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The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity afforded companies to choose how they interact with their customers. The web allows companies to build better relationships with customers than has been previously possible in the offline world. This revolution in customer relationship management (CRM) has been referred to as the new "mantra" of marketing. However, a problem is that CRM means different things to different people. This article develops a comprehensive CRM model incorporating seven phases: database creation, analysis of the database, customer selection, customer targeting, relationship marketing, privacy issues, and new metrics necessary for evaluating the CRM effort. Also discusses the implications of CRM for future marketing organizations.

Academics and practitioners alike have been arguing about whether the Internet brings a revolutionary change in the fundamental way we do business or whether it simply offers a new distribution channel and communication medium. Regardless of the answer to that debate, one thing is certain: the Internet provides managers with an enormous amount of customer information that was previously unavailable. Thus, the new struggle has been to manage this information and to use it accurately and efficiently to measure customers, trends, and performance. However, the volume of this data has overwhelmed many e-commerce managers. As a result, e-commerce managers have been focusing on aggregate-level summary statistics rather than fully leveraging their data. Using commonly available clickstream data, this article discusses the benefits of separating an individual customer's buying behavior into simple patterns of visits and purchasing conversion. This analysis of the buying process allows us to examine more carefully the relationship between store visits and purchasing behavior.

As relationships and service become increasingly pivotal in business, the profitability of customers is becoming more important than the profitability of products. In this environment, marketing success will be equivalent to generating maximum profits from a firm's total set of customers. Doing so requires allocating managerial resources to the groups of customers that can be cultivated most efficiently by a firm. This article presents a management methodology called the "Customer Pyramid" that enables a firm to supercharge its profits by customizing its responses to distinct customer profitability tiers. The Customer Pyramid provides a tool for managers to strengthen the link between service quality and profitability and to determine the optimal allocation of often scarce resources to maximize profitability. Product and service strategies, customized for each customer tier, become more closely aligned with an individual customer's underlying utility functions. This results in more effective and profitable strategies for serving the customer. Also provides numerous examples and practical guidelines for improving firm profits by moving customers up the Customer Pyramid.

This case centers on the decisions a key executive must make to restore the image and profitability of his multinational pizza franchise in Porto Alegre, Brazil. The case contains information on franchising in Brazil and background information on both the franchiser and franchisee (disguised). In addition, the student is given information about Brazil; Brazilian dining habits and preferences with specific regard to pizza; information on competitors; and key aspects of IPH's marketing strategy and operations. .

Stella Artois, Interbrew company's flagship brand of beer, has experienced phenomenal success on the international market. The United Kingdom market has played a critical role in that success, and Interbrew needs to assess the reasons for this. Interbrew's managing director and chief marketing officer are meeting to have a discussion about how to proceed in developing the Stella Artois brand. First, they need to understand what part of the company's success was due to expert marketing practices and what part might possibly be due to being in the right place at the right time. They also want to assess what possible steps might be taken to spread these practices across the corporation for use in the company's global marketing strategy.

Stella Artois, Interbrew company's flagship brand of beer, has experienced phenomenal success on the international market. The United Kingdom market has played a critical role in that success, and Interbrew needs to assess the reasons for this. Interbrew's managing director and its chief marketing officer are meeting to have a discussion about how to proceed in developing the Stella Artois brand. First, they need to understand what part of the company's success was due to expert marketing practices and what part might possibly be due to being in the right place at the right time. As well, they want to assess what possible steps might be taken to spread these practices across the corporation for use in the company's global marketing strategy.

Subaru markets an L.L. Bean Outback station wagon. Dell stamps Microsoft and Intel logos on its computers. Such interweaving of different companies' brands is now commonplace. But one of the central tools of brand management--portfolio mapping--has not kept pace with changes in the marketplace. Most conventional brand maps include only those brands owned by a company, arranged along organizational lines with little regard for how the brands influence customer perceptions. In this article, the authors present a new mapping tool--the brand portfolio molecule--that includes all the brands that factor into a consumer's decision to buy, whether or not the company owns them. The first step in creating a brand portfolio molecule is to determine which brands should or should not be included. The second step is to classify each brand by asking five key questions: 1) How important is this brand to customers' purchase decisions about the brand you're mapping? 2) Is its influence positive or negative? 3) What market position does this brand occupy relative to the other brands in the portfolio? 4) How does this brand connect to the other brands in the portfolio? 5) How much control do you have over this brand? The last step is to map the molecule using a 3-D modeling program or by hand with pen and paper.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 1, "Winning Is Everything," presents the book's major themes. The author demonstrates that launching well-targeted new products with all possible speed is the linchpin of corporate success, not just yielding new revenues but increasing the financial value of companies that achieve a reputation for innovation. The author also considers the high odds of failure with new products and initiates his perspective on beating those odds.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 2, "New Products: Problems and Pitfalls," looks at the reasons why new products fail -- and what goes wrong with product innovation before product launch. The author's stated hope is "that we are not doomed to repeat the same mistakes year after year."

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. In Chapter 3, "What Separates the Winners from the Losers?," the author shows that new product success is both predictable and controllable. He emphasizes the importance of marrying technological prowess to a strong market orientation; undertaking one's homework before product development begins; logically sequencing the flow of activities as projects moved from idea to launch; and encouraging interaction between people from different functional groups within each firm.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 4, "Lessons for Success: The Critical Success Factors," integrates lessons from the first three chapters into fifteen key lessons for new product success, which the author then builds into a game plan for winning at new products.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 5, "The New Product Process: The Stage-Gate Game Plan," is the first of six chapters on the implementation of the author's Stage-Gate, a process for driving new products to market successfully and quickly. In this chapter, the newest version of Stage-Gate-a beginning-to-end product innovation road map-is introduced.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 6, "Discovery: The Quest for Breakthrough Ideas," is the second of six chapters on the implementation of the author's Stage-Gate, a process for driving new products to market successfully and quickly. The author presents his thinking on the earliest phase of the Stage-Gate process: coming up with breakthrough new product ideas.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 7, "The Early Game: From Discovery to Development," is the third of six chapters on the implementation of the author's Stage-Gate, a process for driving new products to market successfully and quickly. Having discussed the emergence of new product ideas in Chapter 6, the author here lowers the microscope on the next stages of the new-product process, where, in his view, success or failure is largely decided. Key topics include "scoping" and "building the business case."

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 8, "Picking the Winners: Effective Gates and Portfolio Management," is the fourth of six chapters on the implementation of the author's Stage-Gate, a process for driving new products to market successfully and quickly. The chapter deals with portfolio management and picking the winners; it focuses on the decision points in the process and considers ways to improve the odds of picking the right projects and achieving the right balance of products in a portfolio.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 9, "Development, Testing, and Validation," is the fifth of six chapters on the implementation of the author's Stage-Gate, a new-product process for driving new products to market successfully and quickly. The chapter considers such topics as seeking customer input in product development, shortening development times, and testing products with customers as their development approaching completion.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 10, "The Final Play-Into the Market," is the last of six chapters on the implementation of the author's Stage-Gate, a process for driving new products to market successfully and quickly. The chapter addresses topics such as defining a target market, positioning the product, and establishing a value proposition for the product.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. Chapter 11, "Implementing the Stage-Gate Product Process in Your Company," looks at implementation issues. The author considers the results achieved by businesses that have implemented the Stage-Gate new-product process. He also provides insights into how to design and implement Stage-Gate within your business.

In the Third Edition of Winning at New Products, published by Basic Books and distributed by Perseus Books, Professor Robert Cooper of McMaster University demonstrates why consistent product development is vital to corporate growth and explains methods for maximizing the chances of success. The book's final chapter -- Chapter 12, "A Product Innovation and Technology Strategy for Your Business" -- deals with strategy. The author look at how the tactics of new product process fit into the larger picture, addressing the following questions: In which arenas should you play the game? How should you enter each arena? How should you allocate your resources? What strategic or key initiatives should you undertake?

Spreadsheet supplement for case 501-070.