Customer Relationship Management Assignment Example | Topics and Well Written Essays - 2750 words

Customer Relationship Management - Assignment Example CRM is often referred to as ‘relationship marketing’ (Parvatiyar & Sheth, 2001, p. 3) and has much to do with customer acquisition and retention. These processes should, in their turn, be addressed by the whole organization as those playing a key role in organizational success. In addition, modern CRM is the approach that makes companies not simply sell products, but fulfill the needs of the clients by means of creating value. Creating value, in its turn, though is a marketing concept, works as a strategy for building certain relationships with the clients and, in such a way, creating a competitive advantage for the company. The goal of any business is to bring profit via providing clients with goods or services. However, as competition in the globalized market is continuously becoming more and more fierce, companies have to be continuously developing and changing in order to remain competitive. Therefore, the quality of goods and services, the value they bring to the cu stomers and customer satisfaction are the tools for creating competitive advantage in the market.  The value that the good or service carries is to satisfy both the immediate physical and mental needs of a client. Creating value, in its turn, builds customer loyalty that is then expressed in increased sales and profit for the company (Reichheld & Teal, 1996, p. 3). A quite similar is the purpose of achieving customer satisfaction. A satisfied and happy client is more likely to return and purchase the goods or services of the business again. This is directly related to the company’s profit and, hence, opportunities for further growth and development. With the development of social media and communication technologies word of mouth has become an important tool for building a company’s image and brand identity. First of all, since the world has become more interconnected, it is easier for businesses to market their products. At the same time, advanced technologies are o f help to prospects and customers in the process of sharing opinions and experiences related to the company’s product. However, the development of social media and communication technologies is both an opportunity and a threat to businesses. Social media and digital communication channels provide businesses with wider opportunities for marketing their products and communicating the clients. In addition, since people often buy in response to independent positive opinions (Silverman, 2001, p. 6), word of mouth, which is being spread fast nowadays, has even evolved into the appearance of new marketing concepts, such a world of mouth marketing and viral marketing. Making people talk about the product in a positive light is, according to Silverman (2001, p. 6), one of the most effective ways of making people buy the product.