Page 197 - DMGT205_SALES_MANAGEMENT

Unit 12: Customer Relationship Management

displaces transactions based marketing. The driving force behind this displacement are: Notes
1. Better or more diverse technologies
2. Growing consumer satisfaction
3. Customers' access to more options

4. Competition.

Table 12.1: Marketing Strategy Continuum

Marketing Transaction Marketing Relationship
strategy Marketing
continuum
Dominating Traditional marketing mix Interactive
marketing dominated marketing
function dominated
Quality dimension Outcome-related technical Process-related
most important for quality dominating functional quality
competitive dominating
advantage
Price sensitivity Customers very price sensitive Customers less
price sensitive
Interface between Limited or nonexistent; Substantial
marketing and interface of no significant interface of
other functions strategic importance strategic
e.g. operations importance
and personnel
Typical marketing Consumer Consumer Industrial Services
situations packaged durables goods marketing
continuum marketing marketing marketing

It is observed that all firms are on a continuum with transaction and relationship marketing
representing the two extremes and the need for relationship marketing being dependent upon
the line of business e.g. transaction marketing is best suited to commodities, and relationship
marketing to services. While a series of factors may influence the status of a particular product
and customer behaviour, it is surely essential to select a proper blend of type of marketing for
consumer durable and industrial goods.

Self Assessment

Multiple Choice Questions:

13. CRM is a new business philosophy based on trust and:
(a) Value (b) Cooperation
(c) Faith (d) Gain
14. Close and long-term relationships with customers imply continuing exchange
opportunities with existing customers at a lower:
(a) Value (b) Marketing cost
(c) Function (d) Price

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