Marketing Management (KMBN-105) UNIT-5

Customer Relationship Management (CRM): Customer Relationship Management

(CRM) refers to the principles, practices and guidelines that an organization follows when
interacting with its customers. From the organization’s point of view, this entire relationship
encompasses direct interactions with customers, such as sales and service related processes,
and forecasting and analysis of consumer trends and behaviors. Ultimately, CRM refers to
enhance the customer’s overall experience.

Relationship Marketing: Relationship Marketing is a sales approach focusing on building a long-

term relationship that benefit both the customer and the business. Some of the techniques
businesses use in relationship marketing include providing consistently excellent customer
service, getting to know the individual and anticipating their future needs, and offering
discounts and special perks through loyalty programs for repeat customers. The rise of the
internet gives small business ample opportunity to build relationships and engage with
customers by inviting them to visit their websites and comment on blogs, as well as interact on
social media sites such as FACEBOOK, TWITTER, YOUTUBE and LINKEDIN etc.

Relationship Marketing Vs Relationship Management:

Aspect Relationship Marketing Relationship Management

Focus Primarily on customer relationships. Encompasses relationships with all

stakeholders, including customers, suppliers,
partners, and employees.

Objective Build and maintain long-term customer Optimize interactions with various
loyalty. stakeholders to achieve strategic business
goals.

Scope Specifically centered on customers. Broader, covering relationships with all

business stakeholders.

Time Horizon Emphasizes long-term customer value. Addresses both short-term and long-term
interactions with stakeholders.

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Approach Personalized communication and Understanding needs and expectations of

experiences to enhance customer diverse stakeholders, ensuring mutually
satisfaction and loyalty. beneficial interactions.

Tools Loyalty programs, personalized Customer Relationship Management (CRM)

marketing campaigns, customer feedback systems, tools for managing relationships
systems. with suppliers, partners, and other
stakeholders.

Outcome Increased customer loyalty and repeat Optimization of all interactions to contribute
business. to overall business success.

Examples Sending personalized offers, loyalty Using CRM systems to track customer
rewards. interactions, managing supplier
relationships effectively.

Using CRM and Relationship Marketing:

Relationship marketing seeks to increase sales by building trust and engaging customers. Using
a CRM system effectively allows a salesperson to quickly and consistently deliver what
customers are looking for with each and every interaction, because their preferences and
buying history are recorded. The system benefits the customers, because they see the business
“knows” them. CRM systems coordinate, automate and deliver online and offline advertising
and marketing activities that help to build the long-term customer relationships that are crucial
to a successful relationship marketing strategy.

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Types of Relationship Management:

1. Operational CRM: It provides supports to front-office business process that involve

direct interaction with customers through any communication channel, such as phone,
fax, email etc. The details of every interaction with customers, including their
requirements, preferences, topics of discussion etc. are stored in the customers’ contact
history and can be retrieved by the organization’s staff whenever required.

Thus it presents a unified view of customers across the organization and across all
communication channels. Examples of operational CRM applications are Sales Force
Automation (SPA), Customer Service and Support (CSS), Enterprise Marketing
Automation (EMA) etc.

2. Analytical CRM: It enables to analyze customer data generated by operational CRM

applications, understand the customers’ behavior, and derive their true value to the
organization. This helps to approach the customers with pertinent information and
proposals that satisfy their needs. The analytical customer relationship management
applications use analytical marketing tools like data mining to extract meaningful
information like the buying patterns of the customers, target market, profitable and
unprofitable customers, etc. that help to improve performance of the business.

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3. Collaborative CRM: It allows easier collaboration with customers, suppliers, and business
partners and, thus, enhances sales and customer service across all the marketing
channels. The major goal of collaborative customer relationship management
applications is to improve the quality of services provided to the customers thereby
increasing the customers’ loyalty. Examples of Collaborative CRM applications are
Partner Relationship Management (PRM), Customer self-service and feedback, etc.

Significance of Customer Relationship Management:

 Help organizations to determine their most profitable customers and establish a long-
term relationship with them. This can increase the firm’s sales revenue.
 Results in reduced churn rate (The number of customers who stop buying or using
products of a company) by enabling the firms to customize and personalize the products
according to user needs, preferences, buying habits etc.
 Enables provision of better customer service and support across all the touch points,
whichever the customer uses.

Global Marketing: Global Marketing involve the performance of activities designed to plan,
price, promote and direct to flow of an organization’s offerings in more than one country for a
profit.

Global Marketing- Current Scenario:

 Social marketing
 Relationship marketing
 Green marketing
1. Social Marketing:
Social marketing is an umbrella term that define the various activities that integrate
technology, social interactions and the construction of word and picture. For social
marketing we need to have creative idea, which attract other people to the product.

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2. Relationship Marketing:
(i) A long term stagy to build relationship with individual customers.
(ii) Relationship marketing is a philosophy of doing business, a strategic orientation
that focuses on keeping and improving current customers rather than on
acquiring new customer.
3. Green Marketing:
It is the marketing of products that are pre-assumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as
modifying advertising. Other similar terms used are Environmental Marketing and
Ecological Marketing.

Global Marketing Environment:

Global Marketing Environment can be broadly divided in two categories:

(i) Internal Environment

(ii) External Environment

External Environment consists of micro environment and macro environment.

1. Internal Environment:
(i) Value system of the founders
(ii) The mission and objectives of the company
(iii) The organizational structure
(iv) The composition of the board of directors
(v) Enjoys from lower levels and workers, shareholders and Board of Directors.
(vi) The characteristics of the human resources like skill, quality, morale,
commitment.

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2. External Environment:

Demographic

Intermediaries
Natural

Economic
Suppliers
Customers
Marketing

Management
Publics
Company
Competitors
Micro Environment
Cultural

Technological Political/ Legal

Macro Environment

Entry Strategies:

1. Exporting:
(i) Exporting involves producing offerings in one country and selling them in
another country.
(ii) Exporting can be indirect or direct
(a) Indirect Exporting: A firm sells its domestically produced goods in foreign
country through an intermediary.

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(b) Direct Exporting: A firm sells its domestically produced goods in a foreign
country without intermediaries.
2. Licensing:
With licensing, a company (licensor) offers the right to a trademark, patent, trade secret
etc. to another (license) for royalty or a fee.
3. Joint Venture:
(i) When a foreign company and local firm invest together to create a local
business, it’s called JOINT VENTURE.
(ii) For Instance:
- Starbucks entered India in 2007 through a joint venture with New Horizons,
India – based company.
4. Direct Investment:
(i) The biggest commitment a company can make when entering the global market
is direct investment which entails a domestic firm actually investing in and
owning a foreign subsidiary or division.
- For instance:
- Reebok entered Russia by creating a subsidiary known as Reebok Russia.
(ii) Advantages:
(a) Cost Saving
(b) Better understanding of local market conditions.

Global P’s of Marketing:

It seems like you're referring to the traditional "4 Ps of Marketing," which are the fundamental
elements in the marketing mix. These elements are essential for developing and executing
marketing strategies. The traditional 4 Ps are Product, Price, Place, and Promotion. However, in
a global context, some variations or additions are often considered to address the unique
challenges and opportunities in international markets. Here's an extended version, often known
as the "Global P's of Marketing":

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1. Product: This refers to the goods or services that a company offers to meet the needs
and wants of its target market. In a global context, companies may need to adapt their
products to suit different cultural preferences, legal requirements, and market demands
in various regions.
2. Price: Setting the right price is crucial in international markets. Factors such as local
economic conditions, currency fluctuations, and pricing strategies of competitors must
be considered. Companies may need to adjust prices to remain competitive and
profitable in different countries.
3. Place (Distribution): This involves the channels and methods used to make the product
available to the target market. In a global context, companies need to consider
distribution channels, logistics, and local infrastructure in different countries. They may
need to adapt their distribution strategies to suit each market.
4. Promotion: Promotion includes advertising, public relations, sales promotions, and
other communication strategies to create awareness and persuade customers. Cultural
nuances, language differences, and media preferences should be considered in global
promotional efforts. Tailoring promotional messages to local cultures is essential.
5. People: In global marketing, the people factor becomes increasingly important. This
includes the cultural understanding and adaptability of the marketing and sales teams,
as well as customer service personnel. Companies may need to train their staff to work
effectively in diverse cultural environments.
6. Processes: The processes involved in delivering a product or service can vary across
different countries. Companies need to consider local regulations, customs procedures,
and other logistical challenges to ensure smooth operations.
7. Physical Evidence: In services marketing, "physical evidence" refers to the tangible
elements that help communicate and reinforce the service offering. In a global context,
companies may need to consider cultural symbols, packaging, and other visual elements
that influence perceptions of the service.

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8. Politics and Legalities: Understanding and navigating the political and legal landscape in
different countries is crucial. Companies must comply with local laws and regulations,
and they need to be aware of any political risks that may affect their operations.

These additional elements reflect the complexities and nuances of operating in a global market.
Companies that consider these factors are better positioned to develop effective and culturally
sensitive marketing strategies worldwide.

Recent Trends and Innovation in Marketing- Green Marketing and Agile

Marketing:

Green Marketing:

Definition:

Green Marketing is a relatively new concept, which involves the promotion of products and
services which are safe for the environment. It involves development, manufacturing,
promotion, distribution, consumption, and disposal of the products and services in a
sustainable fashion so that least damage is caused to nature.

Objectives of Green Marketing

The objectives of green marketing are boiled down in the points given below:

 To adhere to corporate social responsibility.

 To reduce expenses.

 To showcase how environment-friendly the company’s offerings are.

 To communicate the brand message

 To implement sustainable and socially accountable business practices.

Example

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1. Whole Foods: An American supermarket chain, owned by Amazon, known for selling organic
products, which does not contain hydrogenated fats, flavours, preservatives, sweeteners,
flavours and artificial colours.

2. Starbucks: Starbucks is the largest coffeehouse chain in the world with a presence in more than
70 countries. It promotes sustainable practices to grow coffee.

3. The Body Shop: A British cosmetic and skincare giant, which offers products which are cruelty-
free, and use natural ingredients.

What is Green Marketing Mix?

Similar to traditional marketing, firms use green marketing mix, to use the marketing variables
and get the intended response from the target audience. The four P’s of the green marketing
mix are:

 Product: The products should be designed and developed in such a manner that they use fewer
resources and are pollution-free, plus they do not contain any toxic substance, whose use can
be harmful. Moreover, the product must increase the conservation of scarce resources.

 Price: In green marketing, price plays a prominent role, as the customers are going to pay the
additional price, only when there are of the view that they will be getting the premium quality
products, in terms of design, performance, appeal, taste, or anything else.

 Promotion: Green advertising can be done in three ways, i.e. there can be ads which display the
connection amidst the product and the environment, or ads which promote a green and
organic lifestyle, or ads that showcase a corporate image of environmental responsibility.

 Place: Place defines the availability of the products and so the marketers should opt an ideal
way to make such products available as it will have a great impact on the customers.

Green Marketing Practices

It involves a wide spectrum of activities, to create an eco-friendly image of the company, to its
target audience, such as:

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1. Using recycled and renewable material for production.

2. Use of green energy to produce products, such as solar energy, geothermal energy and wind
energy.

3. Reduce product packaging or use eco-friendly packaging.

4. Not using toxic materials, which are harmful to the environment.

5. Making products which are reusable as well as recyclable.

So, basically, green marketing is all about developing and promoting products and services that
fulfill customer requirements, in terms of quality, performance, affordability, availability and
safety, but without causing any damage to the environment.

Agile Marketing:

Agile marketing is an approach to marketing that relies on continuous testing and iteration,
measuring and quantifying results, and using this data to drive and inform future campaigns.
Similar to other applications of the Agile philosophy, Agile marketing teams place value on a
higher volume of fast-paced, iterative campaign cycles over fewer long-term, big-budget
campaigns.

By using Agile marketing methods, teams can quickly identify what’s working and what’s not,
thereby improving engagement and boosting success rates at a much faster pace than non-
Agile teams.

The developers of the Agile Marketing Manifesto have stated its core principles as follows:

1. Validated learning over opinions and conventions

2. Customer-focused collaboration over silos and hierarchy

3. Adaptive and iterative campaigns over big-bang campaigns

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4. The process of customer discovery over static prediction

5. Flexible versus rigid planning

6. Responding to change over following a plan

7. Many small experiments over a few large bets

How Agile marketing methods can benefit your teams:

There are plenty of benefits to be had from adopting Agile marketing methods and tools in your
team. Here are a few of the major perks:

 Improved communication
A major aspect of the Agile marketing framework is frequent meetings — more specifically,
very brief, daily check-ins where each team member gives a quick overview of what they
did the previous day, what they’re working on today, and any issues or bottlenecks they’re
encountering. Naturally, when teams communicate more frequently, things are less likely
to slip through the cracks — which leads us to the next benefit.

 Faster identification of Problems

This is another hallmark of an Agile methodology. Rather than waiting until a months-
long project is completed and ready for launch to identify and sort out issues, agile teams
are able to identify problems as they arise and respond to them in kind.

 Easier, more effective management of shifting priorities and needs

Along with rooting out problems before they have a chance to grow and compound, Agile
marketing allows teams to quickly respond to changes in messaging, project priorities, or
company needs on the fly.

 Greater focus and sense of ownership

Another great benefit of Agile marketing is that it allows individual team members to feel a

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greater sense of ownership over their contributions. When implementing an agile strategy,
projects or campaigns are broken down into essential components, giving team members a
singular goal to focus on each day plus a heightened feeling that their work matters to the
final product.

Developing an Agile Marketing Team

In order to develop your Agile marketing team, you’ll need to determine which Agile marketing
tools best fit your internal style and objectives. For example, if you’re running a scrum-style
framework, you’ll want a tool that enables you to create a Scrum dashboard to help manage
your marketing projects and campaigns. Similarly, if your team uses a Kanban framework, an
essential tool you’ll need in your kit is the Kanban board. The Kanban board helps you easily
visualize workflows, task statuses, and sticking points.

Regardless of which particular Agile framework you choose, remember the four key features
that form the Agile framework:

1. Sprints
Put simply, a sprint is a range of time — typically two weeks, though they may be slightly
longer — in which your team works toward a singular goal or campaign. Often, larger
projects are split up into multiple sprints.

2. Standup meetings
Standup meetings should occur daily, and they shouldn’t take more than 15 or so
minutes. Otherwise, they take up too much creative time and become a drain on team
member productivity. These meetings should be quick and to-the-point, with each
member briefing the team on what they’re doing that day and any hangups they’re
experiencing.

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3. Progress tracking
Whether it’s a Scrum dashboard, a Kanban board, or a whiteboard with sticky notes, your
Agile marketing team needs a centralized way to track tasks and campaigns through each
sprint.

4. Teamwork
In Agile marketing, the success or failure of any campaign falls on the team, not just a
single individual.

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