Marketing Management

Customer Relationship Management and its linkages

Does the level of experience have an effect on CRM programs? Exploratory research findings [An article from: Industrial Marketing Management]Any CRM programme should be associated with the aspects of loyalty and customer satisfaction. 
These two aspects point out that different customer segments/groups would be interested in different dimensions of the offerings made by the marketer. The selection of the target segment (or specific companies in a business-to-business context) is also of utmost importance. This is because profitability of a CRM programme will vary across segments (or companies). It may also be essential for a company to assess the lifetime value of a customer before formulating a CRM programme.

While loyalty and satisfaction are strongly linked to CRM programmes, the specific objective of one may have to be decided by a company before planning it. For example, reducing the cost of distribution may be the objective of a CRM programme. This may involve working out and restructuring ordering patterns, taking into consideration the consumption patterns and inventory levels at the customers end and the production systems at the manufacturers end. 
Loyalty in categories such as fast foods, soaps and confectionery could be driven through innovative CRM
programmes.
Apart from loyalty and satisfaction linkages, communication is a vital aspect of any CRM programme. Communication with regard to sophisticated offerings concerning the product category, the efforts of the company/brand to keep itself updated in terms of the benefits offered, satisfied customers of a CRM programme and specific benefits of a CRM programme may help a marketer keep in touch with a prospective target segment of consumers who may like to be a part of a CRM programme.
The Referral Engine: Teaching Your Business to Market Itself
Guidelines to enable a marketer to identify specific customer groups which may be amenable to CRM
programmes.
  • Business-to-business markets
  • Segmentation criteria
  • Percentage of Customer Profitability
  • Price sensitive (no frill offering)
  • Pre-sale service
  • Annual Maintenance Contract and spares
  • Willingness to try innovative products
Key Account Management and Planning: The Comprehensive Handbook for Managing Your Company's Most Important Strategic AssetA company with a CRM programme is likely to give the customer enhanced priority in terms of attention apart from cost savings over a period of time. The one-to-one marketing programme, which is generally associated with consumer products, could also be effectively applied to business-to business marketing.
The Key Account Management concept, in which customer teams are employed by companies (chemicals and computers may be examples), is a kind of one to-one marketing and when this concept is extended to a
company which has multiple locations (a company marketing machinery to a consumer product company in several locations) the concept becomes National Account Management programmes. Such strategies involve extensive resource allocation to teams and in-depth planning with customer on their specific needs.

Be the first to comment - What do you think?

3 Prerequisites of Customer Relationship Management

Customer Relationship Management: A Strategic Imperative in the World of E-BusinessCRM is a relationship process which a company can cultivate with its customer groups/segments in such a way that it would benefit both the customer and the company. The prerequisites of any CRM programme are:
1) Both the company and the customer should be willing to stay committed to the relationship that is based on mutual benefit. This is required because process changes may have to be initiated in both organisations. Hence, the top management has to be convinced about CRM in both the companies (especially in the case of a business-to-business marketing context).
2) A non-transactional orientation on the part of the marketer. A transaction is a one-off interaction and hence CRM involves a combination of strategies that builds the relationship between the marketer and customer over a period of time (though transaction-based loyalty programmes can be formulated).
3) The marketer must be willing to invest in infrastructure required to implement CRM. The  infrastructure could include Web-based hardware/software, which could effectively harness the advantages of CRM.

Be the first to comment - What do you think?

3 Concepts of Marketing

    Ad Women: How They Impact What We Need, Want, and Buy
  1. Needs and Wants: The satisfaction of buyers’ needs is at the heart of a market economy, and is the core theme of Marketing. To put it more simply, a need is a feeling of being deprived of something desirable.

    Wants are somewhat different. While needs are basic to human beings, (since nobody ever needs to tell us that we need to feel hungry, thirsty, etc.) wants are not. Later in our life when we become part of various informal and formal groups (family, friends, school, club, workplace, etc) we develop the concepts of friendship social approval, beauty, and so on. These are our acquired needs.

    Wants exist for those objects that can potentially satisfy a need. A visually impaired person can either wear spectacles, contact lenses, or now he can go in for corrective surgery.

  2. Product / Service: If we use marketing parlance a product is anything that can satisfy our needs and wants. That is, it could be a physical object, or a service, or an idea which can be offered to a potential user for adoption / practice / consumption. By studying consumer buying behaviour companies can identify needs that can be met by offering a suitable product. Incidentally, a customized product is one, which is made according to individual customer’s specifications.
  3. Exchange: A marketer makes an offer because he hopes that the buyer will accept it. And in turn the All Marketers are Liars (with a New Preface): The Underground Classic That Explains How Marketing Really Works--and Why Authenticity Is the Best Marketing of Allbuyer will give something of value to the marketer. Whether or not an exchange will take place would therefore depend on a match/ mismatch between the gain (the satisfaction receivable) and the sacrifice (the price payable) in customer perception.

Be the first to comment - What do you think?

Three key dimensions of marketing

It seeks to identify customer needs: Many manufacturers would know all there is to know about relevant production technology, but nothing about their customers’ wants. They may design products with fancy features without considering the perceived value of such features to their buyers. Then they wonder why their sales staff fails to push the product in the market.

Marketing attempts to select customer groups for which it can develop a competitive edge: Companies taking a shotgun approach – meaning all things to all people – inevitably end up with sackful of unsold product inventories. Those companies which concentrate their limited resources on meeting specific needs of the customer have better chances of succeeding.

It designs and produces the right product packages: when a company attempts to sell a Mercedes while the customer is demanding a Zen sized car, failure will greet it with open arms.

“It is a total business philosophy aimed at identifying the needs of each customer group, then designing and producing product / service package so as to serve the groups more effectively than the competitors”.

Be the first to comment - What do you think?

The Four Principles of Marketing

Marketing Concepts and StrategiesMarketing on the one hand is a business philosophy and on the other an action oriented process. The philosophy – also termed as marketing concept – has its roots in market economy. There are four critical ideas that form the foundation of such an economy:
  • Individuals pursue their self-interest to seek rewarding experience
  • Their choices determine as to what would constitute such experience, the choices themselves being shaped by personal (taste) and external (cultural) influences.
  • Consumers enjoy the freedom to choose; they are sovereign.
  • This freedom ensures free and competitive exchange between “buyers and sellers”.
Marketing in turn is based on these four principles.

Be the first to comment - What do you think?

The Four Principles of Marketing

Marketing Concepts and StrategiesMarketing on the one hand is a business philosophy and on the other an action oriented process. The philosophy – also termed as marketing concept – has its roots in market economy. There are four critical ideas that form the foundation of such an economy:
  • Individuals pursue their self-interest to seek rewarding experience
  • Their choices determine as to what would constitute such experience, the choices themselves being shaped by personal (taste) and external (cultural) influences.
  • Consumers enjoy the freedom to choose; they are sovereign.
  • This freedom ensures free and competitive exchange between “buyers and sellers”.
Marketing in turn is based on these four principles.

Be the first to comment - What do you think?

Printing Business Cards!!

If you are an established businessman then it is likely that you always carry your own business cards. Savvy business professionals always have business cards. Meeting someone you always dreamed of meeting, or may be you meet someone you want to be remembered by may often occur at inopportune moments and it is always better to make a strong impression than to ask for one of their cards and in return, provide one of yours. Use your business cards in interviews, career expos, while networking, and always keep them on you. You will be surprised how often you will use them and how helpful they will be!

There are may sites on the internet which will help you design and print a business card. But how often you wish you could do this at home?

One such site where you can obtain card printers from is from the Racocard people. They various hardware and software accessories and also provide technical and follow-up assistance. They also provide various cards for non-business purposes and also smart cards which have memory chips embedded.

Be the first to comment - What do you think?

« Previous Page