This Module talk about basic of Customer relationship management and relationship marketing. Major Component, advantages, properties and example of CRM.

1. CUSTOMER RELATIONSHIP
MANAGEMENT AND RELATIONSHIP
MARKETING
Prepared By
Jitendra Patel
Assistant Professor,
Prestige Institute of
Management and
Research, Indore

2. MODULE I

3. Module I
1. CRM Definition
1.1 Prerequisite of Successful CRM
1.2 Advantages of CRM
2. Relationship Marketing
2.1 5 levels of relationship marketing
2.2 10 Critical players in rm
2.3 Relationship Marketing and the 4Ps
2.4 Properties of relationship marketing
3. Components of CRM
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5. • CRM: The whole idea of studying, analyzing
and creating new customer while trying to
keep the current customers happy and
satisfied is known as CRM.
• The core of CRM lies in collecting customer
data and analyzing it to make decision that
bring new customers apart from satisfying the
existing ones.
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6. CRM = Customer Relationship
Management
A CRM system is a business tool that allows
you to manage all your customers, partners
and prospects information all in one place.
For example, it helps:
•sales teams close deals faster
•marketing manage campaigns and track lead
generation
•service call centres reduce the time to resolve
customer complaints
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7. Customer Relationship Management (CRM) can
streamline and automate your business processes.
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8. To successfully undertake CRM initiatives it is essential
to :
• Clearly define the management objective & strategy
• Evolve the right process around it
• Identify the right software solution for implementation
• Understand the hidden costs and hurdles
• Back it up with good training and support
•While selecting the software solution for your
implementation, ensure that It can manage both your
data and process
• It is easy to implement and roll out
• It is simple to use
• You understand the total cost of ownership
• You evaluate the risk exposure12/10/2020 8Jitendra Patel, PIMR Indore

9. Advantages Of CRM
Using CRM, a business can:
• Provide better customer service
• Increase customer revenues
• Discover new customers
• Cross sell/Up Sell products more effectively
• Help sales staff close deals faster
• Make call centers more efficient
• Simplify marketing and sales processes
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10. Relationship Marketing
• Relationship marketing has the aim to building
mutually satisfying long term relationship with
key parties in order to earn and retain their
business.
• Relationship marketing builds strong
economic, technical and social ties among the
parties
-KOTLER
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11. 5 levels of Relationship Marketing
• Basic marketing
• Reactive marketing
• Accountable marketing
• Proactive marketing
• Partnership marketing
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12. • Basic Marketing – The salesperson sells to the
final customers. This is also known as direct
sales.
• Reactive Marketing – The sales person sells the
product and encourages the customer to call for
any comments or enquiries.
5 levels of relationship marketing
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13. • Accountable Marketing – The sales person calls
the customers to ensure whether the product is
working as per satisfaction and if there is any
problem in the product. Furthermore he also
asks the customer for any suggestions / feedback
to improve the service / product. Thus he is
taking responsibility for the sale.
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14. • Proactive marketing – The company works
continuously with its large customers to help
improve performance. This is especially seen in
financial companies wherein the movement in the
financial market induces the company to make
changes regularly. However at the same time, these
financial companies have to take care of their
customers as well. Thus they take regular feedback
from their large customers thereby developing their
products accordingly.
• Partnership Marketing – The company works
continuously with its large customers to improve its
performance.
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15. 10 Critical players in rm
1. Supplier
2. Distributors
3. End users
4. Employees
5. Financial firms
6. Government
7. Media
8. Allies
9. Competitors
10. General public
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16. Relationship Marketing and the 4Ps
Product
• More products are customized to the customers’
preferences.
• New products are developed and designed
cooperatively with suppliers and distributors.
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17. Price
• The company will set a price based on the
relationship with the customer and the bundle of
features and services ordered by the customer.
• In business-to-business marketing, there is more
negotiation because products are often designed
for each customer.
Relationship Marketing and the 4Ps
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18. Distribution (Place)
• RM favours more direct marketing to the
customer, thus reducing the role of middlemen.
• RM favours offering alternatives to customers to
choose the way they want to order, pay for,
receive, install, and even repair the product.
Relationship Marketing and the 4Ps
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19. Communication (Promotion)
• RM favours more individual communication and
dialogue with customers.
• RM favours more integrated marketing
communications to deliver the same promise and
image to the customer.
• RM sets up extranets with large customers to
facilitate information exchange, joint planning,
ordering, and payments.
Relationship Marketing and the 4Ps
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20. Properties of relationship marketing
• Collaboration
• Commitment, Dependency
• Trust, risk and uncertainty
• Power
• Longevity
• Frequency, regularity and intensity
• Closeness and remoteness
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21. Ikea – The Swedish furniture maker has a worldwide base of
intensely loyal customers. When the company changed the
font in their ubiquitous catalog, Ikea lovers took to the
Internet to air their complaints. Rather than alienate their
customers for a trivial reason, Ikea changed the font back in
the next catalog.
American Airlines – The airline maintains a comprehensive
frequent flyer program that rewards customer loyalty with
the promise of free flights, upgrades, and discounts.
Dell – Dell computers created a special online store for high
volume corporate customers. By tailoring the ordering
process to the specific customer's needs, Dell was able to
expedite many of the hassles corporate technology buyers
face. Providing a higher level of service leads to increased
loyalty.
Examples
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23. • Classification of CRM programs
–Loyalty program
–Prospecting
–Save or win back
–Cross-sell/up-sell
• eCRM: Customer relationship
management conducted
electronically
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24. Components of CRM
• Customer and Product
centric services
• Differential Marketing
– Mass marketing
– Focused marketing
– One-to-one marketing
• Customers are not
born equal
Sales
Managment
Database
Marketing
Marketing
Management
Service
Managemen
t
Customer
Managemen
t
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25. Components of CRM
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26. Components of CRM
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33. References
• Alok Kumar, Chhabi Sinha and Rakesh Sharma ‘Customer Relationship
Management Concept & Application’ Biztanra, New Delhi. 2018.
• Antony Lawerence, Customer Relationship Management, Himalaya Publishing
House, 2010.
• Boone and Kurtz , Contemporary Marketing, 16th edition, Cengage Learning, 2014
• Mallika Srivastava ‘Customer Relationship Management ‘ Vikas Publication
,Noida UP India .2016.
• Philip Kotler and Gary Armstrong “Principles of Marketing”, New Delhi, Prentice
Hall of India, 15th Edition, 2013.
• Philip Kotler, Kelvin Lane, Keller, Abraham Koshi, Mitihlesh Jha, Principles of
Marketing Management, South Asian Perspective, Pearson Education, 14th Edition
2011.
• Preact CRM, “The Insider Guide to Success with CRM”, Microsoft Partners.
• Sales Force, “Deciding which crm solution is right for you Part of the Crm success
series”, Sales Force Sales Cloud.
• Shainesh,G Sneth and Jagdish N, Customer Relationship Management, MacMillan
India Ltd,2005
• Tech Target, Battle of CRM Tools, Search CRM, PRO+Content.
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