Session 3

Customer Relationship Management

CRM is the process of carefully managing detailed information about

individual customers and all customer touch points to maximize
customer loyalty.
 Framework for CRM

Identify prospects and customers

Differentiate customers by needs and value to company
Interact to improve knowledge
Customize for each customer

Managing the Marketing Funnel

 Attracting and
Retaining Customers

Reduce the rate of defection

Increase longevity
Enhance share of wallet
Terminate low-profit customers
Focus more effort on high-profit customers
 Innovation

BOP Markets ( C K Prahlad )

Drinking water from winds ( 164 USD )
Holistic Marketing Dimensions
 MARKETING
MANAGEMENT TASKS

Developing market strategies and plans

Capturing marketing insights

Connecting with customers

Building strong brands

The Micro and Macro Environment
Marketing Environment Scanning

The process of acquiring information from outside the organization to

identify trends which may impact its success.

MICRO ENVIRONMENT

Internal records Results Data

Marketing Intelligence System Happening
Sales force
Channel partners
Customer Advisory Panels
Govt Data sources
Feedback ( Blogs, Expert opinions, Independent review forums,
networking sites)
MACRO ENVIRONMENT FORCES AND INTERACTIONS

Fad -Short lived, unpredictable without social,

political or economic significance

Trend- Reveals the shape of future- Online

buying, online reading

Megatrend -slow to form, once in place

influences for longer period
 Population and Demographics

Population growth(1.21 billion Demographic Dividend!)

Population age mix ( Median Age in India 25.9 years)
Ethnic and other markets ( Religion, states, consumption behavior,
norms etc)
Educational groups ( Literacy rate 74% and growing )
Household patterns ( 193 million households, 71% rural ; Nuclear family :
Business opportunities)
Political Environment
Economic Environment

Consumer Psychology-income, prices,

savings, credits, expectations from future

Income Distribution very low incomes,

mostly low incomes, very low-very high income, low-
medium-high income and mostly medium income
Economic Environment
 Socio-cultural Environment

Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe

Aug 25 2014 : The Economic Times (Delhi)

Indian Men Lining up for Botox for a Facelift

Other Cultural Factors in Marketing

Core beliefs: hard to change ( Marriage )

Secondary beliefs: easier to change ( Environmental concerns, Safety on
roads)
Existence of subcultures ( Teens )
Natural Environment
Natural Environment
 Technological Environment
Can lead to new product development
Multiple channels to serve customers
Higher efficiency & effectiveness-Lower costs

Accelerating change : Can render old products obsolete-

walkmanmp3ipod

Impact of e-commerce

Impact of Social media

Innovation ( Sustainable solutions )

https://www.youtube.com/watch?v=zYtmBtOm
QlI
The Political-Legal Environment
Business Legislation -CSR Law, CCI

Growth of Special Interest Groups Consumer

Forums - DND

Government Agencies RBI,SEBI,IT,Environment

etc.