Customer Relationship Management Overview

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Questions and Answers

What is the primary goal of customer relationship management?

To deliver superior value and satisfaction (correct)

To eliminate consumer feedback

To reduce marketing costs

To enhance product development

What was a significant factor in Heinz's brand growth?

Leveraging audience affection for simplicity (correct)

Complex advertising techniques

Increasing the number of product offerings

Relying solely on traditional marketing

In today’s digital age, how must companies engage consumers effectively?

By creating dialogues that attract consumers (correct)

By avoiding social media platforms

By focusing on traditional print advertising

By marketing through constant interruptions

What is a consequence of consumer-generated marketing?

It can be time-consuming and costly Signup and view all the answers

What does building consumer equity refer to?

Total combined customer lifetime values Signup and view all the answers

What led to Blockbuster's decline?

Failure to adopt streaming technology Signup and view all the answers

Which of the following is an example of enhancing consumer engagement?

Utilizing chatbots for customer interaction Signup and view all the answers

Which factor is essential for capturing value from consumers?

Creating customer loyalty and retention Signup and view all the answers

What are groups that have an interest in or impact on an organization's ability to achieve its goals called?

Publics Signup and view all the answers

Which customer market consists of individuals buying products for personal use?

Consumer markets Signup and view all the answers

What type of influences may shape how companies market their products based on economic conditions?

Economic factors Signup and view all the answers

Which generational group is characterized as those born after 1996?

Generation Z Signup and view all the answers

What approach is considered less effective than segmenting consumers by lifestyle or shared values?

Generational marketing Signup and view all the answers

What kind of markets involve businesses buying goods to resell at a profit?

Reseller markets Signup and view all the answers

Companies that thrive in their environments tend to do what with their policies?

Adapt to external factors Signup and view all the answers

What was a significant factor in Netflix's growth to over 200 million subscribers?

Data analytics and AI algorithms. Signup and view all the answers

Which type of public represents groups like those against animal testing?

Citizen action groups Signup and view all the answers

How did Netflix adapt to technological changes to meet customer needs?

By providing streaming services and smart recommendations. Signup and view all the answers

What role do competitors play in a company's marketing environment?

They help companies position and differentiate their products. Signup and view all the answers

What is one impact of supply shortages on a company's marketing efforts?

Delayed production and increased prices. Signup and view all the answers

What is the importance of marketing intermediaries in the marketing environment?

They assist in promoting, selling, and distributing products. Signup and view all the answers

Which of the following is NOT a component of the microenvironment?

Political environment. Signup and view all the answers

How did Netflix view their earlier competition when they first started?

They underestimated their competition. Signup and view all the answers

What type of changes in the environment significantly affect marketing decisions?

Both demographic and economic changes. Signup and view all the answers

What primary approach do buyers currently use to find better deals?

Utilizing the internet to compare suppliers Signup and view all the answers

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

Segmentation Signup and view all the answers

Which of the following is NOT a base for segmenting consumer markets?

Preference segmentation Signup and view all the answers

What is the purpose of targeting in marketing strategies?

To identify and serve specific customer groups Signup and view all the answers

Which marketing approach is considered to create greater customer engagement compared to traditional methods?

Digital and social media marketing Signup and view all the answers

Which segmentation type is most closely associated with qualities like age and gender?

Demographic segmentation Signup and view all the answers

What aspect must marketers consider when positioning their offerings?

Customer perceptions of the offerings Signup and view all the answers

Which statement about buyers' behavior is accurate in modern markets?

Buyers are more empowered to negotiate based on available options. Signup and view all the answers

Which of the following best describes a straight rebuy?

A reordering of a product without any modifications. Signup and view all the answers

In which scenario does a company face a new task buying situation?

Purchasing a product or service for the first time. Signup and view all the answers

What is the role of the buying center in the purchase decision-making process?

A group of individuals and units involved in the purchase decision. Signup and view all the answers

Which step in the business buyer decision process involves the buyer preparing a description of the needed item?

General need description Signup and view all the answers

What does systems selling or solutions selling help avoid in complex buying situations?

Making multiple separate decisions involved in the purchase. Signup and view all the answers

Which statement about buying situations is true?

Buying situations include straight rebuy, modified rebuy, and new task. Signup and view all the answers

What is the primary purpose of the supplier search step in the business buyer decision process?

To identify potential suppliers for the needed item. Signup and view all the answers

Which stage could be skipped by buyers in a straight rebuy situation?

Proposal solicitation Signup and view all the answers

Study Notes

Customer Relationship Management (CRM)

CRM involves building and nurturing profitable customer relationships by delivering superior value and satisfaction.
It encompasses all aspects of acquiring, engaging, growing, and listening to consumers.

Value Creation for Customers

Walt Disney: A prime example of a brand creating value for its customers.
Heinz: Emphasized simplicity and leveraged audience affection for the brand, driving growth.

Consumer Engagement in the Digital Age

Today's consumers are more informed, connected, and empowered.
Companies can no longer rely solely on intrusive marketing.
Marketing by attraction, creating engaging dialogue, is essential.
Social media management often becomes the core marketing strategy.

Consumer-Generated Marketing and User-Generated Content (UGC)

Consumers actively shape their own brand experiences and those of others.
Examples of UGC include Reddit and Oreo's #MyOreoCreation campaign.
Can be time-consuming and challenging to manage, with potential for high-quality content.

Capturing Value from Consumers

Customer Loyalty and Retention (Customer Lifetime Value): Crucial for long-term success.
Growing Share of Consumer: Expanding the customer base within existing markets.
Building Consumer Equity: The combined lifetime value of all current and potential customers.

Consumer Relationship Groups

Different types of customers with varying motivations and needs.
Understanding these groups allows for targeted marketing strategies.

Case Study: Blockbuster vs. Netflix

Blockbuster's Failure: Dominated the video rental industry but failed to adapt to technological advancements, leading to bankruptcy.
Netflix's Success: Adapted quickly to streaming technology, offering instant access, personalized recommendations, and affordable subscriptions.

Environmental Forces Impacting Customer Relationships

Internal Company Dynamics: Internal departments must collaborate to understand customer needs and create value.
External Factors: Technology advancements, political shifts, cultural trends, and economic conditions significantly influence marketing strategies.

The Microenvironment

The Company: Internal departments work together to deliver value to customers.
Suppliers: Provide resources for production. Supply issues can impact marketing efforts.
Marketing Intermediaries: Resellers, distributors, marketing agencies, and financial intermediaries aid in reaching customers.
Competitors: Analyze, differentiate, and strategically position products or services against competition.
Publics: Groups with interest in the organization's success, including media, government, citizen groups, and local communities.
Customers: Different types of customer markets (consumer, business, reseller, government, international).

The Macroenvironment

Demographic Forces: Population growth, aging populations, generational shifts, household compositions.
Economic Forces: Inflation, unemployment, consumer confidence affect spending patterns and marketing decisions.
Natural Forces: Environmental concerns, resource scarcity, and climate change.
Technological Forces: Fast-evolving technological advancements, creating opportunities and challenges.
Political Forces: Government regulations, trade policies, and political stability affect marketing strategies.
Cultural Forces: Changing values, beliefs, and lifestyles influence consumer behavior.

The Buying Centre

Individuals and units involved in purchase decision-making processes.
This includes:
- Actual users of the product or service
- Decision-makers
- Influencers
- Buyers
- Information controllers

Buying Decision Process

Straight Rebuy: Routine reordering without modifications.
Modified Rebuy: Changes to product specifications, prices, terms, or suppliers.
New Task Situation: Buying a product or service for the first time with significant decision-making involved.
Systems Selling: Buying a complete packaged solution from a single provider.

Steps in the Business Buyer Decision Process

Problem Recognition: Internal or external stimuli trigger a need.
General Need Description: Describing the characteristics and quantity of the needed item.
Product Specification: Developing technical specifications with the help of a value analysis engineering team.
Supplier Search: Identifying and selecting potential vendors.
Proposal Solicitation: Inviting qualified suppliers to submit proposals.
Supplier Selection: Choosing the best vendor based on evaluation criteria.
Order-Routine Specification: Finalizing the purchase order with the selected supplier.
Performance Review: Regularly evaluating supplier performance and making adjustments if necessary.

Segmentation, Targeting, Differentiation, and Positioning

These are key customer value-driven marketing strategy decisions.
Segmentation: Dividing a diverse market into meaningful customer groups.
Targeting: Selecting the specific customer groups to serve.
Differentiation: Creating unique product offerings to meet the needs of the target market.
Positioning: Creating a clear and compelling image of the product in the minds of consumers.

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Description

This quiz explores the principles of Customer Relationship Management (CRM), emphasizing the importance of creating value for customers and engaging them in the digital age. Learn about successful brands like Walt Disney and Heinz, as well as the impact of consumer-generated marketing in modern strategies.