UNIT 8

STRATEGIC MARKETING AND CUSTOMER RELATIONSHIP

MANAGEMENT

According to Aaker (2013) strategic marketing is process of identifying and selecting target
markets and then creating and delivering value to these markets through customized marketing
activities. It involves aligning marketing efforts with the organization’s long-term goals and
focusing on building a competitive advantage. Strategic marketing is about understanding the
external market environment, identifying opportunities, and positioning the organization to meet
customer needs more effectively than competitors.

Customer Relationship Management (CRM) is a strategic approach that manages an

organization's interactions with customers, enhancing satisfaction, loyalty, and retention. It
involves tracking and analyzing customer data, fostering deeper relationships, and providing
personalized experiences for better customer service (Buttle and Maklan, 2019).

1 What are the key elements of a successful marketing strategy for

information services?

In order to effectively reach, engage, and sustain a relationship with their users, enterprises must
have a number of fundamental components in place for their information services marketing
strategy. These components guarantee that the service is not only visible to but also valuable to
its target audience.

Target Audience Identification

Targeting involves selecting one or more segments to focus on marketing efforts based on their
attractiveness and alignment with the organization’s capabilities.
 Understanding the specific needs and behaviors of the target audience is crucial for
tailoring messaging and service offerings to cater to their diverse expectations and
preferences.
  Information services often cater to a wide range of users for example students,
researchers, businesses and so on. Each group may have different expectations and
preferences.
Segmentation of the audience allows for tailored messaging and service offerings that resonate
with each group.
Kotler and Armstrong (2018) highlight the value of market segmentation by saying, "Businesses
can target the right audience with the right message by dividing the market into distinct groups of
buyers."

Value Proposition and Service Differentiation

 To explain what makes the service valuable and how it satisfies the audience's particular
demands, a clear value proposition which is essential.
 Emphasizing the unique features or advantages of the information service that
differentiates it from competitors is the process of differentiation.
 Superior access to resources, ease of use, or personalized services could be examples of
this.
A university library may highlight its vast digital collections or individualized research support
as important differentiators is a typical example.

Content Marketing and Educational Outreach

 Content marketing and educational outreach are essential for building long-term
relationships and positioning the service as a trusted authority.
 Content marketing plays a significant role in information services by providing users with
valuable, relevant content that educates and informs them.
 This can include blogs, webinars, guides, newsletters and tutorials that help users
understand how to use the service effectively.
 Educational outreach helps build long-term relationships and positions the service as a
trusted authority in the field.
For instance a public library may offer webinars on how to use digital resources effectively,
targeting users who are less familiar with technology.

Multi-Channel Promotion
 Information services should leverage multiple communication channels to reach their
audience, including social media, email marketing, search engine optimization (SEO) and
traditional advertising.
  A multi-channel approach ensures that the service is visible to users across different
platforms and touch points. A research database might use targeted social media
campaigns alongside email newsletters to keep researchers informed about new
resources.
User Engagement and Personalization
 User engagement and personalization through interactive methods, such as surveys or
feedback forms, can enhance user experience and satisfaction.
 Personalization such as offering customized resource recommendations based on user
behavior or preferences can greatly enhance the user experience and satisfaction.
 A library might use data analytics to provide users with personalized suggestions for
reading materials based on their borrowing history is another example of user
engagement and personalization.

Customer Relationship Management (CRM)

 Implementing an effective CRM system helps organizations track user interactions,
preferences, and feedback, enabling targeted communication and service improvements.
 CRM systems also allow for better relationship management ensuring that users are
continually engaged and their needs are met.

Data-Driven Decision Making

 Data-driven decision-making is essential for identifying which marketing efforts are
working and where adjustments need to be made to improve reach and user satisfaction.
For example, a digital library might use web analytics to identify popular resources and
adjust its marketing focus to promote underutilized collections.
 Data helps identify which marketing efforts are working and where adjustments need to
be made to improve reach and user satisfaction.
A successful marketing strategy for information services requires a deep understanding of the
target audience, a clear value proposition, effective use of multiple promotional channels, and a
strong focus on customer engagement and relationship management. CRM and strategic
marketing are both crucial for coordinating marketing initiatives with long-term objectives and
making sure those client interactions are efficiently handled to create lasting relationships and
drive business expansion.

2 How can organizations use market research to identify customer needs and
preferences?
Market research is the action or activity of gathering information about market needs and
preferences. This helps companies understand their target market how the audience feels and
behaves.
Market research can be divided into eight types, each with their own methods and tools:
1. Primary research
2. Secondary research
3. Qualitative research
4. Quantitative research
5. Branding research
6. Customer research
7. Competitor research
8. Product research.
Primary research involves collecting raw data from participants directly to the target market,
analyzing it for trends and comparisons. Focus groups involve gathering a sample of participants
based on demographics and characteristics, conducting conversations about a product or service,
and obtaining insights from the group's answers. However, this method can be affected by
acquiescence, dominance, or researcher bias. One-to-one interviews provide a structured setting
for two-way conversations, but can be time-consuming and subject to biases. Surveys, which
consist of open and closed-ended questions, are an excellent method for primary research, as
they require participants to be physically present and can be completed anywhere with an
internet connection. However, researchers must prepare by segmenting the market and creating a
list of participants to send the survey to.
Secondary research is the use of previously collected, analyzed, and published data, such as
desktop research, which can be public domain data from think tanks, government statistics,
research centers, or paid for research from research journals, education institutions, and
commercial sources like newspapers. It is often used as a preparation for primary research
activities, providing a knowledge base and enhancing understanding. Both primary and
secondary research has their advantages and disadvantages, but they are best used when paired
together.
Qualitative research is the collection of non-numerical data, used to summarize and infer the
truth held by a target market. Quantitative research is the collection of numerical data, used to
provide historical benchmarking and create the foundation of knowledge needed for further
investigation.
The next four variations of market research are specific to specific topics areas, such as branding
research, customer research, and customer analysis. Branding research helps companies create,
manage, and maintain their brand through interviews, focus groups, surveys, and understanding
customer satisfaction, loyalty, and segmentation. Customer analysis focuses on understanding
customer behavior and preferences, while customer analysis focuses on understanding customer
behavior and preferences.
Market research gives you in-depth insights into their preferences, behaviors, and needs. This
knowledge helps you tailor your products and services, ensuring they resonate with your target
audience. It also helps craft messages that speak directly to their desires, enhancing customer
engagement and satisfaction.
Organizations can use customer feedback and reviews to conduct market research. Analyzing
online reviews, social media interactions, and customer service channels can identify recurring
themes, common complaints, and appreciated features. This real-time research helps companies
prioritize updates, improve customer experience, and demonstrate responsiveness to user needs.
Market research is a crucial tool for organizations to understand customer needs, preferences,
and behaviors, enabling them to create products, services, and marketing strategies that resonate
with their target audience. It involves a systematic approach to gathering, analyzing, and
interpreting data about customers, competitors, and the broader market environment. By
employing both quantitative and qualitative research methods, organizations can gain
comprehensive insights that help them tailor offerings to meet consumer demands more
precisely, enhancing customer satisfaction and loyalty.

One primary way organizations use market research is through surveys and questionnaires,
which allow businesses to gather large amounts of data directly from their target audience. This
data can help identify specific preferences, purchasing habits, and pain points, enabling
businesses to improve their offerings or optimize operational processes. Demographic
segmentation in surveys helps businesses understand how different customer groups prioritize
their needs, allowing them to create more targeted marketing campaigns and product variations.

Additionally, data analytics and machine learning algorithms can be used to analyze vast
amounts of customer data from digital platforms, capturing real-time behavioral data and making
predictions about future trends. Organizations can now use data analytics and machine learning
algorithms to analyze customer data from digital platforms, identifying patterns and trends in
behavior. This helps identify customer abandonment stages, streamline checkout processes.
This type of research involves collecting data from customer interactions on websites, apps, and
social media to identify patterns and trends in behavior. For example, by using analytics tools, a
company might discover that customers frequently abandon their shopping carts at a particular
stage of the checkout process. This insight can lead to targeted initiatives to streamline the user
experience, such as simplifying the checkout form or offering incentives for completing
purchases. Data analytics also allows companies to predict future customer needs based on
historical trends, enabling them to stay ahead of market changes and customer demands.

In order for businesses to obtain a thorough grasp of their clientele, the author highlights the
significance of combining traditional market research techniques with modern data analytics
tools. This strategy helps firms make well-informed decisions that promote customer happiness
and long-term performance by gathering insights through surveys, focus groups, and consumer
feedback. Furthermore, I believe that rather than seeing market research as a one-time event,
businesses should consider it a continuous process. Customer preferences and requirements are
always changing due to a combination of cultural trends, economic shifts, and technological
advancements. Through consistent study and awareness of these changes, companies may
maintain their flexibility and responsiveness, guaranteeing that their goods and services continue
to satisfy the ever-changing demands of their customers.

3 What are the benefits of implementing a customer relationship management

system?

Organizations can better manage their connections with both present and potential clients by
implementing a Customer Relationship Management (CRM) system. A CRM system helps firms
to increase customer satisfaction, boost revenue, streamline operations, and consolidate customer
data while automating some chores. Below are the detailed benefits of implementing a CRM
system, supported by research and references.
According to Buttle and Maklan (2019), CRM systems provide a comprehensive view of
customers by capturing and organizing data from multiple touch points, allowing organizations
to understand customer needs better and personalize their interactions

Improved Customer Data Management

One of the most significant advantages of a CRM system is its ability to centralize and organize
customer data in a single platform. Contact details, past interactions, preferred purchases, and
reviews are all included in this. Having all customer data consolidated in one place allows
employees across different departments for example sales, marketing and support to access up-
to-date information easily, ensuring that customer interactions are seamless and informed (Buttle
and Maklan,2019).
 A sales team can view a customer’s past purchases, preferences, and communication
history, enabling them to tailor their sales pitch to the customer’s specific needs.

Enhanced Customer Satisfaction and Retention

Research by Payne and Frow (2013) indicates that companies using CRM systems experience
higher levels of customer satisfaction because they can deliver more personalized services and
ensure that customer needs are addressed in a timely manner.
Customers are more satisfied and loyal when a CRM system enhances the quality and
personalization of client interactions. The method enables companies to monitor every customer
interaction, guaranteeing prompt, pertinent, and customized responses. Customer retention rates
increase as a result of the better relationships that are fostered by this customization.
  E.g. a CRM system can automatically remind a sales representative to follow up with a
customer for a post-purchase check-in which enhances the customer’s sense of being
valued and cared for.

Increased Sales and Revenue

Businesses may use CRM data to develop more focused and successful marketing and sales
strategies, which will raise conversion rates and increased revenue. Customer relationship
management (CRM) systems assist sales teams in tracking sales opportunities, identifying high-
value leads, and predicting future sales trends. Additionally, CRM technologies give
organizations information about the buying habits of their customers, which helps them more
successfully cross-sell and up-sell.
According to Greenberg (2010) CRM systems can significantly improve sales performance by
providing sales teams with the tools to track leads, manage opportunities, and automate follow-
ups, ultimately driving higher conversion rates and sales efficiency.

Streamlined Communication and Collaboration

Buttle and Maklan (2019) assert that customer relationship management systems facilitate cross-
departmental collaboration by offering a single platform for exchanging customer data,
guaranteeing that all teams that interact with customers are working together.
 A CRM system enhances internal communication and collaboration among team
members by providing a centralized database where employees can share information,
track customer interactions and coordinate activities.
 This ensures that everyone is on the same page when interacting with a customer
reducing the risk of miscommunication or duplicate efforts.
 e.g. A customer service representative can quickly access information on a customer’s
previous interactions with the sales department, allowing them to provide more informed
and cohesive support.

Automation of Routine Task

Payne and Frow (2013) argue that CRM systems "enable organizations to streamline their
operations by automating routine tasks, reducing the burden on employees and improving
operational efficiency
 CRM systems help businesses automate repetitive tasks such as sending follow-up
emails, generating reports and scheduling appointments.
  This automation increases efficiency and frees up time for employees to focus on higher-
value tasks such as building relationships with customers or developing new strategies.
 For example a CRM system can automatically send a thank-you email after a customer
makes a purchase or a reminder email if a customer abandons their shopping cart,
encouraging them to complete the transaction well in Zimbabwe Econet does it better.
Better Customer Segmentation and Targeting
CRM systems enable precise customer segmentation allowing organizations to target their
marketing efforts more effectively and maximize the return on their investment.
 CRM systems allow organizations to segment their customer base based on various
factors such as demographics, purchasing behavior, and interactions with the company.
 This segmentation enables businesses to create more targeted marketing campaigns and
tailor their product offerings to specific customer groups, resulting in more effective and
personalized marketing efforts.

Data-Driven Decision Making

CRM systems offer useful data-driven insights that allow businesses to make informed decisions
and refine their strategies to better meet customer needs and business objectives," claim Buttle
and Maklan (2019).
 Businesses may make well-informed decisions by using the comprehensive customer data
and insights that a CRM system provides.
 CRM solutions give businesses the analytics and reporting capabilities they need to
monitor sales trends, customer behavior, and performance indicators.
 These insights can be used by decision-makers to pinpoint areas for improvement,
optimize tactics and more efficiently distribute resources.
 For instance by using CRM analytics, a business may identify the marketing efforts that
yield the highest return on investment (ROI) and modify subsequent campaigns
appropriately.

Scalability and Growth

Greenberg (2010) notes that CRM systems are designed to be scalable ensuring that as
businesses grow, they can continue to manage customer relationships effectively without the
need for significant system changes
 CRM systems are scalable, meaning they can grow alongside the business.
 As a company expands its customer base, a CRM system can easily accommodate
additional data and users without requiring a complete overhaul of the system.
 This makes it an ideal solution for businesses looking to scale their operations and
maintain consistency in customer relationship management.
Implementing a CRM system offers numerous benefits to organizations, including improved
customer data management, enhanced satisfaction and retention, increased sales, streamlined
internal communication and more effective marketing efforts. CRM solutions help businesses
make well-informed, data-driven decisions that support long-term growth and success by
automating repetitive operations and offering insightful data analytics. Effective customer
relationship management is essential in today's competitive business climate, and a great CRM
system offers the resources required to establish closer bonds with clients, boost productivity,
and drive company expansion.

4 How can organizations measure the effectiveness of their marketing efforts?

Organizations can measure the effectiveness of their marketing efforts by using a variety of
metrics and tools .These measurements help businesses understand how well their marketing
strategies align with their objectives and whether they are achieving the desired return on
investment (ROI). Below are key methods organizations can use to evaluate marketing
effectiveness.
Tracking Return on Investment (ROI)
According to Kotler and Keller (2016), Return on Investment is a key financial metric used to
measure the profitability of marketing campaigns, helping marketers justify their expenditures
and optimize their budget allocations.
One of the most important ways to measure marketing effectiveness is by calculating .Return on
Investment (ROI) which is a crucial metric for measuring marketing effectiveness, as it compares
the revenue generated by a campaign to its cost. It helps businesses determine which campaigns
yield the highest financial returns and adjust their marketing budgets accordingly
 ROI provides a clear, quantitative assessment of whether a marketing activity is
financially successful.
 By tracking ROI, businesses can determine which campaigns deliver the highest financial
returns and adjust their future marketing budgets accordingly.
 For example, a company in Zimbabwe running a social media campaign to promote a
new product can compare the cost of the campaign including ad spend and creative
development to the sales revenue generated from customers who engaged with the ads. If
the campaign brings in significantly more revenue than it costs the ROI will be positive
indicating that the campaign was effective.

Analyzing Conversion Rates

Chaffey and Ellis-Chadwick (2019) note that conversion rate is a vital indicator of marketing
effectiveness, as it reveals how many prospects are successfully converted into customers or
leads based on specific marketing activities
 Conversion rate is yet another critical metric used to measure marketing effectiveness.
 It is the proportion of prospective clients who, as a result of a marketing campaign,
complete a desired activity, such buying something, subscribing to a newsletter, or
downloading an app.
 Organizations can evaluate if their calls to action are strong enough to produce results
and how well their marketing messages connect with their target audience by looking at
conversion rates.
For instance, in Zimbabwe, a bank promoting a new mobile banking app might run online ads
encouraging users to download the app. The conversion rate would be calculated by dividing the
number of app downloads by the number of people who clicked on the ad. If 1000 people clicked
on the ad and 200 downloaded the app, the conversion rate would be 20%, indicating that the
campaign was successful in engaging a significant portion of the audience.
Customer Acquisition Cost (CAC)
Customer acquisition cost, according to Payne and Frow (2013), is a crucial indicator for
assessing the effectiveness of marketing initiatives since it enables businesses to monitor the
costs associated with acquiring each new client and adjust their budgets appropriately.
 Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer
through marketing efforts. It is calculated by dividing the total marketing spends by the
number of new customers acquired during a specific period.
 CAC is a crucial metric because it helps organizations understand how efficiently they
are spending their marketing budget to attract new customers.
 For example a Zimbabwe-based internet service provider (ISP) running an online
campaign might calculate its CAC by dividing the total campaign cost by the number of
new customers who sign up for a plan. If the company spends $5,000 on digital ads and
signs up 250 new customers, the CAC would be $20 per customer.

Customer Lifetime Value (CLV)

According to Greenberg (2010), The Customer Lifetime Value is a crucial indicator for
comprehending the long-term profitability of customers, assisting businesses in concentrating not
only on acquisition but also on optimizing the value of customer relationships over time.
 It represents the total revenue a business can expect to earn from a customer over the
entire duration of their relationship.
 CLV is an essential measure of marketing effectiveness because it helps organizations
understand the long-term value of acquiring and retaining customers.
A Zimbabwean insurance company might calculate the CLV of policyholders by considering the
average premium paid over several years and the likelihood of renewal. This metric helps the
company focus its marketing efforts on acquiring customers who will generate long-term
revenue.

Customer Feedback and Net Promoter Score (NPS)

Customer feedback and Net Promoter Score (NPS) are qualitative measures of marketing
effectiveness, focusing on customer satisfaction and loyalty.
 NPS measures the likelihood of customers recommending a company's products or
services. In Zimbabwe, local businesses can use NPS to gauge customer sentiment after a
marketing campaign or product launch, indicating successful marketing efforts. A high
NPS score indicates a positive customer experience and brand advocacy.
 NPS is a strong indicator of customer loyalty and a valuable measure of marketing
effectiveness, as it reveals how likely customers are to act as brand advocates.

Personally, I believe that measuring marketing effectiveness is essential for any business,
regardless of size or industry. In Zimbabwe, where businesses often operate in a challenging
economic environment, it is even more crucial to ensure that every marketing dollar is spent
wisely and yields results. Many companies in Zimbabwe, from small retailers to telecom giants
can benefit from tracking metrics like ROI, customer acquisition costs, and NPS to optimize their
strategies.

For instance, in my experience, local businesses in Zimbabwe, such as hardware stores or

agricultural suppliers often rely heavily on word of mouth and local community engagement.
Implementing a simple NPS survey after a marketing campaign could help them understand
customer satisfaction better and adjust their offerings. In Zimbabwe, digital marketing is also
growing in popularity as businesses use social media advertisements to connect with younger
audiences. Businesses can ascertain whether their advertisements are generating traffic and
revenues or whether they need to modify their messaging by monitoring the conversion rates
from these online campaigns.

Overall, the key to success in Zimbabwe’s diverse and competitive market is using both data-
driven metrics and customer feedback to make informed decisions and continuously refine
marketing strategies.
References

Buttle, F., and Maklan, S. (2019). Customer Relationship Management: Concepts and
Technologies (4th ed.). Routledge.

Chaffey, D., and Ellis-Chadwick, F. (2019). Digital Marketing: Strategy, Implementation and
Practice (7th ed.). Pearson.

Greenberg, P. (2010). CRM at the Speed of Light: Social CRM Strategies, Tools, and Techniques
for Engaging Your Customers (4th ed.). McGraw-Hill.

Kotler, P., and Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.

Payne, A., and Frow, P. (2013). Strategic Customer Management: Integrating Relationship
Marketing and CRM. Cambridge University Press.