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New Economy Emotion This page intentionally left blank The New Economy Excellence Series New Economy Emotion: Engaging Customer Passion with E-CRM Alfredo Zingale and Matthias Arndt JOHN WILEY & SONS, LTD Chichester • New York • Weinheim • Brisbane • Singapore • Toronto Copyright © 2001 by John Wiley & Sons Ltd, Baffins Lane, Chichester, West Sussex po19 IuD, England National 01243 779777 International ( + 44) 1243 779777 e-mail (for orders and customer service enquiries): cs-books (@wiley.co.uk Visit our Home Page on http://www.wiley.co.uk or http://www.wiley.com Alfredo Zingale and Matthias Arndt have asserted their rights under the Copyright, Designs and Patents Act, 1988, to be identified as the authors of this work. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London, UK W1P 4LP, without the permission in writing of the publisher and the copyright holder. Other Wiley Editorial Offices John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, USA WILEY-VCH Verlag GmbH, Pappelallee 3, 0-69469 Weinheim, Germany John Wiley & Sons, Australia Ltd, 33 Park Road, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01, Jin Xing Distripark, Singapore 129809 John Wiley & Sons (Canada) Ltd, 22 Worcester Road, Rexdale, Ontario M9W ILI, Canada British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 0-470-84135-4 Typeset in II/I4pt Garamond by Mayhew Typesetting, Rhayader, Powys Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire This book is printed on acid-free paper responsibly manufactured from sustainable forestry, in which at least two trees are planted for each one used for paper production. This book is dedicated, with love, to Annette, my better half, who contributed steadfast encouragement and time I would have otherwise spent with her, and also to Laura, cheerful friend, who instigated the idea of the book in the first place Alfredo Zingale to Bernhard, unquestionably the best grand-father in the world Matthias Arndt 'In the morning sow thy seed, and in the evening withhold not thine hand: for thou knowest not whether shall prosper, either this or that, or whether they both shall be alike good.' Holy Bible, King James Version, Ecc. II:6 This page intentionally left blank CONTENTS Chapter 1 Chapter 2 Introduction xi Marketing and the Internet The Internet: a unique phenomenon An enabling and disruptive technology The Internet and business success: what has changed The Web: a dreamed-of marketing tool E-marketing: where is it coming from, where is it going? Mass marketing Segment marketing Database marketing One-to-one marketing The challenges for e-marketing Market focus and value propositions Understanding and managing the total customer experience Delivering brand promises Building lasting customer relationships Establishing a dynamic presence in the market Measuring results 1 1 3 4 5 Relationship marketing on the Web The additional value delivered by marketing Content is king Content integration and aggregation The pivotal role of content management Global, local or both? What's your reason for being on the Net? Convey information about company, products and distribution Reduce cost of selling To sell or not to sell online Increase the productivity of your sales channels Attract new business 6 7