Customer Relationship Management Essay Questions

Executive Summary

Customer relationship management has become very popular now days due to increase in competition among all type of business. Customer relationship management means that managing and fulfilling the expectations of the customers via delivering them best product and services than its competitors in that industry.

The purpose of this report is to explore and review of prestige organization of my choice with regard to its B2B customer relationship management. Due to my greater interest in the automobiles industry, I have selected the Toyota Motors and I will evaluate and analyze the Toyota that how it is managing the good and long term relations with its automobiles dealers. The case example of NEW TOWN TOYOTA, which is Toyota best dealer in Australia, is also taken for the practical implication of B2B customer relationship management.

The factors which help the Toyota in managing their B2B customer relationship management are also elaborated and discussed in detail. On the basis of findings, which are extracted after the analysis of the literature review and Toyota CRM approach, some suggestions and recommendations are given, where Toyota still need any improvement.


Introduction

Customer Relationship Management

Customer relationship management means to managing and fulfilling the expectations of the customers via delivering them best product and services than its competitors in that industry. Effective CRM brings profits in the company and helps in improvements of overall financial position of the business via continuous profits. Any organization of the world can easily manage the customer relationship management by delivering their customers the business products at the low prices with the best possible quality than its competitors can deliver. The customer relationship management can be measured that how much company has brand loyal customers and is it retaining its customers or not. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. Customer management is positively linked with the positive performance of the business. The performance of the business will automatically improve if, company does well in customer relationship management.


Overview of Toyota

In 1937, Kiichiro Toyoda started the company which was a separate company from its fathers company Toyoda Automobile Loomworks. Its headquartered is in Japan. Toyota motor is among worlds largest multinational corporation of the world in the automobile sector. Toyota is the leading seller of the automobiles in the world. Toyota is at rank 8 in fortune global 500 2007 companies of the world (Schewe, 2008). Toyota Motor Company is Equal Employment Opportunity Employer who provided fair and equal job opportunity to all the applicants irrespective of the race, religion sex etc. Toyota seeks to abide by the intent as well as the letter of appropriate legislation in these matters and Toyota management team is committed to the promotion of and adherence to the Equal Opportunities Policy. Throughout the world, Toyota has employed approximately 321000 employees (Schewe, 2008)


Objective

The objective to writing this report is to understand the CRM at B2B level and its practical implication with respect to any organization. The reason to choose the topic of CRM is my interest in the marketing field and my love to interact and meet people. Due to the changing competitive environment, we need to search and get the very loyal customers or we can make our existing customers loyal. All consumers have some behaviors and attitudes. Loyalty is one of customer behavior or attitude. In customer loyalty, the customer has an emotional connection with the company (Toyin, 2008). The four basic drivers of customer loyalty are brand image, service quality, product quality and companys capability (Toyin, 2008). Today the use of technology for providing customers services is increasing because of the lower costs and efficient customer relationship management. After my education I am seeking a job of marketing executive in a automobile industry. Therefore, I have chosen the company of Toyota. For the practical implication of B2B CRM, I will evaluate, that how Toyota maintains its relationship with its automobile dealers throughout the world and I will take the example of the New Town Toyota which is a dealer for the Toyota in the Western Australia. Low barriers to entry and globalization have increased the competition at very higher level among the businesses. So, it has become difficult to maintain or gain any competitive advantage by the companies. The survival of the business is now on the retention of the customers


Literature Review

Customer relationship management has become very popular now days due to increase in competition among all type of business. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. Customer relationship management means that managing and fulfilling the expectations of the customers via delivering them best product and services than its competitors in that industry. Effective CRM brings profits in the company and helps in improvements of overall financial position of the business via continuous profits. Any organization of the world can easily manage the customer relationship management by delivering their customers the business products at the low prices with the best possible quality than its competitors can deliver. The organizations customer relationship management can be measured that how much company has brand loyal customers and is it retaining its customers or not. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. Long term relationship should be given preferences on the short term relationships. It is in the best interest of the organization to always focus on the long term relationships because every organization existence in the market is dependent on the customers satisfaction with the product of the company. If, organizations products or services perform according to the desire or expectation of the customers then it makes customer happier and satisfied. It is the reality a satisfied and happy customer always comes back to the company. CRM main emphasis is on the retention of the customers by delivering them highest standard of products. Consumer awareness has been increased and he is well informed with the choices and options he has in the market. So, prices of the products and services should be as low as possible because increased competition has compelled the organizations to do so. The Main focus of the companies towards managing customer satisfaction and managing the relationship with customers started in 1990 (Jeong, 2003). The step which the company is taking a good one because if you study the profile of consumers than we can easily see that due to the advancement of technology, it is easy for more and more customers to go online rather than the traditional brick and mortar structure. Now the adoption of this method of customer relationship management by companies will increase in the near future (Christopher, 2003). In automobile industry, customers main focus is on quality of the products. In automobile industry, customers are more loyal with the companies. They give preferences to the Brand name and always buy the automobile of their liking. Automobile companies always prefer to have reliable and known dealers in the country. Now, the automobile organizations know the importance dealers and they are emphatically managing the good relationship with them. Dealers of the automobiles always are more interested in their profit margins. All the automobiles companies of the world are now operating in a really stiff competition which has compelled them to deliver the best services and its products at very reasonable prices. Due to the globalization, this competition has also become stiffer among the organizations. Now the success or survival of any organization is only dependant on the satisfaction of the customers which is expected from the product or service offered (Steven, 2002). Organizations are giving much more attention on their customers satisfaction which will help them in retention of the existing customers. The retention of the existing customers and to attracting new customers will depend that how effectively an organization manages its customers. To manage the profitable relationship with the customers is critical for the success of the organization.


Research findings

In Marketing, Customer Relationship Management and customer satisfaction go hand in hand as discussed by all the marketing authors and professionals. Also a large number of experts take customer satisfaction as the first priority of the consumers. If a business wants to be successful then it should increase customer satisfaction and retention (Roger J Best, 2008). There in this scenario we are attempting to decrease our costs but not at the expense of customers so we should keep the customer satisfaction level high. Customer Relationship is a strategic and technology oriented method used by Toyota to manage its good relationships with the targeted customers. It is one of the core competencies of a Toyota Motor. Customer Relationship Management has a positive relationship with good performance of Toyota (Leo, 2004).

Lean manufacturing approach of production is often practice by the organizations and the idea behind the lean production is to keep the stock (raw material, supplies etc.) in the strategic position rather than in a central position or warehouses. Lean manufacturing emphasizes in reducing the wastages, continuous improvement, higher productivity and efficiency, reduce per unit cost and lead time , increase in revenue and profit, increase in market share and customer relationship management (Angel, 2001).


Case example of New Town Toyota

Toyota Motor Company has many dealers in throughout the world and in Australia. New Town Toyota is the most profitable and the largest dealer for the Toyota Motor in the Western Australia. New Town Toyota was purchased by the Joe Zito in 1992 and started its operation in the 1993 (Official Website 2009). New Town Toyota was the No. 1 dealer of Toyota in Australia in the year 2001 for providing the best facilities to the Toyotas customers in Australia. New Town Toyota is the most successful and the profitable dealer of the Toyota in Australia. New Town Toyota located at very prime location at the top end of Welshpool Road. New Town Toyota is committed to provide the convenient and the quality of automobile services to the people in Western Australia (Official Website 2009). New Town Toyota wants to manage the long term relationship with its customers with the help of Toyota Motor Company. In Western Australia, Toyota gives its dealer New Town Toyota the more credit facility and provides those automobiles on the deferred payments (Official Website 2009). Toyota knows and has in mind that these dealers have direct interaction with the customers so, making their dealer happy is important for the retention of the final customer. So Toyota has always given the priorities to the problems of its dealer of New Town Toyota. Toyota is trying to reduce their cost in order to give more profit margins to the dealers and help them in delivering the automobiles at low rates. Toyota has always ensured the availability of the automobiles at it dealer New Town Toyotas show rooms (Toyin, 2008). The latest and innovative models are provided to New Town Toyota as quickly as possible. To make the supply chain more effective Toyota has maintain with the New Town Toyota a knowledge sharing network which is helping them in managing the knowledge management.


Recommendations

My recommendations to the Toyota Motor include both the long term and short term actions:

Toyota Motor has adopted the focus strategy as it gives its dealership to the specific and reliable dealers. These limited dealers are serving the best quality of services to the consumer of the Toyota vehicles. This focus strategy is working for the Toyota Motor. So, Toyota Motor should continue to adopt this strategy for future. Toyota should manage an effective and efficient knowledge sharing network with its dealers to remove any information gap. Toyota should focus more on corporate social responsibility and public relations to create recognition and awareness among customers. Toyota should give proper concentration to its corporate social responsibility because customer relationship management is also hugely dependant on the good image of the company. Customers now buy products and services from those organizations that are socially responsible. Having a positive brand name in the market is essential for Toyota because in this competitive world, the main focus of every organization is to have a significant brand name. It has always seen when people buy anything they buy the brand not the product. Brand positioning always plays an important role and has an impact on the consumer preferences and choices.

Toyota gives special attention in addressing the issues of its workforce and always tries to manage the good employment management relationship because the success of Customer relationship management is totally dependent on the employment relationship management. it is the normal practice that one motivated and satisfied employee work fast and well than the dissatisfied and low motivated. Total Quality management approach main idea is to maintain the long term profitable relationship with the customers and create values for them by just delivering them the best quality of services and the products. The organization success or failure is dependent upon its customer?s satisfaction level(Ulrika and Bengt, 2000). The term Total quality management is a broader term which includes everything. It focuses on every aspect of the organization and emphasizes in bringing improvements at every aspect. The purpose of this approach is to bring improvement in every operation, parts, process, etc. of the organization and then ultimately deliver the best quality of services or products to customers. Organizations that use TQM approach have the competitive advantage on those who do not use this approach. The quality of products produced by these employees also varies. In this competitive environment of global business, it is very difficult for Companies to remain always competitive and managed profitable relationship with the customers. So, it is important for the organizations to install creativity, change and innovation in the organization Customer relationship management is hugely dependent on the employees of the company because customers use the product which workers produced. If the workers are satisfied and motivated they will keen to produce the higher quality of products and their overall productivity will also increase.


Conclusion

Customer relationship management has become very popular now days due to increase in competition among all type of business. Customer relationship management always demands from the companies to create the values for the customers by delivering them the products and should expect the profitable returns in exchange. Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment. In the end, I can say no doubt globalization has increased the competition among the companies and to remain always competitive and profitable is very difficult but still some businesses are doing very well and are very profitable in which one of them is the Toyota Motor. Toyota Motor has always focused on the long term relationship with its dealers in order to provide the final user the best quality of services of automobiles.


References

Jeffrey H. Dyer and Kentaro Nobeoka, (2000), Strategic Management Journal, Vol. 21, No. 3, Special Issue: Strategic Networks (Mar., 2000), pp. 345-367, Available from: http://www.jstor.org/stable/3094191 [Accessed: 24 May, 2010]

Schewe, Charles and Hiam, Alexander (2008), History of Toyota Motor,

Available from: http://www.toyota.co.jp/IRweb/invest_rel/advertorial [Accessed: 24 May, 2010]

Christopher Bull (2003), Strategic Issues in customer relationship management (CRM) implementation, Business Process Management Journal, Volume 9, pp. 592-602

Leo Y.M. Sin, Alan C.B. Tse and Frederick H.K. Yim (2004), CRM: conceptualization and scale development, Journal of Marketing, Vol 39, pp. 1264-1290

Kristin Anderson, Carol Kerr, (2002), Customer Relationship Management, pp. 1-8 Available from: http://books.google.com.pk/books?id=DE2Pbd_qmgkC&printsec=frontcover&dq=customer+relationship+management&source=bl&ots=6-KuULpveI&sig=WPLRBs3pFi89_cfKeJzMSVQq_f8&hl=en&ei=X9DAS6-DIMm7rAfH-eWDBg&sa=X&oi=book_result&ct=result&resnum=3&ved=0CBQQ6AEwAg#v=onepage&q&f=false[Accessed: 22 May, 2010]

Official Website (2009), History of New Town Toyota, Available from: http://www.newtowntoyota.com.au/scripts/viewoverview_contact.asp?NID=1721 [Accessed: 24 May, 2010]

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4. What technologies should be used to develop CRM?

It doesn’t really matter what web framework to choose for developing a CRM system: ASP.NET, Spring, AngularJS, Express, Symfony, Django or Ruby on Rails. All of them have enough capabilities to make your solution work stable, process data quickly and provide scalability opportunity if necessary.

If you would like your CRM application to display geographical data and maps, we recommend you to go with Django framework. It hosts GeoDjango module that connects to PostGIS, which is PostgreSQL’s spatial objects module. Moreover, GDAL for spatial data and PIL for images are rich enough to cover all the needs of geo data displaying.

Since JavaScript is becoming more powerful, we highly recommend to consider using MEAN (Mongo, Express, Angular, Node) stack for programming a CRM app. By using Angular’s Twitter bootstrap plugin, you can create good-looking UI. Node with its multiple modules can manage server part at every step from authentication up to encryption.

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