CH 14 - Customer Relationship Management A Databased...

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Customer Relationship Management A Databased Approach V. Kumar Werner J. Reinartz Instructor’s Presentation Slides
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Chapter Fourteen Impact of CRM on Marketing Channels
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Topics Discussed Role of traditional channels in customer relationships Emerging channel trends that impact CRM Recent opportunities and challenges for CRM with respect to distribution channels Implications for CRM CRM through direct channel Drivers and Behavioral Characteristics of multi-channel buying
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Channels “Flow” of the organization’s offerings, e.g. physical goods or information, to the ultimate end users (“end customer”), as well as that of sales proceeds or realizations from the customer back to the marketing firm “Marketing or distribution channels”: All entities (e.g. distributors, wholesalers, retailers, broker, agents, etc.) that perform certain functions for the marketing firm “Communication or contact channels”: Convey information to the customers to raise their awareness about the firm’s products and services and persuade them to make purchases
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Channel Management Channel Management of: Contact Channels: Managing the flow of information between any two parties, using one or more contact modes Distribution Channels: Managing the flow of goods and services from manufacturer to end-user
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Customer Relationships: Manufacturer End Customer Channel Intermediaries Goods Information Dollars Goods Information Dollars Goods Information Dollars DIRECT RELATIONSHIP UPSTREAM RELATIONSHIP (from channel perspective) DOWNSTREAM RELATIONSHIP (from Channel perspective)
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Role of Traditional Channels in Customer Relationships Indirect Customer relationship Building a good working relationship with the channel member (Upstream Relationship) Providing the channel member incentives to build a strong customer relationship (Downstream Relationship) Direct Customer relationship Firm communicates product information to consumer through contact channels Point of purchase advertising and promotions at the channel outlet (e.g. retail point) persuades consumer to make the purchase Consumer information flows indirectly to the firm through the channel’s sales data By building brand equity helps firms often try to build a “pseudo-relationship” with
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Key Factors Affecting CRM through Traditional Channels Incentives for coordinating information exchange Eg: Procter & Gamble and Wal-Mart invested in EDI (Electronic Data Interchange) technology Allowed Procter & Gamble access to real time customer data to forge customer relationships as well as reduce distribution costs Protecting the Interests of the Channels Toyota Motor Corporation’s Lexus division required dealers to invest in facilities, systems and personnel required to deliver extraordinary customer service Result: Lexus enabled its dealers to make several thousand dollars on the sale of each new car
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This note was uploaded on 11/09/2011 for the course MAR 08 taught by Professor Staff during the Spring '08 term at Youngstown State University.

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CH 14 - Customer Relationship Management A Databased...

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