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The Evolution of CRM

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Is CRM really a new concept?

Relationship with the customer has existed since the advent of trade and business.Barter AgeCustomized product AgeMass Production Age

Customer: Purchaser of goods/Service and not necessarily the one consuming them, e.g. dealer / retailer/ wholesaler

Consumer: One who utilizes the goods/services to fulfill his need

Customization Age

.

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The Evolution of Relationship Marketing

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The Evolution of Relationship Marketing

Pre-Industrial Era:

practiced by merchant and traders.

business was build on trust.

interactions transcended the commercialtransaction and involved social interaction

relationship exists in pre-industrialmarket(traditional, small).

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Industrial era

Mass production, mass distribution and mass communication

Intermediaries took on the responsibilities of warehousing, transportation, distribution and final sale to the customer.

Greater efficiencies' and lower cost.

Reduced direct contacts and negative impact on the relationship.

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information era

JAGDISH SETH and ATUL PARVATIYAR has identified the following factors for this shift in orientation:

Advances in technology

Intensive competition

Growing importance of service sector

Adoption of TQM programs