Summary MNM3712 Customer Relationship Marketing (CRM)

MNM3712 Customer Relationship
Management
2017 Exam Preparation Notes and Summary . By: Dubst3phs
NB: Don’t use bullet points in the exams.
TOPIC 1: THE TRADITIONAL MARKETING APPROACH

Study Unit 1: The Traditional marketing approach

1.1 The MARKETING CONCEPT
Focusses on researching customers’ needs and wants and hen leads the manufacturing of a product/service
that satisfies that need

Principles that must be practices achieving the marketing concept
• Consumer orientation
• Profit orientation
• Organisationnel intégration

1.2 THE TRADITIONAL MAREKTING APPROACH

Elements of the traditional marketing approach
• Marketing mix
o Product
o Place
o Price
o Promotion
• Transactional marketing
o AIM: generate a transaction/sale
o Exchange between customers and businesses
o Getting rid of outdated practices
o Generating more than one transaction from a customer (relationship marketing)
o Customers are cheaper to keen than to get new ones (saves money)
• Market segmentation
o Traditional approach
▪ Divide total market into similar sub-markets of customers
o Focus more on specific audiences rather than the masses

Study Unit 2: The Relationship Concept

2.1 RELATIONSHIP MARKETING
Attracting, maintain and enhancing customer relationships with the objective of
• Identifying
• Establishing
• Maintain
• Enhancing
• Terminating relationships

Dimensions of relationship marketing
➢ Create new value
➢ Understanding key roles customers play
➢ Aligns process, communication, technology and people to support customer value
➢ Co-operation between buyers and sellers
➢ Looks at value of customers purchasing lifetimes
➢ Build relationships between businesses and stakeholders
➢ Knowing the profitable customers