Unit 1 - Introduction

Part -A
1 Define CRM .
optimize
According to Gartner, "CRM is a business strategy designed to
Profitability, Revenue and Customer Satisfaction".
2 Define Transactional Marketing.
single ,
Transactional Marketing is a business strategy that focuses on
efficiency and
"point of sale" transactions . The emphasis is on maximising the
with a buyer.
volume of individual sales rather than developing a relationship
3 Define Relat ionsh ip Mark eting.
ss of
According to Prof. Philip Kotler, "Relationship Marketing is the proce
customers ,
building long term, trusting and win-win relationship with
eting promises
distributors, dealers and suppliers. Over time, relationship mark
other party. It is
and delivers high quality, efficient service and fair prices to the
l ties between
accomplished by strengthening economic, technical and socia
the individual
members of two organisations or between the marketer and
customer".
4 Ust the types of CRM .
• Operational CRM
• Analytical CRM
• Collaborative CRM
5 What are all the limitations of CRM ?
• Requires top management support
• Confusion in Attributes
• Problem in Implementation
• Customer dissatisfaction
6 List the five key principles of CRM .
• Understand what motivates the customers
• Treat Customer Individually
• Differentiate Offerings
• Increase Loyalty
• Providing efficient and consistent service
7 What are all the characteristics of CRM?
• Share of customer
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 • Lifetime value of the customer
• Customer equity
• Use of technology
8 List the misco ncept ions of CRM.
• CRM is a Database Marketing
• CRM is a Marketing Proces s
• CRM is an IT issue
• CRM is about loyalty schemes
9 Why do we need CRM?
It helps businesses to gain an insight into the behaviour of their
customers and modify their business operations to ensure that custom
ers are
served in the best possible way.
10 What are the objectives of CRM?
• To Provide Updated Information
• To Customise Strategies
• To Anticipate Problems
• To Prompt Follow-Up
11 Define cross selling .
Cross selling is the action or practice of selling an additional product or
service to an existing customer.
12 Define up selling.
Up selling is a sales technique where a seller induces the customer to
purchase more expensive items, upgrades or other add-ons in an attemp
t to
make a more profitable sale.
13 What Is customisation?
Customisation is a strategy by which an organisation' s products or
services are individualized through personal engagement and dialog ue
with its
customers.
14 Difference between Transactional and Relationship marketing.
Basis of Difference Transactional Relationship
Marketing Marketing
Primary object Single transaction Relationship
General approach Action related Interaction related
Perspective Static Evolutionary-dynamic
MBA St. Joseph' s College of Enginee ring, Chennai
 Intensity of contact Low High

15 Define Operational CRM.

It refers to services that allow an organisation to take care of their
customers . It provides support for various business processes , which can
include sales, marketing and service.
16 Define Analytical CRM.
It is defined as a decision support system that is targeted to helping
senior executives, marketing, sales and customer support personnel to better
understand and capitalise upon their customer needs, the company's
Interaction with the customer, and the customer buying cycle.
17 Define Collaborative CRM.
It deals with synchronisation and integration of customer interaction and
channels of communications like phone, email, fax, web etc. With the intent of
referencing the customers a consistent and systematic way.
18 Who are the stakeholders in a business ?
• Business Owner
• VP of Sales and Sales Manager
• Salespeople
• Customer Service/ Support Manager etc.
19 What is Customer equity?
Customer equity is the total of discounted lifetime values of all of the
firm's customers.
20 What is mass customisation?
It is a manufacturing technique which combines the flexibility and
personalisation of custom-made products with the low unit costs associated
with mass production.
21 Describe the stakeholder's roles, responsibilities.
Stakeholders are individuals or groups that have an interest in the
success and progression of a company. Internal stakeholders include silent
partners, shareholders and investors. External stakeholder groups might
include neighboring businesses, strategic partners or community bodies such
as schools.
Stakeholders have responsibilities to businesses that include educating

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 developers, financing projects, creating scheduling parameters and setting
milestone dates.
22 Who is a customer?
A custome r is a person or organization that a marketer believes will
benefit from the goods and services offered by the markete r's organization. As
this definition suggest s, a customer is not necessarily someone who is
currenUy purchasing from the marketer.
23 Who are the stakeholders of CRM?
The stakeholders vary depending on the industry. Some of the
stakeholders commonly involved in CRM are top management, marketing
managers, and retail sales agents I call centre· agents I field sales agents,
customers using self-care applications, dealers and product manage rs. Each
stakehol der has their own set of expectations from the CRM system. Based on
my experience in working with some of these stakeholders
24 Why businesses should adopt CRM?
Adopting CRM w ill give a company a competitive advantage by lowering
its production costs, boosting sales revenue , and expanding market share. It
can be difficult for sales teams to reduce costs. A CRM solution provides the
tools a compan y needs to improve accuracy and effectiveness.

Part - B
1 Describe the concepts and context of relationship marketing.
2 Discuss the evolution of CRM
3 Explain the key differen ces between transactional marketing and

relationship marketing approach.

4 What are the goals of CRM? Explain its types.
5 What do you mean by CRM as a strategi c tool? Discuss .
6 Discus s CRM signific ance to the stakeho lders.
7 Explain the Importa nt ways to deploy CRM. List down the advanta ges and
disadva ntages In deployi ng CRM
8 Explain the phases in develop ing a CRM strateg y using an Illustrat ion.
9 Explain with real world examples about the transac tional Vs relation ship
approac h of CRM.
10 Discuss about the Signific ance of custom er relation ship manage ment to
 Its various stakeholders.
11 Explain the key issues relating to customer defections.
12 Discuss CRM as a strategic marketing tool for effective business
decisions.
13 Explain the role of CRM as a strategic marketing tool.