Benefits and Challenges of Targeted Marketing

Essay by didieveUniversity, Bachelor's January 2005

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This case discussed how Cypress Semiconductor Corp. and Fleet Financial Corp. created a customer satisfaction questionnaire which was web-based and how successful it was for there company. The online questionnaire once filled out by a customer is sent immediately to the company where they can review it and action it immediately. It was able to show the company what they needed to target to ensure that there customer satisfaction was at its best. With data warehouses, data marts, data mining tools, statistical and analytical software and CRM systems companies are able to become more sophisticated with their customer research and marketing. These tools have been vital to the company's success and customer satisfaction.

1. How does the use of Internet technologies to support the marketing function at Cypress Semiconductor improve business and customer value? This company has been able to get immediate feedback from their web-based questionnaire that they have been able to use to make the necessary changes, additions or subtractions to their current policy and procedures.

This has increased their customer satisfaction which in turn has improved their business.

2. What are the benefits and potential challenges of FleetBoston's use of IT to support their targeted marketing programs? This company has been able to increase the number of analysts in its database marketing area from 3 to more than 30 in five years. This has boosted the returns from it's sales campaigns tenfold. They have been able to compute and track the profitability of every customer and compute the cost of every kind of transaction and customer interaction from the use of IT. They use AI (artificial intelligence) system to analyze real time transactions and can spot spending patterns that increase or decrease. They have been able to cut their attrition rate in half with the use...