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iTV in Pharmaceutical Marketing: Building Customer Relationships Through a New ChannelProduct Type: Market Research ReportPublished by: Datamonitor Published: November 2002 Product Code: R313-5222 Description This Brief evaluates the interactive TV (iTV) market and its application in customer relationship management (CRM). The level of CRM offered by iTV is currently very basic, but will likely evolve as the adoption of iTV expands. The pharmaceutical industry can prospectively use iTV for marketing and CRM to increase customer contact, loyalty and revenues.Coverage: US, EuropeApplication of iTV in analytical and operational CRMBreakdown of four operational CRM models by level of interactivityMillions of homes in the UK and Western Europe already use interactive TV over satellite, cable and local broadcast services. Commercial iTV operations in the US were launched in 2000 with consumer rollouts scheduled through 2004 and beyond.iTV can improve the length and quality of consumer interaction with a brand and thus serve as an effective marketing avenue. The use of iTV for CRM will be limited by the adoption rate of iTV and the evolution of its technological capabilities.As the technology evolves, pharmaceutical companies will include iTV as an increasingly large component of their direct-to-consumer marketing mix in the US. The companies that pioneer the use of this marketing avenue are likely to gain competitive advantage particularly if they are able to maintain customer relationships established early.Understand the status of the current iTV market and how it can be used to improve customer relationship management and foster brand loyaltyGain insight into the future of CRM using iTV, specifically video chat, personalized advertising and audience controlled interactive advertisingLearn which strategic opportunities exist for pharmaceutical companies in using iTV to increase customer contact, loyalty and revenuesTable of Contents Overview Introduction This Brief evaluates the interactive TV (iTV) market and its application in customer relationship management (CRM). The level of CRM offered by iTV is currently very basic, but will likely evolve as the adoption of iTV expands. The pharmaceutical industry can prospectively use iTV for marketing and CRM to increase customer contact, loyalty and revenues. Scope Coverage: US, Europe Application of iTV in analytical and operational CRM Breakdown of four operational CRM models by level of interactivity Report Highlights Millions of homes in the UK and Western Europe already use interactive TV over satellite, cable and local broadcast services. Commercial iTV operations in the US were launched in 2000 with consumer rollouts scheduled through 2004 and beyond. iTV can improve the length and quality of consumer interaction with a brand and thus serve as an effective marketing avenue. The use of iTV for CRM will be limited by the adoption rate of iTV and the evolution of its technological capabilities. As the technology evolves, pharmaceutical companies will include iTV as an increasingly large component of their direct-to-consumer marketing mix in the US. The companies that pioneer the use of this marketing avenue are likely to gain competitive advantage particularly if they are able to maintain customer relationships established early. Reasons to Purchase Understand the status of the current iTV market and how it can be used to improve customer relationship management and foster brand loyalty Gain insight into the future of CRM using iTV, specifically video chat, personalized advertising and audience controlled interactive advertising Learn what strategic opportunities exist for pharmaceutical companies in using iTV to increase customer contact, loyalty and revenues Drivers and trends In the UK and Western Europe, millions of homes already use interactive TV over satellite, cable and local broadcast services. Commercial iTV operations in the US were launched in 2000 with consumer rollouts scheduled through 2004 and beyond. The level of CRM offered by iTV is currently very basic, but will likely evolve as the adoption of iTV expands. In order to build customer relationships, pharmaceutical companies have traditionally used print and television advertising and, more recently, online marketing. The Internet has provided the opportunity for a greater level of interactivity with the user. Similarly, iTV can serve as another marketing avenue to enhance customer contact. The Brief examines customer relationship management in relation to the iTV environment and the opportunities for operators, broadcasters and brands to use CRM to improve customer contact and loyalty: As the iTV market evolves in terms of technology and usage, what role will it play in the pharmaceutical industry’s marketing mix? What potential role will iTV play in both analytical and operational customer relationship management? As the iTV market develops and associated technologies and business models evolve, how can competitive advantage be optimized? What functions will video chat, personalized advertising and audience controlled interactive advertising have in the future iTV market? What opportunities exist for pharmaceutical companies to use iTV to increase customer contact, loyalty and revenues? ANALYTICAL AND OPERATIONAL CRM Customer relationship management can be described broadly as comprising two core sets of strategies and technologies, reflecting two different ways of exploiting the relationship. Analytical CRM can be used to better understand the iTV audience. Operational CRM techniques can be used to bring the consumer into more frequent and hopefully more profitable contact with the company, but at a cost. Careful analysis of usage data from iTV can provide companies with detailed information on the preferences of their audience or customer base. In theory, obtaining and using this data will be easier than engaging in operational CRM activities that require a much more personalized one-on-one involvement between the company and the consumer. In order to more accurately target consumers with a product, a better understanding of the audience through data collection is essential. Operational CRM on iTV may be used side-by-side with analytical tools to further sales and marketing efforts. Operational CRM over iTV also allows companies to maintain frequent and intimate contact between the brand and the consumer. Personalized and targeted sales efforts are possible as are much more personalized responses to customer queries or issues. When used with analytical tools, operational CRM allows the company to determine who its most profitable clients are. APPLICATION IN PHARMACEUTICAL MARKETING Marketed pharmaceutical products typically target patients with a particular condition and, therefore, involve a high level of involvement on the part of the consumer. The number of differences between a pharmaceutical product and its competitors is different from market to market. In certain cases, the differences between products may be significant and, in others, minor. Given the high level of involvement of consumers when looking at information on health-related products, iTV presents a promising channel to present product information and interactive tools to consumers. In contrast to websites, iTV can potentially reach consumers with interactive marketing when they are away from their computers. The convenient access to such information and product interaction on a pull basis will drive the use of iTV CRM by pharmaceutical companies. As the technology evolves, pharmaceutical companies will include iTV as an increasingly large component of their direct-to-consumer marketing mix in the US. The companies that pioneer the use of this marketing avenue are likely to gain competitive advantage particularly if they are able to maintain customer relationships established early. iTV can improve the length and quality of consumer interaction with a brand and thus serve as an effective marketing avenue. The use of iTV for CRM will be limited by the adoption rate of iTV and the evolution of its technological capabilities. ACTION POINTS Two key action points for pharmaceutical companies Action point 1 - The future of CRM involves techniques tailored to the iTV medium that will challenge current perceptions of how television should be used by companies. CRM can be broadly described as comprising two core sets of strategies and technologies based on how they exploit the customer relationship: analytical and operational CRM Action point 2 - Given the scope of the prospective iTV market, pharmaceutical companies should consider including iTV in their direct-to-consumer marketing strategies in the US. The increased level of interactivity that is possible with this medium should allow for more effective marketing to consumers DATASETS Figure 1: Operational and analytical CRM Figure 2: Four aims of analytical CRM over iTV Figure 3: The evolution of business intelligence Figure 4: Four operational CRM models by level of interactivity Figure 5: Consumer behavior matrix - product involvement and differentiation |
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