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Permission marketing is reshaping how companies engage with consumers, leveraging both old and new media. This approach allows consumers to voluntarily opt-in to marketing communications, fostering trust and interactivity. Advances in technology have made personalized dialogues cost-effective, ensuring more relevant consumer interactions. However, increasing concerns about data privacy necessitate a clear framework for permission and self-regulation. Businesses must integrate market media strategies and embrace organizational change to optimize interactivity and enhance customer relationships.
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How is the IT-Driven Concept of “Permission Marketing” Changing the Way Companies Establish Customer Relationships Using “Old” Media as well as New?By Janice Williams Donaldson
Major Changes • Technology enables interactivity and relationship marketing • Technology increases consumer concern and opportunities to misuse information • Permission decreases consumer concern and engenders confidence and trust • Permission marketing requires media integration • Interactivity optimization requires organizational change
What is Permission Marketing? • Consumer volunteers for marketing message • Interactive relationship • Rewards for participation • Anticipated, personal and relevant
Permission Targeted Interactive Relational Interruption Mass Passive Transactional How is it Different?
Technology Enables Permission • Cost-effective • Targeted • Customized • Dialogue vs. monologue • Frequent
“Today, however, because of interactive technology, it has become cost-effective once again to conduct individual dialogues, even with millions of consumers, one customer at a time.” --Don Peppers Godin, S. (1999). Permission marketing: Turning strangers into friends, and friends into customers. New York, NY: Simon & Schuster.
Information & CommunicationsTechnology • Database management marketing • The Internet • Web sites • E-mail • Consumer networks or communities • Personal or mobile communications
Technology Increases Consumer Concerns • Ease of collection, storage and exchange of personal data • “Cookies” and tracking software • Notice and consent
Direct mailing Preference tracking Unwanted eavesdrop No opting-out Third-party distribution Improper acquisition Access Collection Monitoring Improper use Analysis Transfer Privacy invasion Unwanted solicitation Improper storage Taxonomy of Privacy Concerns Wang, J., Lee, M. & Wang, C. (1998). Consumer privacy concerns about Internet marketing. Communications of the ACM, 41, p. 65.
Businesses Standards Trust Frameworks Self Regulation Infomediaries Consumers Anonymity Encryption Access Control Filtering Reactions
Permission Decreases Concerns • Clear permission to use personal data • Non-transferable permission • Permission ladder/“permission creep” • Relationship approach focuses on lifetime customer value
Permission RequiresMedia Integration • Role of “old” media and new • Passive vs. interactive • Future implications
Permission Marketing RequiresOrganizational Change • Gamma-Level Change • Technology • Tasks • People • Structure • Outsourcing • Marketing solution providers
So What? • Advancing technology brings more interactivity • Interruption marketing continues to decline in effectiveness • Measurable marketing results depend on targeting, customization and relationship • Access to information denied without consumer confidence and trust
Challenge to Marketers “To save relationship marketing, managers will need to separate rhetoric from reality … There’s a balance between giving and getting in a good relationship. But when companies ask their customers for friendship, loyalty and respect, too often they don’t give those customers friendship, loyalty and respect in return.” Fournier, S., Dobscha, S., & Mick, D. (1998). Preventing the premature death of relationship marketing. Harvard Business Review, 76, 42, 46.
In Conclusion • Technology enables interactivity. • Interactivity is fundamentally reshaping marketing strategy using “old” media and new. • Interactivity requires information. • Information technology leads to privacy concerns. • Permission mitigates consumer distrust. • Interactivity optimization requires organizational change.