The Marketing Book 5th Edition

(a) Vertical organizational focus (b) Horizontal organizational focus

Input-focused, budget-driven

Traditional, functional organization

Market-driven, Output-focused

Suppliers Company Customers

Supply

chain

management

Customer

relationship

management

‘Buy-side’ ‘In-side’ ‘Sell-side’

490 The Marketing Book

the role of information technology, and the
linkages between CRM and SCM are not
considered sufficiently. We will now examine
the CRM process and SCM in greater detail.

A strategic framework for CRM

CRM is a management approach that seeks to
create, develop and enhance relationships with

carefully targeted customers. CRM should be

viewed as a strategic set of activities that

commences with a detailed review of an or-

ganization’s strategy and concludes with an

improvement in shareholder value. The notion

that competitive advantage stems from the

creation of value for the customer andfor the

company is key to the success of CRM. This

demands that responsibility for value delivery

is shared across functions and hierarchies.

Because CRM is a cross-functional activity, it

Figure 19.3 The shift from functions to processes

Figure 19.4 The CRM and SCM processes