Strategic Marketing

(Strategic Customer
Management)
By
Raja. 1.Mazhar
Hameed
Imperatives for
Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control

STRATEGIC CUSTOMER
RELATIONSHIP
MANAGEMENT

PIVOTAL ROLE OF CUSTOMER RELATIONSHIP MANAGEMENT

DEVELOPING A CRM STRATEGY

CRM Levels
CRM Strategy Development
CRM Implementation

VALUE CREATION PROCESS

Customer Value
Value Received by the Organization
CRM and Value Chain Strategy

CRM AND STRATEGIC MARKETING

Implementation
Performance Metrics
Short-Term Versus Long-Term Value
Competitive Differentiation
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CUSTOMER RELATIONSHIP
MANAGEMENT

CRM is a cross-functional core

business process concerned with
achieving improved shareholder value
through the development of effective
relationships with key customers and
customer segments.
CRM Recognizes That
Customers:
Vary in their economic value
to the company
Differ in their expectations
toward the firm
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CUSTOMER LIFETIME VALUE

Customer lifetime value (CLV) calculates past
profit produced by the customer for the firm
the sum of all the margins of all the
products purchased over time, less the cost
of
reaching
that acustomer
To this is added
forecast of margins on
future purchases (under different assumptions
for different customers), discounted back to
their present value.

This process provides an estimate of the

profitability of a customer during the time
span of the relationship.
The CLV calculation is a powerful tool for
focusing marketing and promotional efforts
where they will be most productive.
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PERSPECTIVES TOWARD CRM

STRATEGICTHE ENTIRE
COMPANY

REQUIRED
MARKETING
FUNCTIONS

THE CUSTOMER

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THE STEPS IN DEVELOPING A CRM STRATEGY

Gain enterprise commitment

Build a CRM project team

Business needs analysis

Define the CRM strategy

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DEFINE THE CRM STRATEGY

Value
Proposition
1

Other
Stakeholders

4
Enterprise
Transformation Plan

CRM
STRATEGY
3

Business
Case

Customer
Strategy

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IMPLEMENTATION DANGERS
Implementing Without Developing a
Customer Strategy
Failing to Initiate Necessary
Organizational Change
Allowing Technology to Dominate
the CRM Process
Focusing on the Wrong Customers

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VALUE CREATION PROCESS

Value Received by
the Customer

Value Received by
the Organization

THE VALUE EXCHANGE

Successful Value
Exchange

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METRICS
FEATURE

How General Electric Co. Measures

Customers Experience

Happy (And Not-So-Happy) Customers

General Electric is a big user of the Net Promoter concept of
customer satisfaction, popularized by Fred Reichheld of Bain & Co.
Below, questions similar to those on which GEs Capital Solutions unit
asks customers to rate the units performance on a 0 10 scale.
How willing are you to recommend us to a friend or
associate?
How would you rate our ability to meet your needs?
How would you rate our people?
How would you rate our processes?
What is your impression of our market reputation?
How would you rate the cost of doing business with us?
How would you rate the overall value of our product or
service as being worth what you paid?
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CRM AND VALUE CHAIN STRATEGY

The Perfect Customer Experience
The perfect customer experience, which must be affordable
for the company in the context of the segments in which it
operates and its competition, is a relatively new concept.
This concept is now being embraced in industry by
companies such as TNT, Toyotas Lexus, Oce, and Guinness
Breweries, but it has yet to receive much attention in the
academic literature. Therefore, multi-channel integration is
a critical process in CRM because it represents the point of
co-creation of customer value. However, a companys ability
to execute multi-channel integration successfully is heavily
dependent on the organizations ability to gather and deploy
customer information, from all channels and to integrate it
with other relevant information.
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CRM AND STRATEGIC MARKETING

CRM

STRATEGIC
MARKETING

From the perspective of strategic marketing, there are

several reasons why CRM is important and why there
should be extensive marketing involvement in decisions
about CRM. Importantly, an organizational perspective is
needed in guiding the CRM strategy.
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