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Customer relationship management - Free Management Essay - Essay UK

  • 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.
    Lastly in approaching CRM is the technology of TESCO. TESCO online purchase and delivery have been started few years back. All products can be purchased online and delivery is provided for free to those who are TESCO Club member. This would be an advantage for those consumers who are working and those who could not spend time purchasing products directly from TESCO. Though the online system had been established for few years but not all consumers are aware of the system. Hereby a recommendation is made so that TESCO will be able to have a session to teach regular customer that this system had been created in order to let them know about the existence of this system. Besides providing online purchase and delivery facilities, TESCO practically use CRM system [5] in assisting them to provide the best services. By using CRM system, TESCO will be able to contact customer and ask for opinion from each of them. This method will provide the knowledge of customer understanding to help TESCO to improve in order to provide the best customer service that will fulfill the need of each consumer. Other than that, TESCO will be able to check on the best selling products and hereby they would be able to increase the production of the product to attain all consumers' need.

    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.
    Customers have always been the main source of profit to a business. In order to retain and attract consumer, the company should practice on Customer Relationship Management [1] which is a strategy that have always been practicing by most of the businesses worldwide to gain a greater profit. TESCO which is one of the largest linked hypermarkets are also applying the similar strategy to gain more profit. Hereby a research is conducted on how customer relationship management strategies are used by TESCO as a tool to assist them in pursuing their sales growth.

    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.
    Secondly in approaching CRM is by targeting the product and promotion of a company. TESCO had been practicing Total Quality Management [2] to ensure that the products that they are selling to consumers are the best product that the consumer need. Other than that, TESCO also produces product of their own and selling the product which is similar to the other product at a lower retail price. These are other factors that will affect the profit of TESCO. In order to retain the current consumers in TESCO, TESCO products are being sold at the lowest retail price whereby the products created by TESCO will also undergo the same process of quality test before being sold at TESCO. This is to boost up the confidence in consumers so that they would not be practically having a thought that products created by TESCO are bad. Besides having their own product, the kitchen groceries at TESCO are always fresh. It is always fresh because the kitchen groceries are always freshly delivered to TESCO daily so that consumers can purchase fresh kitchen groceries as fresh as the one being sold at the market. In order to make sure that consumers are able to get fresh groceries, TESCO are always starting their business as early as 8 a.m. where no other grocer shops are open besides the market. Other than that, this will also create a great perception of TESCO and providing an idea of listing TESCO as their 1st priority grocer to purchase groceries.

    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.
    Besides that, the prices of the groceries sold at TESCO are the cheapest of among TESCO's competitors such as GAINT, JUSCO and CAREFOUR. The price of grocer have been increasing day by day due to the drop in the world economy but this phenomena still does not affect the price of product at TESCO. These have been one of the greatest strength of TESCO and also one of the main attractions for consumers to go to TESCO. Other than that, the promotions made at TESCO are cheaper than its competitor because most of TESCO competitors are selling promotion product based on a concept of purchase with purchase [3] whereby the product consumer desire have to be purchase after purchasing other product at the retail shop. By not practicing the strategy of purchase with purchase, TESCO would be able to attract more consumers to purchase at TESCO. Besides that, the departmentalization of product which will create a discomfort to the Muslim consumer are well organized compared to other grocer shop. At TESCO the Non-Halal [4] product are safely contained at a room created just for the Non-Halal product but at other grocer shops, non-halal product are place at a separate place from the foods but it is sometimes being mixed around by mischievous kids at the grocer and will create a discomfort to the Muslim consumer.


    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.

    CRM stands for Customer Relationship Management and it enables companies to manage business-related processes and all the data associated with them.

    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.
    For conclusion, by practicing CRM in TESCO it will assist a lot in increasing the rate of profit growth. The main steps in CRM are to target the people, process and the technology. In the 1st step which is people, TESCO have studied on employee, management, consumer behavior and the environment. For the 2nd step which is process, TESCO had make a few changes in the product, create club card, provide the best price, arrangement of products, operating hours and participating in awareness events in order to be sure that TESCO is known by all consumers. As for the last step which is the technology, TESCO has been focusing on improving their technology from time to time. All these steps are being practiced by all TESCO outlets in order to provide the best services and product to the consumers.

    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.
    Besides creating promotion, TESCO had always sponsored many events in the world. By creating an event, TESCO would not only be able to promote their name but also help to create a better social environment and awareness. Recently, TESCO have been participating in a event called "Walk for School". It is use to raise fund to help 100 schools at Klang Valley because the facilities at the Klang Valley's schools have not being up to date which will slow down the learning process of the students there. The fund which was raised is to improve the infrastructure of the school, learning facilities and the library of each school to improve the learning conditions of the students.

    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.
    Buying CRM software, in their turn, means that software vendor will be accountable for the above-mentioned issues. However, in this case it won’t be a perfect fit for your organizational needs, with the lack of release control, timely bug fixes, and customization flexibility.

    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.

    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.

    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.
    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.

    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)


    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.

    This decision can only be made after analysing your company’s business needs. When you’re building your own system, you may need to undergo the whole cycle of software development procedures starting from requirements analysis, through a lot of bug fixing, and support, to name basic ones.

    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).
    Cloud-based solution providers are offering the plans with a set of pre-built features within a basic plan for a starter price. For advanced functionality, you will be able to buy plugins, add-ons, or choose the professional plan based on your needs. A good example is Salesforce Sales Cloud with the pricing starting from $25 USD user/month for out-of-the-box CRM and up to $300 USD user/month for Lightning Unlimited Edition.

    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.
    This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

    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.

    The software vendor estimates the needs and expectations of company’s users and then tailors a unique price for the functionality they can afford. This model is typical of Elinext CRM with the average price starting from $12,000 USD for a 6-month project.

    Customer relationship management is mainly focusing on how the business can retain its existing customers in this competitive environment.

    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.
    This option is usually reserved for in-house and on-premise CRM suites that target large enterprises with plenty of homegrown software solutions. Goldmine Premium offers one-time payment plans starting from $549 USD.

    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.

    There are also open-source CRM platforms like HubSpot that are available for free, however, their functionality is basic and users are more likely to switch to a paid plan once they need additional functionality as their business grows.

    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.


    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.


    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.


    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: [Accessed: 24 May, 2010]

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

    Available from: [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:[Accessed: 22 May, 2010]

    Official Website (2009), History of New Town Toyota, Available from: [Accessed: 24 May, 2010]

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