and delivering the desired satisfactions more effectively and efficiently than competitors do. The societal marketing concept holds that generating customer satisfaction and long-run societal well-being through sustainable marketing strategies are key to both achieving the company’s goals and fulfilling its responsibilities. OBJECTIVE 4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Broadly defined, customer relationship management is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. The aim of customer relationship management is to produce high customer equity, the total combined customer lifetime values of all of the company’s customers. The key to building lasting relationships is the creation of superior customer value and satisfaction. Companies want to not only acquire profitable customers but also build relationships that will keep them and grow “share of customer.” Different types of customers require different customer relationship management strategies. The marketer’s aim is to build the right relationships with the right customers. In return for creating value for targeted customers, the company captures value from customers in the form of profits and customer equity. In building customer relationships, good marketers realize that they cannot go it alone. They must work closely with marketing partners inside and outside the company. In addition to being good at customer relationship management, they must also be good at partner relationship management.
OBJECTIVE 5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships. Dramatic changes are occurring in the marketing arena. The recent Great Recession left many consumers short of both money and confidence, creating a new age of consumer frugality that will last well into the future. More than ever, marketers must now emphasize the value in their value propositions. The challenge is to balance a brand’s value proposition with current times while also enhancing its long-term equity. The boom in computer, telecommunications, information, transportation, and other technologies has created exciting new ways to learn about and relate to individual customers. It has also allowed new approaches by which marketers can target consumers more selectively and build closer, two-way customer relationships in the Web 3.0 era. In an increasingly smaller world, many marketers are now connected globally with their customers and marketing partners. Today, almost every company, large or small, is touched in some way by global competition. Today’s marketers are also re-examining their ethical and societal responsibilities. Marketers are being called to take greater responsibility for the social and environmental impact of their actions. Finally, in recent years, marketing also has become a major part of the strategies of many not-for-profit organizations, such as universities, hospitals, museums, zoos, symphony orchestras, and even churches.
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- Spring '15
- Marketing, Customer Relationships