CUSTOMER RELATIONSHIP MANAGEMENT
(MNM3712)
CONTENTS PAGE #
TOPIC 1: THE NATURE OF RELATIONSHIP MARKETING .................................... 1
STUDY UNIT 1: PORTION OF CHAPTER 1: THE TRADITIONAL MARKETING APPROACH ........ 1
STUDY UNIT 2: PORTION OF CHAPTER 1: THE RELATIONSHIP MARKETING APPROACH 6
TOPIC 2: BUILDING CUSTOMER RELATIONSHIPS ...................................................17
STUDY UNIT 3: CHAPTER 2: BUILDING CUSTOMER RELATIONSHIPS .................... 17
STUDY UNIT 4: PORTION OF CHAPTER 2: INGREDIENTS OF A RELATIONSHIP ....... 23
TOPIC 3: CUSTOMER SERVICE ISSUES ................................................................33
STUDY UNIT 5: PORTION OF CHAPTER 3: DIMENSIONS OF CUSTOMER SERVICE .... 33
STUDY UNIT 6: PORTION OF CHAPTER 3: THE PROCESS OF CUSTOMER SERVICE .... 44
TOPIC 4: INTERNAL MARKETING .......................................................................60
STUDY UNIT 7: PORTION OF CHAPTER 4: INTERNAL MARKETING ....................... 60
STUDY UNIT 8: PORTION OF CHAPTER 4: BUILDING RELATIONSHIPS WITH EMPLOYEES
......................................................................................................... 70
THE ENHANCEMENT OF EMPLOYEE RELATIONSHIPS THROUGH INTERNAL MARKETING70
TOPIC 5: ONE-TO-ONE MARKETING AND MASS CUSTOMISATION .............................74
STUDY UNIT 9: PORTION OF CHAPTER 5: ONE-TO-ONE/ONE-ON-ONE MARKETING 74
TOPIC 6: RELATIONSHIPS WITH STAKEHOLDERS ...................................................83
STUDY UNIT 10: CHAPTER 6: BUSINESS-TO-BUSINESS MARKETING (B2B) ........... 83
STUDY UNIT 11: CHAPTER 7: STAKEHOLDERS IN RELATIONSHIP MARKETING/
RELATIONSHIPS WITH OTHER STAKEHOLDERS .............................................. 91
TOPIC 7: PLANNING AND IMPLEMENTING CRM ................................................... 101
STUDY UNIT 12: CHAPTER 8: PLANNING & ORGANISATING A CRM STRATEGY....... 101
STUDY UNIT 13: CHAPTER 9: IMPLEMENTING CRM IN THE ORGANISATION ......... 112
INTRODUCTION .................................................................................... 112
TOPIC 8: TECHNOLOGY AND METRICS IN CRM .................................................... 121
STUDY UNIT 14: CHAPTER 9 & PORTION OF CHAPTER 10: TECHNOLOGY AS FACILITATOR
OF CRM AND CRM METRICS ..................................................................... 121
, TOPIC 1: THE NATURE OF RELATIONSHIP MARKETING
STUDY UNIT 1: PORTION OF CHAPTER 1: THE TRADITIONAL MARKETING APPROACH
INTRODUCTION
Customer relationship management (CRM) is evolving continuously. It involves practices, strategies and
technologies that organisations use in order to analyse and manage customer interactions throughout the
customer lifecycle. The goals are to improve customer services relationships, to retain customers and to driver
sales growth. Social media technologies have now revolutionised the way business and consumers interact and
have added a new dimension to the CRM focus. There is now a change in communication between the customer and
the marketer, and the interactive relationships with customers. Businesses should utilise the rich vein of
customer information generated through every customer engagement on social media to drive future marketing
decisions.
As the environment in which businesses are operating has become more competitive, customer co-creation (co-
production) has become an increasingly important competitive advantage. The relationship marketing (RM) concept
has evolved from the marketing concept and then shifted to technology through CRM (CRM Cloud and CRM
mobility through mobile devices).
The traditional marketing approach encompasses the application of the marketing mix elements such as the
product, price, place or distribution and promotion in satisfying customer needs. For many businesses it is
imperative to modify the application of traditional marketing and begin focusing their attention on building
relationships with customers as well as other stakeholders so that they will be able to maintain and sustain their
long-term success. Customer relationship management (CRM) is a business philosophy that encourages customer-
centricity in the day-to-day operations of a business. South African National Parks (SANParks) has introduced a
CRM programme called Wild Card that is aimed at building long-term relationships and ensuring customer loyalty.
Such examples illustrate the importance of applying relationship marketing for the long-term survival of business
entities.
The Marketing Concept
Marketing is a business function and can be defined as a process which satisfies consumer needs by adding value
through the provision of appropriate products services, at reasonable prices through acceptable distribution
channels using promotional strategies and marketing communication in an ever changing business environment. The
essence of the marketing concept is the understanding of customer needs and wants, the focus is thus on the
customer.
The marketing concept is a management orientation that focuses on researching the customers’ needs and wants
and then advocates the manufacturing of a product or service that will satisfy the customer needs.
Page 1 of 130
(MNM3712)
CONTENTS PAGE #
TOPIC 1: THE NATURE OF RELATIONSHIP MARKETING .................................... 1
STUDY UNIT 1: PORTION OF CHAPTER 1: THE TRADITIONAL MARKETING APPROACH ........ 1
STUDY UNIT 2: PORTION OF CHAPTER 1: THE RELATIONSHIP MARKETING APPROACH 6
TOPIC 2: BUILDING CUSTOMER RELATIONSHIPS ...................................................17
STUDY UNIT 3: CHAPTER 2: BUILDING CUSTOMER RELATIONSHIPS .................... 17
STUDY UNIT 4: PORTION OF CHAPTER 2: INGREDIENTS OF A RELATIONSHIP ....... 23
TOPIC 3: CUSTOMER SERVICE ISSUES ................................................................33
STUDY UNIT 5: PORTION OF CHAPTER 3: DIMENSIONS OF CUSTOMER SERVICE .... 33
STUDY UNIT 6: PORTION OF CHAPTER 3: THE PROCESS OF CUSTOMER SERVICE .... 44
TOPIC 4: INTERNAL MARKETING .......................................................................60
STUDY UNIT 7: PORTION OF CHAPTER 4: INTERNAL MARKETING ....................... 60
STUDY UNIT 8: PORTION OF CHAPTER 4: BUILDING RELATIONSHIPS WITH EMPLOYEES
......................................................................................................... 70
THE ENHANCEMENT OF EMPLOYEE RELATIONSHIPS THROUGH INTERNAL MARKETING70
TOPIC 5: ONE-TO-ONE MARKETING AND MASS CUSTOMISATION .............................74
STUDY UNIT 9: PORTION OF CHAPTER 5: ONE-TO-ONE/ONE-ON-ONE MARKETING 74
TOPIC 6: RELATIONSHIPS WITH STAKEHOLDERS ...................................................83
STUDY UNIT 10: CHAPTER 6: BUSINESS-TO-BUSINESS MARKETING (B2B) ........... 83
STUDY UNIT 11: CHAPTER 7: STAKEHOLDERS IN RELATIONSHIP MARKETING/
RELATIONSHIPS WITH OTHER STAKEHOLDERS .............................................. 91
TOPIC 7: PLANNING AND IMPLEMENTING CRM ................................................... 101
STUDY UNIT 12: CHAPTER 8: PLANNING & ORGANISATING A CRM STRATEGY....... 101
STUDY UNIT 13: CHAPTER 9: IMPLEMENTING CRM IN THE ORGANISATION ......... 112
INTRODUCTION .................................................................................... 112
TOPIC 8: TECHNOLOGY AND METRICS IN CRM .................................................... 121
STUDY UNIT 14: CHAPTER 9 & PORTION OF CHAPTER 10: TECHNOLOGY AS FACILITATOR
OF CRM AND CRM METRICS ..................................................................... 121
, TOPIC 1: THE NATURE OF RELATIONSHIP MARKETING
STUDY UNIT 1: PORTION OF CHAPTER 1: THE TRADITIONAL MARKETING APPROACH
INTRODUCTION
Customer relationship management (CRM) is evolving continuously. It involves practices, strategies and
technologies that organisations use in order to analyse and manage customer interactions throughout the
customer lifecycle. The goals are to improve customer services relationships, to retain customers and to driver
sales growth. Social media technologies have now revolutionised the way business and consumers interact and
have added a new dimension to the CRM focus. There is now a change in communication between the customer and
the marketer, and the interactive relationships with customers. Businesses should utilise the rich vein of
customer information generated through every customer engagement on social media to drive future marketing
decisions.
As the environment in which businesses are operating has become more competitive, customer co-creation (co-
production) has become an increasingly important competitive advantage. The relationship marketing (RM) concept
has evolved from the marketing concept and then shifted to technology through CRM (CRM Cloud and CRM
mobility through mobile devices).
The traditional marketing approach encompasses the application of the marketing mix elements such as the
product, price, place or distribution and promotion in satisfying customer needs. For many businesses it is
imperative to modify the application of traditional marketing and begin focusing their attention on building
relationships with customers as well as other stakeholders so that they will be able to maintain and sustain their
long-term success. Customer relationship management (CRM) is a business philosophy that encourages customer-
centricity in the day-to-day operations of a business. South African National Parks (SANParks) has introduced a
CRM programme called Wild Card that is aimed at building long-term relationships and ensuring customer loyalty.
Such examples illustrate the importance of applying relationship marketing for the long-term survival of business
entities.
The Marketing Concept
Marketing is a business function and can be defined as a process which satisfies consumer needs by adding value
through the provision of appropriate products services, at reasonable prices through acceptable distribution
channels using promotional strategies and marketing communication in an ever changing business environment. The
essence of the marketing concept is the understanding of customer needs and wants, the focus is thus on the
customer.
The marketing concept is a management orientation that focuses on researching the customers’ needs and wants
and then advocates the manufacturing of a product or service that will satisfy the customer needs.
Page 1 of 130
