The Targeting Strategy
the business that I am going to examine is a typical business to consumer type dealing with music related product sales and distribution directly to customers (direct sell). All music is an e-commerce site that provides a large inventory of musical genres. It has a user friendly search engine to explore the huge music database of the site. It provides advanced searching methods that help the user to explore the database according to mood, genre, and song and album title. All music provides moreover to the user an extra service that can give him/her the opportunity to become a registered member of the site (free) in order to gain specific information concerning: special prices, offers, music information according to his/her preferences, advanced search, expanded artist information (credits, songs), editorial features as well as the ability to listen audio samples (30 second duration) before purchasing the record. Moreover it uses a 5 star album rating system with 5 being the best rating in order to assist the customer about the specific release.
The Targeting strategy that All music utilizes is based on market segmentation in order to collect and manipulate current and prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.
Our target group comprised on:
· Age primarily males and females aged 18-30 years
Customers that like to purchase musical products such as cd-albums, t-shirts, music accessories as well as musical concerts.
Living in Western Europe and America and can be able to perform credit card transactions.
The main reason that All music focus more on those areas is due to the fact that the specific customers (from statistical information):
1) Perform on-line transactions via credit card on a daily basis (have proper knowledge of the internet technology)
2) Affluent target groups that are affordable to pay for music downloads and cd-purchases charged by record labels via the internet.
The data that should be maintained in the specific marketing database should be:
* Customer ID
· Customer name
* Customer gender
* Customer age
* Customer marital status
* Customer address
* Customer telephone (or cell phone)
* Customer email
* Customer search history
* Financial information
· Preferred genre
· Prospect customer
Source (where will All music get the data sources?)
All music should use information concerning the data sources both external and internal. Examining the external data all music will get the data elements with the use of a combined approach of compiled and response data in order to identify the source of information. To be more specific through compiled data all music will collect from business data supplier’s information concerning a variety of primary sources including music surveys and phone books. Through this method the company will gather general information for prospect customers. On the other side with the use of response data, that is more expensive than the compiled data, the company will acquire valuable and responsive information about customer segments (ex. information concerning subscription of a prospective customer in a web site music catalogue). Another external source that all music should get data elements is from the application of banners to music related sites in order to attract prospect customers. It is been advertised in big portals-search engines like yahoo, excite, Google etc. When the prospective customer enters music related keywords a highlighted logo of all music sites appears.
Examining the internal sources all music manipulates customer information from the server of the company that is the pre existing database that is collected over the years .Another internal source…