Management of Marketing

Chapter 13: Customer Relationship Management

13.1 Introduction

Customer relationship management (CRM) and associated tactical issues of customer care have evolved and developed substantially over the past 20 years. The subject of integrated CRM has evolved out of the earlier, but related, topic of relationship marketing (RM). As with e-commerce, some observers feel that CRM is just the latest hunt for a more ideal business philosophy, or more unkindly, the latest management fad . Others see CRM as a change in business philosophy, one that incorporates and consolidates many earlier areas of new thinking such as total quality management, internal marketing and relationship marketing. It is to the topic of RM that we next turn, followed by a discussion of the related subject of internal marketing , because organisations need to market the concept of marketing to their own staff and others, the so-called internal customers . Organisations need to create the right spirit and internal culture before they can expect success in long-term external relationships. It has been discovered that employees behave toward customers in much the same way as the management behaves toward them. If they are treated badly they are more likely to treat customers badly. If they are treated well they are more likely to treat customers well. We then examine the nature and importance of customer care. Both internal marketing and relationship marketing aim to provide a better internal and external business framework to enable the better care of customers. Finally, the principles of complete CRM system including computer software applications are examined.

13.2

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