Changing Conditions on Business

Changing Conditions on Business

  • Submitted By: asinha
  • Date Submitted: 07/26/2009 2:57 AM
  • Category: Business
  • Words: 416
  • Page: 2
  • Views: 382

Customer Relationship Management:

The conditions for doing business are rapidly changing. Consumptions patterns are different, there are new technologies for distributing and collecting information, and the competition on the market is increasing domestically as well as globally. In order for companies to survive and grow they must find new ways of thinking, which has led to that new approaches has emerged in marketing research. First, Relationship Marketing appeared and now Customer Relationship Management, CRM, is in the center of interest. CRM highlights the importance of using Information Technology in creating, maintaining and enhancing customer relationships. However, there is a need to develop a better understanding of CRM and of how companies can use CRM.

The goal with CRM is to maximize company profits by maximizing the value of interaction with the customers. In order to do this, companies need a business strategy that focuses on the customers and that generates a process-oriented view of the organization. The business processes needs to be supported by a CRM system, comprising CRM functionality that makes it possible to create a single view of the customer as well as of the company. The CRM system also facilitates collection and analysis of customer data, which results in more effectively managed customer interactions.

Furthermore, companies have a need for CRM functionality to support the Marketing, Sales, Order, Production, and Service Process. CRM functionality can be divided into three main categories, which are Marketing Automation, Sales Force Automation, and Customer Service & Support.Where each category comprises a number of different functional groups. The fact that companies are operating within the service or production industry doesn’t seem to imply that the need for CRM functionality differ noticeably. However, there are several other aspects that seem to have an influence on the needs, such as the stage in the CRM...

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