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The Islamia University of Bahawalpur
Marketing Management
Group Members:
Hassan Obaid (154)
Sehrish Hassan (175)
Shagufta Nawaz (181)
Aimen Amin (142)
Amna Aslam (146)
Zeshan Mazhar (179)
Relationship
Marketing
What is Relationship Marketing?
Long term strategy to build
relationships with individual
customers.
Definition of RM
 Consistent application of up to date
knowledge of individual customer to
product and service design.
 RM focuses the firms attention on
customer retention with a view to build a
long term relationship with the customer.
Comparison
Traditional Marketing
• Transaction based.
• Focus on single sale.
• Quality is concern of
production.
• Less emphasis on service.
Relationship Marketing
• Focus on customer relation.
• Continuous customer contact.
• Quality is concern of all.
• High customer service.
Customer
Relationship
Management
What I am going to discuss?
 CRM Introduction
 Functioning targets and roles
 Aspects of CRM
 Strategies
 Advantages
 Disadvantages
What is CRM?
Process of managing the detailed information
about individual customers.
Carefully managing all the customers ‘touch point’
with the aim of maximizing customer loyalty.
Customer acquisition
Loyalty
Value Retention
Relationship
CRM
People
Process
Technology
Why CRM is required ?
Customer focus
Relationship building
Management
Primary Concern of any business Revenue generation
Satisfaction  Delight Experience
Customer Focus
Relationship Building
High acquisition cost
Long term gains
Low retention cost
Management
Product delivery Satisfaction
Measure and manage Customer
profitability
Customer-centric
Other elements-communication components
Marketing
Management
Order Processing
Customer servicing
Inside sales
Outside sales
Sales support
FUNCTIONING TARGET
AND
ROLES
C R M
Functioning
targets
Ubiquity
1 to 1
marketing
Real time
updates
Better analysis
Buying Patterns
&
Demographics
Revenue
enhancement
Single
customer view
Cost Reduction
Still, why to spend on
Customer-retention rather
than customer acquisition
???
Acquisition or Retention
Acquisition
 3% increase in profits
 Cost is very high
 Life cycle is short
 Short term profit
 Unpredictable value chain
building
Retention
 17% increase in profits
 Cost is very low
 Life cycle is long
 Long term profit
 Value chain building
ASPECTS OF CRM
• Front office business support
• Contact history is recorded
• No communication gap
• E.g.- call centers, BPO
• Direct
communication
• Cost reduction
• Service
improvement
• E.g.- mail, internet
• Analysis of customer data
• Design and target marketing campaigns
• Product and service decision making
• Management decisions
CRM STRATEGIES
ACQUISITION
Profiling
Search
Communication
Buying pattern
RETENTIONUpdating
Improving customer satisfaction
Need analysis
1to 1 communication
Cost REDUCTION
Lower inventory Marketing cost reduction
Speedier delivery
Advantages of CRM
Retention of customers.
Positive word of mouth.
In-depth insight of customer.
Share of customer high.
Disadvantages of CRM
Lack of privacy.
Current focus, No focusing on future
customers.
Limited criteria of prospects.
Any Questions?
Thank you.

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Relationship Management and CRM