ITPEC IP October 2023 Question 80
Which of the following is an appropriate purpose of CRM?
Explanation
Building excellent long-term customer relationships to increase profits — the purpose of CRM (Customer Relationship Management).
CRM gathers every contact with each customer, such as purchases, inquiries and complaints, in one place and shares it across sales, marketing and support. The company uses it to understand customers, serve them consistently and keep them loyal, since keeping an existing customer costs less than winning a new one and loyal customers bring profit over a long period.
Answer (a)
Why not others:
- •(b) — optimizing delivery time and cost across procurement, manufacturing, distribution and sales of several companies is SCM (Supply Chain Management)
- •(c) — integrating the information each department manages separately to use management resources effectively is ERP (Enterprise Resource Planning)
- •(d) — deciding when and how much material to buy from a bill of materials and inventory data is MRP (Material Requirements Planning)
Key rule: CRM targets customers, SCM the chain of companies from supplier to buyer, ERP the whole company's resources, MRP the materials for production.
Business Strategy Management · AI-written, may contain errors
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