Former United States Postal Minister and father of the U.S. department store, John Wanamaker, famously exclaimed, "I spend half my advertising budget on wasted efforts, but I don't know which half." Additionally, marketing expert Philip P.M. notes that sales promotion expenses are often ineffective, with only one-tenth of such activities garnering a response rate higher than 5%. Unfortunately, this issue highlights the inherent flaws of traditional marketing systems.
In contrast, precision marketing systems utilize modern information technology to provide a more effective approach. This new marketing mode is based on a theoretical foundation that targets individual consumers with tailored messages and promotions. By analyzing large data sets, precision marketing systems can accurately predict consumer behaviors and preferences, allowing for a more efficient use of resources.
This paper will explore the deficiencies of traditional marketing systems and the benefits of precision marketing systems. It will also discuss the theoretical basis and mechanisms of precision marketing systems that have revolutionized the modern marketing industry.
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