Customer Relationship Management in Marketing

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Questions and Answers

What is the first step in creating a customer-driven marketing strategy?

Capturing value from customers

Building profitable relationships

Designing a marketing program

Understanding the marketplace and customer needs (correct)

What does Customer Relationship Management emphasize?

Increasing product prices

Maintaining profitable customer relationships (correct)

Maximizing marketing costs

Reducing advertising expenses

Which term refers to dividing a market into distinct groups of buyers?

Market evaluation

Market targeting

Market positioning

Market segmentation (correct)

What is marketing ROI?

Net return from a marketing investment divided by the costs Signup and view all the answers

Which step involves arranging for a product to occupy a distinct place in the minds of customers?

Positioning Signup and view all the answers

What is a business portfolio?

A collection of businesses and products Signup and view all the answers

What is a key factor in evaluating market segmentation?

Differentiation between segments Signup and view all the answers

What is the main focus of designing a customer-driven marketing strategy?

Meeting customer needs and building relationships Signup and view all the answers

Which factor is typically included in the microenvironment of a company?

Suppliers Signup and view all the answers

What does the economic environment consist of?

Consumer purchasing power and spending patterns Signup and view all the answers

Which of the following is considered a marketing intermediary?

Resellers Signup and view all the answers

What do core beliefs and values in the cultural environment primarily influence?

Consumer spending habits Signup and view all the answers

Which of the following best describes the political and social environment?

Increased legislation and social responsibility Signup and view all the answers

What purpose do financial intermediaries serve in the marketing environment?

They manage the flow of funds between parties. Signup and view all the answers

The natural environment is primarily concerned with which of the following issues?

Environmental sustainability Signup and view all the answers

Which component is NOT part of the macroenvironment?

Suppliers Signup and view all the answers

What factors are included in the demographic environment?

Human populations and cultural values Signup and view all the answers

Which characteristic describes how well an innovation fits the values and experiences of consumers?

Compatibility Signup and view all the answers

Which of the following best defines a subculture?

A segment of the population with distinct values and experiences Signup and view all the answers

What is the primary motive that drives an individual to seek satisfaction for a pressing need?

A need or drive Signup and view all the answers

What is the term for the buying behavior of organizations that purchase goods and services to use in production?

Business buying behavior Signup and view all the answers

In assessing an innovation's attributes, what does complexity refer to?

The ease of understanding or using it Signup and view all the answers

Which type of buying situation involves a company purchasing products again in the same manner as before?

Straight rebuy Signup and view all the answers

What aspect is NOT a part of psychological factors influencing consumer behavior?

Economic situation Signup and view all the answers

Study Notes

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.

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.

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Description

This quiz explores the essential concepts of customer relationship management (CRM) and effective marketing strategies. You will learn about the steps to build successful customer relationships and how to create customer equity. Test your knowledge on the principles that drive successful marketing management.