Marketing Management Ch. 3

Front 1

How much of the business does CRM cover?

Back 1

The whole business enterprise

Front 2

________ is a business strategy, set of operational processes, and analytic tools

Back 2

CRM

Front 3

What is the ultimate goal of CRM?

Back 3

Maximizing performance of the customer side of the enterprise

Front 4

________requires a customer-centric philosophy and culture, as well as leadership and commitment to CRM from the top

Back 4

CRM

Front 5

_______is a timely and relevant topic that ties together a number of important concepts of modern marketing management

Back 5

CRM

Front 6

Is CRM an important enabler of great marketing?

Back 6

Yes

Front 7

CRM definition

Back 7

Customer relationship management- a comprehensive business model for increasing revenues and profits by focusing on customers

Front 8

3 objectives and capabilities of CRM:

Back 8

Customer acquisition, customer retention, and customer profitability

Front 9

When CRM focuses on product and service attributes, what are the 4 areas that we focus on?

Back 9

-Customer satisfaction

-Customer loyalty

-Lifetime value of a customer

-Return on customer investment (ROCI)

Front 10

The 4 stages of the CRM process cycle:

Back 10

1. Knowledge discovery(learning)

2. Market planning(action)

3. Customer interaction(action)

4. Analysis and refinement(listening)

Front 11

4 stages in the CRM process cycle:

Back 11

1. Knowledge discovery (touchpoints, data warehouse, data mining)

2. Marketing planning

3. Customer interaction

4. Analysis and refinement (organizational learning)

Front 12

What are some advantages to customer marketing?

Back 12

Reduced costs, improved targeting, effectiveness, sensitivity, speed and capabilities, and improved the use of customer channel

Front 13

5 CRM facilities in a customer centric culture

Back 13

1. Mutually shared rewards and risk management

2. Redefining the selling role

3. Formalization of customer analysis processes

4. Proactive leadership role

5. Focusing on continuous improvement

Front 14

Does CRM enable transformation into a relationship based enterprise? If so, how?

Back 14

Yes, it identifies the customer, what they expect, and the value proposition of them. What kind of relationship should be build, how to foster exchange, and how to work together and share control. What is the value proposition, what do products represent, how to organize and move closer to customers, how to manage performance, and how to increase capacity for change

Front 15

5 reasons the CRM fails:

Back 15

1. Flavor of the month club

2. No allowances for organizational change

3. Low level of employee buy in

4.Business units silos

5. Poor training

Front 16

5 reasons for CRM success:

Back 16

1. Strong internal partnerships

2. Organization members collect info

3. Employee and customer friendly

4. Reporting useful data

5. High tech as necessary

Front 17

Comprehensive system

Back 17

Provides managers with up to the min info necessary to run their operations

Front 18

5 data included in the comprehensive system:

Back 18

1. Actual sales vs forecast

2. Progress on marketing plan objectives

3. Distribution channel effectiveness

4. Sales force productivity

5. Brand equity evolution

Front 19

5 key benefits of a marketing dashboard:

Back 19

1. Alignment of marketing within the firm

2. Development of internal relationships withe marketing

3. Est of direct links between marketing spending and profits

4. Facilitation of smoother decision making

5. Enhancement of marketing's ability to contribute

Front 20

3 potential pitfalls in marketing dashboards:

Back 20

1. Over reliance on inside out measurement

2. Too many tactical metrics, not enough strategic insight

3. Forgetting to market the dashboard internally

Front 21

Investment decisions in marketing must consider 4 basic elements:

Back 21

1. Level of investment

2. Returns

3. Risks

4. Hurdle rates

Front 22

2 cautions in over-reliance on ROMI:

Back 22

1. Temper the interpretation of ROMI results with review of other appropriate metrics

2. ROMI was originally designed for comparing capital projects

Front 23

Market share

Back 23

The percentage of a market accounted for by a specific product, product line, or brand

Front 24

Penetration

Back 24

A measure of brand or category popularity

Front 25

Margin on sales

Back 25

The difference between selling price and cost

Front 26

Cannibalization rate

Back 26

The reduction in sales of a firm's existing products due to the introduction of a new product

Front 27

Customer lifetime value (CLV)

Back 27

The dollar value of a customer relationship based on the present value of the projected future cash flows

Front 28

Sales force effectiveness

Back 28

By analyzing sales force performance, marketing managers can make changes to optimize sales going foward

Front 29

Supply chain metrics

Back 29

Measures of important indicators of a firm's success in its supply chain

Front 30

Promotions and pass through

Back 30

Of the promotional value provided by a manufacturer to its distributors and retailers

Front 31

Cost per thousand impressions (CPM) rates

Back 31

The cost per thousand advertising impressions

Front 32

Share of voice/Click through rates

Back 32

Quantifies the advertising presence that a specific product or brand enjoys