Unit V: CRM

Meaning of CRM

Customer Relationship Management (CRM) is a business strategy and technology that helps organizations manage interactions with current and potential customers. It involves using data, analytics, and software tools to improve customer relationships, increase retention, and drive sales growth.

CRM is designed to:

Enhance customer satisfaction by providing personalized services.
Streamline sales, marketing, and customer service processes.
Analyze customer behavior to improve business decisions.
CRM systems store and organize customer data, purchase history, communication records, and feedback, helping businesses offer better services and maintain long-term relationships.

Relationship Marketing Vs. Relationship Management

Key Difference: Relationship marketing focuses on customer attraction and loyalty, while relationship management ensures ongoing engagement and problem resolution.

Types of Relationship Management

CRM can be categorized into different types based on business functions:

A. Operational CRM

Focuses on automating and streamlining customer-related processes like sales, marketing, and service.
Uses CRM software to track interactions, schedule follow-ups, and manage customer queries.
Example: A chatbot responding to customer inquiries instantly.

B. Analytical CRM

Focuses on data analysis and customer insights to improve decision-making.
Helps businesses understand customer behavior through predictive analytics and reporting.
Example: A retail company analyzing customer purchase history to suggest personalized product recommendations.

C. Collaborative CRM

Ensures different departments (sales, marketing, and customer support) work together using shared data.
Improves cross-team communication and customer experience.
Example: A customer’s complaint is logged by support, and the sales team follows up with a discount offer.

D. Strategic CRM

Focuses on long-term customer engagement and brand positioning.
Involves building customer-centric strategies to enhance satisfaction and loyalty.
Example: Amazon’s Prime membership, which offers exclusive benefits to retain customers.

Significance of Customer Relationship Management (CRM)

CRM plays a crucial role in business success by improving customer relationships, efficiency, and profitability.

A. Improved Customer Satisfaction

Helps businesses understand customer needs and provide personalized experiences.
Ensures quick response to queries and complaints.

B. Increased Sales & Revenue

Automates lead tracking, follow-ups, and conversion processes.
Helps businesses identify cross-selling and upselling opportunities.

C. Enhanced Customer Retention

Engages customers with loyalty programs, personalized offers, and timely communication.
Reduces customer churn by resolving issues proactively.

D. Data-Driven Decision Making

Uses customer data analytics to make better marketing and sales strategies.
Predicts customer trends and buying behavior.

E. Improved Team Collaboration

Integrates sales, marketing, and customer service teams for a seamless customer experience.
Centralized CRM systems allow access to real-time customer information.

F. Cost Efficiency

Automates tasks, reducing manual work and operational costs.
Helps businesses focus on high-value customers for better ROI.

In Short, CRM is not just a software tool but a business strategy that helps companies build strong, long-lasting relationships with customers. By leveraging operational, analytical, collaborative, and strategic CRM, businesses can improve customer satisfaction, sales, and overall efficiency.

Global Marketing

Global marketing refers to planning, producing, and promoting products or services across multiple countries while considering cultural, economic, legal, and technological differences. It involves a globalized strategy that ensures brand consistency while adapting to local market preferences.

Current Scenario of Global Marketing

Global marketing is rapidly evolving due to technological advancements, shifting consumer behaviors, and geopolitical factors. Some key trends in 2025 include:

A. Digital Transformation & E-commerce Boom

Companies use AI-driven marketing, automation, and big data analytics to personalize customer experiences.
Platforms like Amazon, Alibaba, and Flipkart dominate global sales.

B. Rise of Social Media & Influencer Marketing

Platforms like Instagram, TikTok, LinkedIn, and WeChat play a crucial role in brand communication.
Companies use micro-influencers for authentic engagement.

C. Focus on Sustainability & Ethical Marketing

Consumers prefer eco-friendly products and transparent business practices.
Brands like Tesla and Unilever highlight sustainability in marketing.

D. Geopolitical Challenges & Supply Chain Disruptions

Trade restrictions, wars, and pandemics impact global trade and logistics.
Companies adopt regional supply chain strategies for resilience.

E. AI & Personalization in Marketing

Businesses use chatbots, voice search, and AI-powered recommendations for better customer engagement.
Example: Netflix and Spotify personalize content for users globally.

Global Marketing Environment

The global marketing environment consists of external factors influencing a company’s international strategy. It includes political, economic, socio-cultural, technological, environmental, and legal (PESTEL) factors.

A. Political & Legal Environment

Trade policies, tariffs, and government regulations affect market entry and operations.
Example: U.S.-China trade war impacting tech companies.

B. Economic Environment

Exchange rates, inflation, and consumer purchasing power influence global demand.
Example: Emerging markets like India and Brazil attract foreign investment due to their growing middle class.

C. Socio-Cultural Environment

Language, traditions, and consumer preferences vary by region.
Example: McDonald's offers different menus globally (McAloo Tikki in India, Teriyaki Burger in Japan).

D. Technological Environment

Digital advancements affect advertising, communication, and logistics.
Example: Amazon’s drone delivery service and AI-driven recommendations.

E. Environmental & Ethical Factors

Consumers prefer sustainable, cruelty-free, and ethically sourced products.
Example: IKEA focuses on sustainable raw materials.

Entry Strategies for Global Markets

Businesses can enter foreign markets using various strategies based on investment level, risk, and control.

Choosing the right entry strategy depends on market potential, risk tolerance, and local regulations.

Global P’s of Marketing (4Ps + 3Ps in Services)

The marketing mix needs adaptation for international markets to ensure product success.

A. Product (Global Product Strategy)

Standardization: Offering the same product globally (e.g., Coca-Cola).
Adaptation: Modifying products based on local preferences (e.g., Nestlé’s regional flavors).

B. Price (Global Pricing Strategies)

Prices depend on currency exchange rates, taxes, competition, and local purchasing power.
Example: Apple’s iPhones are cheaper in the U.S. compared to India due to import duties.

C. Place (Global Distribution Strategy)

Businesses choose direct or indirect distribution (e.g., online vs. physical stores).
Example: Nike sells via brand stores, retailers, and e-commerce.

D. Promotion (Global Advertising Strategy)

Some brands use global ads, while others localize marketing messages.
Example: McDonald’s adapts advertisements to local cultures and languages.

E. People (Customer & Employee Consideration)

Companies train employees to handle diverse cultures and customer expectations.
Example: Luxury brands train sales reps for personalized service.

F. Process (Service Delivery & Customer Experience)

Standardizing customer service and logistics for global consistency.
Example: Amazon Prime offers fast shipping in multiple countries.

G. Physical Evidence (Brand Presence & Experience)

Maintaining global branding with local appeal (e.g., packaging, store design).
Example: Starbucks stores reflect local architecture while keeping a global identity.

In Short, Global marketing is complex yet essential for businesses looking to expand internationally. Companies must:

✅ Adapt to local markets while maintaining a global brand identity.

✅ Use digital tools, AI, and data analytics for market insights.

✅ Select the right entry strategy based on risks and opportunities.

Recent Trends and Innovations in Marketing

Marketing is constantly evolving due to changes in consumer behavior, technology, and global challenges. Two major innovations shaping modern marketing are Green Marketing and Agile Marketing.

Green Marketing

Green marketing refers to the practice of promoting products or services based on their environmental benefits. It focuses on sustainability, eco-friendly production, and ethical business practices to appeal to environmentally conscious consumers.

Key Elements of Green Marketing

Sustainable Products & Packaging – Using biodegradable, recyclable, or reusable materials.
Eco-friendly Production – Reducing carbon footprints, minimizing waste, and using renewable energy.
Ethical Sourcing – Ensuring fair trade and responsible supply chain management.
Green Branding & Advertising – Communicating a brand’s environmental commitment transparently.
Regulatory Compliance – Following environmental laws and certifications like ISO 14001, Energy Star, and LEED certification.

Examples of Green Marketing

Benefits of Green Marketing

✅ Attracts eco-conscious customers

✅ Enhances brand reputation & trust

✅ Complies with environmental laws

✅ Reduces operational costs in the long run

Challenges of Green Marketing

🔴 High initial investment in sustainable practices

🔴 Greenwashing risks (Companies falsely claiming to be eco-friendly)

🔴 Limited consumer awareness in some regions

Agile Marketing

Agile marketing is a flexible, fast, and data-driven approach to marketing that focuses on quick execution, constant testing, and adaptation based on consumer feedback. It is inspired by Agile software development principles.

Key Principles of Agile Marketing

Customer-Centric Approach – Focusing on real-time customer needs and feedback.
Data-Driven Decisions – Using analytics, A/B testing, and AI insights to optimize campaigns.
Small, Cross-Functional Teams – Marketers, designers, and data analysts work together in short cycles (sprints).
Continuous Experimentation – Running small, rapid tests instead of long-term, rigid campaigns.
Quick Adaptation – Adjusting marketing strategies based on real-time performance.

How Agile Marketing Works

Examples of Agile Marketing in Action

Benefits of Agile Marketing

✅ Faster execution and adaptability

✅ Better ROI through real-time optimization

✅ Enhanced customer engagement

✅ Encourages innovation and creativity

Challenges of Agile Marketing

🔴 Requires skilled professionals who can work in cross-functional teams.

🔴 Frequent changes can be overwhelming if not managed properly.

🔴 Data-driven culture is essential, but some businesses lack proper analytics tools.

In Short, Both Green Marketing and Agile Marketing are shaping the future of marketing.

Green Marketing is essential for companies aiming for sustainability and brand trust.
Agile Marketing helps businesses quickly respond to changing customer needs and improve campaign effectiveness.