...------------------------------------------------- Customer Relationship Marketing ------------------------------------------------- Customer Relationship Marketing The Importance Of CRM in Business-to-Business Practices The Importance Of CRM in Business-to-Business Practices Contents 1. Introduction 2 2. The Importance of Customer Relationship Marketing 3 2.1 Business Buyer Characteristics 4 2.2 Collaborative Relationships 5 3. Customer Relationship Marketing Strategies 6 3.1 Acquiring the right Customers 6 3.2 Crafting the right value proposition 7 3.3 Instituting the best process 8 3.4 Motivating employees 8 3.5 Learning to retain customers 9 4. Conclusion 9 5. Reference List 10 1. Introduction According to Gordon, customer relationship marketing is defined as ‘…the on-going process of identifying and creating new value with individual customers and then sharing the benefits from this over a lifetime of association’ (Weinstein, 1999). It is very important to note the evolution of Customer Relationship Marketing in the business world. Communicating a generic message to a large group of people was the norm in the past (Belch and Belch, 2007). This proved to be a very expensive method to keep as this non-specific message did not serve well to understand and deliver each and every one of the individual needs of the customer (Belch and Belch, 2007). The 1980’s saw the advent of database marketing which was the first stage in the journey to efficient Customer Relationship Marketing. The...
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...Name: Prof.Maulik Shah Title: Psychology and CRM through Optimistic Marketing Abstract Marketing and psychology are in a way synonyms. Psychology is the science of behaviour and mental process with the ultimate goal of understanding individuals and groups. Marketing is the science of behaviour and mental process with the ultimate goal of understanding consumers and groups of consumers (i.e. markets) for commercial purpose. So the only different in their definition according to me is the word “commercial”. So it is fair enough to say that marketing and psychology only differ in their application part. This research paper will emphasize on the optimistic marketing especially eliminating the use of word “NO” in business and its implications, with some examples from case studies in order to strengthen my argument. The research methodology adopted is observational research. Marketing is all about keeping all your senses open and then ‘sense and satisfy’ the needs of customers. So the examples explained in the research paper is based on the common observations done across some industries and finding out how ignorance has led to the use of negativity in the business and how the use of optimistic marketing can help change the situation. Some supporting examples from successful companies like Disneyland, Nordstorm and Lacoste is also discussed. These case studies and other facts presented in the paper obtained through the observational research throws light on, how creating a positive...
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...Does relationship marketing improve customer relationship satisfaction and loyalty? Andreas Leverin and Veronica Liljander Relationship marketing (RM) has been identified as one of the way for firms to develop mutually beneficial and valuable long-term relationships with customers .RM is believed to work most effectively when customers are highly involved in the good or service, there is also an element of personal interaction. Research Review:- This study investigates the relationship marketing (RM) strategy of a retail bank and examines whether -after its implementation - customer relationships were strengthened through perceived improvements in the banking relationship and consequent loyalty towards the bank. Research Methods:- Design/methodology/approach - A survey was conducted on two profitability segments, of which the more profitable segment had been directly exposed to a customer oriented RM strategy, whereas the less profitable segment had been subjected to more sales oriented marketing communications. Findings - No significant differences were found between the segments on customer’s evaluations of the service relationship or their loyalty towards the bank. The regression analysis revealed that the relationship satisfaction was less important as a determinant of loyalty in the more profitable...
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...Relationship marketing refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. This approach tries to disambiguiously transcend the simple post purchase-exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalised purchase, and uses the experience to create stronger ties. According to Liam Alvey (1983) relationship marketing can be applied when there are competitive product alternatives for customers to choose from; and when there is an ongoing and periodic desire for the product or service. Fornicatell and Wernerfelt (1987) used the term “defensive marketing” for attempts to reduce customer turnover and increase customer disloyalty. This customer-retention approach was contrasted with "offensive marketing" which involved obtaining new customers and increasing customers' purchase frequency. A key principle of relationship marketing is the retention of customers through varying means and practices to ensure repeated trade from pre-existing customers by satisfying requirements above those of competing companies through a mutually beneficial relationship. This technique is now used as a means of counterbalancing new customers and opportunities with current and existing customers as a means of maximizing profit and counteracting the "leaky bucket theory of business" in which new customers gained in older direct marketing oriented businesses were at the expense...
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... | Executive Summary This report explores the benefits of customer loyalty programs to both sellers and customers with a view to deciding whether such a program would be beneficial to the client, BGO – an online grocery retailer. A review of the literature suggests that the benefits to sellers include higher customer retention rates, enhanced effectiveness of marketing initiatives, the development of affective commitment from customers, and improved measurement systems. All these factors contribute to higher profitability for the business. The literature suggests that the benefits to customers include both tangible, money-saving benefits and intangible social benefits, such as a sense of belonging. Flexibility is a highly important aspect of loyalty programs because it allows customers to choose their rewards and thereby increases the perceived value of benefits in the eyes of consumers. All scholars agree that the most important benefits of a loyalty program relate to money savings. The results of the field research support most of the suggestions made in the literature. All the sellers interviewed in the survey agreed that loyalty programs were effective at retaining customers and improving business profitability. Customers highly valued the benefits they received, and especially flexibility in choosing from a variety of rewards. However, the notion that customers develop an affective commitment to the business, and highly value the social aspects...
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...segment which identifies the market they serve best. CRM- Customer relationship marketing defined is having a relationship with customers and stakeholders, which involves meeting all their requirements and needs. This is usually met through mutual exchange and fulfillment promises. After identifying the needs and wants of customers, the business needs to ask them selves a simple question, how do we do it?’. This can be done through the company internally (e.g. managers and directors) or externally (e.g. suppliers and customers), but every company deals with customers differently, for example retailers and agents. CRM is needed to improve and maintain a relationship between the customer and the firm. This is done purely for profit. The business wants to get the most out of the customer’s lifetime value and share of wallet. If the relationship the business has with the customer is improved, it will enhance the customer lifetime. A long term relationship results in customer lifetime value. This is because customers have more chaise. This makes them more affluent. Having a bad customer relationship can mean: ❖ Less loyalty ❖ Would need a reason to stay connected for a long term ❖ Better informed (go else where) The importance of this is the performance in the shop. The business should be thinking: ❖ What do the customers need and want from us/ ❖ How do we adopt our marketing mix to fit our wants and needs? CRM became very popular in the...
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...Chapter 1 Marketing: Managing Profitable Customer Relationships GENERAL CONTENT: Multiple-Choice Questions 1. Central to any definition of marketing is _____. a. demand management b. transactions c. customer relationships d. making a sale e. making a profit (Answer: c; p. 5; Easy) 2. All of the following are accurate descriptions of modern marketing today, except which one? a. Marketing is creation of value for customers. b. Marketing is customer satisfaction at a profit. c. Selling and advertising are synonymous with marketing. d. Marketing involves building and managing profitable customer relationships. e. None of the above statements is true. (Answer: c; p. 5; Easy) 3. Like NASCAR, successful companies recognize a crucial dimension of an outstanding marketing company to be _____. a. a strong customer focus b. a relentless pursuit of customer needs c. customer relationships built by everyone in the organization d. all of the above e. none of the above (Answer: d; p. 5; Moderate) 4. _____ is defined as a social and managerial process by which individuals and organizations obtain what they need and want through value creation. a. Selling b. Advertising c. Barter d. Marketing e. None of the above is correct. (Answer: d; p. 5; Challenging) 1 5. Society and culture shape the basic form of human needs called _____. a. needs b. wants c. demands d. value e. an exchange (Answer: b; p. 6; Moderate) 6. When backed by buying power...
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...Q: Describe how today’s customer relationship differs from prior eras oriented to production & selling. A: U.S. business history is divided into four periods: the production era, the sales era, the marketing concept era, and the current customer relationship era. The production era covers the period to the 1920s when buyers were willing to accept virtually any goods that were available. The central notion was that products would sell themselves. The sales era lasted from the 1920s to the 1960s. Manufacturers found they could produce more goods than buyers could consume, and competition grew, so the solution was to hire more salespeople to find new buyers. In the 1960s, the marketing concept era dawned, when organizations began to integrate marketing into each phase of the business. In today's customer relationship era, organizations focus their efforts on (a) continuously collecting information about customers' needs, (b) sharing this information across departments, and (c) using it to create customer value. The first objective in maintaining customer relationship is discovering the needs of prospective consumers. This is not an easy task because consumers may not always know or be able to describe what they need and want. A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person's knowledge, culture, and personality. Effective marketing can clearly shape a person's...
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...CHAPTER 2 COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER VALUE AND RELATIONSHIPS PREVIEWING THE CONCEPTS – CHAPTER OBJECTIVES 1. Explain company-wide strategic planning and its four steps. 2. Discuss how to design business portfolios and develop growth strategies. 3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. 4. Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it. 5. List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment. JUST THE BASICS CHAPTER OVERVIEW In this chapter, we dig deeper into steps two and three of the marketing process—designing customer-driven marketing strategies and constructing marketing programs. First, we look at the organization’s overall strategic planning. Next, we discuss how marketers partner closely with others inside and outside the firm to serve customers. We then examine marketing strategy and planning—how marketers choose target markets, position their market offerings, develop a marketing mix, and manage their marketing programs. Finally, we look at measuring and managing return on marketing investment. ANNOTATED CHAPTER NOTES/OUTLINE FIRST STOP Nike’s Customer-Driven Marketing: Building Brand Engagement and Community The Nike “swoosh”...
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...Jennifer Humphreys Instructor: Professor Amanda Brooke Marketing October 23, 2012 SECTION IV. MARKETING STRATEGY Product Product description: From the Italian tradition comes all the goodness of gluten-free pasta in three different shapes and styles. Spaghetti, penne, and ziti. Barilla pasta cooks up delicious and light - the way pasta should be. Let your imagination run wild. Prepare healthy and tasty recipes with fresh vegetables or accompany your pasta dishes with delicious gluten free sauces and condiments. Brand- Barilla Gluten Free Pasta Products Product classification- Whole Grain Pasta Product features & benefits-Health Benefits One quarter of the spaghetti box (a little less than two servings, or a normal serving for an adult) boasts: 17 grams of protein (30% of daily value) 360 milligrams of ALA omega-3 (28% of daily value) 7 grams of fiber (28% of daily value) Compared to regular spaghetti, Barilla Plus has four more grams of protein and three more grams of fiber per serving. ALA omega-3 is not found in traditional pasta. A two-ounce serving has 210 calories, 20 of them from fat. Packaging: Fortunately there is still a brand of pasta sold in cartons. That’s Barilla, one of the most famous brands of pasta in Italy and abroad. The cardboard is a renewable and more sustainable material, being fully recyclable, often more easily than plastics. The size of the boxes has been reduced, minimizing gaps in packaging...
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...Airlines Classic Airlines and Marketing MKT/571 May 12, 2012 Dr. Robert Miller Classic Airlines and Marketing Competition in any field of business is usually encourages innovation and creative thinking within the organization. Management is always researching new ways to improve current operations to have an advantage over the competition. Classic Airlines is an example of the fierce competition in the business world, as they are losing customers and seeing a reduction in their sales. The company’s reward program member numbers are shrinking along with the increase of fuel prices are a few factors pushing the company towards bankruptcy. This research will identify the products and services, the challenges and also the marketing concepts the company uses. Classic Airlines travel / flight service to their customers in 240 cities. The Company offers a classic rewards program as a benefit to its frequent fliers, which allow them to collect points for flights and car rental with specific partners at many locations. These points can be redeemed for flight upgrades and pre-boards. Classic Airlines has a CRM or customer relationship marketing program which enables interaction with their customers. The marketing concept pushes an organization to thrive and focus its operations on the customer (Kotler & Keller, 2006). The concept is to alter the product to the customer orientation and lifestyle. Customer focus has to continue to be intense, therefore...
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...rights reserved. 0263-2373/01 $20.00 S0263-2373(01)00067-6 Cross-Functional Issues in the Implementation of Relationship Marketing Through Customer Relationship Management LYNETTE RYALS, Cranfield University School of Management SIMON KNOX, Cranfield University School of Management There is a major change in the way companies organise themselves as firms switch from productbased to customer-based structures. A key driver of this change is the advent of Customer Relationship Management which, underpinned by information systems convergence and the development of supporting software, promises to significantly improve the implementation of Relationship Marketing principles. In this paper we explore the three main issues that can enable (or hinder) the development of Customer Relationship Management in the service sector; the organisational issues of culture and communication, management metrics and crossfunctional integration — especially between marketing and information technology. 2001 Elsevier Science Ltd. All rights reserved. Keywords: Customer relationship management, Cross-functional integration, Information technology, Relationship marketing keting debate were made by Reichheld and Sasser (1990) reporting on the customer retention work of Bain and Co. These findings indicated that a 5 per cent increase in customer retention resulted in an increase in average customer lifetime value of between 35 and 95 per cent, leading to significant improvements in company profitability (Reichheld...
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...Adrian Payne & Pennie Frow A Strategic Framework for Customer Relationship Management In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation. ver the past decade, there has been an explosion of interest in customer relationship management (CRM) by both academics and executives. However, despite an increasing amount of published material, most of which is practitioner oriented, there remains a lack of agreement about what CRM is and how CRM strategy should be developed. The purpose of this article is...
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..."Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services". (Kotler, 2015) Marketing as a concept has evolved and broadened over the years. It encompasses all activities from before the product is made till it reaches the end customer. This process not only involves satisfying customer’s needs and wants; it also aims to retain customers for the long term. An important facet of Marketing is Relationship Marketing which focuses on developing and retaining long term relationships with prospects, stakeholders, peers and above all customers. “Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication." (Olenski, 2013) Many theorists have attempted to define Relationship Marketing which has been a topic of discussion for many. The idea of RM essentially developed inside of the fields of service and industrial marketing. Leonard Berry (1983) was one of the first theorists who defined RM as a strategy that...
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...Chapter One Marketing: Creating and Capturing Customer Value Chapter 1- slide 1 Creating and Capturing Customer Value Topic Outline • • • • • • • What Is Marketing? Understand the Marketplace and Customer Needs Designing a Customer‐Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 2 What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 3 What Is Marketing? The Marketing Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 4 Understanding the Marketplace and Customer Needs Core Concepts • • • • • Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 5 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 6 Understanding the Marketplace and Customer Needs • Market offerings are some ...
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