Page 200 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes  Good relationships with customers can result in a good word-of-mouth from successful
exchanges and minimal bad word-of-mouth in the event of unsuccessful exchanges.

 The buying and selling firms enter into a "learning relationship ", with the customer being
willing to collaborate with the seller and grow as a loyal customer.
 The ultimate outcome of a successful CRM strategy is the creation of a unique company
asset known as a relationship network.

12.10 Keywords

CRM: It can be defined as a frame work to identify, attract, satisfy and retain profitable customers
by managing effective relationships in order to achieve increased and guaranteed profitability.

Relationship networks: 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 established long and enduring
business relationships.

Transaction marketing: It is common to the consumer packaged goods sector but as a company
is forced to become more service oriented in approach, relationship marketing increasingly
displaces transactions based marketing.

Trust: The willingness to rely on the ability, integrity, and motivation of one company to serve
the needs of the other company as agreed upon implicitly and explicitly.
Value: The ability of a selling organisation to satisfy the needs of the customer at a comparatively
lower cost or higher benefit than that offered by competitors and measured in monetary, temporal,
functional and psychological terms.
12.11 Review Questions

1. What are the advantages of CRM over Mass Media Marketing?
2. Describe the Features of CRM.
3. What do you know about customer relationship?
4. Explain the determinants of CRM.

5. Discuss the Marketing Strategy Continuum.
6. Describe the stages in CRM.

Answers: Self Assessment

1. CRM 2. Customers
3. Motivation 4. Seller

5. Interaction 6. Successful
7. Relationship 8. Trust
9. True 10. True
11. True 12. False

13. (a) 14. (b)
15. (d)

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