Bài tập về dịch vụ marketing marketing services crm

BÀI TẬP VỀ DỊCH VỤ MARKETING - MARKETING SERVICES - CRM
1. Explain the role and importance of services in modern economy.
2. Write detail note on price strategies for services:
3. Answer the following issues:
(a) Role of marketing communication.
(b) Service promotion.
4. Explain the role of intermediaries in planning and managing service delivery.
5. Write a detailed note on CRM programmers.

CONTENT
1/ Explain the role and importance of services in modern economy.

In developed countries, service delivery and its definition have existed and
been developed for a long time. In developing countries like Vietnam, service has
just been developed recently, although it has actually existed in very long time.
Nowadays, GDP - Gross Domestic Product of a country as well as revenue of a
business cannot be counted without the contribution of service delivery.

Since late 90s, service sector has accounted for a high proportion of GDP of
developed industrial countries. Specifically, in 2000, the proportion (%) of services
(GDP) of some countries are as follows:
. Britain: 78%
. USA: 77%
. Canada: 72%
. France: 72%
. Italy: 71%
. Germany: 69%
. Japan: 69%
In the early 21st century, the service proportion of GDP of USA, Britain and Canada
has been reached up to 80%. Many other developed countries have also developed,
following that trend, services have accounted for nearly 80% of GDP. In developing

countries, this figure is usually significantly lower, average achieves around 35-40%
of GDP. With the strong development, services play an increasingly important role in
the economy of each country. So what is service? There are many definitions of

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service. "Service is the result of interactive activities between suppliers and
customers as well as internal operations of suppliers to meet the needs of
consumers."

Some other writers think: "service is the result of operations that cannot be
performed by physical products but by their usefulness and economic value such as
trade, health, tourism, administration etc."
According to Professor Philip Kotler:

“A service is any act of performance that one party can offer to another that
is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.”

We can understand simply: "Service is a kind of social products in order to
meet a vast array of needs in human life, it includes all of supports that customers
expect to be consistent with price, prestige beside products or services. "
Structure of service: 3 kinds:

- Business – Finance Service: Paid television services, Internet services,
advertising services, insurance services, home sales services, post sales, online sales,
banking services (ATM, Internet payment, consumerloans, financial counseling...)
- Consumer Services: supply of electricity and water; entertainment, sports, food,
clothing, fashion designers, hotels and tourism (including services of motels,
restaurants, entertainment services, sightseeing), barber, salon, repair services of

appliances, house cleaning, child care,...

- Public services: Health, health care, child care, education, libraries, museums,
lighting.

Operation of services plays an important role in the modern market economy:
1. Services enable enterprises to increase their sales and gain more profit.
2. Service has a strong influence to the trade of goods in national areas as well as

international areas. How will international trade like trade of goods circulate if there
is no transportation service? The birth and development of transportation services
such as road, airway, seaway transport have contributed to overcoming geographical
obstacles, accelerate the circulation of goods, boosting trade demand, exchanging

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goods from countries to countries, from region to other geographical areas...Payment
services? Banking service allows payment process taking place an effective way to
help both exports and imports gain purposes of trade relations. The
telecommunication, information services support the commercial activities in
stimulation, shorten the purchasing decision time of consumers. Services such as
agents, wholesale, retail play intermediary role between producers and consumers; at
the same time, they contribute to accelerating the consumption of goods, shortening
the circulation of goods, helping manufacturers quickly recover investment capital to
reproduce.

3. The growth of service is the driving force for economic development as well
as positive impact on the division of social labor. The economy is growing so
services are diversified. Currently, the development of services reflects the level of
economic development of each country. It is believed that the higher the level of

economic development of a country is, the bigger the proportion of service sector in
economic structure of that country is. Development services will promote division of
social labor and specialization; enable other production sectors to develop. (In
developed countries, services account for 50 - 60% of labor force, 70 - 80% of
national income, spending on services accounts for 60 - 65% of personal income in
the developing countries).

4. The sale of goods and services created in the market (promotion, gifts,
birthday celebration, member cards...) has enhanced the consumption and enjoyment
of individuals and enterprises, contributed to boosting production and market
expansion.

5. Service sets up barricades to block the entry of competitors. Service always
shows the competition between enterprises through services created on the market for
trading goods and services. Therefore, service requires enterprises to be dynamic,
creative and artistic in order to constantly improve the competitiveness of goods and
services on the market. This solid foundation will help enterprises survive and
develop in the fierce competition today.

In the trend of international integration, the role of services in developing
countries is low, but are increasing rapidly follow the general trend of the world

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economy. The domestic market will be closely linked to foreign markets through
foreign trade; if services and trade grow strongly, abundantly, they certainly expand
the market to attract inputs and outputs of the market. Because of this, the service -
commerce will be the bridge to link the domestic market to foreign markets which is
consistent with the trend of integration and openness in our country today. Service -
commerce operations require business owners be dynamic, creative, artistic to

constantly improve the competitiveness of goods and services on the market,
contribute to boosting production force fast; this solid foundation will help
enterprises survive and develop.
REFERENCES
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2/ Write detail note on price strategies for services:
Price strategy refers to the methods which enterprises use for valuation of

products or services. Most enterprises, whether big or small, valuate the prices of
products or services based on manufacture, labor and advertising costs, and then add
a certain percentage for them to make profits. There are many different price
strategies such as penetration price, skimming price, discount price, valuation based
on product life cycle and even valuation based on competitors.
Price is the amount that sellers and buyers mutually agree to exchange goods and
services in normal trading conditions, or the price is the amount or products that we
ask to put out for getting something else (ownership, rights to use...). In cooperation
and competition, producers, distributors and consumers actively agree to trade
together on price and form market price. Everyday in life, we often face the price:
money for purchasing goods, renting, school fees, medical care, tickets, interest,
salary and returns etc.

How is price determined? Previously, the price is determined by both sellers
and buyers through a bargain process. Sellers often offer a higher price than the

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intended one and buyers usually bid a lower price through negotiations, they will
come to an acceptable price for both parties.

The determination of a price for all buyers is a relatively modern idea. This
creates favorable condition for the management when the sellers have many different
types of goods and hire a lot of staffs.

In business, price shows the competition of economic benefits and monopoly
position of power. Thus, the roles of price are:
- Price has a particularly important role in the reproduction process because it is the
last stage and it shows the result of other stages.
- Although on the world market in general, price competition transfers to quality
competition but in many places, at many times and in many fields, price competition
still remains strictly.
- Price research is one of marketing activities in order to carry out the purpose of
sales. Price is the basic factor of marketing. Price plays a decisive role in the choice
of purchasing this product or other products whenthere are similar products.
- Price is a lever to operate consciously on the market (through the law of supply and
demand).
- Market impact reproduction process primarily through price.
- Price is a basic factor, one of four important variables of Marketing mix to create
income for the company; and all other parts only bring investments and expenses, so
price is particularly important for the company.
- The valuation should be inextricably linked to the choice of the other variables of
marketing mix.
- Price variable (price strategy) also causes immediate impacts more than other
variables of marketing mix. Demand and people who change price or changes in
products, advertisement etc.
- Price displays the appropriate level of economic activities of the company with
environmental requirements that help satisfy consumer needs and evaluate economic
effect of the company. Price affects demand but it is not the only factor of marketing
because there are other factors such as product, distribution, promotion...also affect

the needs. Price is only one of tools to influence demand and sales. Any decision may

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also become invalid and be replaced if it no longer fit the situation of spending,
reaction of competitors and changes in consumer habits.

The establishment of a proper price strategy will ensure profitable business
and dominate the market. Different from valuation following cost, enterprises now
consider market prices to valuate the products according to 5 ways following:
Price penetration valuation:
A small company which uses penetration price usually put a low price for its product
or service with hope of building market share, the ratio of company’s sales on the
market and total turnover.
The main goal of penetration price is to attract customers with low prices and then
use different marketing strategies to retain them. For example, a small Internet
software distributor can set a low price for their products and then send emails with
complementary software products offered each month to customers. A small
company will work hard to serve customers to build brand loyalty among them.
Enterprises typically deploy more diverse products than individual products. After
that, they decide the price levels for the different products in the same line. The price
levels need to be accounted the differences in cost, customers’ evaluation for
different features and prices of competitors.
Skimming Price (gain more profit in the begining):
A different kind of price strategy is surfing price/ skimming price in which a
company orders high price to quickly recover production costs and product
advertising. The main objective of skimming strategy is to achieve a quick profit.
Companies often use skimming price when they are lack of financial resources to
manufacture products in quantity, according to the article "Price Strategies" on
NetMBA.com. Instead, the company will use cash which they quickly earn to finance

the manufacture of additional products and advertising.
Valuation based on product life cycle:
All products have their lifespan which is called the life cycle of product. A product
gradually progresses through various stages in the cycle: introduction, growth,
maturity/ stability and stage recession. During the growth stage, when sales are
booming, a small company often keeps higher prices. For example, if the company's

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products are unique or higher quality than competing products, customers may have
to pay higher prices. A company which has products with high prices in the growth
stage can also own a new technology with high demand.
Valuation based on competitors: (Smaller companies cannot follow the prices of
bigger companies)
Understanding costs and price of competitors is very important. It is very useful to
know how the competitors will react upon the changes in price of your products. A
customer buying wooden furniture will consider the price of products and compare to
prices and quality of the similar products of other enterprises. When pricing its
products, an enterprise must always put itself in relation with competitors to adjust
accordingly (especially important competitors). Sometimes, a small company may
have to reduce prices to meet the prices of competitors. A price strategy following
competitors can be used when there is very little difference between products in the
field. For example, when buying paper plates or paper cups for a picnic, they often
purchase with the lowest price when there is small difference. Therefore, a small
paper company may need to valuation their products lower or loose sales (Ex.: Apple
has achieved fame in the world, so they can set the high price because of high
technology, but other competitors have to set lower prices).
Temporary Discount Strategy: Discount according to season to solve
Small companies can also use temporary discounts to increase sales. Temporary
discount valuation strategy includes coupons, discount sales, seasonal discounts and

even when buying in bulk. For example, a small clothing manufacturer can offer
seasonal discounts after holiday to reduce inventories. A discount according to the
quantity may include a promotion such as buy two get one free.
Most enterprises will adjust their basic price to reward some customers’ works such
as paying early, purchasing large quantities and buying out of season. This price
adjustment is called the amount of discount or rebate.

- Discount in cash: Discount in cash is discount for buyers who make early
payment. A typical example: If sellers note "2/10 net 30", they means the payment is
extended within 30 days, but buyers can gain 2% profit of the price if they pay the
receipt within 10 days. This discount is quite common; it serves the purpose of

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improving the payment of sellers and reducing the costs of debt as well as the amount
of bad debts.

- Discount in quantity: is a discount for those who buy a lot. This discount must
be applied to all customers in order to encourage them to buy more, so they are
greatly reduced costs and the company is increased overall profit.

- Seasonal discount: is the discount for customers who purchase goods or
services in few-customer season. For example, hotels near beaches discount rooms in
winter.

- Additional discount: is another form of discount from retail prices.
Particularly, discount in goods exchange is the discount for returning old items when
buying new items. This type is very popular in the automobile industry as well as in
some other types of durable goods such as televisions, refrigerators, washing
machines etc. Promotional allowance is the rebate for rewarding dealers participating

in promotion program.
REFERENCES


3/ Answer the following issues:
a) Explain the role of marketing communication.
b) Service promotion.

All organizations - big and small, commerce, government, charity, education and
other non-profit organisations – need to communicate with a range of stakeholders.
This may be to get materials and services to undertake their business activities, or to
collaborate and coordinate with others to secure suitable distribution of their goods
and services. In addition, there are consumers – you and me – people who are free to
choose among the hundreds and thousands of product offerings. Marketing
communication provides a core activity for all interested parties can understand the
intentions of others and appreciate the value of goods and services provided.

The marketing communication agencies are trying to adjust following the way
they can best serve the interests of their customers. One of the results of
reorganization structure (mergers and takeovers) may lead to consolidation.

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Customers themselves are fighting to generate superior value for their customers and
to find new ways of establishing competitive advantage. Globalization and
development of partnerships, alliances and networks are all testament to the market
changes and expectation.

Definited by Don Schultz and Heidi Schultz (1998) based on previous studies
and experiences from different organizations which have accepted the approach

method IMC: "IMC is a strategic business process to be used to plan, develop,
implement and evaluate coordination, measure and conduct brand communication
programs which persuade consumers, customers, potential customers, target objects,
and other outside and internal relevant objects through time”. According to its
creator, it focuses more on the business process including all the concepts thet we
have mentioned so far as well as business process, evaluation and measurement.

a) Explain the role of marketing communication:
From the comments above, it is possible to deduce that marketing
communications are about the promotion of both organization and its offerings.
Marketing communications recognize the increasing role that the organisation plays
in the marketing process, and the impact that organizational factors can have on the
minds of audiences. As the structure, composition and sheer number of offerings in
some markets proliferate, so differences between products diminish, to the extent that
it has become much more difficult to differentiate between products. This results in a
decrease in the number of available and viable positioning opportunities. One way to
resolve this problem is to use the parent organization as an umbrella, to provide
greater support and leadership in the promotion of any offerings - hence the earlier
reference to the emerging strength of corporate marketing.

A view that is becoming increasingly popular is that corporate strategy should
be supported by the organization’s key stakeholders if the strategy is to be successful.
Strategy must be communicated in such a way that the messages are consistent
through time, and are targeted accurately at appropriate stakeholder audiences. Each
organization must constantly guard against the transmission of confusing messages,
whether this be through the way in which the telephone is answered, the navigability
of a website, the impact of sales literature, or the way salespersons approach

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prospective clients. Many organizations recognise the usefulness and importance of
good public relations.This is because of the high credibility attached to the messages
received and the relatively low operational costs. As a result, the use of corporate
advertising has grown.

Finally, marketing communications recognize the development of channels or
commercial marketing. Many organizations have moved away from the traditional
control of a brand manager to a system that focuses upon the needs of distributors
and intermediaries in the channel. The organizations in channels work together to
meet their personal goals and their collectives. The level of conflict and cooperation
in a network of channel depends on a number of factors, but some most importances
are formation and quality of communications between member organizations. This
means marketing communications should meet the needs of specific contact
information of the members of the distribution network and other stakeholders who
influence or affect the performance of network Indeed, marketing communications
realize the need of contributing to the communication in network channel to support
and maintain the websites of the relationships.
For example, many organizations in the aviation have turned their attention to the
needs of tourist trade, customers and competitors. For example, Vietnam Airlines,
Singapore Airlines, American Airlines, British Airways and other airlines have
changed their approach, attitude and prior investment for partnership and channel
coalition are specially prioritized. Currently, they are interested in working obviously
with their partners and their competitors, and this requires agreement, cooperation
and promotion activities for all participants to achieve their goals.

Marketing communication includes 4 main tools of promotion: Advertising,
Sales Promotion, Personal Selling, Public Relations. Performance of promotion tools
is varied because of market.

 Advertising is one of the most important tools of promotion activities.

Advertising transfers convincing information to target customers of the company.
Purpose of Advertising is to attract customers' attention, convince them of the
benefits, the attractiveness of the product changes or reinforce attitudes and belief of
consumers about the company's products, increase desire for their shopping and

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coming to shopping action.
Advertising is a non-personal form of mass communication that offers a high

degree of control to those responsible for the design and delivery of advertising
messages. However, advertising’s ability to persuade the target audience to think or
behave in a particular way is suspect. Furthermore, the effect on sales is extremely
hard to measure. Advertising also suffers from low credibility, in that audiences are
less likely to believe messages delivered through advertising than they are messages
received through some other tools. The flexibility of this tool is good because it can
be used to communicate with a national audience or a particular specialised segment.
Although the costs can be extremely large, a vast number of people can be reached
with a message, so the cost per contact can be the lowest of all the tools in the mix.

 Sales Promotion is to stimulate the market response faster and stronger
to products and services of the company. There are various promotion tools (samples,
gifts, wrapping together...) to achieve different promotional goals depending on the
market, products and competitive conditions.

Sales promotion comprises various marketing techniques that are often used
tactically toprovide added value to an offering, with the aim of accelerating sales and
gathering marketing information. Like advertising, sales promotion is a non-personal
form of communication, but it has a greater capability to be targeted at smaller
audiences. It is controllable, and although it has to be paid for, the associated costs

can be much lower than those of advertising. As a generalisation, the credibility of
sales promotion is not very high, as the sponsor is – or should be – easily identifiable.
However, the ability to add value and to bring forward future sales is strong and
complements a macroeconomic need that focuses on short-term financial
performance.

 Personal Selling is face to face communication of sales staffs and
potential customers to present, introduce and sell products. Personal Selling creates
attention to each customer and convey more information. Between sellers and buyers
is a flexible interaction which adapts to the specific requirements of the customers
and can lead to purchasing behavior. This is something that advertising cannot do.
Salesman can also persuade and resolve customers’ inquiries. In addition, Personal

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selling can establish and develop sales relationships. However, in reality, for the final
consumer, Personal Selling has a bad image. This activity is to be dishonest and use a
variety of techniques to push customers.

Personal selling is traditionally perceived as an interpersonal communication
tool that involves face-to-face activities undertaken by individuals, often representing
an organisation, in order to inform, persuade or remind an individual or group to take
appropriate action, as required by the sponsor’s representative. A salesperson
engages in communication on a one-to-one basis where instantaneous feedback is
possible. The costs associated with interpersonal communication are normally very
large.

 Public Relations is a tool that is increasingly esteemed in marketing
activities, sometimes has strong effects, achieves high efficiency but is less expensive
than advertising. Public Relations of a company has many purposes including

enhancing the pretige of the company, creates a good image of company which do
proper business and interest in the local development.

Public relations is ‘the art and social science of analysing trends, predicting
their consequences, counselling organisations’ leadership, and implementing planned
programmes of action which will serve both the organisation’s and the public
interest’ (Mexican Statement, 1978). The increasing use of public relations, and
publicity in particular, reflects the high credibility attached to this form of
communication. Publicity involves the dissemination of messages through third-party
media such as magazines, newspapers or news programmes. There is no charge for
the media space or time, but there are costs incurred in the production of the material.
There is a wide range of other tools used by public relations, such as event
management, sponsorship and lobbying. It is difficult to control a message once it is
placed in the channels, but the endorsement offered by a third party can be very
influential and have a far greater impact on the target audience than any of the other
tools in the promotional mix.

b) Service promotion.
The main strategies to promote services include participation in relevant
networks, brochures, information booths, messages, and websites, press releases,

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advertisements in local printed media and news is less common. More strategies
include word of mouth and promotion through other services, magazines, emails,
space initiatives, community education and health promotion, education and public
services.
REFERENCES
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4/ Explain the role of intermediaries in planning and managing service delivery.

Nowadays, most manufacturers provide their products to market through

distribution intermediaries. The distribution intermediaries of a distribution system
are also known as marketing channels or commercial channels. Distribution channel
is a collection of individuals or interdependence business establishments involve the
process of creating and moving products or services from producers to consumers.
Role characteristics of the intermediaries.

Distribution intermediary channel plays a very important role to help
enterprises solve financial and personnel difficulties, accelerate product consumption
speed, reduce transactions. Through the implementation of information function,
propaganda, balance, negotiation, item disibution, funding risk sharing to fill the gap
in time, space and ownership of consumers for products and services.

There are many reasons for the producer to transfer a part of consumption to
distribution intermediaries. The transfer also means giving up some control rights of
sales and customers. However, the sales of its products through intermediaries give
manufacturers many advantages.

Intermediary distribution channel is also designed according to the different
characteristics of products and services including consumer goods distribution
channels, material distribution channels and services distribution channels. Parts of
the intermediary distribution channel connect by the flow of material, ownership,
payment, information and propaganda.

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Many manufacturers do not have enough financial resources to distribute their
own products directly to the end consumer because the direct distribution requires a
lot of money and manpower.

The direct marketing may require more manufacturers become intermediaries
to sell addtional products of other manufacturers to achieve savings through mass
distribution. Even when manufacturers are eligible to set up their own distribution
channels, but are capable of achieving more profit by raising more capital investment
into their own business, they still choose distributing products through
intermediaries. If an enterprise achieve the return rate accounts for 20% of the
production and can only achieve the return rate of 10% from the distribution, they
will not undertake retail products.

Thanks to interactions, specialization experience and scale of operations,
distribution intermediaries will make benefits for manufacturers rather than the
manufacturers undertake the distribution of their own products themselves.

In view of economic system, the basic role of intermediaries is to change
different sources in reality to goods that customers want to buy. The reason for this
difference is because manufacturers often create a certain category of products in
large quantities, while consumers usually desire only a certain number of products
with rich categories.

In planning the distribution channels requires the goals, constraints, selection of
channels and evaluation.

Why do we have to use marketing intermediaries?
Through exposure, experience, specialization and scale of their operations,
marketing intermediaries has brought manufacturers more advantages than
manufacturers distribute themselves. Using intermediaries can bring considerable
savings (Figure A).
Conventional signs: SX: Manufacturer

KH: Customers

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Marketing
intermediaries

Figure A: How can distribution intermediaries bring savings?
As the figure shows: Four manufacturers directly do marketing to distribute to
customers, that requires 16 times the exposure. But if using intermediaries for
distributing, the number of exposure drops to 8.
The functions of marketing channels Các chức năng của kênh marketing
Members of the marketing channel perform the following functions:

1. Availability: Product availability is how many products are available to
customers who make purchases at any given time.

2. Information: Collect the necessary information to plan the strategy and
facilitate the exchange.

3. Communications: Implement and disseminate high persuasive information
about the trading items and new products.

4. Negotiations: Try to reach an agreement on price and other issues around
products which customers tend to buy and sell.

5. Order: Find out and inform future customers. Division, packing, sorting
goods.

6. Payment Methods

7. Finance: Mobilize and divide the money for chaneels’ costs, supply credit to
customers.
8. Risk Acceptance
Distribution intermediaries help risk management in investment by giving
professional advices in investment opportunities. However, the advices that they give

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may increase the overall risk because of the characteristics of these investments; their
potential rewards also increase. They also provide the expertise and technology to
promote investment transactions easily and quickly, while intermediaries often direct
their customers to invest certain amounts which can be managed by their company,
they are supposed to act for the best interests of customers rather than their own or
their owners.

9. Transfer ownership / title
Create added value

The value of a product to consumers is called usability; it measures how much
that product improves customers’ life. There are four types of utility: time, location,
formality and ownership. Distribution intermediaries add time by making products
become accessible whenever the customers want. They create location by making
products available anywhere consumers want to purchase. Ownership involves
helping others to prove ownership of an item like a car agency arranges finance.
Formality is when intermediaries make the product more useful or easier to use. For
example, beverage manufacturers change flavored syrups into soft drinks.

Transaction Function
The transaction functions of intermediaries involve in trading and risk

appetite. Wholesalers or agencies buy products from manufacturers with a sufficient
number to reserve on the shelves of many stores. They boost product promotion to
build sales revenue; they use personal sales staff and other marketing communication
devices for retailing. During sales, all distribution intermediaries have a level of risk
because their inventories can lose their competitive attractiveness or become obsolete
before they are sold out.

Logistic functions
Most products on mass market must be produced in large quantities to achieve

economic advantages on scale, but a few manufacturers have ability to store
inventories or deliver a small number of goods to personal consumers. Instead, they
rely on intermediaries to perform these functions and other logistic functions. For
example, manufacturers of frozen food transport to supermarkets, not directly to the
consumers’ house. The book publishers rarely sell to the bookstore; they work

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mainly with the book dealers who set the category of the last one and then distribute
to the appropriate audiences.

Equipment/ facilitation function
Facilitation function includes many different activities carried out by

intermediaries for consumers to make easy swap. This usually involves collecting
and disseminating information. For example, brokers - who buy fresh beef or pork
from farms - will test and classify them to allow buyers accurately compare
alternatives. The wholesalers of fruit and vegetables arrange and confirm the
freshness of products. Another function is to facilitate the provision of credit and
other financial services. This is particularly important among retailers who often

issue credit cards and propose deposit programs.

The above functions can be changed between channel members. If
manufacturers perform these functions, the cost will increase and prices will be
higher. When some functions are transferred to the intermediaries, costs and prices
will be lower than the manufacturers’ but the have to charge extra costs for
intermediaries. The person who performs each function on the channel is due to
productivity and efficiency.

Previously, it was believed that intermediaries only cause costly and time
consuming; the fact shows the intermediaries in distribution channel play an
important role in helping both sellers and buyers. Thanks to exposure relationships,
experience, specialization etc. intermediaries bring many benefits to producers such
as:

1) Reduce costs of product distribution for manufacturers
Through interaction, experience of specialization and scale of operation,

distribution intermediaries will benefit for manufacturers rather than the one who
undertake the distribution of their own products themselves. If manufacturers
organize direct distribution network to customers, they have to bear great costs
because of unspecialization and small scale.

2) Increase the reach to customers for manufacturers while reducing
contacts for manufacturers and customers.

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When using distribution intermediaries, sales volume will increase to ensure
the widespread distribution and bring products to target market quickly. Thanks to

the distribution network, manufacturers can reach to numerous customers
everywhere. Customers only need to contact with a distributor that can buy a variety
of products from different manufacturers. In contrast, manufacturers need to contact
with a distributor that can sell more products to customers.

3) Share risk with the manufacturers
Widely review in the entire society, the present of intermediaries reduce

transactions in exchange. In case, products are discontinuously traded with
distributors, commercial intermediaries share risk due to price fluctuation with
manufacturers. Therefore, manufacturers can quickly recover capital to reinvest in
the next production cycle.

4) Increase competitiveness for manufacturers
When using intermediaries in distribution channel, thanks to cost savings,

manufacturers increase customer access, reduce risks for manufacturers to improve
their competitiveness. If they consider benefits that intermediaries bring to both
parties: manufacturers and customers can see intermediaries as "sales professors” for
manufacturers and "trading agencies” for consumers.
REFERENCES
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5/ Write a detailed note on CRM programmers

Currently,there are more than 100,000 enterprises around the world using
CRM in sales management, marketing, customer services...CRM online is stored on
host web servers which is safe and convenient, allow you to use CRM anytime,
anywhere, with low operating costs and high efficiency.

The use of CRM software programs in sales management will bring long-term
and sustainable competitive advantage. The difficulties in sales management: we
cannot determine what is the most accurate information of customers due to
distributed data storage, overlap in many areas, the number of jobs done with the

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customers. The statistics and historical analysis of customer transactions cannot be
done, records, questions, comments of customers in products or services are missed.
You cannot automate some repetitive tasks which is boring and reduce productivity.
We cannot carry out marketing campaigns - Email or SMS advertisement and cannot
keep track of details of the entire staffs’ work. We cannot build effective sales
process or customer services and a completed and accurate customer database after a
long time operation. Customer data is not safe, not secure and easy to be lost when
employees leave.

1. What is CRM?
CRM stands for "Customer Relationship Management". It is a strategy used to
exploit and further understand customers' needs and behaviors for developing (boost)
the relationship with them (customers). In short, good relationships with customers
are central element of success in business. CRM is a process to help provide
information about customers, sales of goods, marketing, support/ customer service in
efficient manner, high availability and market.

2. What is the purpose of CRM?
The purpose of CRM is to bring technology and human resources into

business to understand the behavior of customers and the value customers bring. If
CRM work effectively as expected, enterprises will:

- Manage detailed information of all customers from A to Z, manage the entire
transaction history of the customers. Provide better customer service. Manage all
tasks related to marketing, sales and customer support of the entire staff. Create
service centers (call centers) more efficiently, attract customers and increase sales
opportunities by building the advertising marketing campaign through Email, SMS.
Improve the efficiency of cross business of product lines, allow the salesperson end
the sales transaction faster. Simplify the sales and marketing process, discover new
customers, increase revenue from customers. Manage potentially and convert into
opportunities for future sales, manage support cards and construct solution storage to
serve and care customers better, while improving the quality of products/ services.

3. Functions of CRM

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CRM software includes a diverse set of important business functions allowing
automatic support and management for almost business activities. Three of the most
important functions of CRM software is Sales Management (sales automation),
Marketing Management (marketing automation), Customer Support and Service.
Marketing Automation

The automatic marketing system helps enterprises identify and target the best
customers, creen contacts for sales force, manage and measure the effectiveness of
marketing campaigns via email, mail, telemarketing or direct personal selling ...
Marketing Automation helps manage customer lists, creen, complement and enhance
the potential customer quality in the database.
Sales Automation

Sales Automation is management tools of sales process according to different
stages and management of sales staff. Sales Automation enables tracking and

recording every stage in sales process for each prospective customer from initial
contact to the end of the deal. Sales Automation includes features such as
management opportunity, end of quote, sales orders creation, end of invoices, sales
forecasts, automatic workflow and inventory management.
Customer Service and Support

Customer service and support is a system allows tracking and managing
customer service operations and support issues. Customer service is an important
difference of the enterprises, CRM software system help them improve customer
service experience, while increasing efficiency and reducing costs. CRM software
provides tools to manage problems and require arising services of customers, supply
tools and basic knowledge to help customers self-service, help staff quickly meet the
requirements of customers.
Oher functions

CRM software systems also provide a wide range of related tools and
functions such as inventory management, schedule management, email, letter,
telephones, quotes, invoices etc. security management and is a useful tool for
enterprises.
REFERENCES

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