The Importance Of Customer Relationship Management

Marketing are activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure.

Q1-A

The Customer relationship management (CRM) is a term that refers to practices strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationship with customer, assisting in customer retention and driving sales growth. CRM systems are designed to compile information on customers

Building relationships mainly relies on the interaction which the company has with its customers. This interaction can come in the form of distributors (many customers), retail as well as direct sales executive. Each channel is different and has its own set of interactions. Thus, there are five different levels identified for relationship marketing thereby improving customer service and customer satisfaction. These four levels of relationship marketing are as follows:

True Friends: True Friends are the loyalist of loyal customers. They are the customers that not only bring in a profit, but also speak highly of your products and promote your business to others.

Butterflies: Butterflies are not particularly loyal, but have spent money on your products and brought in good revenue.

Barnacles: Here is where some companies, especially B2B companies, find a surprising amount of their customer base falls into. Barnacles are loyal customers, but they are loyal customers that rarely make a purchase, and may not bring in much of a

All of these interrelated groups form the internal environment.

Suppliers: Suppliers are also one of the important components of micro environment of marketing they are an important link in the firm’s overall customer value delivery system. They provide the resources needed to the firm’s, the firm’s supplies include raw material supplier, machine supplier, human resources supplier, technology supplier, capital supplier etc. the play an important role to get success in marketing .

Marketing intermediaries: help the company to promote, sell, and distribute its prod, ucts to final buyers. They include resellers, physical distribution firms, distributors, agents, marketing services agencies, and financial intermediaries.

Competitors: A competitor is one who sells a product or service in the same market at similar price. They are also major components of micro environment of marketing. This is the age of tough competition. So marketing management must carefully indentify and analyze its currents and potential competitors. It must try to do better than other competitors or to win over some of its customers. Its must gain strategic advantage by positioning their offering strongly against competitors, offering in the minds of