Defining Marketing and the Marketing Process - Building Customer Relationships / Capturing Value from Customers

10 important questions on Defining Marketing and the Marketing Process - Building Customer Relationships / Capturing Value from Customers

What does customer relationship management aim for?

Increasing customers' loyalty by dealing with aspects of acquiring, keeping and growing the number of customers. This is achieved by creating superior value and satisfaction.

Name 4 types of management relationships?

1. Customer-managed relationship
2. Customer-generated marketing
3. Partner relationship management
4. Marketing partners outside the firm

What is customer brand advocacy?

This is the level by which satisfied customers initiate favorable interactions with others about a brand.
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One form of customer engagement marketing is consumer generated marketing. What's this?

This is a type of marketing in which consumers play roles in shaping their own brand experiences and those of others. As people get more connected, they're more engaged.

Explain partner relationship management?

Refers to the idea of working closely with partners in other company departments and outside the company to jointly bring greater value to customers. Partners inside the company departments focus on cross functional customer teams.

Explain marketing partner outside the firm?

Consists of a network with distributors, retailers and others who connect the company to the buyers. Companies strengthen their supply chain with partners to deliver customer value.

Name 3 effects that higher customer satisfaction that leads to long-term returns?

1. Customer loyalty and retention
2. Increasing the portion of customer purchasing
3. Customer equity

Explain customer loyalty and retention?

The result of successful CRM in creating customer satisfaction and delight. Keeping an old customer is less costly than looking for new ones.

How can the increasing portion of customer purchasing be achieved?

By offering a larger variety of products/services to existing customers, or up-selling in order to market more products.

Customers can be divided according to their profitability and projected loyalty (each group calls for a different CRM strategy). What are these 4 groups? And what are their characteristics?

1. Strangers: low potential profitability and low projected loyalty
2. Butterflies: potentially profitable but not loyal
3. True-friends: profitable and loyal
4. Barnacles: highly loyal but not profitable

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