services must be taken into consideration as well as a continuously adapted client management scheme.
The target clients must be thoroughly segmented and each of the needs must be addressed in a specific mode. Demographic data is important but is not relevant if taken into consideration alone. Geographic locations, attitudes, etc. also need to be taken into consideration. Just as Cobb says, a company will "need to apply an array of effective marketing mechanisms to deliver the right offer to the right customer at the right time at the right cost." In order to fulfil this obviously difficult task, an organization may need to take into consideration aspects such as risk, client profitability and communication.
Communication has proved to be essential in establishing and maintaining relationships. It is with its help that an organization may become aware of the changes which occur in the customers' preferences. Feedback helps the company come up with future strategies. At the same time, communication helps the organization keep an eye upon the surrounding environment (competitors included).
d. Cadillac is one of the companies which has had an important history as far as marketing to its customers is concerned. The company became famous for one of the choices that it made in time of crisis. Just as Berkowitz says, the "company managed to save itself by choosing to sell to the Afro-American population."
This statement is very interesting to analyze since it is obvious that the main criterion chosen for the segmentation of the target population was in this case ethnicity. Discussing this issue from the perspective of Customer Relationship Management, it can be said that the company took into consideration an important cultural element when addressing a new target public. Although it is known that it is cheaper to invest in the relationships with the already existing clients, there are times of crisis when a decision such as the one taken by Cadillac can prove to be wise. And wise it was, since it brought the company the desired amount of profit.
In order to benefit from an efficient Customer Relationship Marketing experience, a company must be in the possession of all the technologies which allow it to monitor the behaviour of the clients. Since Cadillac chose at some point to focus on the Americans of African origin, it was important for them to know how to address this particular target. The ethnic variable is important under these circumstances because it plays a great influence upon the construction of a social identity. Such a factor could not have been ignored in the context in which Cadillac could not afford a new failure.
It is known that life in the African-American communities is sometimes led according to rules and principles which are not too often to be found in the other communities. They can very well influence the acquisition behaviour of people, regardless of the type of item (from commodity goods to high-end luxury products).
Apparently, the already existing attributes of the Cadillac brand, as well as the already existing groups of clients are not enough in order to allow the company to maintain the desired profits quota. This is how one can explain the declared intention of the company to expand its range of customers. Such is the case of the campaign that Cadillac launched during the summer of 2007, under the name of "Life. Liberty. And the Pursuit."
The purpose of the campaign is to reignite America's love affair with the brand" (Webwire). Reading between the lines, one can see that the interest for this particular car brand has diminished. In order to refresh the attention and the interest among the already existing clients, but also among prospects, the company has come up with a communication and marketing campaign. This campaign has the purpose to attract attention upon the brand and hopefully increase sales as well.
Since being product-centric has not proved to be beneficial for the company from long-term perspective, it...
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