Marketing Intelligent Systems Using Soft Computing - Case Study Example

INTEGRATED CRM STRATEGY Insert Name Course, Class, Semester Institution Instructor Date CRM Strategy Introduction Apparently, the customer is the most important stakeholder in any business corporation. The main reason why businesses exist is because of the customer. Many gurus in business management have described the customer as the backbone of the organization. Without the customer, there would have been no need for trading. It is for this reason that the marketing department of the organization needs to be strengthened in such a way that the business relationships that a business has with its customers can be made intact. With the customer relationships strong, the organization will no doubt be stable since it will be assured of stable market for its product (Duche 2002). It is of primary importance to note that retail business is one volatile venture that calls for strategic decisions so as to maintain its customers. Noteworthy is the reality that technology is an inevitable aspect of all organizational processes. Marketing and customer relations are among the most crucial parts of an organization. The two functions are becoming accepted in many organizations in the world today. With the organizations adopting such technology, automation is becoming a popular trend. This paper seeks to explain the place of Automated CRM in modern organizations, with primary reference to GlaxoSmithKline and two of its main competitors Pfizer and AstraZeneca. Customer Relationships Management Customer Relationship Management (CRM) is a concept employed by marketers to ensure the organization maintains its customers. As a marketing assistant, there are many things that one would do to improve customer relationships as a way making the customer not just a consumer, but a sales driver (Pride & Ferrell 2006). Marketing is a primary function of business, especially in today’s world, where competition is high in all sectors of the economy. A marketing manager would therefore endeavor to inform the entire marketing department and the whole organizational management by extension, that customer relationships are based on the way in which the organization treats and categorizes its employees. The manner in which the organization responds to the needs of the customer is primarily important. Similarly, the marketing manager would endeavor to explore the various marketing strategies that can make the organization acquire new clients while maintaining the old clients (Bergeron 2002). Customer relationships Management has its roots in email marketing an older concept associated with e-commerce. Case study organizations: GSK, AstraZeneca and Pfizer Apparently, GSK, Pfizer and AstraZeneca are the biggest organizations in the pharmaceutical industry. The organizations have been described variously as the fiercest of all competitors in the industry of pharmaceuticals. The 2012 CEO reports on strategy and social responsibility indicate that the organizations are substantially different due to the fact that their aims are different ad that their strategies endeavor to achieve different things. The strategies of the companies were substantially different, yet similar to a big extent. This is to say that the strategies of the companies can be compared and contrasted to a big extent. Strategic objectives are those aims that an organization seeks to achieve, in order to realize the longer term endeavors. The organizations have prominently embraced CRM as one among the key tools of achieving customer loyalty and positive relations (Jenster et al 2009). The companies, which are all multinational, have adopted different approaches to the concept of CRM, and this has enabled them come up with innovative ways of coming up with proper communication channels and feedback structures. The CRM of GlaxoSmithKline Plc CRM is one among the most potent tools that GSK has employed in addressing the relationship between its marketing department and its global customers. The approach that the organization has used to define the relationships is what is referred to as Marketing Intelligence. Marketing intelligence is a CRM strategy that enables an organization to use social media and many online platforms to assess and evaluate consumer behavior. Consumer behavior can be referred to as the tendency of the market to behave in a certain manner that is considerably dynamic (Goldenberg 2003). Dynamic here means that the behavior, or decision making trends of the buyer keep changing from time to time in response to various changes in the market factors. Marketing Intelligence is a CRM approach that can be used on social media, different web pages, and website links to analyze consumer behavior and decision trends. Due to the interactive nature of this approach, it has come to be referred to as Market Automation 2.0. GSK has, through many partnerships coupled and worked with many sites and consumer blogs in assessing consumer behavior, with the sole aim of directing marketing efforts to the relevant customers. It is quite unproductive, according to Meyerson (2005), for an organization to spend millions of dollars marketing and promoting their products to the wrong audience. The analysis therefore is aimed at identifying those niches that are productive and tracing loyalty. This concept has yielded positive results because getting information from the various web administrative bodies helps GSK identify which links are followed most. After establishing which link is followed first, the organization seeks to examine the characteristics population making. This way, the organization identifies the loyal customers and the prospective buyers. The marketing department of GSK then intensifies marketing efforts on the areas indicating prospects of buying the products of GSK. This approach differs significantly from those used by the two main competitors. From the form of customer relationship management strategy adopted by the company, I would recommend the CRM software known as Sage Act Premium. This application is software that enables customer relationship management trough the internet. It is arguably the best and most effective software that is usable in an organization that uses Marketing Intelligence prominently. Considering that GSK uses a social site based approach to CRM, this becomes the most effective software. According to expert reviews, the software is the most suited for business intelligence because it is designed in such a manner that it has the most appropriate tools for viewing social sites and networking pages. This one can be of great use to GSK, which has centered its CRM on the social sites. According to IT and CRM experts, the software is easy to use and one can easily acquaint them with it. The only weakness lies in the reality that it has no dialing option, which can be used for direct communication. The CRM of AstraZeneca Plc Arguably, this is the fastest growing organization in the pharmaceutical industry. in its hunt for more clients, and loyal ones for that matter, the organization has endeavored to strengthen the relationships between its departments and customers. In the 2012 report, the CEO said that AstraZeneca plc was ditching scientific leadership for marketing excellence and acquisition of a larger market share. In a bid to achieve its endeavors, the organization has adopted a new approach to CRM and the approach is referred to as Advanced Workflow Automation. This approach differs from the one adopted by GSK in the sense that it reflects the aim of the organization as one that seeks to streamline its internal business organizations. Literature explains that the most outstanding characteristic of this approach is that it brings customer relationship management to the internal environment of the organization. The approach used by AstraZeneca is one that focuses more on budgeting, internal planning, and the marketing calendar. Gurus in management and marketing argue that this is among the most effective approaches to CRM since it endeavors to enhance the strengths of the organization, while eliminating the weaknesses of the internal environment (Rossi 2011). AstraZeneca Plc uses this approach of CRM to create and manage its digital asset base. The creation of such things as user interfaces that allow communication between the organization and the customers is one among the many functions of Advanced Workflow Automation. According to Bligh and Turk (2004) all companies that use this approach of CRM have an internal CRM administrator that oversees the conduct of all employees, especially in relation to marketing, and interacting with the customers. Considering that the organization prominently uses Advanced Workflow Automation, it is imperative to identify software that will help the organization establish a link between the internal structures and the external environment. The organization, that is AZN, should adopt CRM software referred to as AIMcrm. According to expert evaluation, this software can enable an organization like AstraZeneca plc track all marketing campaigns as well as directing all incoming calls to the relevant departments and individuals. The software has been tested and proven to perform excellently well. It is imperative to mention that not all CRM software is good for marketing. However, critics have argued that this software does not have an on-premise solution. Instead, it only has a webhosted solution system. Still, going by the objectives and systems of the organization, it is the best suited software. The CRM of Pfizer, Inc Pfizer, Inc is arguably one of the most cost conscious organizations in the pharmaceutical industry. Much like its competitors, this organization has invested a lot into customer loyalty and market share acquisition. Market share acquisition is centered on acquiring and winning the trust of the prospective buyers, especially those that are not affiliated to the company as per the status quo. In a bid to gain customer loyalty, the organization has always endeavored to maintain strong communication links between itself and the existing as well as the potential customers. This has been addressed through an approach referred to as Marketing Automation. Marketing automation refers to a collectivity of methods which use a marketing tool referred to as the marketing funnel. The fundamental aim of Pfizer is to move down the marketing funnel in such a way that the products of the organizations will be the first to reach the consumers, who buy them and develop a positive attitude, which in most cases develops into loyalty. Pfizer uses this approach as a way of enhancing relationships with businesses and other customers. The concept, according to Rana and Noman (2009) is suitable for B2B, B2G and B2C relationships. These, in ecommerce, are Business to Business, Business to Government and Business to Customer relationships respectively. Marketing Automation is a comprehensive approach, which majorly uses customized email marketing. Such personalized communication is the core of this approach and many other online business approaches. The personalized kind of email marketing used by Pfizer Inc is explained below. Personalized E-mail Marketing as the root of CRM E-mail marketing is one of the most prominent forms of marketing in the contemporary world, thanks to advancement in computer technology. The use of emails is part of a marketing approach referred to as e-advertising. E-marketing, as most people call it is an approach that can be used to reach global customers (Shajhan 2006). Noteworthy is the actuality that email marketing is extremely effective for multinational corporations. GlaxoSmithKline Plc, being a multinational organization, adopts this approach. It is important to note that this approach becomes even more effective when customization is incorporated. By customization, it means that the mails are prepared uniquely for each recipient. Sending mass mails is not effective as it fails to create a personal touch with the client. On the contrary, customized email marketing creates a personal touch with the customers in such a way that they feel affiliated to the organization (Shanmugasundaram 2008). The effectiveness of customized email marketing triggered the gurus of management to come up with a more comprehensive approach to strengthen the customer relationships. This marked the beginning of CRM. Below is a model of email marketing. The exact software I would recommend for Pfizer Inc is referred to as Teamwox. This software is particularly good at customer support. Prominent use of email to communicate with the customer can be considerably inefficient. As such, this software comes in as an answer to the problem caused by email marketing inefficiencies. Additionally, the software has the capacity to store huge volumes of information. Such information can come in very handy when the organization intends to communicate to the clients with the aim of sending a mass message. Additionally, this software can help the organization establish the section of the client base that is loyal. Customer loyalty can be evaluated from the information stored. Critics however argue that the software has no sufficient sales and marketing tools. Comparisons among the approaches taken by the three companies The three approaches discussed above are similar in the sense that they have the same objective. The approaches aim at improving the customer interface, and generating information to be relied upon in making key decisions. The three approaches are also similar considering the extent to which they employ technology. They embrace a great degree of automation, and depend heavily on online technologies such as websites and social media. One thing worth mentioning is the reality that all these approaches focus on moving the relationship of the customer and the organization from profit oriented one, to a customer centered connection – one in which the interest of the customer is given prominence. The main differences are quite clearly explained in the descriptions above. Most notably, marketing intelligence gives prominence to social media and other interactive sites. The approach focuses on partnering with online administrators to establish the links most commonly visited. From thence, the organization can identify the niches that define customer loyalty and target markets. On the contrary, marketing automation focuses on B2B and B2G relationships while extensively using email marketing. Conversely, the last form of CRM, advanced workflow automation focuses on the internal business environment with an aim of structuring and reconfiguring the internal business processes. Advantages of CRM Customer relationships management has been recognized as the sole booster of the merits of good customer relationships. The first and most notable advantage of CRM is the actuality that the concept boosts customer loyalty. Customer loyalty is a concept that explains a customer’s commitment to an organization. Customer loyalty can only be achieved where the organization has the capacity to maintain good customer relationships (Newell 2003). Customer loyalty is a concept that assures the organization of a stable market and non-fluctuating demand. Arthur (2001) explains that one of the most important advantages of CRM is the actuality that it makes the organization move from being a profit oriented to being a customer centered entity. Customer centeredness has been identified as the sole pillar of mutual gains between the organization and the customer. Rasheed (2012) agrees with Arthur (2001) that indeed, a customer, or rather a people oriented approach is the way to go in the contemporary business environment since, with the ever increasing level of competition in various industries, the customer’s bargaining power is on the rise. CRM enhances communication between the organization and the most important stakeholder, the customer. Such communication is exceptionally important in the sense that it enhances customer feedback, a concept that enables the organization plan its marketing endeavors with accuracy. Wolenik and Bhaiya (2011) explain that CRM is the novel tool that can be relied upon in enhancing market research. Market research helps the organization in a number of ways as it enables the organization estimate the extent of customer satisfaction or otherwise. CRM reduces wastage of time and resources. By identifying all the relevant target groups, the organization saves the much needed resources by redirecting them to better use. Lesueur (2007) argues that it is pointless trying to market a product to an audience that has absolutely no interest in the same. CRM, especially when automated, can easily provide information that can be relied on in making decisions relating to market segmentation and target segment identification. One among the most serious problems in contemporary organizations, according to Gifford (2009) is staff stress. Staff stress, a condition caused by persistent conflicts in the workforce of an organization, can be avoided by setting out a plan that will ensure a stable human resources department. Automaton of Customer Relationship Management is one the most potent ways of eliminating such stress. Worth mentioning is the reality that automating the human resource department, many costs are cut down, especially the cost of having to remunerate a workforce that does double work. This not only reduces employee stress, but also manages the costs of an organization relating to marketing and sales promotions. SWOT analysis of CRM SWOT (Strengths, Weaknesses, Opportunity and Threats) is an approach to scanning the environment in which the organization operates. Talking of the environment, the organization-customer relationship is of supreme importance. GSK, being a multinational organization, must scan its environment as well as the CRM approach it adopts. Speaking of the SWOT analysis of the CRM, reference is given to the extent to which the approach used in addressing CRM impacts on the strengths, weaknesses, opportunities and threats in the environment – both internal and external. Improving customer relations is obviously one way of enhancing the strengths and eliminating the weaknesses of the organization. CRM has given GSK customer loyalty and market leadership in most regions across the world. Such strengths add to the competitive advantage of the organization because with the loyal section, the organization can focus on how to acquire new customers. One of the weaknesses that GSK had before implementing the automated marketing intelligence form of CRM is poor communication between the customer and the organization. This changed with the introduction of the CRM since the automated version does not serve one region. On the contrary, it serves the entire global arena as it uses social media and various web pages, which are also universally accessible. The weakness has been eliminated along with the weakness of spending high amounts of resources on sales promotion and marketing. It is important to mention that according to Casillas and Martinez (2010) high costs of operation can be particularly detrimental in an industry where the level of competition is high. Automated CRM and other marketing functions eliminate the threat of competition as such systems reveal very clearly the regions that are loyal and those that show prospects. This has enabled GSK to take advantage of the unexploited markets. Such unexploited markets are the grounds where the organization pitches tent with its strongest marketing and sales promotion machinery. GSK has seen opportunity in the capacity of the CRM approach to widen its market. Through CRM, GSK has consistently carried out research on matters relating to market expansion. This explains why the organization took its children outreach campaign to Pakistan, a country at the core of an unexploited market. Conclusion In conclusion, it is noteworthy that from the foregoing discussion, the automation is critically essential as it has emerged as the most potent tool in managing competition in the pharmaceutical industry. With the top three organizations, GlaxoSmithKline and two of its main competitors Pfizer and AstraZeneca engaging one another in the race for market leadership, CRM is exceptionally important. It is worth noting that the three key pillars of the concept are marketing, sales and service. Among the key merits of the concept are such factors as customer loyalty, reduced time and resource wastage, reduced staff stress, increased profitability, improved communication and enhanced customer relationships, which foster trust. Reference list Arthur, L. A. 2001. Implementing A CRM Strategy. Marketing Power.Com Bergeron, B. P. 2002. Essentials Of CRM A Guide To Customer Relationship Management. New York, Wiley Bligh, P., & Turk, D. 2004. CRM Unplugged Releasing CRM's Strategic Value. 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[Frederiksberg, Denmark], Copenhagen Business School Press Lesueur, J. 2007. Marketing Automation Practical Steps To More Effective Direct Marketing. Hoboken, N.J., John Wiley & Sons Meyerson, M. 2005. Success Secrets Of The Online Marketing Superstars. Chicago, Dearborn Trade Pub. Newell, F. 2003. Why CRM Doesn't Work How To Win By Letting Customers Manage The Relationship. Princeton, N.J., Bloomberg Press.  Pride, W. M., & Ferrell, O. C. 2006. Marketing: Concepts And Strategies. Boston, Houghton Mifflin Co. Rana, N., & Noman, A. 2009. E-Marketing Intelligence: Transforming Brand & Increasing Sales Using Digital Channels : Tips & Tricks With Best Practices. [Scarborough, On], Self-Help Publishers Rasheed, N. 2012. Different Kinds Of CRM Systems. Software-As-A-Service SAAS Marketplace Rossi, I. D. 2011. Vtiger CRM Beginner's Guide Record And Consolidate All Your Customer Information With Vtiger CRM. Birmingham, U.K., Packt Pub.  Shajahan, S. 2006. Relationship Marketing: Text And Cases. New Delhi, Tata McGraw-Hill. Shanmugasundaram, S. 2008. Customer Relationship Management: Modern Trends And Perspectives. New Delhi, Prentice-Hall Wolenik, M. J., Sinay, D., & Bhaiya, R. V. 2011. Microsoft Dynamics CRM 2011 Unleashed. [S.L.], Sams Pub. Link to company report: http://www.gsk.com/content/dam/gsk/globals/documents/pdf/GSK-Annual-Report-2012.pdf Read More