Customer Relationship Management in Marketing

Marketing

• Managing profitable customer relationships is the foundation of successful marketing.
• Five steps to building successful customer relationships:
  • Understand the marketplace and customer needs and wants.
  • Design a customer-driven marketing strategy.
  • Construct an integrated marketing program that delivers superior values.
  • Build profitable relationships and create customer delights.
  • Capture value from customers to create profits and customer equity.

Marketing Management

• The science and art of choosing target markets and building profitable relationships with them.
• Customer Relationship Management (CRM) is the overall process of building and maintaining these profitable relationships.
• Focuses on delivering superior customer value and satisfaction.
• Successful CRM involves relating more carefully with selected customers and relating more deeply and interactively with them.

Company and Marketing Strategy

• Strategic planning is essential to achieving a fit between marketing opportunities and organizational goals and capabilities.
• Establishing company goals and objectives is crucial for strategic planning.
• Designing a business portfolio, which includes the collection of businesses and products that make up the company, is a key part of strategic planning.
• Planning marketing and other functional strategies is essential for company success.
• Return on marketing investment (marketing ROI) is a critical metric, calculated by dividing the net return from a marketing investment by the costs of the investment.

Marketing Strategy and the Marketing Mix

• Market segmentation divides a market into distinct groups of buyers with different needs, characteristics, or behaviors.
• Market targeting involves evaluating each segment's attractiveness and selecting one or more to enter.
• Positioning aims to create a clear, distinctive, and desirable place for a product in the minds of customers relative to competing products.

Analyzing the Marketing Environment

• The microenvironment includes factors close to the company that affect its ability to create value and build customer relationships, including:
  • Suppliers
  • Marketing intermediaries
  • Competitors
  • Publics
  • Customers
• The macroenvironment consists of broader forces that shape opportunities or pose threats to the company, including:
  • Demography
  • Economic environment
  • Technological environment
  • Natural environment
  • Political environment
  • Cultural environment

The Company as a Factor in the Microenvironment

• Includes entities such as:
  • Top management
  • Finance
  • R&D
  • Purchasing
  • Operations
  • Accounting

Suppliers as a Factor in the Microenvironment

• Crucial in the customer value delivery system.

Marketing Intermediaries as a Factor in the Microenvironment

• These are firms that help the company promote, sell, and distribute its products, including:
  • Resellers - find and sell to customers
  • Physical distribution firms - stock and move goods
  • Marketing services agencies - offer research, advertising, media, and consulting services
  • Financial intermediaries - help finance transactions

Competitors as a Factor in the Microenvironment

• Companies that compete for the same customers and resources.

Publics as a Factor in the Microenvironment

• Groups that influence the company's ability to achieve its objectives, such as:
  • Financial publics
  • Media publics
  • Government publics
  • Citizen action publics
  • Local publics
  • General publics
  • Internal publics

Customers as a Factor in the Microenvironment

• Include:
  • Consumers - those who buy goods and services for personal use
  • Businesses - those who buy goods and services for use in their businesses
  • Government agencies - those who buy goods and services to provide public services

Demography as a Factor in the Macroenvironment

• The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
• Key demographic trends include::
  • The changing family
  • Geographic shifts
  • Better educated, increased white-collar population
  • Increasing diversity

Economic Environment as a Factor in the Macroenvironment

• Factors affecting consumer purchasing power and spending patterns.

Natural Environment as a Factor in the Macroenvironment

• Issues related to natural resources and environmental sustainability, including:
  • Increased pollution
  • Shortages of raw materials
  • Increased government intervention

Technological Environment as a Factor in the Macroenvironment

• The forces that create new technologies, which lead to new product and market opportunities.

Political and Social Environment as a Factor in the Macroenvironment

• Includes political forces that impact the company's operations, such as:
  • Increased legislation
  • Social responsibility
  • Cause-related marketing

Cultural Environment as a Factor in the Macroenvironment

• This environment is composed of institutions and other forces that influence a society's values, perceptions, preferences, and behaviors.
• Key factors include:
  • Core beliefs and values that are passed on from generation to generation
  • Secondary beliefs that are more open to change

Understanding Consumer Behavior

• This refers to the buying behavior of individual customers.
• Factors influencing customer behavior:
  • Cultural: culture, subculture, and social class
  • Social: reference groups, family, roles, and status
  • Personal: age and life cycle stage, occupation, economic situation, lifestyle, personality, and self-concept
  • Psychological: motivation, perception, learning, beliefs, and attitudes

Characteristics Important in Influencing the Rate of Innovation Adoption

• Include:
  • Relative advantage
  • Compatibility
  • Complexity
  • Divisibility
  • Communicability

Understanding Business Buyer Behavior

• This refers to the buying behavior of organizations that buy goods and services for:
  • Use in the production of other products and services
  • Resale or rental to others at a profit

Business Buying Situations

• Business buyers engage in three main types of buying situations:
  • Straight rebuy - reordering existing products without modifications
  • Modified rebuy - changing product specifications, prices, or suppliers
  • New task - purchasing a product or service for the first time

Business Markets

• These markets are crucial for companies selling to other businesses.