The paper 'The Role of Direct Marketing in Managing Customer Relationships" is an outstanding example of marketing coursework. This essay takes an explorative approach to the study of the role of direct marketing on managing customer relationships. It begins by examining the meaning of CRM and direct marketing. It then looks at the different elements of direct marketing with a view to giving insight into the concept of the direct market and thus clearly distinguishes it from indirect marketing. Afterwards, the essay discusses in broad the role of direct marketing in managing customer relationships.
To get a proper analysis of this, the essay further explores examines segments of direct marketing, their unique roles and then links them to the management of customer relationships. In addition to this, the essay evaluates direct marketing as a strategy for managing customer relationships. 1.0. Introduction The old business adage says “ the customer is always right” . The truth beneath this saying is that customers are important to any business. The world of business is very competitive and nothing is left to chance. The manner in which one treats their customers will determine if they will carry out business with you or not.
This justifies the need for any business to understand the need to understand how to enhance effective customer relationships. This is owed to the fact that customers are the number one target of the business. Effective customer management and thus satisfaction is poised to expand business through referrals. When a given customer is satisfied with the services/goods, they are likely to refer their friends to the same business and these friends will refer others too and the chain continues.
The term customer relationship (CRM) is used to define the form of interaction that a firm or any business entity has with its customers (Barnes & Seidel 2004). This interaction can occur either in the sales or service industry. Given the centrality that customer relationships play in business, several strategies have been brought forward. Barnes (2004) underscores the need to cultivate approaches that optimize customer relationships while at the same time establishing long-lasting relationships. According to him, creating a relationship that makes meaning with the customers should be the rationale behind any customer management strategies.
Kotler and Kettler (2009) propose a holistic customer management approach. This approach is based on three key goals; acquiring customers, retaining them and growing them. Thus CRM demands business and organisational level approaches. In recent developments, direct marketing has been identified as a key strategy that can be employed to foster customer’ s relationship. This essay defines and explains the concept of “ direct marketing” . It further outlines the key elements of direct marketing explains discusses the role it in play in managing customer relationships. 2.0.
The Concept of Direct Marketing The concept of marketing is an inescapable tool for any business in the 21st century. The success of any business relies heavily on the marketing strategies employed by the business. As Kotler and Kettler (2009) note the availability of thee positions of Chief Marketing/Financial officers is a clear indicator of the presences of marketing today. The concept of Marketing is a subject among others with a never-ending evolution and development. The idea of marketing came up around the 1950s and has since been developed largely. CRM and direct marketing have since provoked serious discussions among academicians and business for the better part of the last quarter of the 20th century.
Sheth and Parvatiyar (2000) argue that the greatest shift in the world of marketing in the last 50 years has been reinstating the pre-industrial era where customers dealt directly with their producers.
Barnes cited in stauss, B & Seidel, K. (2004). "Complaint Mangement: the heart of CRM", 1st Edition, Thomson, America.
Kotler, P., & Keller, K L. (2009). Marketing Management (13thed.). Upper Saddle River: Pearson Prentice Hall.
NASH, E. (2000). Direct marketing strategy, planning, execution. New York, McGraw Hill. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=52244.
Payne, A. (2006). Handbook of CRM, Achieving Excellence in Customer Management. Oxford: Butterworth-Heinemann
Power, M., Balderstone, B., & Gyles, S. (2000). Direct marketing. Sydney, McGraw-Hill Australia.
Sheth, J.N. & Parvatiyar, A. (2000). The evolution of relationship marketing. In Sheth, J.N. & Parvatiyar, A. (Eds.), Handbook of Relationship Marketing (p. 119-145), Thousand Oaks, CA: Sage.
Thomas, B., & Housden, M. (2002). Direct marketing in practice. Oxford, Butterworth-Heinemann. http://public.eblib.com/choice/publicfullrecord.aspx?p=300567