Customer Relationship Management
PGDM ~ Il (2013-2015)
End Term
Dato 17.12.2014
Time: 2hr 30 min FM: 40
Instructions
+ Each question carry 5 marks
+ Restrict each answer to 1 side of one sheet. Anything written beyond will not be
evaluated.
+ Please write your answers in short discernible points.
1. The standard CLV approach calculates the net present value (NPV) of all anticipated cash
flows coming in (revenues) and going out (marketing dollars spent) over some time span
(months, years, or even decades) for a given customer. What are the inherent flaws in this
approach?
2. At CRM adoption, a major packaged goods manufacturer has instructed its brand managers
to reevaluate their advertising spending in an effort to shift funding from mass advertising to
interactive marketing. The brand managers are comfortable in their mode of operation and
are resisting this effort. How can the manufacturer persuade brand managers to support the
CRM effort?
3. The text book by Kumar and Reinartz has sufficient rationale for loyalty programs. Why they
should be launched and how they can be leveraged. Convinced ! It is difficult not to get
swayed by such a buzz phenomenon. As a critique to the above practice bring out at least 4
limitations of loyalty programs
4. A manufacturer of computer chips has been unable to convince her dealers to give her the
names and addresses of the end consumer. She understands CRM and wants to implement
a plan that includes both the dealers and the end users. Define an approach that the
manufacturer can take to build a CRM environment and provide optimal flow of all relative
information in support of company-customer relationships
5. CASE - HubSpot: Inbound Marketing and Web 2.0
QuestionsDo you agree with HubSpot that the “rules of marketing” have changed? If so, how? Is.
inbound marketing the answer? Why or why not?
Is HubSpot finding and serving the right set of customers? Given its position as a startup
company, should it widen its focus to serve any customer that comes its way? Or narrow
their target, by focusing exclusively on either Owner Ollies or Marketer Marys? Or by
focusing exclusively on either 82B or B2C customers?
Hubspot has begun to differentiate its product as it has learned more about its
customers. Should it do more? Should its pricing strategy change too? Does the
software-a8-a-Service (SaaS) pricing model work for both Marketer Marys and Owner
Oliies? Should HubSpot try to immediately capture more value for either of these
customers?
Should they continue to practice what they preach by focusing on inbound marketing
alone? Halligan and Shah want HubSpot to be to marketing, what salesforce.com is to
sales. What would your plan of action be to make this happen? Why would you take
these actions? What keeps you up at night about your plan?