This website uses cookies to ensure you have the best experience. Learn more

Customer Relationship Marketing Essay

3301 words - 14 pages

Customer Relationship Marketing

Customer Relationship Marketing

The Importance Of CRM in Business-to-Business Practices
The Importance Of CRM in Business-to-Business Practices

1. Introduction 2
2. The Importance of Customer Relationship Marketing 3
2.1 Business Buyer Characteristics 4
2.2 Collaborative Relationships 5
3. Customer Relationship Marketing Strategies 6
3.1 Acquiring the right Customers 6
3.2 Crafting the right value proposition 7
3.3 Instituting the best process 8
3.4 Motivating employees 8
3.5 Learning to retain customers 9
4. Conclusion ...view middle of the document...

In the 1990s, Relationship marketing went further than locating specific customers. Businesses realised the need to retain customers through formulating strategies that would keep the customers loyal (Businessweek, no date). Furthermore this provided an opportunity for companies to create a communication channel open for their customers that would facilitate a two-way conversation between customers and suppliers (Businessweek, no date). This brought the rise of loyalty cards, bonus points in business-to-consumer companies such as Clicks and Woolworths. However, this method was predominantly useful for larger consumers in the business-to-business market who are a more lucrative segment and the subject of this essay.
Customer Relationship Marketing provides a competitive advantage to companies through offering support for customers on a continuous basis whilst focusing on each customer’s needs and wants and ensuring that these are fulfilled in the best way possible (Hutt and Speh, 2004). Such a strategy can successfully retain customers and decrease the amount of money companies have to spend to seek new customers (Hutt and Speh, 2004). This reveals the importance of managing the CRM and ensuring that all staff are well-equipped with knowledge of how to treat customers and how to cope with any problems or grievances that might arise from being involved directly with the customers (Taylor, 2007). This essay will focus on the Customer Relationship strategies in a business-to-business world, whilst outlining the importance of CRM and its use in the South African context.
2. The Importance of Customer Relationship Marketing
Customer Relationship Marketing is important for various reasons. As the amount of small businesses increase in South Africa so does the need to improve business practices. CRM can be very useful for small companies handling complex transactions occurring with collaborative relationship management (Wilson, 2011). The system is therefore more resourceful as it supports the efficient handling of money, the facilitation of updated information about the customers and communication with the customers, allowing feedback about the product and services provided by the suppliers. This not only assists with efficiency and a reduction of costs and defects but also results in customer satisfaction and higher profits (Wilson, 2011).
Customer Relationship Management can help retain customers (Taylor, 2007). The effect of this is great on the company because a reduced amount is disbursed in the search for new customers than is spent in the maintenance of the current customer database. This is shown by the struggle of out-suppliers to secure a contract with a company in a new task or modified rebuy in comparison to in-suppliers that already have business with the customers (Hutt and Speh, 2004).
Furthermore, Customer Relationship Marketing is an efficient method for a supplier to become the ‘Master of the Moment’ (Wilson, 2011). This...

Other Papers Like Customer Relationship Marketing

Marketing Essay

1324 words - 6 pages Environment Frankie Lim L1 Module Introduction & Concepts of Marketing Management L01-11 The Four Ps The Four Cs Marketing Mix Place Product Customer Solution Convenience Price Promotion Customer Cost Frankie Lim Communication L01-14 L1 Module Introduction & Concepts of Marketing Management 4Ps or 7Ps? • Increased emphasis place on services support for products - tangible products • Increased competition in services

Market Plan Essay

942 words - 4 pages ; school. Marketing managers are responsible for demand management. Irregular Demand and Synchromarketing ,e.g. ice cream; museum. Full Demand and Maintain Marketing. Overfull Demand and Demarketing , e.g. Mister Donut; Unwholesome Demand → and Social Marketing, e.g. cigarettes; drunk-driving. Customer Relationship Management (CRM) The overall process of building and maintaining profitable customer relationships by delivering

Define Marketing

648 words - 3 pages Introduction Various individuals consider that marketing is about advertising or sales. Conversely, marketing is everything an organization does obtain customers, and continue a relationship with them. To obtain clients business may have to do a small task that consist of correspond thank-you letters, playing golf with a potential customer, promptly returning calls, and meeting with a previous client for coffee can be part of marketing. The


606 words - 3 pages expectations The Changing Nature of Customer Relationships Consumer-Generated Marketing – marketing messages, ads, and other brand exchanges created by consumers themselves—both invited and uninvited Partner Relationship Management Partner Relationship Management – working closely with partners in other company departments and outside the company to jointly bring greater value to customers Creating Customer Loyalty and

Principle Of Marketing

1339 words - 6 pages The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 21 Building Customer Relationships Customer Relationship Management (CRM

Relationship Marketing & Customers

536 words - 3 pages Relationship marketing refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. This approach tries to disambiguiously transcend the simple post purchase-exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalised purchase, and uses the experience to create stronger ties. According to Liam Alvey (1983) relationship

Approaches of Crm

1900 words - 8 pages 2010.10.07. CRM – Customer Relationship Management Bianka Parragh, Phd Óbuda University Keleti Károly Faculty of Business and Management Institute of Enterprise Management • Approaches of Customer Relationship Management • The origins of CRM • The rise of CRM • The role of CRM • Types of CRM 1 2010.10.07. RE-INVENTING CRM In the late 1990s and early year of the 21th century, CRM was offered up as the next wave of marketing


1842 words - 8 pages product decisions refl ect real-world needs. RETHINKING MARKETING HBR.ORG January–February 2010 Harvard Business Review 99 CHIEF CUSTOMER OFFICER CEO CUSTOMER RELATIONSHIP MANAGEMENT RESEARCH AND DEVELOPMENT MARKET RESEARCH CUSTOMER SERVICE PRODUCT MANAGERS 1 2 3 CUSTOMER SEGMENT MANAGERS features and value into hit product off erings is legendary. Among its customer-focused innovation tools is Nokia Beta Labs, a virtual developer

Principles of Marketing

1989 words - 8 pages Planning Defining Marketing’s Role Developing Strategies for Growth and Downsizing Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy 2-20 Planning Marketing: Partnering to Build Customer Relationships Partner Relationship Management Partner relationship management is the process of working closely with partners in

Managing Market Information

1517 words - 7 pages Marketing Information Marketing Research Implementing the Research Plan Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 4- slide 32 Analyzing and Using Marketing Information Customer Relationship Management (CRM) • CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships Copyright

Marketing Ideology

1114 words - 5 pages /Placement/Promotion/Pricing), (Longenecker, Petty, Palich, & Moore, 2010) The evolution of marketing is determined by a marketer’s need to do at any particular time to fill the customers’ needs and wants, which continually change. For example, there have been four major stages of progression in the United States directly affecting marketing issues in the business environment: Production, selling, marketing concept, and customer relationship. In

Related Essays

Pathe Cinemas Customer Relationship Marketing Essay

4901 words - 20 pages 2006 led by a program of new openings and renovations” (Pathé Business Review, 2006). Pathé is planning another opening of a cinema in Bern in October 2008 (G. Schnegg, personal communication, August 31st, 2007). Conclusion: To conclude despite of the fact that Pathé is not tapping its full potential in Marketing and customer relationship management it seems to be a successful company. “Pathé reported revenues of 639 million Euros in 2006

Principles Of Marketing To Build Strong Customer Relationship

2060 words - 9 pages DEMETHRA BARNETT MGT 350 PRINCIPLES OF MARKETING MARKETING HARRY DERDERIAN APRIL 3, 2008 Marketing is the process when companies create value for customers and build strong customer relationship in order to capture value from customer in return. Within marketing there is a process that is used to build customer relationship and value. Marketing also deals with the customer’s needs, want, and their demands. Next after the

Research Essay

1283 words - 6 pages reflects respective concerns of individual authors, while most have certain basic features in common. Kotler and Armstrong (2010) consider that Marketing is managing profitable customer relationship. This seems to be the simplest definition of marketing. The American Marketing Association (2004) as cited in Gamble, Gilmore, McCartan-Quinn, & Durkan (2011), “an organisational function and a set of processes of creating, communicating and delivering

Marketin Gmanagement Essay

540 words - 3 pages , restraints, trends, distribution channel, etc. 4P’s of Marketing Brand Equity Pricing Strategy Product life cycle Business Marketing Customer Lifetime Value Customer Relationship Management Marketing Orientation Integrated marketing communication Our highly qualified, professional and skilled team members can provide you help with complex marketing case study, report writing, essay writing, research paper, term paper, dissertation