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Concept and Context of

B2B and CRM

Ranjan SS

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The Evolution of CRM

The concept of marketing has changed over the years

In sense it is a revolution

Due to ever changing taste of the customer the overall conceptof marketing has changed in terms of,

Customer Identification

Customer Retention

Customer Satisfaction

The marketing concept has been evolved from the variousearlier orientations

The emphasis has been further shifted to businessrealization.

Production Orientation

When a high demand for a product or service exists,

coupled with a good certainty that consumer tastes do notra idl alter

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Product Orientation

It is concerned with the product quality. As long as the

product is of high standard, people would buy and

consume.Selling Orientation

It focuses primarily on the selling and promotion of a

particular product, and not determining new consumer

desires.

Such an orientation may suit scenarios in which a firm

holds dead stock, or sells a product that is in high demand,

with little chance of change in consumer taste to reduce

demand.

Marketing Orientation

It involves a firm essentially base its marketing plans

around the marketing concept, and thus supplyingproducts to suit new consumer tastes.

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The 1990s brought two new concepts that challenged

the business landscape : Deregulation and the Internet.

The explosion in information allowed consumers to

compare features, and prices across multiple providers.

Companies started trying to manage relationships

with their customers, partners, and suppliers in a

personalized and automated manner.

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What are CRM ?Customer Relationship Management

It is the most effective corporate business mantra.CRM is a business strategy that aims to understand,

anticipate and manage the needs of an organization's current

and potential customers

In sense, the business between buyer and seller isconsidered as a platform for building relationships.

It is a comprehensive approach which provides seamless

integration of every area of business that touches the

customer - namely marketing, sales, customer services andfield support through the integration of people, process and

technology.

CRM is a shift from traditional marketing as it focuses on the

retention of customers in addition to the acquisition of newcustomers

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Objectives of CRMLifetime Value

Refers to the net present value of the potentialrevenue stream for any particular customer overnumber of years

Starts with current purchase activity then extrapolatesto include potential additions from cross-selling,

upgrades, total ownership, etc.Customer Ownership

Attempts to own the lion share of customer spendingand/orshare ofmind in a particular product category

Building brand equity, maintaining vigilant customercontact, keeping current with the market trends iscritical

5% points increase in customer retention causessome 25% increase in profit ratio

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Customerization

Mass Customization Using flexible processes andorganizational structures to produce varied and

individualized products and services at the price ofstandard mass-produced offerings.

Personalization Customization of some features of

a product or services so that the customer enjoysmore convenience, lower costs, or some other benefit.

Segment-of-One Marketing Based on the idea ofthe firm learning individual reactions to marketing

strategies, then treating this customer differently thanother customers.

Customerization = Mass customization +personalization + segment-of-one, dependent on a

web-based electronic interaction

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Why CRM ? To built a long term relationship that enriches a company

trust, which in turn ensures steady flow of business.

The focus of CRM is on creating value for the customerand the company over the longer and lasting term.

Retaining existing customer is as difficult as winning andgaining new ones.

CRM enables organisations to gain competitiveadvantageover competitors that supply similar products or services.

This depends on product quality and moreover the qualityof relationship maintained by them.

Constant changing of customer buying behaviour.

When customers value the customer service that theyreceive from suppliers, they are less likely to look toalternative suppliers for their needs.

To establish cross selling avenues.

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Importance of CRM It uses web based technologies to focus on the lifetime value of

a customer.

It reduces costs, because the right things are being done (i.e.,effective and efficient operation)

The challenge is to continue attracting new and profitablecustomers even as forming ever tighter bonds with existingones and optimizing on these relationships over their lifetimes.

To analyze customer needs and serve them effectively throughsystematic, real time information handling and timely response.

It helps in increasing customer satisfaction, because they aregetting exactly what they want.

It provides maximisation of opportunities (e.g. increasedservices, referrals, etc.)

It increases access to a source of market and competitorinformation.

It is for operational long term profitability and sustainability ofthe organization.

Wh t CRM d ?

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What CRM can do ?

To establish an on-going dialogue with your

customers by using the web to communicatewith them directly.

To gain a better understanding of your

customers needs and build individual customersolutions.

To produce more efficient marketing efforts byusing readily accessible customer information.

To link all departments, giving them access tothe same information updated in real time.

To speak to your customers in a consistent

voice across your organization.

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Advantages of good CRM

Faster response time to the client.

Uniform talking and pattern. Unified information without misleading.

Increased Efficiency.

Recognize your customer. Deeper knowledge about your customer.

Increase sales and marketing opportunities.

Ability to manage marketing campaign withclear objectives.

To boost in customer satisfaction and

responsiveness.

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A discussion : Is CRM a new concept?

No!

Simply an extensionof relationship

marketing

Builds on customerservice and

satisfaction concepts

Just the latest

buzzword for creatingcustomer orientation

Bottom-line is still the

same

Yes!

A shift in corporatephilosophy concerning theapproach to value delivery

Customer - centric

approach to value chain New and technology -

enhanced processes

Focus is not just on

bottom-line, but on top-line Goal is to create satisfying

experiences across allcustomer contact points

M k R h CRM

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Market Research & CRMIt can give feedback in areas of.

Customer satisfaction level with the organization in general

more specifically with its technology, quality, service,performance, time and price.

It guides in further enhancement in customer satisfaction.

In creating data bank of the competitors and benchmark

them as per customer feedback.

In knowledge of the market share and its possible trend.

Reasons for poor profitability and necessary corrective

measures. In identification of reasons for typical customers

preferences.

In organizations SWOT investigation.

Possible business solutions to various problems.

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The challenges of personalizedEnterprise E-Support

Relevant information about prospect orcustomer

Information Updates

Publishing of information

Personalized Applications

Communication

Security

Scalability

Deployment

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AnswerTHREE. Total Marks 40

Q.1 is compulsory and carries 16 marks. Other carries 12 marks.

Q.1 What is B2B marketing ? Outline its features andcharacteristics.

Q.2 Distinguish between industrial marketing and consumermarketing.

Q.3 Describe industrial buying behaviour and illustrate any onemodel.

Q.4 Describe the different tools applied for industrial productpromotion and what it includes.

Q.5 - Write notes on any TWO

a. Role of after sales services in B2B Marketing.

b. Types of industrial customers

c. Customer segmentation in B2B Marketing.

d Branding in B2B Marketing