Page 10 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 1: Introduction to Customer Relationship Management

the introduction of CRM, many companies, especially those that were in the Fortune 500 category, Notes
didn’t feel the need to cater to the company. In the minds of the executives, they have tremendous
resources and could replace customers whenever it became necessary. While this may have
worked prior to the 1980s, the introduction of the Information Age allowed people to make
better decisions about which companies they would buy from, and global competition made it
easier for them to switch if they were not happy with the service they were getting.
Today, CRM is being used to achieve the best of both worlds. Companies want to maintain
strong relationships with their clients while simultaneously increasing their profits. The CRM
systems of today could be called “true” CRM systems. They have become the systems that were
originally envisioned by the pioneers of this paradigm. Software companies have continued to
release advanced software programs that can be customized to suit the needs of companies that
compete in a variety of different industries. Instead of being static, the information processed
within modern CRM systems is dynamic. This is important, because we live in a world that is
constantly changing, and an organization that wants to succeed must constantly be ready to
adapt to these changes.

Landmarks in the History of CRM: 1960-2010

1960s Mass Production/Mass Product
1970s Mass Market
1980s Total Quality Management
1990s Customer Relationship Management (CRM)
2000s Customer Relationship Management (CRM)
2010s e-Customer Relationship Management (e-CRM)

Mass Production/Mass Product: Mass Production is a system of manufacturing based on
principles such as the use of interchangeable parts, large-scale production, and the high-volume
Assembly Line. Although ideas analogous to mass production existed in many industrialized
nations dating back to the 18th century, the concept was not fully utilized until refined by Henry
Ford in the early 20th century and then developed over the next several decades. Ford’s success
in producing the Model T automobile set the early standard for what mass production could
achieve. As a result, mass production quickly became the dominant form of manufacturing
around the world, also exerting a profound impact on popular culture. Countless artists, writers,
and filmmakers used the image of the assembly line to symbolize either the good or the evil of
modern society and technological prowess.
Mass production techniques maximized the profit making ability of corporations, but it
dehumanized the lives of workers. Frederick W. Taylor introduced Scientific Management at
the beginning of the 20th century, which used time and motion studies (often timing them with
a stopwatch) to measure workers’ output. Taylor’s goal was to find the ideal process and then
duplicate it over and over. In the abstract, scientific management was a giant leap forward, but
in reality, mass production led to worker unrest, turnover, and social conflict. Unionization
efforts, particularly the struggles to organize unskilled workers by the Congress of Industrial
Organizations (CIO) in the 1930s and 1940s, and battles between management and employees
intensified as workers became more alienated because of the factory setting.

Mass Market: Mass Marketing is a market coverage strategy in which a firm decides to ignore
market segment differences and go after the whole market with one offer. It is type of marketing
(or attempting to sell through persuasion) of a product to a wide audience. The idea is to
broadcast a message that will reach the largest number of people possible. Traditionally mass
marketing has focused on radio, television and newspapers as the medium used to reach this

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