Key Words in Marketing Essay Example | Topics and Well Written Essays - 2000 words

Key Words in Marketing - Essay Example This gave rise to the era of transactional marketing, where the relationship enjoyed was purely based on delivering products and receiving payment. Nevertheless, in the modern times, numerous reasons have reignited the need for companies to form a closer relationship with its customers. Hence, this relationship has received the formal name of Customer Relationship Management and has undergone scientific analysis and modernisation. This paper understands the concept of CRM, its place in the field of marketing, reasons for its emergence, its constituent components and contemporary usage. Definition of CRM CRM can be defined in various ways. As per Das Gupta (2005), it is a framework of a company that helps it achieve a consumer-oriented business process and high customer loyalty. It is a tool that helps integrate various data collected about consumers, business transactions, performances of various marketing efforts, consumer reception of products or services and new developments in ta rget market. Feinberg and Kadam (2002) defined CRM as an approach of a company concerning its commerce and marketing efforts that amalgamates business method, technology and all other actions, keeping the consumer at the centre. Parvatiyar and Sheth (2001) noted that CRM is an inclusive scheme that involves obtaining, maintaining and collaborating with consumers to generate a high degree of value. While in practice they were different approaches, at least in theory, CRM holds the same meaning as relationship marketing and the two are often used as substitutes of one another (Parvatiyar and Sheth, 2002). These two expressions have been applied to various ideas and contexts, that either present a constricted practical viewpoint of marketing or an expanded viewpoint encompassing a company’s orientation (Nevin, 1995). The constricted viewpoint of CRM is the effort of marketing by use of databases of current and potential consumers, highlighting the promotion-related characteristi cs concurrent with data recording. Yet another viewpoint, given by Vavra (1992) is that CRM is the sum total result of a company’s quest for retaining consumers through various post-marketing strategies that enable the company to foster a favourable relationship with the consumers, even after sales transactions are made. Thus, to sum up all efforts by different scholars, CRM can be defined as a company’s framework to create long-term relationships with current and potential consumers through the effective coordination of its marketing, post-marketing, sales and after-sales service efforts. CRM’s place in Marketing CRM is a diverse concept and encompasses all aspects of marketing. It is a tool used to create a personal one-to-one relationship with each consumer, as opposed to a restrictive company-customer relation. This helps in getting higher business out of consumers by locating high-value consumers, understanding their needs better and offering them an unprec edented quality of personalised service. The process not only rewards with high degree of customer satisfaction and loyalty, but also greater profits. CRM is also used to manage financial risks and make sales transactions a pleasurable experience for both the company and its consumers. For example, people who enjoy great relationships with their salesmen are more likely to provide contacts that can easily be converted into active consumers. Besides providing leads, such people are also likely to continue giving business to the company over a longer