CRM, relationship marketing, retailing and recent trends in marketing
Marketing and Service Management · Unit I · Topic 3 of 15 · 5 min read
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Cases checked to exist. Read the judgment before quoting a holding.
Every case cited here has been checked to exist — the citation resolves and names the right parties. The propositions attributed to each case have not been verified line by line against the judgment. Case names link through to the full judgment: read it before quoting a holding in an examination answer, and never carry a proposition from notes into court on trust.
1. Customer relationship management (CRM)
CRM is the process of building and keeping profitable relationships with customers by delivering superior value and satisfaction. It uses customer data — purchase history, preferences, complaints — to treat each customer individually. The idea is that keeping an existing customer costs far less than winning a new one, and loyal customers buy more and recommend the firm.
Process: (1) identify customers and collect data; (2) differentiate them by value and needs; (3) interact through every touchpoint (store, call centre, website, app); (4) customise offers; (5) measure satisfaction and retention, and refine.
Types: operational CRM (automating sales, marketing and service contacts); analytical CRM (data mining to find patterns and segments); and collaborative CRM (sharing customer information across departments and partners).
Significance (April 2021, August 2024): customer retention and loyalty; higher lifetime value of each customer; cross-selling and up-selling; better targeting and lower marketing cost; faster complaint resolution; feedback for product development; and competitive advantage that rivals cannot copy easily. Examples: airline frequent-flyer programmes, supermarket loyalty cards, bank relationship managers.
A law student should add one line: customer data is personal data, and its collection and use must comply with the Digital Personal Data Protection Act, 2023 (notice, consent, purpose limitation).
2. Relationship marketing
Relationship marketing (Leonard Berry, 1983) shifts the focus from single transactions to long relationships with customers, suppliers, distributors and employees. Its features are a long-term view, emphasis on retention, high customer contact, commitment to service quality, and trust.
| Transaction marketing | Relationship marketing |
|---|---|
| Single sale | Customer retention |
| Short time scale | Long time scale |
| Little customer contact | High contact and commitment |
| Quality is the concern of production | Quality is the concern of everyone |
Its importance: loyal customers, word-of-mouth publicity, lower costs, stable revenue, and partnership with suppliers and dealers. CRM is the practical tool through which relationship marketing is carried out.
3. Retailing
Retailing is the sale of goods and services directly to the final consumer for personal or household use. The retailer is the last link in the channel of distribution.
Types of retailing (January 2026; “elaborate on retail marketing”, October 2023):
- Small-scale or itinerant: hawkers, pedlars, street stalls, weekly-market (shandy) traders.
- Small fixed-shop: general stores (kirana), single-line shops, speciality shops.
- Large-scale: department stores (many departments under one roof), multiple or chain shops (many branches with one ownership), supermarkets (self-service, low margin, high turnover), hypermarkets, malls, discount stores, consumer co-operative stores.
- Non-store retailing: mail order, tele-shopping, vending machines, direct selling, and online retail (e-commerce marketplaces and inventory models).
- Franchise retailing: outlets run by franchisees under the franchisor’s brand.
Services of the retailer (December 2018). To the wholesaler or manufacturer: buys in small lots and spreads goods to consumers, provides information about demand, helps in promotion and display, bears part of the risk and storage. To the consumer: regular supply of goods in small quantities, choice and assortment, convenient location, credit and home delivery, information about new products, and after-sales service.
4. Green marketing
Green marketing is the marketing of products presumed to be environmentally safe. It covers product modification, changes in production process, packaging and advertising. Examples: energy-efficient appliances with star ratings, refill and recyclable packaging, electric vehicles, reusable bags, organic food.
Benefits: meets the demand of conscious consumers; saves cost through lower energy and material use; brand image; compliance with environmental law. Problems: higher cost, consumers unwilling to pay a premium, and greenwashing — unproven “eco-friendly” claims, which can amount to a misleading advertisement under the Consumer Protection Act, 2019; the Central Consumer Protection Authority issued Guidelines for Prevention and Regulation of Greenwashing in 2024.
5. E-business, M-business and technology
E-business is conducting business processes — buying, selling, servicing customers, collaborating with partners — over the internet and electronic networks. E-commerce (online buying and selling) is part of it. Models (April 2023): B2B (business to business, e.g. industrial procurement portals), B2C (business to consumer, online retail), C2C (consumer to consumer, resale platforms), C2B (consumers offering to businesses, e.g. freelancers), B2G and G2C (government procurement and e-governance services). Advantages (June 2019): reach without geography, 24-hour trading, lower cost, quick communication, wider choice for buyers, easy comparison of prices, and data on customers. Limitations: security and fraud, lack of personal touch, dependence on connectivity, return and delivery problems. Online sellers in India must follow the Consumer Protection (E-Commerce) Rules, 2020.
M-business (December 2019) is business transacted through mobile phones and handheld devices: mobile banking, UPI payments, app-based shopping and booking. Merits: anywhere-anytime access, location-based offers, fast payment. Demerits: small screen, security risks, battery and network dependence.
“Business is becoming more and more technology based” (April 2021): justify with online retail, digital payments, CRM software, data analytics, automation and AI in customer service, digital advertising, and supply-chain tracking.
6. Tele-marketing and social media marketing
Tele-marketing (June 2019, April 2022) is the use of the telephone to sell products or services directly to customers, either outbound (the firm calls prospects) or inbound (customers call toll-free numbers). It is cheap per contact and gives instant feedback, but is often seen as intrusive; unsolicited commercial calls are regulated by TRAI’s Telecom Commercial Communications Customer Preference Regulations, 2018 (the “Do Not Disturb” registry).
Social media marketing (August 2024) uses platforms such as Facebook, Instagram, YouTube and X to promote products. Advantages: low cost, wide and targeted reach, two-way interaction, viral spread, influencer endorsement, and measurable results. Influencers must disclose paid endorsements under the Department of Consumer Affairs’ endorsement guidelines for social media influencers (2023), read with the CCPA’s 2022 guidelines on misleading advertisements.
How this is examined
Each topic here is a 6-mark short note: definition, three or four features, merits and demerits, an example. CRM has twice been raised to a 10-mark question (“Discuss the importance of customer relationship management”, August 2024; CRM as a 10-mark item in the 100-mark January 2026 paper); for those, add the process and types in section 1. “Recent trends in marketing” (November 2022) is answered with sections 4 to 6 as headings.
Now try the real questions: Marketing and Service Management past question papers.