Service marketing theory-managing customer relationship Essay Example

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The theory of service marketing is a concept that enterprises adopt to allow them to endorse as well as sell the services that they offer to their clients more effectively. This theory reveals that there are times that a firm encounters difficulties with respect to devising a marketing strategy, especially in the case of those assets that are intangible. This is because this mode of marketing is entirely different while compared to the one that they adopt while marketing tangible goods (Ling-yee 2011, p. 140). This paper will discuss the theory of service marketing in the context of managing relationships with clients and its effectiveness in terms of boosting customer value.

Managing Customer Relationship

According to Cruceru and Moise (2014, p. 157), customer relationship management refers to the concept whereby an enterprise adopts technology to allow it lay emphasis on the relationships that it has with a given individual. An enterprise does this by establishing a database that allows it to gain sufficient knowledge regarding the way in which it can boost the loyalty that a client portrays towards an entity. In order for an enterprise to implement the customer relationship management effectively, it is supposed to adopt an approach that balances processes, clients and technology (Ling-yee 2011, p. 142).

This initiative plays a crucial role in an entire enterprise, and prevails in all the processes that a firm engages in. The strategy that is affiliated with CRM allows an enterprise to attain, maintain and partner with a given number of clients who allow it to generate superior value for them. The CRM concept encompasses technologies, methodologies and ecommerce capacities of an enterprise to allow it retain the relationship that it has with its clients. The software programs that are linked with the CRM concept make it possible for a firm to interact efficiently with its clients, and thus allowing it to harmonize its collaboration efforts to ensure that the client gets the message that the enterprise intends (Cruceru and Moise 2014, p. 158).

Challenges to CRM

Despite the positives that customer relationship management is associated with, there are various challenges that enterprises encounter while trying to boost the value that they offer to their clients (Ryals and Knox 2010, p. 535). For instance, while implementing a CRM strategy, some enterprises fail to adopt relevant methodologies, while others define their business practices poorly (Stoeckicht 2013). In this case, they end up realizing that the CRM concept they adopt fails to address the needs of the clients appropriately (Kanibir and Nart 2012, p. 1380). Moreover, there are a large number of enterprises across the globe that still experience difficulties while deciding the form of technology to adopt to align it with the CRM concept (Stoeckicht 2013). Additionally, they lack qualified personnel who can handle these technologies appropriately, and thus leading enterprises to deteriorate in terms of performance.

CRM Opportunities

According to Stoeckicht (2013), enterprises used to be immature in the past, and did not have appropriate measures to allow them manage the needs of their clients in an effective manner. Moreover, the products that they offered were not characterized with broad features as in the case of today’s businesses. They laid emphasis on appealing technology, though they did not have an idea of what they were supposed to use it for (Kanibir and Nart 2012, p. 1383). However, today, clients are looking for those enterprises that can provide them with the services that they need, and ensure that they realize value from them. Enterprises are finding it possible to address the needs of their clients in an appropriate manner. For instance, the advent of software-as-a-service has provided the field of CRM with a tremendous opportunity pertaining to the ways in which enterprises can address the needs of their clients appropriately (Ryals and Knox 2010, p. 539). These services are easy to use, and they have helped companies to overcome various challenges that prevail before them, especially with respect to offering their clients with the services that they need appropriately.


The paper has revealed that when an enterprise manages the relationship that it has with its clients effectively, it can be able to boost the value that it has with them, as well as earn their loyalty. However, implementing appropriate CRM technology to address the needs of an enterprise is not a simple task, especially in today’s competitive business environment. In this case, it is appropriate for a firm to ensure that it has the relevant tools and personnel in place before embarking on the CRM concept. This can allow it to formulate strategies that rhyme with its needs and those of its clients appropriately.


Cruceru, FA & Moise, D 2014, ‘Customer Relationships through Sales Forces

and Marketing Events’, Procedia — Social and Behavioral Sciences, vol. 109, no. 8, pp. 155-159.

Kanibir, H & Nart, S 2012 ‘The Effects of Internal Relationship Marketing on

Superior Customer Relations as Competitive Performance: Evidence from Healthcare

Industry’, Procedia — Social and Behavioral Sciences, vol. 58, no. 12, pp. 1378-1385.

Ling-yee, L 2011, ‘Marketing metrics’ usage: Its predictors and implications for customer

relationship management’, Industrial Marketing Management, vol. 40, no. 1, pp. 139-148.

Ryals, L & Knox, S 2010, ‘Cross-functional issues in the implementation of relationship

marketing through customer relationship management’, European Management Journal, vol. 19, no. 5, pp. 534-542.

Stoeckicht, R 2013, The Challenges and Opportunities of CRM in 2014, viewed 9 June 2014,