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Marketing and Customer Relationship Marketing

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1. The "buzz" phrase in marketing today is "customer relationship marketing (CRM)." Read any business digest or trade publication and you'll see CRM touted as the "next big thing." Is customer relationship marketing really a new marketing concept? Why do you think it's getting all the hype? How does customer relationship marketing contribute to improved customer satisfaction and retention?

2. A need is a felt deprivation of a necessity. For example, we need food, shelter, clothing, and medical care. A want is how consumers choose to satisfy the need. For example, I'll eat a Big Mac (want) because I'm hungry (need). Does marketing operate in the realm of needs or wants? In other words, can marketing create consumer needs or does marketing try to persuade consumers to want its product solutions to existing needs? The text talks about marketing shaping customer needs. Does marketing shape customer needs or customer wants? Can you support your position with examples?

3. What are "Customer Touch Points" and what role do they play in Customer Relationship Management? Do you think "Customer Touch Points" are more important to large corporations or small businesses? Is segmentation as important for small companies as large businesses? Does the size of a small business prevent it from pursuing an adjacent segment strategy?

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The solution discusses the "buzz" phrace in Customer Relationship Marketing

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1. The "buzz" phrase in marketing today is "customer relationship marketing (CRM)." Read any business digest or trade publication and you'll see CRM touted as the "next big thing."

Is customer relationship marketing really a new marketing concept? No. Customer Relationship Marketing has been around for years. The concept of CRM is to lure the customer in and keep the customer for a lifetime. Marketers have been doing this for years. The difference today is that the term is creating a "buzz."
Three key steps in customer relationship marketing are:
? "Companies save money by not marketing to those we have learned are less likely to respond.

? Companies make money by making relevant offers to those who need, or want, or can afford our products.

? Companies build relationships with our best customers, resulting in higher loyalty, retention, referral, spending rates, and profits." (Hughes 2009)
Many ideas have been around for many years and CRM is not new. Southwest is a marketing genius, as the company is the master of CRM. Southwest has the highest retention rates of any airline. (Aderfo 2008)
Reference
http://www.dbmarketing.com/articles/Art190.htm
http://www.talisma.com/tal_news/industry_news_details.aspx?M=1&Yr=2007&ID=160
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Jo Ann Prevetti, MBA, PhD (IP)
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  • Bachelor of Science in Paralegal Studies, Kaplan College
  • Business Diploma, Katharine Gibbs Business College for Women
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