A study to Understand the Concept of Customer Relationship Management with Reference to Medreich Life Care ltd., Bombay
A study to Understand the Concept of Customer Relationship Management with Reference to Medreich Life Care ltd., BombayChapter 1INTRODUCTION
MARKETS:The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships.Marketing means managing markets to bring about profitable customer relationships. However, creating these relationships takes work. Sellers must search for buyers, identify must first create a need-satisfying marketing offer (product). It must decide how much it will charge for the offer (price) and how it will make the offer available target consumers (place).Finally, it must communicate with the target customers about the offer and persuade them of its merits (promotion).
MARKETING: Marketing is the business function that identifies customer needs and wants. Creating customer value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customer satisfaction at a profit. Many people think of marketing only as Selling & advertising. But selling & advertising are Only the tip of marketing. Marketing means managing markets to bring about exchanges and relationships for the purpose of creating value and satisfying needs & wants.Today, marketing must be understood not in the old sense of making a sale telling and selling but in the new sense of satisfying customer needs. If the marketer does a good job of understanding consumer needs; develops products that provide superior value; and prices, distributes, and promotes them effectively, these products will sell very easily. Thus, selling and advertising are only part of a larger marketing mix a set of marketing tools that work together to satisfy customer needs and build customer relationships.Broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others. In a narrower business context, marketing involves building profitable, value laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong relationships in order to capture value from customers in return.
CUSTOMER NEEDS, WANTS, AND DEMANDS:The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety: social needs for belonging and affection: and individual needs for knowledge and self expression. Marketers did not create these needs: they are a basic part of the human makeup.Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, French fries, and a soft drink. A person in Mauritius needs food but wants a mango. Rice, lentils, and beans. Buying power shapes wants, wants become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.
MARKETING MANAGEMENT: The analysis, planning, implementation and control of programs design to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Marketing Management conceptsProduction Product SellingMarketingSocietal
Production concept: Management should focus on improving production and distribution efficiency. When the demand for a product exceeds the supply, management should looks for ways to increase production. When the products cost is too high, improved productivity is needed to bring it down. Product concept:Consumer will favour products that offer the most quality, performance and innovative features. Thus, an organization should devote energy to making continues product improvements. Selling concept:Consumers will not buy enough of the organizations products unless its under takes large-scale selling and promotion effort.
ExistingSelling &Profits throughFactoryproductspromotingsales volume
Selling:Selling is also important function of marketing. It is the process where by goods and services finally flow to the customers who need them. Selling focuses on the needs of the seller.
Marketing concept:The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than to competitors.
CustomerIntegratedProfits throughMarketneedsmarketingcustomer satisfaction
Marketing means obtaining customers. Marketing focuses on the needs of the purchaser. Makes profits by creating long term customer relationships based on customer value and satisfaction.
Societal concept:The societal marketing concept holds that the organization should determine the needs, wants and interests of target markets.
CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management entails all aspects of interaction a company has with its customer, whether it is sales or service related; it starts with the foundation of relationship marketing. CRM is a systematic approach towards using information and ongoing dialogue to built long losing mutually beneficial customer relationship. The use of CRM technology forms the crucial front-end of any e-business strategy, essentially CRM has emerged as convivial weapon in the hands of the industry laggards as well as leaders to cascade the business suites; the only touch point which is formulating this base is the awareness amongst the corporatists to suffice the customers already available to the companies to large extent.In todays first-paced competitive business environment its more important than ever to create and maintain long-losing business relationships. Today, Customer Relationship Management (CRM) manages business process spanning sales, support, and marketing creating effective customer interactions. Given the purpose of CRM, the functionality is straightforward, and the benefits of successful deployments clearly generate value and profitability for any company. Grate CRM solutions need to encourage users to interact with the application as well as be in-tune with the business and IT cost-saving needs.For the modern-day CRM to be world class it needs to be revolutionary in market incursion and evolutionary in technological up gradation.Today the major business focus is towards endowing value addition to the sales cycle, and customer retention rather than constructing a new customer base which is costlier and also an uncertain chase from business perspective. The basic philosophy behind CRM is that a companys relationship with the customer would be the biggest asset in the long-run.It is now vital for CRM vendors to develop a sound understanding of their target organizations customer and deliver them with solutions which help in achieving long-term business relations with their customers. Vendors must also build long-term customer relationship management strategies with the end-user organizations to assure a series of deployments, and hence ensuring a regular revenue stream for themselves as well as their customers.Before implementing any Customer Relationship Management solution in the organization there are many questions which need a comprehensive explanation from the users point of view. What is the added value preposition of the CRM to the organization? What would be the environment under which the implementation done? How would the synergies be reflecting in the processes of the company?These are mere stencils of the holistic scenario prevalent right now, and are to a great extent a factor which harms the opportunities of long-term survival for any CRM vendor.CRM stands for Customer Relationship Management. It is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. After all, good customer relationships are at the heart of business success. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.
GOALS OF CRM:The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: Provide better customer service Make call centers more efficient Cross sell products more effectively Help sales staff close deals faster Simplify marketing and sales processes Discover new customers Increase customer revenues It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs. Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising