Podcast
Questions and Answers
What is the primary goal of customer relationship marketing?
What is the primary goal of customer relationship marketing?
- To provide financial and social benefits to customers
- To reduce the cost of customer retention
- To increase customer acquisition
- To improve customer satisfaction (correct)
What is the key to retaining customers according to CRM?
What is the key to retaining customers according to CRM?
- Providing financial and social benefits as well as structural ties (correct)
- Offering discounts and promotions
- Conducting regular customer surveys
- Investing heavily in advertising and marketing
What is the purpose of estimating customer lifetime value in CRM?
What is the purpose of estimating customer lifetime value in CRM?
- To determine the cost of customer acquisition
- To calculate the ROI of marketing campaigns
- To measure customer satisfaction
- To decide how much to invest in relationship marketing (correct)
What is the approach to providing customer satisfaction and company profitability in CRM?
What is the approach to providing customer satisfaction and company profitability in CRM?
What is required for companies to offer relatively higher quality than their competitors?
What is required for companies to offer relatively higher quality than their competitors?
Who plays a critical role in a company's drive towards higher quality?
Who plays a critical role in a company's drive towards higher quality?
What is the main advantage of retaining an existing customer compared to winning a new one?
What is the main advantage of retaining an existing customer compared to winning a new one?
What is the result of a firm's failure to retain customers?
What is the result of a firm's failure to retain customers?
What is the goal of a CRM system in terms of customer relationships?
What is the goal of a CRM system in terms of customer relationships?
Why is customer retention important for marketers?
Why is customer retention important for marketers?
What is the impact of customer loyalty on a firm's profitability?
What is the impact of customer loyalty on a firm's profitability?
What is the benefit of using a CRM system to customize market offerings?
What is the benefit of using a CRM system to customize market offerings?
What is the primary reason why marketers focus on retaining existing customers?
What is the primary reason why marketers focus on retaining existing customers?
What is the key to successful customer retention?
What is the key to successful customer retention?
Why is managing customer relationships important in today's market?
Why is managing customer relationships important in today's market?
How much more does it cost to attract a new customer compared to keeping a current customer satisfied?
How much more does it cost to attract a new customer compared to keeping a current customer satisfied?
What is the underlying assumption of the production concept in marketing?
What is the underlying assumption of the production concept in marketing?
When is the production concept particularly useful?
When is the production concept particularly useful?
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Study Notes
Managing Customer Demand
- Managing demand is done by managing customers, as demand comes from new and repeat customers.
- Retaining existing customers is crucial, as it costs five times more to attract a new customer than to keep a current one satisfied.
Marketing Management Philosophies
- There are five alternative marketing philosophies that guide organizations in their marketing efforts.
- The production concept is one of the oldest philosophies, focusing on improving production and distribution efficiency.
- This concept is useful when demand exceeds supply.
Customer Relationship Management (CRM)
- CRM is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
- The basic goals of CRM include:
- Providing better customer service
- Making call centers more efficient
- Helping sales staff close deals faster
- Simplifying marketing and sales processes
- Discovering new customers
- Providing excellent real-time customer service
- CRM is based on customer loyalty, which is crucial for marketers because retaining customers is more cost-effective than acquiring new ones.
- Loyal customers provide more credible referrals and are more profitable in the long run.
Customer Retention and Loyalty
- Winning a new customer is 5-10 times more costly than retaining an existing customer.
- Customers are more profitable the longer they are retained.
- Loyal customers provide more credible referrals and can increase the growth potential of each customer.
Total Quality Marketing
- Total quality marketing is a major approach to providing customer satisfaction and company profitability.
- Companies must understand how their customers perceive quality and how much quality they expect.
- Companies must strive to offer relatively higher quality than their competitors.
- Marketers play a critical role in their company's drive toward higher quality.
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