What Is Marketing?

9.

Managing Customers

AS DEFINED IN THE CHAPTER ON MARKETING strategy, marketing is the process whereby an enterprise creates value by meeting the needs of its targeted customers.¹ A firm is thus defined not only by the products it sells but also by the customers it serves. This chapter on managing customers deals with serving customers and specifically addresses the following topics:

• The importance and benefits of managing customer relationships
• Attracting and retaining the right customers
• Managing customers to maximize customer lifetime value
• Deselecting customers in a way that avoids detracting from the brand
• Respecting customers’ privacy

What Is Customer Relationship Management?

Customer relationship management (CRM) is an enterprise approach ...