Ch. 14 & 15 | CRM and Strategic Marketing Planning

Question 1

• Define customer relationship management (CRM)
• What are the 3 key interactions associated with CRM?

Answer 1

Customer Relationship Management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

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3 Key Interactions
1. customer acquisition
2. customer retention
3. customer reacquisition

Question 2

What is customer acquisition?

Answer 2

Customer Acquisition
examining the profiles of the most-popular customers and use characteristics to find prospective customers - acquisition

Question 3

What is customer retention?

Answer 3

Customer Retention
once acquisition is established, CRM shifts to maintaining profitable customer relationships - retention
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- less expensive than making a sale to a new customer

Question 4

• Define customer experience management (CEM)
• What are the 3 key touchpounts?

Answer 4

Customer Experience Management
managing customer interactions (touch-points) to build brand equity and improve lone-term profitability

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3 Key Touchpoints
1. human (sales staff, call centre)
2. interactive (websites, email, twitter)
3. static (radio, newspaper ads)

Question 5

Long-term customers are less likely to …

Answer 5

• less inclined to switch
• less price-sensitive

Question 6

What is Pareto’s Rule?

Answer 6

the marketing rule of thumb is that 80% of a brand’s sales come from 20% of its customers

Question 7

Defien share the wallet term

Answer 7

Share the Wallet
is the percentage of a customer’s expenses for a product that goes to the firm selling the product

Question 8

What are 3 main questions to ask when setting strategic directions?

Answer 8

1. where are we now?
2. where do we want to go
3. how will we get there?

Question 9

What does the 1st strategic direction question involve?

Answer 9

Where are we now?
involves using a SWOT analysis and evironmental scanning to identify:
- customers
- competencies
- competitors

Question 10

What does the 2nd strategic direction question involve?

Answer 10

Where do we want to go?
involves a market-product analysis
of the 4 market product strategies
- Products - current and new
- Markets - current and new

Question 11

What does the 3rd strategic direction question involve?

Answer 11

How will we get there?
is must engage in the strategic marketing process
- how to allocate resources
- how to convert plans into actions
- how results compare with plans and if deviations are required

Question 12

What are the 3 phases in an outline of a marketing plan?

Answer 12

Phases:
1. Planning
2. Implementation
3. Evaluation

Question 13

What are the 3 steps involved in the planning phase of a marketing plan?

Answer 13

1. situation analysis
2. market-product focus and goal setting
3. marketing program

Question 14

What does step 1 in the planning phase require?

Answer 14

• SWOT analysis
• industry analysis
• competitor analysis
• company analysis
• customer analysis

Situation Analysis

Question 15

What does step 2 in the planning phase require?

Answer 15

• set market and product goals
• select target markets
• determine competitive advantages
• position the product

Market-Product Focus and Goal Setting

Question 16

What does step 3 in the planning phase require?

Answer 16

Develop the programs marketing mix and its budget
- product
- price
- promotion
- place

Marketing Program

Question 17

What does the implementation phase involve?

Answer 17

• obtaining resources
• designing the marketing organization
• developing schedules
• executing the marketing program

Question 18

What does the evaluation phase involve?

Answer 18

• compare results with plans to identify deviations
• act to correct negative deviations; exploit positive ones