Purham Sidney 1 Customer Relationship Management is a major important key to the success of any business, company or organization. The case study Dow Corning and DirecTV discuss how the role of customer relationship management provides many avenues and is a strategy formula designed to build a better understanding their customers needs while also improving the relationship between the service provider and the service subscriber. The implementation and the use of this technology serve as a tool to build a better, stronger relationship with current as well as new potential customers. When business and companies use customer relationship management to gain a competitive advantage by understanding consumer preferences and individual customer purchasing habits. To summarize the case study in my own words are that the use of customer relationship management within the Dow Corning’s sales and marketing group to provide excellent customer service while recording valuable information about their customers to gain an understanding of their customer 's needs, wants and to provide new ways to better serve their customer base.
“People like the familiar and are prepared to ascribe all sorts of good attitudes to items those are familiar to them” (Aaker & Joachimsthaler 2000). Aaker & Alvarez Del Blanco (1999) have also indicated that brand awareness indirectly affects purchase behavior, as it has a positive influence on perceptions and attitudes towards the brand recall and retrievability to impact to the purchase of the brand i.e. repeated purchase behaviour which creates consumer/brand loyalty. PI is also very useful in forecasting future demand of existing products (Juster, 1966, Morrison, 1979). Purchase intentions are also used to pretest advertising and evaluate proposed promotions for both new and existing products (Bird and Ehrenberg, 1966) A seven-point Likert
Recognised outcomes include an improved understanding of customers, more efficient resource allocation, better-tailored marketing programmes, and enhanced competitiveness (Albert, 2003; Beane and Ennis, 1987; Freytag and Clarke, 2001). The rationale behind marketing segmentation is to allow businesses to focus on their consumers’ behaviors and purchasing patterns. If done effectively, marketing segmentation allows an organization to do its highest return on investment (ROI) in turn for its marketing and sales expenses. If an organization markets its products or services to a consumer or business, it should focus on the various types of segmentation. Kotler (2010) describes segmentation as the classification of consumers within a market that share related needs and set up related purchasing behavioral habits.
CRM DEFINED: Customer Relationship Management (CRM) is the strategic application of people, processes, and technology in an organization-wide focus on improving the profitability of customer relationships - DM Martin and AM Peel, The Pace Setter Group, 2001 The infrastructure that enables the delineation of an increase in customer value, and the correct means to motivate valuable customers to remain loyal, to buy back again. - Jill Dyche, The CRM Handbook, 2000 CRM (Customer Relationship Management): strategy (technology-enabled) in response to, and in anticipation of, actual customer
The role of Strategic marketing is crucial throughout the implementation of a company corporate objectives as it involves placing its products or services into an ideal target market. It does this by using an appropriate distribution channel and a plan segmenting its ideal target market and audience. This is the stage where the company uses its promotional plan to help inform, persuade and remind customers of the existence of its products or services. That’s where positioning comes into play. The value of a product or a service lessens overtime one of the key ingredients is to keep the customers interested in the products, this is where the uses of positioning statements comes into play to solidify competitive positioning and remind the customers of the product value, but also the company initial vision and mission.
The key to success of relationship marketing is to understand your customers, business partners and keep up with the current market changes. As seen in Virgin Airline, organizations should deliver top quality goods and services to their customers, adapt to new technologies, monitoring and understanding the power of social media platforms because it is the most powerful tool of introducing and selling products, updating and collecting feedback from your customers. Finally, organizations should maintain their main focus on customers, business partners as well as empowering and training their employees regularly. Excellent customer services build customer relationships, retention and loyalty. This in turn benefits the organization in turnover, profitability, word of mouth publicity and overall
Organizations understand the importance of the vital role played by relationships in achieving and maintaining the cutting edge at the market place. Previously Peter F. Drucker had suggested that the purpose of any business is to create customers, which gives an opportunity to theorganization to serve them. The success of any organization mainly depends upon sustaining the customer advantage that is retaining the customers for lifetime. Rising of complexities and uncertainties at the market place along with intensifying global competition are forcing the business organization to invest in building customer relationships. Newly sophisticated marketing tool kits are being designed to satisfy and keep hold of customers to accomplish sustainable competitive advantage.
Customer strategy can be linked to competitor strategy through its ability to create sustainable competitive advantages. Using customer-driven strategy and customer relationship marketing techniques and approaches an organization is likely to develop competitive advantages that will build loyalty and customer satisfaction. Noteworthy in this regard, is what Grewal & Levy, (2014) state concerning customer excellence. According to the duo customer loyalty can be maintained if a firm develops value-based strategies for retaining loyal customers and provide outstanding customer service. It is also important to note that having a strong brand, unique merchandise, and superior customer service all help solidify a loyal customer base.
Some other authors also explain CRM as the procedure that comprises of activities that were assumed by the firms to achieve a long term, profitable and mutually beneficial customer relationships (Plakoyiannaki & Tzokas, 2002; Reinartz et al., 2003; Shaw, 2003). As it is known as a new practice in the business environment, the definition of customer relationship management has been discussed by different scholars and is ever growing. In an actual sense, the term known as CRM has developed different meaning to different individuals and organizations. Initially, customer relationship management was narrowly defined as promotional marketing based on a customer database (Bickert, 1992). According to Peppers and Rogers, (1993) described CRM to be a multifaceted process that builds one-to-one relationships with customers in order to achieve long term growth.
CRM is viewed as the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. The aim of CRM is to build long-term, mutually satisfying relations with customers in order to earn and retain business by delivering high quality products and services at reasonable prices over the time. In other words, instead of trying to maximize profits from each and every transaction, CRM focuses on maximizing profits over the lifetime value of the customer by creating and maintaining relationships. Benefits of