CRM Vs. Marketing Mix Management


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Carol Smalley
Managing Editor, CRMGuru

Posted 28-Oct-2003 08:44 AM
Posted by Carol Smalley (Editor) on behalf of Pauline McAlister [[email protected]]


I would like information on how CRM is more appropriate than Marketing Mix Management as a theory of marketing in the 21st century.

Is it the way of the future? In what ways are the two theories similar and different? What macro and micro issues impact on the marketing approach that a company would adopt? For example, building long-term relationships with suppliers would fit in with a Relationship Marketing strategy.

Any help you could give me on these topics would be greatfully received.

Thank you.

Carol Parenzan Smalley
Managing Editor
[email protected]

Howard Schneider

Posted 31-Oct-2003 06:56 AM
It seems to me that CRM is one of the most useful tools to inform the management of your marketing mix, messages and campaigns, not an alternative approach to marketing mix management. Does that make any sense?

Ted Silverman (Braun Consulting)

Posted 06-Nov-2003 01:22 PM

Here’s my take on your question.

Marketing Mix Management focused on adjusting marketing channel spending at a macro level—basically, how much should I spend on advertising (perhaps segmented into TV, radio, print, etc.), trade promotion, consumer promotion (e.g. coupons, direct mail), etc. The analysis was at a high level and considered all customers who received (or responded to) treatment within each channel to be the same. Therefore, no customer differentiation. The output of MMM was typically a recommendation to shift spending across marketing channels. MMM also only helped address the question of “through which channel(s) do I touch my customers”, not when, how often, or with which messages/offers.

CRM is customer-driven, and any analysis is done by developing groups/segments of customers based on their value to the company, their needs, etc. CRM doesn’t assume everyone who responded to a print ad is the same.

Any given customer may have different needs by channel. Using a multi-channel retailer as an example, Jane Smith may like to receive a paper catalog in the mail and then go online to place her order, while her husband prefers an email or wireless reminder about his wife’s birthday and then goes to the brick-and-mortar store near his office to buy her a gift.

CRM helps a company conduct smarter conversations with their customers, including the “what to say/offer”, “when” and “how” pieces of the marketing equation, as well as “through which channel”. All of this is accomplished by tracking, at the customer level, what works, what does not, what his/her preferences are, etc.

Hope this helps.

Ted Silverman
Braun Consulting

Andrea Cerri
Picture of Andrea Cerri

Posted 20-Feb-2004 08:08 AM
I tend to consider CRM as a philosophy that shapes the approach towards the customer and in a very advanced stage some aspect of the products development, but many aspect of the marketing Mix are still outside the scope of the CRM ( at least in my company).

Let just say that CRM adds a new dimension to the marketing mix.

MRHoffman ClientXClient
Picture of MRHoffman ClientXClient

Posted 23-Sep-2004 10:36 AM
CRM is an extension of marketing mix management that is afforded by new technologies. Every customer interaction and contact can now have a marketing theme, extend an offer, build brand value grow yield per customer. Marketers now have access to customers beyond customer acquisition and traditional promotions and should look to see where in the customer process flow they can “market”.

Michael R Hoffman
CRM BPM, Client X Client LLC
908 542—1134
Think Like a Customer!


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