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Marketing Management

Customer Relationship Management

Dimitri Kapelianis
School of Management
University of New Mexico
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Agenda

 The marketing minute (or fifteen)

 Admin stuff:
 Return Quiz 2
 Info about Quiz 3
 Group Project Status Reports

 Class objectives for this session

 Theory: Customer Relationship Management

 Case: Rosewood Hotels

 Homework for next class

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Quiz 1 Quiz 2
 Count = 25  Count = 23
 Mean = 78.4%  Mean = 83.5%
 s.d. = 8%  s.d. = 9%
 Max = 96%  Max = 96%
 Min = 64%  Min = 68%
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Info about Quiz Three
 Three quizzes in total; keep two highest scores
 Collectively, 20% of final grade
 Third quiz on Tuesday, 30 March
 Covers READINGS from sessions 6 to 9, inclusive:
 Building Loyalty in Business Markets (HBR)
 Financial Analysis for Profit-Driven Pricing (Sloan)
 Customer Profitability and Lifetime Value (HBR
 30 minutes long, from 6PM to 6:30PM
 25 multiple choice questions
 Focus on knowledge of readings, plus some math
 Calculators are permitted, laptops are not
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Group Project
Status Reports
Class objectives
 Explain the concept of customer lifetime value (CLTV) and the
importance of maximizing a customer’s lifetime value for the
firm
 Learn the components of customer lifetime value and how each
component can be estimated.
 Calculate customer lifetime value on a combination of financial
and nonfinancial data.
 Explore the risks and opportunities associated with corporate
branding vs the branding of individual products
 Devise specific strategies to increase customer’s lifetime value.
 Select appropriate strategies to deal with unprofitable
customers
 Identify the main determinants of customer equity
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Our perspective in this class

The Chain of
Marketing
Productivity
The Chain of Marketing Productivity
Understanding
Customer Behavior

Segmentation
Opportunity Assessment
Targeting

Marketing Strategy Positioning

4Ps:
Marketing Assets . Product
. Price
. Distribution
Financial Position . Promotion
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Theory

Customer Relationship
Management
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The case: Rosewood Hotels

1. Why is Rosewood considering a new brand

strategy?

2. What are the pros and cons of moving from

individual brands to a corporate brand?

3. Will the move to corporate branding maximize firm

Class objectives
 Explain the concept of customer lifetime value (CLTV) and the
importance of maximizing a customer’s lifetime value for the
firm
 Learn the components of customer lifetime value and how each
component can be estimated.
 Calculate customer lifetime value on a combination of financial
and nonfinancial data.
 Explore the risks and opportunities associated with corporate
branding vs the branding of individual products
 Devise specific strategies to increase customer’s lifetime value.
 Select appropriate strategies to deal with unprofitable
customers
 Identify the main determinants of customer equity
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Homework for next class

Managing Across Geographies

READING: Golden Arches Bridge Local Tastes (Financial Times)

Reversing Field, Macy‟s Goes Local (WSJ)

CASE: Colgate Max Fresh

(LAST case eligible for write-up)