Business Environment & Crm

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Business environment of CRM
When a person or an organization entrusts with their investment or any kind of input then they are a “CUSTOMER”. Also the individual or the organization is customer of some individual or an organization. Now managing the relationship between these two parties is known as customer relationship management. Few examples to state would be: Tourist and government

People and government
Consumer and corporate
The business environment affecting these two parties is of importance to us. The analysis of the environment can be done in areas such as: •Legal/Political

The laws made by the government to protect the interest of the consumer. These laws are greatly affected by the political scenario of the country. The major domains are: •current legislation
future legislation
international legislation
regulatory bodies and processes
government policies
government term and change
trading policies
funding & grants
A few examples from the Indian perspective are:
Example: Tobacco and liquor advertisements are banned in India. So the companies look for other merchandise to promote their brand. •Example: Department of Telecommunication (DoT) is very effective in keeping a check on the service providers. They have very strict rules on Do Not Disturb services. Moreover they can impose the tariff restrictions on any connection. •Example: Credit card frauds are a big nuisance to the customers as well as banks, thus government laws play a pivotal role in stopping these mishaps. •Example: The advertisement must contain a statutory warning if it is not suitable for a particular segment of the viewers. •Example: Distinguishing vegetarian products from the non-vegetarian product with a colored dot.

Ethics in CRM
The practices which are criticized by the society may be legal or not. Generally the companies overlook this part and are blinded with their own profits. However this results into their loss in the long run. The general issues in the Indian market are: Data sharing: The organizations get the feedback from their customers for further relationships but tend to misuse that information for their further benefits. Example: telecom industry. Misleading Advertisements: Advertisements such as media coverage’s of certain products can mislead the customer about the utility of the products. The discount information is not appropriate usually hiding the vital information in the form of terms and conditions. Positive Approach: Companies like Nokia, Toyota, McDonalds and TATA have got immense returns with their CRM policies. Nokia called its BLC5 batteries from the market. Toyota called its PRIUS cars back after identifying a defect. McDonald uses only paper bags for its packaging and packing. TATA developed a forum on which it recorded the data from its customers of Indica and finally improved it.

Economic environment of CRM
This is the most important aspect of the external business environment as it deals with the funding of the CRM activities. The CRM activity is money consuming therefore it is important to analyze the rate of investment in this case. These activities also depend upon the economic condition of the firm. The major domains are: •home economy

economy trends
overseas economies
general taxation
taxation specific to product/services
seasonality issues
market/trade cycles
specific industry factors
market routes trends
distribution trends
customer/end-user drivers
interest/ exchange rates
international trade and monetary issues
Companies like Wal-Mart which operate on a bigger scale will invest more on CRM than the organization like future group. Similarly the product segment and the market segment play a bigger role. Example: TANISHQ and Navras (Big Bazaar) Example: TANISHQ and Kapsons

Socio-cultural aspects
Associating with...
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