Customer Relationship Management and Contemporary Marketing Report

This report provides a comprehensive analysis of customer relationship management (CRM) and its crucial role in contemporary marketing. It begins by defining knowledge management and its significance in building strong customer relationships, particularly for a retailer like M&S. The report then explores how Information and Communication Technology (ICT) supports CRM processes, highlighting the benefits for enterprises. It further delves into stakeholder analysis for public and voluntary sectors, comparing customer relationships in non-profit organizations and contrasting marketing methods across public, voluntary, and private sectors. The report also examines the use of the extended marketing mix in service sectors, the importance of ethical and social issues for marketers, and the influence of media and pressure groups on marketing policies. Overall, the report offers valuable insights into the multifaceted aspects of CRM and marketing in today's business environment, emphasizing the importance of customer satisfaction, ethical considerations, and strategic implementation.

Contemporary Issues

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concept of knowledge management and its roles in relationship marketing...................1
1.2 Ways in which ICT support customer relationship management process........................2
1.3 Benefits of customer relationship management in enterprise...........................................3
1.4 Recommendations for improvement in customer relationship management for an
enterprise................................................................................................................................3
TASK 2............................................................................................................................................4
2.1 Stakeholder analysis for public and voluntary sector enterprise......................................4
2.2 Nature of customers relationship in two not for profit organisations...............................5
2.3 Comparison methods of marketing used in public, voluntary and private sectors...........5
2.4 Key issues involved in a virtual enterprise.......................................................................6
TASK 3............................................................................................................................................7
3.1 Use of extended marketing mix in a service sector business...........................................7
3.2 Marketing mix can be used to enhance values for customers and enterprise...................8
3.3 Difficulties to marketing of services can be overcome....................................................9
3.4 Role of IT in services marketing management...............................................................10
TASK 4..........................................................................................................................................10
4.1 Ethical and social issues concern to marketers...............................................................10
4.2 Concept of CSR..............................................................................................................11
4.3 Role of a selected pressure group in influencing ethical and social marketing policies 12
4.4 Role of broadcast and published media in influencing ethical and social marketing policies
..............................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Knowledge management is the concept which is used by enterprises to collect, analyse
and use the information related with the target market of company (Knowledge management,
2017). This focus more on marketing orientation and tools and techniques use by enterprises to
implement business operations. Relationship marketing play a vital role in growth and success
of company. Marketing play a significant role in development of business enterprises and this is
the only one which provide information to stakeholders about business and its decisions
(Barbara, P.F., Meyer and Ratner, 2012). It is very essential that marketing of firm must be take
place in an effective way as this contribute more in growth of enterprise. M&S (Marks and
Spencer) one of the grocery retailer based in UK is taken under this report for study. Various
aspects related with the concept of relationship marketing such as ICT and CRM is all detailed in
this. Further, main key issues involved in marketing of a virtual enterprise and use of extended
marketing mix in a service industry is all included in this report. Along with this, role of
information technology in an enterprise various social and ethical issues to be concern by
marketer and influence of broadcast media in marketing and social policies of an enterprise is all
given under this.
TASK 1
1.1 Concept of knowledge management and its roles in relationship marketing
Knowledge management refers to the procedure of provide knowledge and information to
employees working in enterprise (Knowledge management, 2017). This play a significant role in
success of every organisation. Basically knowledge management is a concept under which firm
gather, organise, analyse and share information in terms of documents, resources and skills of
employees. It is very essential M&S to follow the various tools and techniques of knowledge
management in their business operations (Desbordes and Richelieu, 2012). This require
management of various elements such as acquire and learn important information, distribution of
knowledge, encourage individuals to indulge in the process of knowledge promotion, promote an
environment of knowledge creation and many more. In today's business environment it is very
important for every enterprise to build and maintain long term relations with its customers as this
provide number of advantages to a company. This ensure long term survival of firm and
contribute more in its growth. Retain old customers is easy as compare to build relations with the
new ones.
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One of the main feature of knowledge management is that it focus more on create and
retain knowledge regarding the customers of business which help in support them in build string
relations with other clients (DesJardins and McCall, 2014.). With help of this every department
and function of M&S can know more about the pattern and choices of final customers, further,
this ensure systematic implementation of various business operations as per the preferences of
customers.
With effective use of knowledge management M&S can achieve customer satisfaction as
this bring cooperation and coordination among various business activities. Sharing of knowledge
with existing customers also help enterprise improves relationship with them and customers feel
more committed and loyal towards the firm. Concept of knowledge management give an
opportunity to firm to better understand about needs and issues of customers.
1.2 Ways in which ICT support customer relationship management process
ICT is the information communication technology which take and use all digital
technology which help organisations, individuals and businesses to collect and use information.
This consists various digital products that store, manipulate and receive data in a electronic way.
Number of communication devices such as television, radio, computer, phones etc. are use under
this to transfer information to large number of individuals form one platform. One of the main
benefit of this is that this ensure transfer of huge amount of information in a easy and effective
way. Today large number of developing countries are largely depend upon these for their social
and economic development (Fitzgerald, Gibson and Gunn, 2010). ICT play a significant role and
help enterprise in better manager the concept of customers relationship management. In toad's
modern world of business large number of enterprises are depend on ICT for collect information
about their customers. Various ways are there which support the CRM such as mobile phones,
web and various other mediums of transmission. Same methods can b used by M&S to create
and maintain good relations with their customers. For example firm can call to their customers
after every purchase ton know their views and opinions and how they feel about the product after
consume it, firm can provide an online form of feedback, keep a constant touch with them, and at
the same time can provide a from of query and rating.
With effective use of these methods M&S can collect huge amount of information about
their customers, which will help them in strengthen and improve relationship with them, improve
the customers value and many more. One of the main feature of ICT is that it help in save time,
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reduce cost and enhance both profits and productivity of enterprise. Further this help an
enterprise in get competitive advantage and enhance trust of customers.
1.3 Benefits of customer relationship management in enterprise
Today customer relationship management is known as one of the most vital component
of every business enterprise (CRM, 2017). Main feature of this is that it help organisations in
collect more information about the needs of its customers and about the current trends exist in
market (Grogan, 2010). Main benefits of customer relationship marketing can be better
understood by following points: Help in identify needs of customers: Concept of CRM help enterprise in chooses
potential customers to target and then uses ICT in order to understand why an individual
will but there. This guide managers to add unique and specific features which help in
attract more number of customers towards company's offering. Help design strategy: Other benefit of concept of CRM is that it guide managers of firm
during strategy formulation. Collected information guide managers in set final price of
product and help in design promotional strategy in order to attract more number of
customers. Further, this also guide manager in choose best and effective channel of
distribution.
 Build customer relations: Customers are known as the lifeblood of every enterprise and
concept of CRM help organisation in build and maintain good relations with target
market. This help enterprise in retain customers for long period of time. For build a good
relation with customers it is very essential for managers of M&S to communicate with
customers and collect their feedback on continuous basis (Gu and Ye, 2014). It is very
essential for firm to learn about the likes and dislikes of its customers.
These are the main benefits of concept of CRM, other benefits of this is that it increase sales,
increase the coordination among various department of enterprise, increase profits of company,
help in better satisfy the needs of customers and save both time and cost of company.
1.4 Recommendations for improvement in customer relationship management for an enterprise
Concept of CRM has become one of the most integral part of every business enterprise.
Today, an enterprise cannot work effectively without this as this provide wide range of benefits
to company. Constant review and update of this on timely basis is very important. Basically, it
can be said that improve the concept of CRM on continuous basis is very essential for enterprise
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to implement and maintain the same. Following points can be taken care by M&S while
analysing the concept of CRM:
 Concept of customers relationship management is used by enterprises for know customer
satisfaction so it is very essential that every complaint registered must be carefully
analysed and solved on priority basis. It affect the satisfaction of customers in a positive
way.
 It is very essential that all queries of customers must be solved within time period.
Customers always prefer those products whose after purchase services are better and
effective (Henson and Caswell, 2011). It is very essential that relevant solutions must be
offer to every query of customer, this help in maintain their faith.
 Further, various social media tools can be use by the managers of M&S to improve heir
relationship with customers. Today every individual use various platforms of social
media so internet platforms can be use by fir to solve queries and provide them
information about products and services of company.
 Follow ups are also very essential for maintain relationship with customers. This help in
provide insight about the mind of customers and this help in better know about the true
picture of company.
All these are the main actions and steps which can be taken by in order to solve issues related
with customer relationship. In this way firm can offer better and quality products to its customers
and can better satisfy their needs and wants.
TASK 2
2.1 Stakeholder analysis for public and voluntary sector enterprise
Stakeholders refers to those individuals who have some kind of interest in enterprise.
Actions, decisions, objectives, procedures and policies of organisation directly effect them
(Hunsicker and et. al., 2011). Main stakeholders of an enterprise include its creditors,
employees, government directors, suppliers and society in which business execute its business
operations.
Stakeholders analysis for a voluntary sector
Main stakeholder of a voluntary sector include government institution, corporate donors,
agencies, specific groups of beneficiaries, organisations etc. For a voluntary sector, analysis of
two factors is important first is identify the main stakeholders which will be benefited by firm's
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actions and which stakeholders will bear a loss due to some particular actions and second one is
whose involvement is more significant for enterprise. Being a voluntary sector or non profit
organisation it is very essential for enterprise to analyse whether the project is beneficial for
society or not as whole purpose of voluntary enterprises is to offer and provide maximum benefit
to society.
Stakeholder analysis for a public enterprise
Main stakeholders of a public organisations include owners, shareholders, government ,
various agencies, directors, suppliers, creditors, society and directors (James and Prout, 2015).
Investment in public enterprises is mostly done by public and authorities of government so these
enterprises remain more accountable to these parties on priority basis.
2.2 Nature of customers relationship in two not for profit organisations
Relationships with customers is known as one of the most sensitive part of on enterprise.
Not for profit enterprises use the concept of marketing for short period of time. These
organisations apply relationship in order to keep its customers satisfy and happy. The main
reason behind existence of these type of enterprises is to meet needs of customers and maintain a
good relationship with customers. For example: NHS a national health care service, should build
and maintain a strong relationship with the donors. If firm fail to do the same then people will
left. NHS is facing a problem of donor attrition and for needs to work on the same to improve it.
To overcome with this problem firm can hire individuals to provide right care to their donors to
ensure their loyalty. NHS using emotional connection in order to create and maintain relationship
with other.
British red cross is another not for profit enterprise that is engage in solve worldwide
causes. Customers are really very important for British red cross as these are the one which
support the enterprise (Karatepe, 2012). NHS is like a customer of British red cross customer as
it donated medicine and blanket for solve the issues.
Basically not for profits organisations are the one which maintain relations with
customers better understand their interests and by encourage them in decision making process.
2.3 Comparison methods of marketing used in public, voluntary and private sectors
Concept of marketing is very wide as this not only include doing promotion of company's
products and services but also include anticipate needs of customers and fulfil the same.
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Different sectors implement the same in various ways and this difference can be understood by
following points: Marketing strategies for a public sector: One of the main aim of public sector is to
contribute more in social development and betterment of society and ensure overall
growth of country (Komunda and Osarenkhoe, 2012). Due to this marketing strategies of
this sector require huge amount of investment. One of the main aim of marketing of these
type of organisations is to touch people feelings. For example, NHS uses health and
safety campaigns in their advertising that encourage the audience to protect the
community. Marketing strategies for a private sector: One of the main aim behind formation of
public enterprises is to maximise the profit and all marketing activities of these
enterprises is towards maximise the profits of company. Private sectors use various type
of methods and appeal available in market in order to increase the profits of enterprise.
 Marketing strategies for a voluntary sector: These type of businesses put all resources in
order to achieve their end goals and objectives. This require to make the analysis for
specify their beneficiaries and do all efforts to satisfy their needs and achieve their
satisfaction. Marketing of these type of enterprises is based on information.
2.4 Key issues involved in a virtual enterprise
Virtual enterprise are the one under which large number of individuals form, across the
globe perform their duties and work together through various electronic means and stay
connected with each other with use of computers (Kursunluoglu, 2011). This is also known as
network enterprise and digital organisation. One of the most important features of these
enterprises is that they are boundary less and this make easy for the individuals to work form
anywhere through the globe. Main issues in marketing of these enterprises include the following: Technology issues: One of the main feature of these enterprises that they largely depend
on working of technology and due to this any barrier in technology affect the working of
whole enterprise. Further, technology require timely up gradation in order to work
effectively. Cultural issues: As large number of employees work under these type of enterprises
from different culture and regions so all this create cultural issues and obstacles.
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 Lack of proper communication channels: Under these type of enterprises every activity
and work is done through various modes of electronic devices and this results in lack of
proper communication channels and all this hamper the quality of business activities. High cost of maintenance: For ensure effective working and survival every enterprise
require some kind of maintenance cost (Long and et. al., 2013). Virtual enterprises
requires high cost of maintenance due to use of various technological devices such as
computers, communication devices and up gradation cost and all this make the virtual
enterprise more expensive as compare to other enterprises.
 Hard core competition: In today's business environment, competition is inevitable. Every
enterprise face cut throat competition, same in the case of virtual enterprise. Every
individual do various efforts to prove himself better than the other one and all this leads
to tough competition.
TASK 3
3.1 Use of extended marketing mix in a service sector business
Marketing mix is a concept which consists various factors such as product, price, place ,
promotion, people, process and physical evidence. In case of service sector all these elements
help an enterprise in achieve its end goals and main objectives of marketing. Basic elements of
marketing mix are product, price, place and promotion and the extended ones are people, process
and physical evidence. These three extended P's of marketing mix help service industry in offer
better and quality services to its customers. These can be better understood by following points: People: This is related with the workers working in enterprise. If a company has skilled
workforce then it help enterprise in offer better quality products and services to its final
customers and correct attitude of workforce help in attract more number of customers.
For example in case of banking sector it is very essential to have right people with
correct attitude as behaviour of staff members towards the customers is the only factor
which defines bank (Luo, Homburg and Wieseke, 2010). In case of service industry
employees directly interact with final customers so it is very essential to hire right
candidate as this contribute more in growth of company. Skilled workforce deliver better
services to customers and perform well and on the other hand, unskilled workers can not
deliver effective services which leads to dissatisfaction of customers.
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 Process: This is relate with the way in which final product or service is delivered to
customer. It is very important for enterprises to make it customers feels appreciated as
this will influence them to come again. In case of service industry, it is very important to
deliver a good experience to customer. For this, it is very essential for enterprise to offer
training to its employees so they can offer value for services to its customers.
 Physical evidence: This is related with the services like how they promoted and offered
to customers. Basically its all about what customers gets in return (Moutinho and Evans,
2013). In order to offer value to its customers it is very essential for enterprise to do all
efforts. For example, in case of hair salon, it is very essential to have skilled members of
staff so they can offer best experience to its customers. It is very essential that place must
be pleasant so customers can enjoy the atmosphere. It is very essential for companies to
provide physical evidence in return of service.
3.2 Marketing mix can be used to enhance values for customers and enterprise
Use of marketing mix for a product or service enhance the value of customers and
enterprise. With help of marketing mix an individual can formulate better marketing strategy and
cab better achieve end results and goals of marketing. An effective marketing plan of an
enterprise which consists all 7p's help and support and organisation to achieve its marketing
objectives within specific time period.
 It is very essential for an organisation to have adequate amount of information about its
target market as this help in formulate marketing plan and implement strategies
accordingly. This does not include the individual who is not connected with final offering
of firm. It help firm to just focus on its target group and better satisfy their needs and
wants.
 Adequate amount of information about target market of company help managers in set
right price for the final offering of firm (N. Torres and Kline, 2013). This guide the
managers in choose the best pricing strategy which not only help the net reprise in
generate profits but also provide various other long term advantages.
 With help of marketing mix, an enterprise understand better about how to sell its products
in market and better satisfy the needs and wants of its customers in terms of both features
of product and quality of service which create value for customers.
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 With help of process a firm learns how the way in which it has to sold its products and
services in market which increase sales of enterprise.
Overall concept of marketing mix guide managers in formulate various policies related with
business operations and help in produce and offer a innovative products to its customers which
help in better satisfy the needs and wants of its customers (Nguyen and Mutum, 2012). This
concept help company in offer value to its target market in order to retain customers for long
period of time.
3.3 Difficulties to marketing of services can be overcome
In service industry, it is very essential that marketing of services must be done in an
effective way as the main aim of this is to serve more number of customers and retain the for
long period of time. One of the major barrier which come in the way of delivering services is
increasing cut throat competition. Today large number of enterprises are there which numerous
other services to its customers.
Marketing a service means selling the intangible to customers. For example “Roma” is a
health care insurance which offer variety of insurance packages to individual in particular
hospitals of United Kingdom. While doing marketing in service sector it is very essential for
marketers to identify and understand the main factors which affect the behaviour of buyer and to
improve customer's perception. Following are the main factors: Intangibility: One of the main important feature of service is that it can not be touched
and seen and due to this, it is very difficult to assess the value and quality of a service. A
customer will know after consume the same only then he can give feedback about the
service of enterprise (Novelli, 2015). Sometimes customers take time to give any kind of
positive and negative response and it become difficult for customers to assess the value of
service.
 Inseparability: Other component of service is that consumption of service can not be
separated from its production. Customer receive the service but at the same time see its
production and this is the main reason that enterprises should have skilled and expertise
man power to leave a good impression on customers. All this help in create a good
relationship with customers.
In order to overcome the various barriers take place in service industry, it is very essential
for enterprise to have a effective communication channels as this help in clear roles and
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responsibilities of staff members. Further, it is very essential to use a effective methods and
standard tools to offer services to final customers.
3.4 Role of IT in services marketing management
IT play a significant role in marketing management in a service sector. Due to technology
advancement, today large number of enterprises are there which use the IT sector as this help in
make the work more convenient and simple (Parsons and Maclaran, 2010). For example in case
of a banking sector, various tools and techniques are use to make the banking system more
reliable and simple.
First use of IT sector in banking is ATM (automated teller machine), these machines
allow to execute various transactions from fund transfer to withdrawal. This has make the
banking more convenient for individuals without even going to bank.
With help of mobile phones, customers can access their financial accounts with just help
of one click.
With help of various smart cards, such as credit cards and debit cards an individual can
perform various operations such as pay bills, withdraw cash and many more.
Electronic fund transfer at point of sales provide an opportunity to individual to purchase
the item and make the payment by just swipe the card.
Advancement in technology help in maintain the information of customers which help
increase the effectiveness of banking system.
In this way, IT has contribute a lot in make the banking system more effective and better.
TASK 4
4.1 Ethical and social issues concern to marketers
The management of M&S has to consider the ethical and social issues while marketing
the activities of company. Ethical and social issues include about globalisation, international
marketing ethics, pressure group activity, environmental issues etc (Ryu and Han, 2010). It is the
duty of the marketing manager of the company has to oversee all these factors while promoting
the products and services. All these factors have major impact on the brand image and
profitability of company. It also affects the expansion activity of the business operations. Impact
of these issues is defined below: Globalisation: M&S is multinational retailer company which deals in clothing, home
products and luxury food items. The business activities of company are conducting in all
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