Part A-

Question 1: We have covered RFM Analysis and Categorical Models in class. Both of these are widely used in the industry, especially by progressive companies that have a CRM focus.

Conduct a literature search to find examples of RFM Analysis and/or Predictive Models used by companies. Write about any one example in detail, citing your source.

Alternatively, contact a company that likely uses RFM Analysis and/or Predictive Models. Interview the person(s) knowledgeable about the use of these advanced CRM methods and report on your findings.

Question 2: List 4 ways that companies can use to develop customers. For each of these, write about an example from your own personal experience where you noticed a company using the particular tactic to "develop" you as a customer.

Part B-

Question 1: Global software sales have been very, very good to Microsoft. Microsoft has a global pricing policy that calls for charging approximately the same amount in every world market. Today, however, Microsoft's pricing structure faces a threat from open source software that is distributed for free. The term open source software describes a software program for which the source codes -the original program instructions-is made available so that users can make modifications. Worldwide, fully 25 percent of servers run Linux-based operating systems; increasingly, Linux is being used in PCs as well. Microsoft's virtual monopoly on PC operating systems may be at risk, especially in developing countries. In developing countries, governments aim to put PCs into the hands of ordinary citizens and small businesses. Government agencies are looking for the best price, making free Linux software very attractive. Developing countries are not alone in looking for cheaper alternatives to Microsoft. The French government is also considering open source options.

Talk to at least one person knowledgeable about Linux. Also read about Linux and its various "flavors" or "distros" (distrowatch.com may be a useful website for this), and answer the questions below.

1. If Linux wants to challenge the superior market position of Windows in the US, what target market should they focus on?

2. How should Linux position itself in the US?

Question 2: Assume you work at a regional state university whose traditional target market, high school students within your region, is projected to decrease over the next ten years.

1. Recommend other potential market segments.

2. Which of these segments should the university focus on, and why?