TRANSACTION-BASED MARKETING TO RELATIONSHIP MARKETING
Transaction-based marketing Buyer and seller exchanges
characterized by limited communications and little or no ongoing
relationship between the parties
Relationship marketing Development, growth
Business to Business Markets
Business-to-business marketinginvolves organizations purchase of
goods and services to support company operations or production of other
Advantages of buyer-seller relationship can include lower prices, quicker
Effective CRM Process Notes
Designing an Effective CRM Process
Any successful CRM programs must begin with the identification of
the firms core competencies.
Customers must benefit in some way.
Centralizing customer info will improve customer response tim
Determinants of CRM Notes
In addition to trust and value, salespeople must:
Understand customer needs and problems;
Meet their commitments;
Provide superior after sales support;
Make sure that the customer is always told the truth
(must be honest); and
Customer Relationship Management (CRM) Notes
CRM is the development and maintenance of mutually beneficial
long-term relationships with strategically significant customers
CRM is an IT enhanced value process, which identifies, develops,
integrates and foc
Buyer to Seller Relationships Notes
NATIONAL ACCOUNT SELLING
Technique of providing special attention to a firms largest, most profitable
customers by assembling a team to serve just one or more large accounts.
Just as ind
Customer as Advocates Notes
Grassroots marketingconnecting directly with existing and potential
customers through nonmainstream channels.
Viral marketingsatisfied customers get the word about products out to
Buzz marketingrelies on volu
ENHANCING CUSTOMER SATISFACTION Notes
Marketers use three major steps to measure and improve how well they
meet customer needs.
UNDERSTANDING CUSTOMER NEEDS
Firms must understand what customers need, want, and expect.
Must measure customer satisfaction.
Develop CRM Performance Metrics Notes
Measurement is a key success factor in maximizing CRM
Performance metrics should measure customer satisfaction and
Obtaining feedback regarding programs: Focus groups (assembled
Target Customer Segments Notes
Differing CRM activities based on customer quadrant (Figure 3.2)
CRM initiatives should seek to move customers and products into
Quadrant 1, or remove the products/customers from future business
Using the Internet
Segment Customers Notes
Customer segmentation: grouping customers within firms existing
Customers can move through different behaviors, segments, and
product choices very quickly.
Satisfying most profitable customers/reducing the cost of
Relationship networks Notes
The ultimate outcome of a successful CRM strategy is the creation of a
unique company asset known as a relationship network.
A relationship network consists of the company and its major customers
with whom the company has estab
Relationship Marketing Notes
All activities directed toward establishing, developing, and
maintaining successful changes with customers and other
Nature of relationships
Managing Customer Relationships Notes
The global salesperson must be involved in the following activities in order
to initiate, develop and enhance the process that is aimed at building trust
and commitment with the customer.
Initiating the relationship
The role of salespeople Notes
identifying potential customers and their needs;
approaching key decision makers in the buying firm;
negotiating and advancing dialogue and mutual trust;
coordinating the cooperation between the customers and