Statistical Tools and their Usage – Factor Analysis
Factor Analysis is a data reduction technique. Given a large number of attributes, factor analysis identifies a few underlying dimensions by grouping the attributes based on the correlation between the attributes. For example, price of a product, the cost after sales service, and maintenance expense can be identified as a part of single dimension: Total […]
Qualities of a Good Response – What a response must provide ?
An organization should understand that response is the key towards creating quality relationship with customers and nurturing the future business depending upon the customer’s perception and senses determined from the response. Response creates a channel of interaction that can enhance business relationship which will be mutually beneficial. This is only possible when the responses from […]
How is Social Media Different from Other Media
Social Media Network and the different channels have caught on the fancy of young and adults alike and this phenomenon has spread all over the globe. Every minute there are thousands of people logging into the internet and engaging in conversation using one or the other channels of online communication. Similarly there are millions of […]
Approach to Learning about Social Web for Marketing Professionals
If internet has affected the lives of millions of people across the world and brought them together through social media networks, the same technology and tools have reinvented the marketing and media campaign strategies for the marketing companies too. No big time business can ignore the social web today. By virtue of the fact that […]
Business Strategies to Beat the Downturn
Introduction: The Effect of the Downturn and How Companies Can Cope The ongoing global economic crisis has impacted most of the companies in the world as they have to not only reckon with falling sales, stagnating demand, oversupply, and inflation all at the same time mean that businesses are operating in “chaotic” and “uncertain” environments. […]
Traditionally with Organizations the customers belonged to and were the responsibility of the Marketing Department alone. Organizations probably had too many constraints on meeting the demands and were saddled with limited product range that did not require them to look out and reach out to the Customer.
However with evolution of technology, mass production processes as well as expanding geographical markets, the Organizations began to realize the need to reorient their understanding of the business and the way to manage the business.
To a large extent we can very well say that the Customer Relationship Marketing did not originate only in the marketing department. It developed as an Organizational approach and management thought.
Management experts and Organizations have come a long way in terms of their outlook to the internal and external environment. Today Organizations have begun to understand and recognize the relationship that exists between the Stockholders, the Employees and the Customers who provide the reason as well as the resources for the Organization to exist and grow.
There exists a mutually inclusive relationship between all the three factors. Organizations need to manage the relationship dynamics on all the three fronts. This understanding has further brought about the Management thought and approach to orient and imbibe Relationship Marketing as an Organizational Philosophy.
An Organization does not recognize the customer in the market to be the only stake holder in its relationships. The Company has ongoing relationships both internally as well as externally at many levels and tiers.
The Company strives to build excellent and long term relationships with its strategic suppliers as well as the intermediaries important for its business. Sales and Distribution partners including whole sales, channel partners as well as point of sale retailers form a part of the chain which needs to be handled via the relationship platform.
The number of relationships that the Organization is required to manage are spread over several areas. Ongoing Relationship Management with Current Employees as well as prospective employees becomes very important for the Organization as the Human resource is a key resource for its business.
Besides the employees, suppliers, as well as the Customers and intermediaries, the Organization has a relationship that needs to be managed with the public, Government as well as media too.
Therefore it should be very clearly understood that Relationship Marketing is a business philosophy and not a marketing strategy. Of course Marketing strategy and plans are built around this Organizational philosophy and value of Relationship Marketing.
Managements have successfully adapted to the concept of internal and external Relationship Marketing and have benefited immensely from it.
Internally the concept of internal customer has yielded tremendous advantageous and brought about efficiencies in operations. TQM, JIT, Six Sigma philosophies have been successfully implemented thanks to the fundamental concept of internal customers and customer satisfaction.
Apart from marketing and sales functions which are exposed to the Customers and markets and hence need to be sensitized and oriented towards relationship management, the Organizations have realized the need to sensitize the other departments including Finance, HR, Technical Service, Customer Service as well as the Product Development and legal departments towards relationship Management with he customers. This orientation has benefited the Organizations immensely besides changing the service dynamics for the customers.
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