CUSTOMER RELATIONSHIP MANAGEMENT-MEM6A

UNIT-1

( 2 MARKS)

1.Define communication?

According to HUDSON. communication in its simplest form is conveying of information from

one person to another.

Louis A. Allen defines, 'Communication is the sum total of all the things that a person does,
when he wants to create an understanding in the mind of another. It involves a systematic and
continuous process of telling, listening and understanding.

2.What do you meant by listening?

The listening process involves five stages: receiving, understanding, evaluating, remembering,
and responding. listening is a particular communication technique that requires the listener to
provide feedback on what he or she hears to the speaker

3. what is meant by verbal communication?

Verbal communication refers to the use of sounds and language to relay a message. ... In
combination with nonverbal forms of communication, verbal communication acts as the primary
tool for expression between two or more people.e.g(Speeches, presentations and
announcements)

4.what are non verbal communication?

Every day, we respond to thousands on nonverbal cues and behaviors including postures, facial
expression, eye gaze, gestures, and tone of voice. From our handshakes to our hairstyles,
nonverbal details reveal who we are and impact how we relate to other people.e.g( Facial
expressions: smiles, frowns and winks )

5.Give some examples of written communication

Email. Internet websites.Letters.Proposals.Telegrams.Faxes.Postcards.Contracts. etc,

6.what is meant by oral communication and give two examples.

Oral communication is the process of expressing information or ideas by word of mouth

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 oral communication include formalcommunication, such as classroom lectures, speeches and
meeting presentations; and informalcommunication, such as casual phone or dinner table
conversations.

7.why comunication is important to an organization?

Effective Communication is important for the development of an organization. It is something

which helps the managers to perform the basic functions of management- Planning, Organizing,
Motivating and Controlling. Communicationskills whether written or oral form the basis of any
business activity.

8.what are the7’c of communication?

1. Correctness 2.Courtesy 3. Clarity 4.Concreteness 5. Consideration 6. Conciseness
7.Completeness ฀What arE 7C's oF Communication
5-marks

1.What are differences between oral and written communication?

BASIS ORAL WRITTEN

COMMUNICATION COMMUNICATION COMMUNICATION
Meaning Exchange of ideas, information and mesInterchange of message, opinions
through spoken information in written or printed for
words is Oral Communication. Written Communication.
What is it? Communication with the help of words Communication with the help of text.
mouth
Literacy Not required at all. Necessary for communication

Transmission of message Speedy Slow

Proof No record of communication is there. Proper records of communication

present.

Feedback Immediate feedback can be given Feedback takes time.

Revision before Not possible Possible
delivering the message?
Receipt of nonverbal Yes No
cues
Probability of misunderstanding
Very high Quite less

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 2. what is the difference between interpersonal and intrapersonal communication?

BASIS FOR INTRAPERSONAL COMMUNICATION INTERPERSONAL

COMPARISON COMMUNICATION
Meaning Intrapersonal Communication is one, thatInterpersonal Communication
have with ourselves, i.e. the communicatiis the communication between
that occurs in two or more person, through
our mind. verbal or non-verbal messages.
Persons Involved One At least two
Occurrence Continuous due to human nature. Regular, due to social needs

Media Only a person's internal senses are involveSupported by a verbal and

non-verbal media.
Concerned with Thinking and Analysis Exchanging and sharing of ideas
information

3.Give some differences between formal and informal communication.

BASIS FORMAL COMMUNICATION

INFORMAL COMMUNICATION
COMPARISON

Meaning A type of verbal communication A type of verbal communication

which the interchange of inform which the interchange of inform
is done through the pre-defdoes not follow any channels i.e.
channels is known as forcommunication stretches in
communication. directions.
Another Name Official Communication Grapevine communication
Reliability More Comparatively less
Speed Slow Very Fast
Evidence As the communication is geneNo documentary evidence.
written, documentary evidence
present.
Time Consuming Yes No
Advantage Effective due to timely Efficient because employees can discuss
systematic flow of work related problems, this saves
information. and cost of the organization.
Disadvantage Distortion due to long chainSpread of rumors
communication.
Secrecy Full secrecy is maintained. It is difficult to maintain the secrecy
Flow of Information Only through predefined channels.
Can move freely.

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4. Describe the process / Basic elements communication.

1.

1.Sender: The sender or the communicator is the person who initiates the conversation and has
conceptualized the idea that he intends to convey it to others.

2.Encoding: The sender begins with the encoding process wherein he uses certain words or
non-verbal methods such as symbols, signs, body gestures, etc. to translate the information into
a message. The sender’s knowledge, skills, perception, background, competencies, etc. has a
great impact on the success of the message

3.Message: Once the encoding is finished, the sender gets the message that he intends to
convey. The message can be written, oral, symbolic or non-verbal such as body gestures,
silence, sighs, sounds, etc. or any other signal that triggers the response of a receiver

4. Communication Channel: The Sender chooses the medium through which he wants to
convey his message to the recipient. It must be selected carefully in order to make the message
effective and correctly interpreted by the recipient. The choice of medium depends on the
interpersonal relationships between the sender and the receiver and also on the urgency of the

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message being sent. Oral, virtual, written, sound, gesture, etc. are some of the commonly used
communication mediums.

5. Receiver: The receiver is the person for whom the message is intended or targeted. He tries to
comprehend it in the best possible manner such that the communication objective is attained.
The degree to which the receiver decodes the message depends on his knowledge of the subject
matter, experience, trust and relationship with the sender.

6. Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the
best possible manner. An effective communication occurs only if the receiver understands the
message in exactly the same way as it was intended by the sender.

7. Feedback: The Feedback is the final step of the process that ensures the receiver has received
the message and interpreted it correctly as it was intended by the sender. It increases the
effectiveness of the communication as it permits the sender to know the efficacy of his message.
The response of the receiver can be verbal or non-verbal

5.what is communication and why it is important

Communication is the act of giving or receiving information.

Communication is

• fundamental to all aspects of life

• important for quality of life

• a foundation for learning •

a human right (United Nations Universal Declaration of Human Rights 1994).

Effective communication enables people to:

• express their thoughts, opinions and personality

• ask for and receive information

• build relationships

• make decisions

• express and meet their basic needs

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• refuse or reject

• make requests and suggestions about services they receive

• take part in social activities

• be heard and understood

• participate in their community

6. Explain the needs of communication.

1. Communication promotes motivation by informing and clarifying the employees about

the task to be done, the manner they are performing the task, and how to improve their
performance if it is not up to the mark.
2. Communication is a source of information to the organizational members for decision-
making process as it helps identifying and assessing alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a well
informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and written
communication help in moulding employee’s attitudes.
4. Communication also helps in socializing. In todays life the only presence of another
individual fosters communication. It is also said that one cannot survive without
communication.
5. As discussed earlier, communication also assists in controlling process. It helps
controlling organizational member’s behaviour in various ways. There are various levels
of hierarchy and certain principles and guidelines that employees must follow in an
organization. They must comply with organizational policies, perform their job role
efficiently and communicate any work problem and grievance to their superiors. Thus,
communication helps in controlling function of management.

10 MARKS

1.what do you meant by good verbal communication?what steps you take to improve verbal
communication.

The word verbal comes from the Latin word for word – verbum. Meanwhile, the word
communication comes from the Latin word for to share – communicare. So, it follows from this
that verbal communication means sharing things by means of words.

Below are top 10 verbal communication tips we should all strive to master. Each of these is just
as important in our personal lives as in our professional lives. By improving your verbal

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communication skills you will quickly connect and build rapport, earn respect, gain influence,
and become more likable and accepted.
1.Be friendly. People who communicate with a friendly tone and warm smile almost always
have the edge. The reason is simple: we are subconsciously drawn to people who are friendly
because they make us feel good and bring more enjoyment to our lives.
2. Think before you speak. One of my favorite English Proverbs is “Better to remain silent
and be thought a fool, than to open your mouth and remove all doubt.” I find that many people
say whatever goes through their minds without putting any thought into what they are saying.
As a result they say things that end up reflecting poorly on themselves.
3. Be clear. Most of us don’t have the time nor do we want to spend our emotional energy to
figure out what someone else is trying to say. People who are indirect in their verbal
communication and who tend to hint at things without saying what’s really on their mind are
seldom respected. When there is something you want to say, ask yourself, “What is the clearest
way I can communicate this point?”
4. Don’t talk too much. Last week I met with a personal chef. At first I was impressed with
him and considered hiring him for an upcoming event. However, the more he talked the less
impressed I became. Very few people like to be around someone who talks too much and
dominates the conversation.
5. Be your authentic self. Today, (more than anytime during my lifetime), people are turned
off by those people who feel the need to put on a show to make their point. Instead, people are
attracted to someone who speaks from the heart and is genuine, transparent, and real.
6. Practice humility. Humility is having a modest view of one’s own importance. It is one of
the most attractive personality traits one can possess and is one of the most significant predictors
of someone who is respected. People who speak with humility and genuine respect for others are
almost always held in high regard.
7. Speak with confidence. You don’t have to sacrifice self-confidence to practice humility.
Confidence is a self-assurance arising from an appreciation of one’s true abilities, whereas
humility is having a modest opinion of one’s own importance. Speaking with confidence
includes the words you choose, the tone of your voice, your eye contact, and body language.
8. Focus on your body language. When you are engaged in face-to-face verbal
communication, your body language can play as significant of a role in the message you
communicate as the words you speak. Your body language communicates respect and interest. It
puts real meaning behind your words.
9 Be concise. Very few things are more irritating to me than when someone can’t get to the
point of what he or she is trying to say. Plan ahead. Constantly ask yourself, “How can I say
what needs to be said using the fewest number of words possible while still being courteous and
respectful?”

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10. Learn the art of listening. Being an attentive listener is more important in verbal
communication than any words that can come out of your mouth. You must show a sincere
interest in what is being said, ask good questions, listen for the message within the message, and
avoid interrupting.
2 What are the barriers in communication?

The problem of communication arise because there are various obstacles which may entirely
prevent a communication ,filter part of it or convey a different meaning. these obstacles are
known as communication barrier.these barriers may operate in organizational communication as
well as non organizational communication.different barriers of communication may be grouped
as semantic barrier,emotional or psychological barriers,organizational barriers,and personal
barriers.some of these barriers operate in all types of communication while others may be more
relevant for organizational communication.

 SEMANTIC BARRIERS:

Semantic is the science of meaning and science of sound.All communications are symbolic,that
is they use symbols that convey certain meanings.Semantic barriers arise out of limitations in
the symbols with which we communicate some of the types of semantic barriers are:

1.Symbols with different meaning:Communication symbols usually have a variety of meanings

from many.In verbal communication,a particular word may have a variety of meanings.The 500
most common English words have an average of 28definitions each.

2.Badly expressed message:Lack of clarity and precision in a message makes it badly

expressed.Careless,omission,poorly choosen and empty words and phrases, bad organization of
words,awkward sentence structure and failure to clarify implications,jargons are some of the
common faults found in this case.

3.Faulty translations:The message has to be put into words appropriate to the framework in
which the receiver operates,or it must be accompanied by an interpretation which will be
understood by the receiver.Approximate understanding of words and the consequent faulty
translations lead to impaired efficiency and heavy costs.

4.Unclarified interpretation:Though a message appears to be specific, its underlying assumptions

may not be clear to the receiver.

5.Specialists language:Technical personnel and special groups tend to develop a special,peculiar

and technical language of their own.It hinders their communication with persons not in their
speciality,because of the rerceiver’s ignorance of that type of language.

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  EMOTIONAL OR PSYCHOLOGICAL BARRIERS

There are the prime barriers in interpersonal communication.The meaning ascribed to a message
depends upon the emotional or psychological status of both parties involved.Often these human
barriers are more like filter paper than a brick wall.They let through some communications but
hold back other,thereby making communication inadequate.Some emotional barriers are as
follows

1.PREMATURE EVALUATION: It is the tendency of prematurely evaluating

communications,rather than to keep an uncompromised position during the interchange.Such
evaluation stops the transfer or information and begins in the sender a sense of futility.This
barrier can be remedied by ‘empathy’,non-evaluative listening,where the communicator is
listened to in a non-committal and prejudiced way so that sagacious decisions and action can
follow.

2.INATTENTION:The preoccupied mind of a receiver and the resultant non-listening is one of

the major psychological barrier.It is common to see that people fail to react to some
circulars,minutes etc.

3.LOSS BY TRANSMISSION AND POOR RETENTION:When communication filters

through different levels in an organization,each successive transmission of the same message
shall be decreasingly accurate.it is found that in each transmission 30%of the information is lost
in the case of oral communication.Even in the case of Written communication,loss of meaning
occurs as far as the appended interpretation.

4.UNDUE DEPENDENCE ON THE WRITTEN WORD:A written communication might

fail to explain the purpose of order,procedure or directive.Acommunication must appeal to the
receiver as consonant with the organization’s purpose and with his own personal interest.Written
communication often tells as to what is to be done or why it should be done and it lacks the
persuasive quality.Moreover, a written communication can be above the level of readership and
failuremto ascertain the response to communication is also there.Hence,written media must be
considered as supplementary to productive face-to-face readership.

5.LACK OF CONFIDENCE IN THE COMMUNICATION:This arises out of ill-considered

judgement or illogical decisions or frequent countermanding of the original communication by
the communicator.Repeated experience of this kind gradually conditions the receiver to delay
action or act unenthusiastically,thus making the communication unsuccessful though apparently
it is complete.

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6.FAILURE TO COMMUNICATE:Managers sometimes fail to communicate a message to
the worker. This may be due to laziness or the assumption that ‘everybody’knows or
procrastinationnor hogging information or deliberately to embarrass.

 ORGANISATIONAL BARRIERS

In an organization day-to day communication is very vital.this is usually attempted through a

variety of official measures such as designing the organization arrangements for performance of
various activities,prescribingvarious policies,rules,regulations and procedures,laying down of
norms of behavior,instituting a reward and punishment system,etc.

1.Organisational policy:it is the communication guideline as to how everyone is expected to

behave.It is interpreted by the behavior of the organization members.If the policy is not
supportive to the flow of communication in different direction,its flow would not be smooth and
adequate.

2.Organizational Rules and Regulations:The flow of communication is prescribed by the rules

and regulations of the organization.the rules may restrict the flow of certain messages and may
leave many important ones.On the other hand ,communication through proper channel in a
specified way prescribed by these rules delays it and work against willingness of persons to
convey the message.This barrier can be observed in the public sector organizations of India.

3.Status relationships:The formal organization structure blocks the upward flow of

communication.Greater the difference between hierarchical positions in terms of their
status,greater would be the possibility of communication breakdown.

 PERSONAL BARRIERS

There are a host of factors Internal to the two parties-sender and receiver to the process who
exert important influences on its operations.

Barriers among superiors

1.Attitude of superiors:If the superior has an unfavourable attitude to the subordinate’s act of
giving message,adequate information cannot flow from the subordinate to the superior.

2.Lack of confidence in subordinates:The information from the subordinate does not interest the
superior when he lacks confidence in him.

3.Ignoring communication:manager deliberately ignore the communication and withholds it

from the subordinates.

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4.Lack of time:The manager feels he is over burdened with work and he has little time to talk to
their subordinates.

Barriers among subordinates:

Vertical communication in either direction can take place only when subordinates also actively
participate in this process.Two factors are more important in the case of subordinates and these
are responsible for blocking communication in upward direction.

1.Unwillingness to communicate:Sometimes, subordinates do not communicate upward certain

information because they are not willing to do so,thus,if a subordinate feels that he is likely to be
adversely affected by a particular piece of information to his superiror,he would not be willing
to convey it.

2.Lack of proper incentive:Lack of motivation to communicate also refrains subordinates to

communicate upward.The reward and punishment system of the organization is more
responsible for this.Thus, if a novel suggestions by a subordinate does not evoke any attention
from the organization,he would not convey it.

3 Discuss Essentials or components of a business letter

1.Heading

2.Date

3.Inside address

4.Salutation

5.Body of the letter

6.Complementary Close

7.Signature

8.Enclosure and postscripts

1.HEADING:The name of the firm,its postal address and the nature of its business are all given
at the top.The Heading prind at the top of the letter is called the letter head.Though the name and
letter are usually center at the top,the address in sometimes given in right hand corner too a little
below the name,sign the letter head itself as publiciy value,the layout of heading is usually
designed by a commercial artists.

for (e.g) Modern furnishing housing limited

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Post no:171

Anna salai

Chennai-22

DATE:

This is written on the right hand side of the letter below the heading.This gives the Date,Month
and Year.Since date facilitates quick reference,This should never to be omitted it is better to
avoid abbreviation for month should write year as 2018 date can be written any one of the
following dates 28/2/2018.the practices of writing the date 22-2-2018 should be discourage.

INSIDE ADDRESS:It consists of name and address of the firm or the individual to whom the
letter is addressed and its written at the left margin and below the date line.

Addressing the individual: If letter is addressing the individual name should be presided Mr.
John by Miss Rita is used for an command. lady Mrs used for married ladies in an official
correspondence of the government of tamilnadu ,India , selvi is used for unmarriedmlady
Thirumathi for married lady .

In the case of women if they as special types of such as Dr,Prof,etc,,,their marital status may be
indicated within brackets after special title for eg:Prof,Mrs,Rita john.The word messers is used
before the name while the article The is used for the name of the firm with an impersonal name.

SALUTATION:Sir and madam are used in official correspondence while Dear sir, and madm
gentleman commonly used in commercial correspondence.The word sir gentleman are not used
in circular are sales letter,salutation such as Dear customer,Dear member are also used the first
and last words of salutation for should begin with salutation

Body of the letter:This part of the letter contains the message to communicate and hence it is
the most important part a.Opening paragraph,b.Main paragraph,c.Closing paragraph

a.Opening paragraph:This may comments with an expression of thanks or pleasure or with a

reference to the letter that is being replied

b.Main paragraph:It should be brief and to the point.It should be written in simple but effective
words.Each aspect of the subject should be return in a new paragraph.short paragraph are
preferable .It should always be bear in mind that a business letter should deal with any one
subject.

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Closing:This should consist of few sentences which most motivate the action in sales letter,this
part of the letter must be so so effectively warded that it should registered in the reader’s
memory.It must be noted that the final paragraph should not end with participle phrases such as
trusting to be favoured with your order or thanking in anticipation for your order.

Complementary close:This must correspond salutatiuon .The most commonly your

faithfully,your truly or your very truly.The first letter of the closure must be in capital letter and
comma should always follow a complementary close used never be appreciated.n oh i

Signature:This is palced below the complementary close.the signature of the concerned

authority is made year.The name of the firm can be written first followed by the Signature and
closed by the designation. ( For e.g) your’s faithfully

Signature

Enclosure and postscripts:

In case the letter is accompaniedby any enclosure this fact must be indicated by the nature of the
enclosure such as draft phrases ,railway receipts etc,

Postscripts(p.s)means written after words.Since this is written after letter in post it points to the
carelessness of the letter-writer,and hence should be avoided.Sometimes it may not be
unavoidable,for e.g some information may be received after the letter a sign.In such as a case,it
can be incorporated in ther letter under post script.This should be sign or initiated by the writer.

Unit-2

2-marks

1.What do you understand by the term CRM?

CRM is a technology for managing all your company’s relationships and interactions with
customers and potential customers.

2.Define CRM.

According to Philip kotler crm is a process of creating and retaining profitable customer with
longterm relation by delivering customer value and satisfaction.

3.Who is a customer?
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A Customer is someone who makes use of the paid products of an individual or
organization.This is typically through purchasing or renting goods or service.

4.List out the c’s of the CRM.

Customer,Coach,Celebrating,Commitment ,Culture,C-executives

5.What are the three cornerstone of CRM.

The essence of CRM Thinking originates from three concepts in marketing management.

Customer orientation,Relationship marketing,Database marketing.

6.What is the purpose of CRM?

CRM Systems help businesses develop prospects into customers by providing an efficient
strategy in managing and storing information on leads. The purpose of aCRM system is to
attract and retain customers. Implementing a CRM System gives businesses the tools to manage,
measure, and improve processes.

7.What do you meant by CRM approach?

Customer relationship management (CRM) is an approach to manage a company's interaction

with current and potential customers. ... Through the CRM approach and the systems used to
facilitate it, businesses learn more about their target audiences and how to best cater to their
needs.

8. What are the 7 building blocks of CRM.

1.Vision2.Strategic3.customer experience4.organization collaboration5.process 6.Information

7.Technology.

5 marks

1.Explain the advantages and disadvanges of CRM.

Advantages of crm.

1. Provide better customer service

2. Increase customer revenue

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 3. Discovered to new customer
4. Help sales staff close deals faster

Disadvantages of crm

1.Record loss

2.Required additional work in put in data

3.Training

4.Difficult to integrate with other management information system.

2.Discuss the ways and methods of developing CRM.

1. Make the CRM software easy to use for your internal customers, your employees.
2. Provide CRM training to all employees.
3. Track customer behavior throughout the sales cycle.
4. Don’t think of — or use — CRM as a standalone sales automation system.
5. Get in sync.
6. Keep data up to date.
7. Integrate your CRM with social media
8. Mobilize to keep track of customer interactions and manage leads, proposals, opportunities,
projects and files from any device, at any time.
9. Remember, there is always room for improvement.

3.Explain the and scope of CRM.

Globalization in the field of E-commerce has challenged all companies to make customer
communication truly interactive.The new crm is moving away from mass communication
philosophy to move individualized one to one communication .Real time automated Marketing
communication in related to the effective personalized sales and services will makes firms
communication to the consumer relevant and timely.

Crm marketing is seen increasing customer expectation and customer relationship complexity
which is caused not only by the new technology but also because of the greater mobility in the
field and faster development of new products.

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By buildings a detailed understanding of common customer scenario(1)a firm often finds
creative ways to expand its to reach out to customers(2)and make them use products and
services more effectively,and fulfill their supplementaryneeds too.

4. Give some objectives of crm

1.Turning prospects into advocates

2.Minimizing defections
3.Having a large proportion of loyal advocates
4.Having a profitable relationship of the type the customers would desire and with those
who desire them.
5.Using cross selling opportunities without annoying customers.

5.What are the benefits of CRM

1.Improved Informational Organization. ...

2.CRM for Enhanced Communication. ...
3.CRM Improves Your Customer Service. ...
4.Automation of Everyday Tasks. ...
5.Greater efficiency for multiple teams. ...
6,Improved Analytical Data and Reporting.

6.What are the types of CRM software

1.Analytical As the name suggests, Analytical CRM helps you to analyze your entire business
and its processes efficiently. Whether it is interpreting, extracting, processing, storing or
reporting customer data, this type of CRM software helps you to analyze your business
whenever needed.

2. Any typical business functions that you perform come under this type of CRM. All
operational activities right from managing orders, creating invoice/bills, sales & marketing to
customer services, operational CRM helps you to perform all these tasks more efficiently.

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3. If you are facing problems in communicating, coordinating and collaborating deals between
vendors and customers, this is when you must invest in collaborative CRM to manage your
business activities.

Choosing the right type of CRM for your business based on your needs need not be a tough task.
All you need is a basic understanding of the software and the the right vendor to obtain it. If you
are planning to get CRM for your business, choose Kapture CRM

10 ARKS

1.Discuss the features of CRM.

Customer Relationship Management is a strategy which is customized by an organization to

manage and administrate its customers and vendors in an efficient manner for achieving
excellence in business. It is primarily entangled with following features:

1.Customers Needs- An organization can never assume what actually a customer needs. Hence
it is extremely important to interview a customer about all the likes and dislikes so that the
actual needs can be ascertained and prioritized. Without modulating the actual needs it is
arduous to serve the customer effectively and maintain a long-term deal.

2.Customers Response- Customer response is the reaction by the organization to the queries
and activities of the customer. Dealing with these queries intelligently is very important as small
misunderstandings could convey unalike perceptions. Success totally depends on the
understanding and interpreting these queries and then working out to provide the best solution.
During this situation if the supplier wins to satisfy the customer by properly answering to his
queries, he succeeds in explicating a professional and emotional relationship with him.

3.Customer Satisfaction- Customer satisfaction is the measure of how the needs and responses
are collaborated and delivered to excel customer expectation. In today’s competitive business
marketplace, customer satisfaction is an important performance exponent and basic
differentiator of business strategies. Hence, the more is customer satisfaction; more is the
business and the bonding with customer.

4.Customer Loyalty- Customer loyalty is the tendency of the customer to remain in

business with a particular supplier and buy the products regularly. This is usually seen when a
customer is very much satisfied by the supplier and re-visits the organization for business deals,
or when he is tended towards re-buying a particular product or brand over times by that supplier.
To continue the customer loyalty the most important aspect an organization should focus on is
customer satisfaction. Hence, customer loyalty is an influencing aspect of CRM and is always
crucial for business success.

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5.Customer Retention- Customer retention is a strategic process to keep or retain the existing
customers and not letting them to diverge or defect to other suppliers or organization for
business. Usually a loyal customer is tended towards sticking to a particular brand or product as
far as his basic needs continue to be properly fulfilled. He does not opt for taking a risk in going
for a new product. More is the possibility to retain customers the more is the probability of net
growth of business.

6.Customer Complaints- Always there exists a challenge for suppliers to deal with complaints
raised by customers. Normally raising a complaint indicates the act of dissatisfaction of the
customer. There can be several reasons for a customer to launch a complaint. A genuine reason
can also exist due to which the customer is dissatisfied but sometimes complaints are launched
due to some sort of misunderstanding in analyzing and interpreting the conditions of the deal
provided by the supplier regarding any product or service. Handling these complaints to ultimate
satisfaction of the customer is substantial for any organization and hence it is essential for them
to have predefined set of process in CRM to deal with these complaints and efficiently resolve it
in no time.

7.Customer Service- In an organization Customer Service is the process of delivering

information and services regarding all the products and brands. Customer satisfaction depends
on quality of service provided to him by the supplier. The organization has not only to elaborate
and clarify the details of the services to be provided to the customer but also to abide with the
conditions as well. If the quality and trend of service go beyond customer’s expectation, the
organization is supposed to have a good business with customers.

Let it be a newly brought up enterprise or a well established organization the above aspects
prove to be of prime importance in dealing with a genuine customer through a well organized
CRM system.

2.Expalin the importance of CRM

CRM System is always important for an organization.

1. A CRM system consists of a historical view and analysis of all the acquired or to be
acquired customers. This helps in reduced searching and correlating customers and to
foresee customer needs effectively and increase business.
2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and
which not.

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 3. In CRM system, customers are grouped according to different aspects according to the
type of business they do or according to physical location and are allocated to different
customer managers often called as account managers. This helps in focusing and
concentrating on each and every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also useful in
acquiring new customers. The process first starts with identifying a customer and
maintaining all the corresponding details into the CRM system which is also called an
‘Opportunity of Business’. The Sales and Field representatives then try getting business
out of these customers by sophistically following up with them and converting them into
a winning deal. All this is very easily and efficiently done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very cost-
effective. The advantage of decently implemented CRM system is that there is very less
need of paper and manual work which requires lesser staff to manage and lesser resources
to deal with. The technologies used in implementing a CRM system are also very cheap
and smooth as compared to the traditional way of business.
6. All the details in CRM system is kept centralized which is available anytime on
fingertips. This reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. This increases the chance of getting more business
which ultimately enhances turnover and profit.
8. If the customer is satisfied they will always be loyal to you and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth of
business.

In today’s commercial world, practice of dealing with existing customers and thriving business
by getting more customers into loop is predominant and is mere a dilemma. Installing a CRM
system can definitely improve the situation and help in challenging the new ways of marketing
and business in an efficient manner. Hence in the era of business every organization should be
recommended to have a full-fledged CRM system to cope up with all the business needs.

3.What are the seven building blocks of CRM.

Companies are continuing to pursue CRM projects in 2003 despite the discontent from many
about earlier failures and the harsh business climate. But most companies are now taking a more
cautious approach to their implementations. Project prices have come down, but still run in the
range of $800,000 to $1 million. At a recent Gartner CRM Summit, the research firm's analysts
recommended that companies looking at CRM projects carefully consider the basics of CRM.
Gartner consultant Ed Thompson offered eight building blocks for successful CRM projects:

1.Vision: The board must take leadership in creating a CRM vision for the enterprise. The CRM
vision should be used as the guide to the creation of a CRM strategy.

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 2 Strategy: The CRM strategy is all about how to build and develop a valuable asset: the
customer base. It must set objectives and metrics for attaining that goal. It directs the objectives
of other operational strategies and the CRM implementation strategy.

3 Customer experience: The customer experience must be designed in line with the CRM
vision and must be constantly refined, based on actively sought customer feedback.

4 Organizational collaboration:Changes to organizational structures, processes, metrics,

incentives, skills, and even the enterprise culture must be made to deliver the required external
customer experience. Ongoing change management will be key.

5 Process: Successful customer process reengineering should create processes that not only
meet customers' expectations and support the customer value proposal, but also provide
competitive differentiation and contribute to a designed customer experience.

6 Information: Successful CRM demands the creation of a customer-information blood supply

that flows around the organization, as well as tight integration between operational and
analytical systems.

7 Technology: CRM technologies form a fundamental part of any enterprise's application

portfolio and architecture. CRM application needs should be considered as the provision of
integrated functionality that supports seamless customer-centric processes across all areas of the
enterprise and its partners.

8 Metrics: Enterprises must set measurable CRM objectives and monitor all levels of CRM
indicators to turn customers into assets. Without performance management, a CRM
implementation will fail. Metrics is the most important of the eight building blocks, yet only a
quarter of enterprises measure before implementation, Thompson said. "The problems are
identifying which metrics are critical in driving CRM benefits, and knowing where to find the
information," he said. "A performance management framework is required, and without a
hierarchy of linked metrics, a CRM strategy is likely to fail."

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 UNIT-3

2- marks

1.Define the term bank.

A bank is a reliable financial institution which receives the money from one group of people and
lends to other group of people. So bank performs the duty of financial intermediary among the
people and creates the credit money".

2.Why customer retention is important.

For any business, customers are the greatest asset. This makescustomer
retention an important business strategy to increase profits and reduce churn.

3.What is customer retention.

Customer retention is the ability of a business to retain customers. It is both a measure of

customer loyalty and the capacity of the business to keep customers satisfied by good service
and quality of the product sold.

4.Why organization loose their customers

Reason 1: When customers encounter problems doing business with the company:

Reason 2: When customers find it too hard to make contact to ask for help:

Reason 3: When customers get a poor response from the company, having asked for help:

5.what is service quality?

An assessment of how well a delivered service conforms to the client's expectations. Service
business operators often assess the service quality provided to their customers in order to
improve their service, to quickly identify problems, and to better assess client satisfaction.

6.W hy to meet a customer comfortable

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One of the biggest keys to closing a deal with a potential customer is making the customer feel
comfortable enough to want to make the purchase. Many salespeople use tactics that place the
buyer in a very awkward position, and from that alone, the sale often falls apart. Creating a
feeling that you are a friend or acquaintance of the customer works much better than being too
aggressive in your sales approach. Here are a few ways you can make the customer feel more
comfortable around you and put you in the best position to close the deal.

7.Define customer of the bank.

The relationship between a banker and a customer depends on the activities; products or
services provided by bank to its customers or availed by the customer. Thus the relationship
between a banker and customer is the transactional relationship.

8.What is meant by customer base?

The customer base is the group of customers who repeatedly purchase the goods or services of a
business. These customers are a main source of revenue for a company. The customer base may be
considered the business's target market, where customer behaviors are well understood through
market research or past experience.

9.What is term cuustomer retention?

It refers to the ability of a company or product to retain its customers over some specified period.
High customer retention means customers of the product or business tend to return to, continue to buy
or in some other way not defect to another product or business, or to non-use entirely.

10..How to increase customer retention

1. keeping your VIP customers

2. Target customers with special offers

3.Rewarding your most profitable customers.

4. Personalizing your follow-ups

5.scheduling time with your customers

5- marks

1.List the various strategies for building relationship

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 Here are seven relationship-building strategies that will help you transform your company
into a valuable resource:
 Communicate frequently. ...
 Offer customer rewards. ...
 Hold special events. ...
 Build two-way communication. ...
 Enhance your customer service. ...
 Launch multicultural programs. ...
 Visit the trenches.

2.what is public relation why it is needed.

What is public relations?

To determine whether public relations, or PR, is important for the success of your company, you
must first understand the purpose and goals of the practice. Through good public relations and
problem-solving, PR professionals focus on building a brand for your company as well as
keeping the company’s image unsullied.

Trying specifically to make a name for your company in the community is most likely not on the
top of your priority list, even though it is vital to your survival and success. Maintaining a clean
image makes potential customers feel at ease about working with you. Building community
relationships often leads to increased sales because customers want to work with people they
know and respect. For both of these reasons, it is important to have a public relations
professional available to you, whether you create a department within your company to handle
these responsibilities or hire an external PR firm. Either way, you will not regret the decision
to integrate public relations practices into your company’s everyday routine.

3.What analysis is involved in assessing the value of a customer?Explain

Customer Value Analysis

Many of you are very familiar with the expression,'the customer is always right.' However, have
you ever thought to ask just why the customer is so important? Why isn't the location of a
business or the quality of the product or service more important? Well, the answer lies in the fact
that without customers, an organization will not exist because someone has to purchase an

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 organization's products or services. The location can be great, and the quality can be spot on, but
if the customers are not purchasing, then it is of no relevance for the business. It's for this reason
that customer value analysis serves as a critical part in making sure that customers are happy.
Customer Value Analysis (CVA) refers to a research method that is used to identify how an
organization is perceived by consumers of an organization and their competitors. The CVA is
extremely important because it allows an organization to gauge how they are judged in
comparison to their industry rivals. For example, let's say that you work for Sassy Soda, and you
helped them to perform a CVA to help identify certain trends in consumer purchasing and
opinions.
The results would reflect not only how Sassy Soda's consumers feel about your organization and
product but also how they feel about competitors such as Panda Pop and other soda distributors.
If perception is reality (as the phrase goes), then the CVA is one of the most important things
that needs to be addressed by all organizations of all industries. Up to this point, we've been
speaking in broad terms as to how CVA helps, but let's dig deeper to see just how CVA benefits
organizations.

Measuring Value
One of the ways that CVA benefits organizations is by providing quantitative analysis, meaning
that there is numerical data that is used to measure the value of consumers' opinions about an
organization and others. These numerical findings will help the organization to develop a system
to track progress as well as consumer satisfaction.
For example, if the data reflects that Sassy Soda's consumers really dislike the Sassy can or
bottle shape, then the company can begin to take steps to develop a new shape that satisfies the
consumers. The measure of value is an imperative benefit in CVA.
4.what are the ways to improve customer database?
 Offer a free newsletter. ...
 Increase your customer base by asking for opinions. ...
 Keep up and maintain excellent customer support and service. ...
 Keep your website content fresh. ...
 Promote your business on social media networks.

10 MARKS
1.List out few modern services rendered by banks towards better customer relationship?
In the modern world, banks offer the variety of services to attract customers, However, some
However, some basic modern services offered by the banks are discussed below:
1. Advancing of Loans
Banks are profit oriented business organizations. So they have to advance loan to the public and
generate interest from them as profit.
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After keeping certain cash reserves, banks provide short-term, medium-term and long-term
loans to needy borrowers.
2. Overdraft
Sometimes, the bank provides overdraft facilities to its customers through which they are
allowed to withdraw more than their deposits. Interest is charged from the customers on the
overdrawn amount.
3. Discounting of Bills of Exchange
This is another popular type of lending by the modern banks. Through this method, a holder of a
bill of exchange can get it discounted by the bank, in a bill of exchange, the debtor accepts the
bill drawn upon him by the creditor (i.e., holder of the bill) and agrees to pay the amount
mentioned on maturity.
After making some marginal deductions (in the form of commission), the bank pays the value of
the bill to the holder. When the bill of exchange matures, the bank gets its payment from the
party, which had accepted the bill.
4. Cheque Payment
Banks provide cheque pads to the account holders. Account holders can draw cheque upon the
bank to pay money. Banks pay for cheques of customers after formal verification and official
procedures.
5. Collection and Payment Of Credit Instruments
In modern business, different types of credit instruments such as the bill of exchange,
promissory notes, cheques etc. are used. Banks deal with such instruments. Modern banks
collect and pay different types of credit instruments as the representative of the customers.
6. Foreign Currency Exchange
Banks deal with foreign currencies. As the requirement of customers, banks exchange foreign
currencies with local currencies, which is essential to settle down the dues in the international
trade.

7. Consultancy
Modern commercial banks are large organizations. They can expand their function to
consultancy business. In this function, banks hire financial, legal and market experts who
provide advice to customers in regarding investment, industry, trade, income, tax etc.
8. Bank Guarantee
Customers are provided the facility of bank guarantee by modern commercial banks. When
customers have to deposit certain fund in governmental offices or courts for a specific purpose, a
bank can present itself as the guarantee for the customer, instead of depositing fund by
customers.
9. Remittance of Funds
Banks help their customers in transferring funds from one place to another through cheques,
drafts, etc.
10. Credit cards

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A credit card is cards that allow their holders to make purchases of goods and services in
exchange for the credit card’s provider immediately paying for the goods or service, and the
card holder promising to pay back the amount of the purchase to the card provider over a period
of time, and with interest.

11. ATMs Services

ATMs replace human bank tellers in performing basic banking functions such as deposits,
withdrawals, account inquiries. Key advantages of ATMs include:

 24-hour availability
 Elimination of labor cost
 Convenience of location

12. Debit cards

Debit cards are used to electronically withdraw funds directly from the cardholders’ accounts.
Most debit cards require a Personal Identification Number (PIN) to be used to verify the
transaction.
13. Home banking
Home banking is the process of completing the financial transaction from one’s own home as
opposed to utilizing a branch of a bank. It includes actions such as making account inquiries,
transferring money, paying bills, applying for loans, directing deposits.
14. Online banking
Online banking is a service offered by banks that allows account holders to access their account
data via the internet. Online banking is also known as “Internet banking” or “Web banking.”
Online banking through traditional banks enable customers to perform all routine transactions,
such as account transfers, balance inquiries, bill payments, and stop-payment requests, and some
even offer online loan and credit card applications. Account information can be accessed
anytime, day or night, and can be done from anywhere.
15. Mobile Banking
Mobile banking (also known as M-Banking) is a term used for performing balance checks,
account transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA),
16. Accepting Deposit
Accepting deposit from savers or account holders is the primary function of a bank. Banks
accept deposit from those who can save money but cannot utilize in profitable sectors. People
prefer to deposit their savings in a bank because by doing so, they earn interest.
17. Priority banking
Priority banking can include a number of various services, but some of the popular ones include
free checking, online bill pay, financial consultation, and information.
18. Private banking
Personalized financial and banking services that are traditionally offered to a bank’s rich, high
net worth individuals (HNWIs). For wealth management purposes,

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HNWIs have accrued far more wealth than the average person, and therefore have the means to
access a larger variety of conventional and alternative investments. Private Banks aim to match
such individuals with the most appropriate options.

2.Explain the methods and techniques of developing crm in banking sectors?

A primary objective of CRM is to provide the entire organization with a complete, 360 – degree
view of the customer, no matter where the information resides or where the customer touch
point occurred. Today, many businesses manage different customer relationships with multiple
information systems, which weaken customer service and ultimate reduce total sales potential.
To realize the benefits of CRM, it is important to have an integrated solution across all
customers’ information systems, tying togetherr the front and front offices for a complete view
of the customers in order to serve them better.

3.Expalin the relationship between a banker and customer based on Debtor-Creditor relationship
Classification of Relationship:
The relationship between a bank and its customers can be broadly categorized in to General
Relationship and Special Relationship. If we look at Sec 5(b) of Banking Regulation Act, we
would notice that bank’s business hovers around accepting of deposits for the purposes of
lending. Thus the relationship arising out of these two main activities are known as General
Relationship. In addition to these two activities banks also undertake other activities mentioned
in Sec.6 of Banking Regulation Act. Relationship arising out of the activities mentioned in Sec.6
of the act is termed as special relationship.
1. Debtor-Creditor: When a 'customer' opens an account with a bank, he fills in and signs the
account opening form. By signing the form he enters into an agreement/contract with the bank.
When customer deposits money in his account the bank becomes a debtor of the customer and
customer a creditor. The money so deposited by customer becomes bank’s property and bank
has a right to use the money as it likes. The bank is not bound to inform the depositor the
manner of utilization of funds deposited by him. Bank does not give any security to the
depositor i.e. debtor. The bank has borrowed money and it is only when the depositor demands,
banker pays. Bank’s position is quite different from normal debtors.
Banker does not pay money on its own, as banker is not required to repay the debt
voluntarily. The demand is to be made at the branch where the account exists and in a proper
manner and during working days and working hours.
The debtor has to follow the terms and conditions of bank said to have been mentioned
in the account opening form. {Though the terms and conditions are not mentioned in the account
opening form, but the account opening form contains a declaration that the terms and conditions
have been read and understood or has been explained. In fact the terms and conditions are
mentioned in the passbook, which is issued to the customer only after the account has been
opened.}

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 In the past while opening account some of the banks had the practice of giving a printed
handbill containing the terms and conditions of account along with the account opening form.
This practice has since been discontinued. For convenience and information of prospective
customers a few banks have uploaded the account opening form, terms and conditions for
opening account, rate charge in respect of various services provided by the bank etc., on their
web site.
While issuing Demand Draft, Mail / Telegraphic Transfer, bank becomes a debtor as it
owns money to the payee/ beneficiary

Creditor–Debtor: Lending money is the most important activities of a bank. The resources
mobilized by banks are utilized for lending operations. Customer who borrows money from
bank owns money to the bank. In the case of any loan/advances account, the banker is the
creditor and the customer is the debtor. The relationship in the first case when a person deposits
money with the bank reverses when he borrows money from the bank. Borrower executes
documents and offer security to the bank before utilizing the credit facility.
In addition to opening of a deposit/loan account banks provide variety of services, which
makes the relationship more wide and complex. Depending upon the type of services rendered
and the nature of transaction, the banker acts as a bailee, trustee, principal, agent, lessor,
custodian etc.

1. Explain in detail the crm process and the role in banking sector

The idea of CRM is that it helps businesses use technology and human resources gain insight
into the behavior of customers and the value of those customers. If it works as hoped, a business
can: provide better customer service, make call centers more efficient, cross sell products more
effectively, help sales staff close deals faster, simplify marketing and sales processes, discover
new customers, and increase customer revenues.It doesn't happen by simply buying software
and installing it. For CRM to be truly effective, an organization must first decide what kind of
customer information it is looking for and it must decide what it intends to do with that
information. For example, many financial institutions keep track of customers' life stages in
order to market appropriate banking products like mortgages or IRAs to them at the right time to
fit their needs. Next, the organization must look into all of the different ways information about
customers comes into a business, where and how this data is stored and how it is currently used.
One company, for instance, may interact with customers in a myriad of different ways including
mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and
marketing and advertising efforts. Solid CRM systems link up each of these points. This
collected data flows between operational systems (like sales and inventory systems) and
analytical systems that can help sort through these records for patterns. Company analysts can
then comb through the data to obtain a holistic view of each customer and pinpoint areas where
better services are needed. In CRM projects, following data should be collected to run process
engine: 1) Responses to campaigns, 2) Shipping and fulfillment dates, 3)Sales and purchase

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data, 4) Account information, 5) Web registration data, 6) Service and support records, 7)
Demographic data, 8) Web sales data.

Role of CRM in the Banking Industry

 A Relationship-based Marketing approach has the accompanying advantages

 After some time, retail bank clients tend to build their holding of alternate items from
over the scope of monetary items/administrations accessible.
 Long haul clients will probably turn into a referral source.
 The more extended a relationship proceeds, better a bank can comprehend the client and
his/her needs and inclinations, thus more noteworthy the chance to tailor items and
administrations and strategically pitch the item/benefit run.

Clients in the long haul connections are more okay with the administration, the association,
techniques and methodology. This diminishes working expense and expenses emerging out of
client blunder.

With expanded number of banks, items and administrations and basically nil exchanging costs,
clients are effectively exchanging banks at whatever point they discover better administrations
and items. Banks are thinking that its extreme to get new clients, and all the more critically, hold
existing clients. One of the showcasing procedures to meet globalization and expanded rivalry
for banks and other monetary organizations is to extend to worldwide business through
collisions with outside partners, joint endeavors, coordinated efforts or by opening branches or
auxiliaries in the chose nations abroad. Money related rebuilding and authoritative adjustment
are the catchphrases for the Management to address the developing difficulties emerging out of
globalization. The last goal is to touch base at the promoting systems which will impact buyer
conduct through key basic leadership. For the readiness of inventive showcasing methodologies
and for their effective usage in the market, CRM is especially basic as it can frame the premise
of.

Dealing with the client is the thing that CRM is all about–it enables the keeping money
foundation to take a gander at the full crate of items offered by the organization and in light of
client profiles offer the most beneficial item to the most gainful client.

Unit-4

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 2-MARKS

1.Write short notes on goiporia committee report

The quality of customer service in primary corporation banks has to be high as they
are established primarity to fill the existing group in banking and credit needs in urban and semi
urban areas .It create confidence and attract fund comparatively at low cost in completion
environment customer service rendered by the bank been the endeavour of the RBI.RBI has set
up in the year 1990 a committee headed by Shri M.N Goiporia then the chairman of SBI. In
addiction RBIhas also issued various guidelines on the subject in general and on such specific
aspect relating to customer issue of TTS/DB issue of cheque book etc..

i. Instructions issued on the basis of Goiporia committee

ii. Instruction relating to the collection of local instruction
iii. Other instruction

2.State any some advantages of customer loyalty?

1. Customer Acquisition And Retention

2. Repeat Business
3. Cross/Up Selling Opportunities
4. Reduce Marketing Cost
5. Minimize Service Cost
6. Forecast Accuracy
7. Improve Brand Image
8. Stand Tall Among Competitors
9. Honest And Quality Feedback

3.Define the term ombudsman

Government official appointed to investigate citizen's complaints against government officials,
large public and private corporations, and/or print and broadcast media. While, in general,
ombudsmen have wide investigative powers, they have only a few punitive powers.

4. What is meant by the term grievance?

A grievance is a formal complaint that is raised by an employee towards an employer within the
workplace. ... According to the Union of Northern Workers, "Grievances are filed by the union
on behalf of its members.

5.Give any two recommendations of Goiporiacommittee

Uninterrupted Service

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Banks may devise appropriate procedures to ensure that no counter remains unattended during
the business hours and uninterrupted service is rendered to the customers by making adequate
relief arrangements as may be necessary.

Guidance to Customers

All branches, except very small ones, should have 'Enquiry' or 'May I help you' counters. Such
counters may exclusively attend to enquiries or may be combined with other functions
depending upon the requirement. As far as possible, such counters should be near the entry point
to the banking hall.

5-MARKS

1.Write short notes on Talwar committee.

In 1975, the Government of India had appointed the Talwar Committee on customer service in
banks. In 1990, RBI appointed the Goiporia Committee on customer service in banks. In 2004,
the Tarapore Committee recommendationsl ed to formation of Board level committees for
monitoring customer service in banks. Talwar Committee (1977) In 1975, the Government
appointed a "Working Group on customer service in Banks" under the chairmanship of Shri.
R.K. Talwar. The Talwar Committee submitted its interim reports to the Government in August
1975. Government informed all the public Sector Banks to initiate immediate action to
implement all the recommendations in the interim report, barring a few which needed further
examination by the government. In March 1977, the committee submitted its final report which
is popularly known as Talwar Committee recommendations. The committee made 176
recommendations. The RBI, after studying it, decided that nearly 141 were suited for
implementation by banks. The major recommendations of Talwar Committee were
standardization of procedures, customer service centers at circle office 1 Head office level,
provision for 'may I help you', counter at branches and provision for time norm board.

2.What is copra forum give its objective.

Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect
the interests of consumers in India. It makes provision for the establishment of consumer
councils and other authorities for the settlement of consumers' disputes and for matters
connected therewith also.
 The right to be protected against the marketing of goods and services which are
hazardous to life and property.
 The right to be informed about the quality, quantity, potency, purity, standard and price
of goods or services, as the case may be so as to protect the consumer against unfair trade
practices;
 The right to be assured, wherever possible, access to a variety of goods and services at
competitive prices ;

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  The right to be heard and to be assured that consumer's interest will receive due
consideration at appropriate forums;
 The right to seek redressal against unfair trade practices or restrictive trade practices or
unscrupulous exploitation of consumers; and
 The right to consumer education.

3.Explain about ombudsman

Ombudsmen are independent, impartial and provide a free service. They investigate
complaints that haven't been solved by the organisation complained
against. Ombudsmen investigate complaints when something has been handled badly or
unfairly, making someone suffer as a result. This is sometimes called maladministration.
India
The Government of India has designated several ombudsmen (sometimes called Chief Vigilance
Officer (CVO)) for the redress of grievances and complaints from individuals in the banking,
insurance and other sectors being serviced by both private and public bodies and
corporations.[69] The CVC (Central Vigilance Commission) was set up on the recommendation
of the Santhanam Committee (1962–64).
Lokpal
In India, the Ombudsman is known as the Lokpal or Lokayukta. An Administrative Reforms
Commission (ARC) was set up on 5 January 1966 under the Chairmanship of Shri Morarji
Desai. It recommended a two-tier machinery: Lokpal at the Centre (parliamentary
commissioner, as in New Zealand) and one Lokayukta each at the State level for redress of
people's grievances. However, the jurisdiction of the Lokpal did not extend to the judiciary (as
in case of New Zealand). The central Government introduced the first Lokpal Bill, Lokpal
and Lokayuktas Bill in 1968, and further legislation was introduced in 2005. Final bill, after all
the amendments, has been passed in Rajya Sabha on 17 December 2013 and passed in Loksabha
on 18 December 2013.[70]
Lokayukta
The state-level Lokayukta institution has developed gradually. Orissa was the first state to
present a bill on establishment of Lokayukta in 1970, but Maharashtra was the first to establish
the institution, in 1972. Other states followed: Bihar (1974), Uttar Pradesh (1977), Madhya
Pradesh (1981), Andhra Pradesh (1983), Himachal Pradesh (1983), Karnataka (1984), Assam
(1986), Gujarat (1988), Delhi (1995), Punjab (1996), Kerala (1998), Chhattishgarh (2002),
Uttaranchal (2002), West Bengal (2003) and Haryana (2004). The structure of the Lokayukta is
not uniform across all the states. Some states have UpaLokayukta under the Lokayukta and in
some states, the Lokayukta does not have suo moto powers of instigating an enquiry.
Kerala State has an Ombudsman for Local Self Government institutions like Panchayats,
Municipalities and Corporations.[71] He can enquire/investigate into allegations of action,

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inaction, corruption and maladministration. A retired Judge of the High Court is appointed by
the Governor for a term of three years, under the Kerala Panchayat Raj Act.
In the State of Rajasthan, the Lokayukta institution was established in 1973 after the Rajasthan
Lokayukta and Up-Lokayuktas Act, 1973 was passed by the State Legislature.
Anti-corruption movements
The 2011 Indian anti-corruption movement led by social activist Anna Hazare includes in its
demands the creation of a stronger ombudsman agency (with jurisdiction over all state
institutions) through the enactment of a Jan Lokpal Bill, as an alternative to the Lokpal Bill
proposed by the government in 2010.
4.What is customer service committee

In terms of recommendation no. 172 of the Working Group on Customer Service in Banks
(Talwar Committee), banks were advised to establish customer service committees at bankl.
Further, in terms of recommendation no. 3.68 of the Committee on Customer Service in Banks
(Goiporia Committee), banks were advised to rejuvenate the branch level customer service
committees. It is however understood that such Committees are either non-existent or in a
dormant state.

2. In order to encourage a formal channel of communication between the customers and the
bank at the branch level, banks are advised to take necessary steps for strengthening the branch
level committees with greater involvement of customers. It is desirable that branch level
committees include their customers too. Further as senior citizens usually form an important
constituency in banks, a senior citizen may preferably be included therein.

3. The committees may also submit quarterly reports giving inputs / suggestions to the Standing
Committee on Customer Service thus enabling the Standing Committee to examine them and
provide relevant feedback to the Customer Service Committee of the Board for necessary policy
/ procedural action. The Customer Service Committee may meet at least once a month to study
complaints/ suggestions, cases of delay, difficulties faced / reported by customers / members of
the Committee and evolve ways and means of improving customer service.

10 MARKS

1.Explain about customer grievance redressal as per customer protection acts.

customers play a key role in maintaining the economy of India. Each and every person
constitutes a consumer because each one of us is engaged in some form of exchange of goods or
services through money as a medium. Gradually, there arise many kinds of disputes among the
consumers as well as consumers and the sellers. onsumer Protection Act was enacted in the year
1986 to look after the various rights and duties of the consumers during the time of purchasing a
product and even after that. The Act plays an important role in the fields where there arises an

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incidence of exchange of goods or services between two persons where money acts as a
medium. The Act also provides certain guidelines as to what measures must be complied with
during the time of such exchange, what are the various rights available to both the buyer and
seller etc. It also provides certain provisions regarding the need and formulation of various
‘Consumer Redressal Centres’ both at the central as well as states level.

Section 9 of the Act provides for ‘establishment of consumer dispute redressal agencies’ which
include:

 A District zforum established by the State Government in each district of the State by
its notification.
 A State Commission established by the State Government in each state by its
notification and
 A National Commission established by Central Government by notification [

District Forum Each District Forum shall consist of a person who is or has been
qualified as a District judge, as the President. There must be two other persons who are
not less than thirty-five years of age and also possesses a degree from a recognized
university. The persons must have adequate knowledge in the field of economics,
commerce, industry, public affairs, and administration. The district forum must have the
jurisdiction to entertain such complaints where the value of goods or services and the
compensation, does not exceed Rs. twenty lakhs. The need for district forums for
consumer redressal is that majority of the people who face any consumer rights violation
are unable to file a complaint in a state or national forum because such f have to look at
matters concerning various other district forums which result in a large number of
pending cases. District forums are also enabled with a faster way of dispensing consumer
redressal as the amount of claim is pretty less than that of State/National redressal forums
which enables normal people to seek a solution for their problems.

State Commission

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Each State Commission shall consist of a person who is or has been a judge of High Court as its
president. The Commission also consists of not less than two members, who are above thirty-
five years of age and also possesses a degree from a recognized university.

The persons must have adequate knowledge in the field of economics, commerce, industry,
public affairs, and administration. The Act also states that not less than fifty percent of the
members shall be from amongst the persons having a judicial background. The State
Commission has a jurisdiction to entertain cases where the value of goods or services or the
compensation claimed, if any, exceeds the number of Rs. twenty lakhs but does not exceed Rs.
one crore. It also entertains appeals against any District Forum within the state and also looks
after any pending disputes or cases decided by any of the District forums in which the forums
have exercised a jurisdiction not vested in them by the law, or has been exercised illegally or
with any material irregularity.

The National Commission

The National Commission shall consist of a person, who is or has been a judge of the Supreme
Court, to be appointed by the Central Government, shall be the President, provided that no
appointment shall be made except after the consultation with the Chief Justice of India. The
commission shall consist of not less than four members of its executive committee who shall not
be less than thirty-five years of age and must be graduates from a recognized university. They
must also be specialized in the areas of commerce, economics, and administration. The
jurisdiction of the commission shall extend to any case where the compensation amount might
exceed Rs. one crore and the Commission shall also entertain appeals against State
Commissions. The Commission also has the power to check any pending disputes or cases
decided by any of the State Commissions where the State Commission has exercised a
jurisdiction not vested in it by law or it has been exercised illegally or with any material
irregularity

Power of redressal forums

There are various powers for all of the redressal forums with regards to its jurisdiction. Some of
them include:

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 1. Examining, enforcing as well as summoning the witness on oath;
2. Discovering and producing any material evidence;
3. Receiving evidence on affidavit;
4. Requesting for report or test analysis from the concerned authorities and laboratories;
5. Issuing commission for examining the witness;
6. Enforcing any other powers prescribed by the Central or State Government.

Limitation period

The District, State or National Forum for consumer grievance redressal will not entertain a case
which is filed two years after the occurrence of the case unless the party/parties can condone
themselves regarding the reasons behind the delay of filing within the specified period. Such a
provision was formulated to increase the accuracy of the function of such forums and also for
delivering fast redressal solutions to the parties.

Conclusion

From various landmark judgments by the Supreme Court in connection with cases affecting
consumer rights, it will be clear that there is an increase in the number of cases involving
consumer protection when compared to the past. It indicates that people are now aware of their
various rights as consumers. The Act not only covers the rights of the consumers but also
provides certain duties for them too. It has been stated that it is the duty of a consumer to ask
clearly about various characteristics and features of the product which he/she wishes to buy. The
Act does not entertain certain malicious acts such as black marketing and selling a good above
the prescribed rate of MRP. The doctrine of ‘caveat venditor’ (let the seller beware) has been
changed into ‘caveat emptor’ (let the purchaser beware) so that the purchaser will also be aware
of various features, merits and demerits of the good as well as protection of their rights
themselves. There is still an emerging need of various other redressal machineries in this field
due to the increased number of pending cases as well as for implementing alternative means in
the field of consumer protection. The Act may be amended in such a way that it includes certain

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 dispute redressal mechanisms like ‘Alternative Disputes Resolution’ as a core function of the
said redressal agencies dealing with consumer rights.

2 .State the procedure involved in grievance redressal through banking Ombudsman scheme
1995

Most of us have experiences of bank executives, who have not provided us good services at
some point of time. We face issues like activating our dormant account, issue of cheque book,
adding nominee name, refunding overdraft charges, delay in remittance from abroad, closing
bank account, etc. At times, we do not get a proper resolution from the bank. In such case
need to know to whom can we file a complaint to resolve our issue.

Banks are like any other business and therefore you can file a complaint against them—if you
are not satisfied with their services. Filing a complaint also helps you, to make sure that next
time you won’t have any bad experience with them. However, for a filing a complaint against
a bank you first need to know the right process.

The main object of the complaint is to get resolved your problem as earliest. So it is most
important to make complaint to appropriate person who will resolve your problem effectively.
There is a system in Indian banking to get your problem resolved by contacting authorities in
procedure. First approach to concerned bank, then Director of Public Grievances, Govt of
India, then Ombudsman (RBI) and finally consumer forum. If you will follow the procedure
you will find result sure.

Presently RBI (Reserve Bank of India) has compelled banks to hear customer on priority
basis. On direction of RBI every bank has to appoint nodal office for redressal of customer
grievances. Every bank has designated higher level office at head offices and other senior
level officer at controlling offices and at large branches.

Steps of complaints
 Write or e-mail to concerned bank branch, office or department
 Write or e-mail to nodal officer at controlling office and head office of the bank
 Write or e-mail to Director of Public Grievances, Govt of India, Cabinet Secretariat, Sansad
Marg, New Delhi-110001

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 Complaint in appropriate form (along with copies of earlier correspondence with concerned
bank) to Banking Ombudsman (Located at state capitals under RBI Ombudsman Scheme)
 District Consumer Forum (under Consumer Protection Act, 1985) complain in appropriate
form.
 In this article we will learn more about banking ombudsman, their role, appointment &
tenure, grounds of complaints among others.
 Banking ombudsman is a quasi-judicial authority created by Government of India to
provide effective complaints resolutions. It is a senior official appointed by RBI to address
the complaints by the banking customers. Some people also call it ombudsman banking.

OriginBankingOmbudsmanSchem 2006
The RBI first introduced the Banking Ombudsman Scheme in 1995 and it was revised in 2002
to over regional and rural banks. Then again there was a revision in the year 2006 which is
known as “Banking Ombudsman Scheme 2006” to cover complaints for ATM transactions,
debit and credit cards, deduction of service charges etc. It was last amended in February
2009, to cover problems due to internet banking. This RBI Banking Ombudsman scheme
covers all banks- PSU Banks, Rural and Co-operative Banks. The Ombudsman Banking has
been defined under clause 4 of the Banking Ombudsman Scheme, 2006.

The RBI shall specify the territorial limits to which the authority of each of the Banking
Ombudsmanshallextend.

Appointment&tenure
The RBI on recommendation by its Governor may appoint one or more officials for this post.
The minimum age to be considered shall be 55 years. The person selected will be appointed
for a period of 3 years which could be further extended for a period not exceeding 2 years and
subject to age limit of 65 years.

Clause12GroundsofComplaints
1) Complaints Pertaining to Deficiency in any of the Banking Services such as:-
 Non-payment or delay in payment of cheques, drafts, bills, etc
 Non acceptance of small denomination notes without any reason and also charging of
commission in respect thereof
 Non issuance of drafts to customers
 Non adherence to prescribed working hours by the branches
 Failure to honour guarantee or letter of credit
 Claims in regards to fraudulent withdrawals or fraudulent encashment of cheque or a bank
draft
 Complaints for any of the accounts pertaining to delays , non credit of proceeds to parties
accounts
 Complaints for non observance of RBI’s directives applicable to rate of interests on
deposits or violation of directives on any other matter

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 Complaints from exporters for delays in receipt of export proceeds, handling of export
bills, collections of bills
 Complaints from NRI’s in regards to remittance from abroad
 Complaints pertaining to refusal to open deposit accounts without any valid reason
2) Complaints Concerning loans & advances
 Non observance of RBI directives on interest rates
 Delays in sanction or disbursement of loan applications
 Non acceptance of loan application without any valid reason
 Non observance of any other directives by RBI.
Procedure for lodging complaint
Any person who has a grievance against a services as mentioned above in Clause 12 of the
scheme can approach Banking Ombudsman for addressing his concern. The person can make
a complaint to Banking Ombudsman within whose jurisdiction the branch or office of the
bank complained against is located.

The complaint filed should be in writing duly signed by the complainant. It should clearly
state the name and address of complainant along with name and address of branch of bank
against which complaint is being made. It should also give facts causing complaint supported
by documents along with description of nature and extent of loss.

Rejection of complaints
1) If the complainant hasn’t first approached the bank named in the complaint and the
complaint would be accepted only if the other bank has
 Rejected the complaint or
 No reply received within 1 month after the concerned bank received the case or
 Person is not satisfied with the reply given
2) If the complaint has been made to Ombudsman later than one year after the cause of
action
3) If the complaint is in regards to the same subject matter which was settled though Banking
Ombudsman in any previous proceedings
4) If the complaint for same subject matter is pending before any court, tribunal or arbitrator
or a final order has already been passed by such an authority
5) If the complaint is frivolous, vexatious or malafide in nature
6) If there is no loss or damage caused to complainant
7) If it is pursued without sufficient cause and reasonable diligence
8) If the complaint is outside the purview of the scheme
9) If the bank branches fall outside the jurisdiction of Ombudsman as several states are
clubbed together since it`s not available in all states.

RBI Banking Ombudsman Offices in India are located at Mumbai Delhi, Bangalore,
Hyderabad and 11 other locations. Banking Ombudsman email can be obtained from RBI
website for respective locations in Delhi, Mumbai and others.

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4.What is quality circle give its objective characteristics and its benefits
Meaning:

A group of employees who meet regularly to consider ways of resolving problems and
improving production in their organization

The concept of the quality circle is based on “respect for the human individual” as
against the traditional assumption based on suspicion &mistrust between management and its
employees

OBJECTIVES OF THE QUALITY CIRCLE

!) To improve quality,productivity,safely,&cost reduction

2) To give chance to the employees to use their wisdom& creativity

3) To promote self and mutual development including leadership quality

4) To fulfill the self-esteem and motivational needs of employees

5) To improve the quality of work-life of employees

CHARACTERSTICS OF QUALITY CIRCLE

1.The atmosphere should be informal, comfortable & relaxed .the members should feel involved
& interest

2.Everyone should participate

3.The objectives should be clear to the members

4.The group should feel comfortable even when there are dis agreememts

1) The leader should not dominate the group . the main idea should not be as to who
controls but how to get the job done

BENEFITS OF QUALITY CIRCLE

1) Cost reduction
2) Increased productivity
3) Improved quality
4) Better communication
5) Increasad team work

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 6) Smooth working
7) Better human relation

Unit-5

2MARKS

1.Define the term market segmentation

The process of defining and subdividing a large homogenous market into clearly identifiable
segments having similar needs, wants, or demand characteristics.

2. What is marketing research

Market research consists of systematically gathering data about people or companies and then
analyzing it to better understand what that group of people needs.

3.What is data warehousing

A data warehouse is a central repository for all or significant parts of the data that an
enterprise's various business systems collect.

4.What are basic of market segmentation

The firms can segment the market on the followingbases:

 geographic,
 demographic,
 psychographic,
 behavioral, and.
 benefits sought

5..What is customer satisfaction index

It is a measure of how products and services supplied by a company meet or

surpasscustomer expectation. Customer Satisfaction. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer Satisfaction.

6.Mention the various sources of data collection

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Data collection is a standout amongst the most essential stages in carrying on a research
Normally we can gather data from two sources namely primary and secondary. Data gathered
through perception or questionnaire review in a characteristic setting are illustrations of data
obtained in an uncontrolled situation. Secondary data is the data acquired from optional sources
like magazines, books, documents, journals, reports, the web and more. The chart below
describes the flow of the sources of data collection.

7.what are the 4 ‘s of customer marketing

 Scope (strategy) - it includes strategic activities - linking the internet activities of

the organization with its marketing strategy, market analysis,
setting objectives and organization’s tasks, definition of the potential customers
and analysis of thier purchasing behavior on the web
 Site - websites today are often the main way of the communication (and sales)
between the organization and its customers. For the design of the succesful sites is
therefore crucial to find out:

 What are the expactations of the customers to the site?

 Why would they want to use the site?
 Why would they want to return to the site?

 Synergy - to ensure the synergies of three key components:

 Front Office Integration - linking of the internet activites with other marketing
activites of the organization (a single form of the communication, identical
symblos, logs, uniform branding)
 Back Office Integration - linking the internet activities with other processes within
the organization and with related IT infrastructure and services
 Integration with external partners - linking the site with the site and IT services of
the third party

 System - it includes the management and operation of all the technological

background of the website (hardware, software, network infrastructure and
related IT services - administration of the web site, payment system, web
trafficc monitoring)
7. What is meant by customer satisfaction?
Customer satisfaction is a marketing term that measures how products or services
supplied by a company meet or surpass a customer's expectation.Customer
satisfaction is important because it provides marketers and business owners with a metric
that they can use to manage and improve their businesses

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 8. What is meant by customer database?
Maintaining a customer database is an important way to keep up-to-date
on customer information and data. A database provides access to clients, builds loyalty, and
encourages repeat business.
5MARKS

1.Bring out the different types of data.

There are many ways of classifying data.

A common classification is based upon who collected the data.

Primary data: Data collected by the investigator himself/ herself for a specific purpose.
Examples: Data collected by a student for his/her thesis or research project.
(In movies) The hero is directly told by the heroine that he is her “ideal man”.

Secondary data: Data collected by someone else for some other purpose (but being utilized by
the investigator for another purpose).
Examples: Census data being used to analyze the impact of education on career choice and
earning.
(In movies) The hero reads a fictional account of the heroine’s “ideal man” (written for a course
in English composition) that seems to describe him accurately. He seeks confirmation from his
friends, concluding that he is her “ideal man”. (He never asks her directly, but assumes the
“facts” are correct).
Some Advantages of using Primary data:
1. The investigator collects data specific to the problem under study.
2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.

Some Disadvantages of using Primary data (for reluctant/ uninterested investigators):

1. The investigator has to contend with all the hassles of data collection-
 deciding why, what, how, when to collect
 getting the data collected (personally or through others)
 getting funding and dealing with funding agencies
 ethical considerations (consent, permissions, etc.)
2. Ensuring the data collected is of a high standard-
 all desired data is obtained accurately, and in the format it is required in
 there is no fake/ cooked up data
 unnecessary/ useless data has not been included
3. Cost of obtaining the data is often the major expense in studies
Some Advantages of using Secondary data:
1. The data’s already there- no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t do it”)

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Some disadvantages of using Secondary data:
1. The investigator cannot decide what is collected (if specific data about something is
required, for instance).
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not possible (most
often)

2.State the the Advantages of Market segmentation

Determining market opportunities:

Market segmentation enables to identify market opportunities. The marketer can study the needs
of each segment in the light of current offerings by the competitors. From such study, the
marketer can find out the current satisfaction of customers.

Segments with low level of satisfaction from present offering may represent excellent
market opportunities. For example, customers may not be satisfied with the current
offering of water purifiers in terms of product or after-sale service. Such situation enables
a marketer to launch a new range of water purifiers and market them well.

2. Adjustments in marketing appeals:

Sellers can make best possible adjustments of their product and marketing appeals.
Instead of one marketing programme aimed to draw in all potential buy¬ers, sellers can
create separate marketing programmes designed to satisfy the needs of different
customers. Proper advertising and sales promotional appeals can be made depending on
the target audience.

3. Developing marketing programmes:

Companies can develop marketing programmes and bud¬gets based on a clearer idea of
the response characteristics of specific market segments. They can budget funds to
different segments depending on their buying response.

4. Designing a product:

Market segmentation helps in designing products that really match the demands of the
target audience. Products with high market potential can be designed and directed to meet
the satisfaction of the target market.

5. Media selection:

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It helps in selection of advertising media more intelligently and in allocating funds to
various media. The funds are allocated to various media depending on the target
audi¬ence, impact of the media, competitor advertising, and so on.

6. Timing of marketing efforts:

It helps in setting the timings of the promotional efforts so that more emphasis is placed
during those periods when response is likely to be at its peak. For instance, consumer
goods can be heavily advertised to Christians during Christmas season and to Hindus
during Diwali time.

7. Efficient use of resources:

By tailoring marketing programme to individual market segments, management can do a

better marketing job and make more efficient use of the marketing resources. For
example, a small firm can effectively use its limited resources – money, sales force, etc. –
in one or two segmented markets rather than unsuccessfully aiming at a wider market

8. Better service to customers:

Market segmentation enables a company to concentrate its market¬ing efforts in a

particular market area, thereby, providing a better service to the target customers. Proper
marketing segmentation can facilitate customer satisfaction.

9. Helps in fixing prices:

The marketing segmentation also enables to fix prices of the goods and services. Since
different market segments have different price perceptions, it is necessary to adopt
different pricing strategies for the markets. For instance, the prices for lower-income
groups have to be lower and the product and promotional efforts are adjusted
accordingly.

10. Assist in distribution strategies:

Segmentation also assists in adopting suitable distribution strategies. Different market

segments may require different distribution mix. For example, if the product is of very
high quality intended to target the upper class, then it must be distributed at prestigious
outlets located at selective places.

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3.What is the difference between market research and marketing research?

Basic difference Market Research Marketing Research

Definition Market research is used to Marketing research is in which the entire

collect the information study of the marketing process is conducted.

about the market

Purpose Getting information about Getting information

place–customer, competition about product and consumer preferences

and the industry

in general
Scope More narrow concept becauseMarketing Research has a much broader
research focused on
scope. It includes research into
a specific market. Collects products,
about market, market competition
modes of distribution, and produ
market trends, market demanddevelopment.
and It can also include promotio
research, pricing,
supply, etc. It also does
forecasting, as well as estimadvertising and public relations
the demand for new products.
also fixes sales territories
sales quotas.
Focus Focuses only on place, i.e. Focuses on product, price, place,
specific segment or market. promotion to identify and under
consumer preferences
Objective 1.Study the entire market, i.e.
1.Solve the marketing problems.
nature, size, location, dem2.Find out present and future mark
potential, etc. opportu
2.Fix sales territories and
quotas

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4.Eplain the process of Data mining.

introduction
The whole process of data mining cannot be completed in a single step. In other words, you
cannot get the required information from the large volumes of data as simple as that. It is a very
complex process than we think involving a number of processes. The processes including data
cleaning, data integration, data selection, data transformation, data mining, pattern evaluation
and knowledge representation are to be completed in the given order.
Types of Data Mining Processes
Different data mining processes can be classified into two types: data preparation or data
preprocessing and data mining. In fact, the first four processes, that are data cleaning, data
integration, data selection and data transformation, are considered as data preparation processes.
The last three processes including data mining, pattern evaluation and knowledge representation
are integrated into one process called data mining.

) Data Cleaning
Data cleaning is the process where the data gets cleaned. Data in the real world is normally
incomplete, noisy and inconsistent. The data available in data sources might be lacking attribute
values, data of interest etc. For example, you want the demographic data of customers and what
if the available data does not include attributes for the gender or age of the customers? Then the
data is of course incomplete. Sometimes the data might contain errors or outliers. An example is
an age attribute with value 200. It is obvious that the age value is wrong in this case. The data
could also be inconsistent. For example, the name of an employee might be stored differently in
different data tables or documents. Here, the data is inconsistent. If the data is not clean, the data
mining results would be neither reliable nor accurate.

b) Data Integration
Data integration is the process where data from different data sources are integrated into one.
Data lies in different formats in different locations. Data could be stored in databases, text files,
spreadsheets, documents, data cubes, Internet and so on. Data integration is a really complex and
tricky task because data from different sources does not match normally. Suppose a table A
contains an entity named customer_id where as another table B contains an entity named
number. It is really difficult to ensure that whether both these entities refer to the same value or
not. Metadata can be used effectively to reduce errors in the data integration process. Another
issue faced is data redundancy. The same data might be available in different tables in the same

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database or even in different data sources. Data integration tries to reduce redundancy to the
maximum possible level without affecting the reliability of data.

c) Data Selection
Data mining process requires large volumes of historical data for analysis. So, usually the data
repository with integrated data contains much more data than actually required. From the
available data, data of interest needs to be selected and stored. Data selection is the process
where the data relevant to the analysis is retrieved from the database.

d) Data Transformation
Data transformation is the process of transforming and consolidating the data into different
forms that are suitable for mining. Data transformation normally involves normalization,
aggregation, generalization etc. For example, a data set available as "-5, 37, 100, 89, 78" can be
transformed as "-0.05, 0.37, 1.00, 0.89, 0.78". Here data becomes more suitable for data mining.
After data integration, the available data is ready for data mining.

e) Data Mining
Data mining is the core process where a number of complex and intelligent methods are applied
to extract patterns from data. Data mining process includes a number of tasks such as
association, classification, prediction, clustering, time series analysis and so on.

f) Pattern Evaluation
The pattern evaluation identifies the truly interesting patterns representing knowledge based on
different types of interestingness measures. A pattern is considered to be interesting if it is
potentially useful, easily understandable by humans, validates some hypothesis that someone
wants to confirm or valid on new data with some degree of certainty.

g) Knowledge Representation
The information mined from the data needs to be presented to the user in an appealing way.
Different knowledge representation and visualization techniques are applied to provide the
output of data mining to the users.

10 MARKS

1.Briefly explain the steps involved in the process of marketing research

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Step 1. Define the Objective & Your “Problem”
Perhaps the most important step in the market research process is defining the goals of the
project. At the core of this is understanding the root question that needs to be informed by
market research. There is typically a key business problem (or opportunity) that needs to be
acted upon, but there is a lack of information to make that decision comfortably; the job of a
market researcher is to inform that decision with solid data. Examples of “business problems”
might be “How should we price this new widget?” or “Which features should we prioritize?”

By understanding the business problem clearly, you’ll be able to keep your research focused and
effective. At this point in the process, well before any research has been conducted, I like to
imagine what a “perfect” final research report would look like to help answer the business
question(s). You might even go as far as to mock up a fake report, with hypothetical data, and
ask your audience: “If I produce a report that looks something like this, will you have the
information you need to make an informed choice?” If the answer is yes, now you just need to
get the real data. If the answer is no, keep working with your client/audience until the objective
is clear, and be happy about the disappointment you’ve prevented and the time you’ve saved.

Step 2. Determine Your “Research Design”

Now that you know your research object, it is time to plan out the type of research that will best
obtain the necessary data. Think of the “research design” as your detailed plan of attack. In this
step you will first determine your market research method (will it be a survey, focus group,

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etc.?). You will also think through specifics about how you will identify and choose your
sample (who are we going after? where will we find them? how will we incentivize them?,
etc.). This is also the time to plan where you will conduct your research (telephone, in-person,
mail, internet, etc.). Once again, remember to keep the end goal in mind–what will your final
report look like? Based on that, you’ll be able to identify the types of data analysis you’ll be
conducting (simple summaries, advanced regression analysis, etc.), which dictates the structure
of questions you’ll be asking.
Your choice of research instrument will be based on the nature of the data you are trying to
collect. There are three classifications to consider:

Exploratory Research – This form of research is used when the topic is not well defined or
understood, your hypothesis is not well defined, and your knowledge of a topic is vague.
Exploratory research will help you gain broad insights, narrow your focus, and learn the basics
necessary to go deeper. Common exploratory market research techniques include secondary
research, focus groups and interviews. Exploratory research is a qualitative form of research.
Descriptive Research – If your research objective calls for more detailed data on a specific topic,
you’ll be conducting quantitative descriptive research. The goal of this form of market research
is to measure specific topics of interest, usually in a quantitative way. Surveys are the most
common research instrument for descriptive research.
Causal Research – The most specific type of research is causal research, which usually comes in
the form of a field test or experiment. In this case, you are trying to determine a causal
relationship between variables. For example, does the music I play in my restaurant increase
dessert sales (i.e. is there a causal relationship between music and sales?).
Step 3. Design & Prepare Your “Research Instrument”
In this step of the market research process, it’s time to design your research tool. If a survey is
the most appropriate tool (as determined in step 2), you’ll begin by writing your questions and
designing your questionnaire. If a focus group is your instrument of choice, you’ll start
preparing questions and materials for the moderator. You get the idea. This is the part of the
process where you start executing your plan.

By the way, step 3.5 should be to test your survey instrument with a small group prior to broad
deployment. Take your sample data and get it into a spreadsheet; are there any issues with the

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data structure? This will allow you to catch potential problems early, and there are always
problems

Step 4. Collect Your Data

This is the meat and potatoes of your project; the time when you are administering your survey,
running your focus groups, conducting your interviews, implementing your field test, etc. The
answers, choices, and observations are all being collected and recorded, usually in spreadsheet
form. Each nugget of information is precious and will be part of the masterful conclusions you
will soon draw.

Step 5. Analyze Your Data

Step 4 (data collection) has drawn to a close and you have heaps of raw data sitting in your lap.
If it’s on scraps of paper, you’ll probably need to get it in spreadsheet form for further analysis.
If it’s already in spreadsheet form, it’s time to make sure you’ve got it structured properly.
Once that’s all done, the fun begins. Run summaries with the tools provided in your software
package (typically Excel, SPSS, Minitab, etc.), build tables and graphs, segment your results by
groups that make sense (i.e. age, gender, etc.), and look for the major trends in your data. Start
to formulate the story you will tell.

Step 6. Visualize Your Data and Communicate Results

You’ve spent hours pouring through your raw data, building useful summary tables, charts and
graphs. Now is the time to compile the most meaningful take-aways into a digestible report or
presentation. A great way to present the data is to start with the research objectives and business
problem that were identified in step 1. Restate those business questions, and then present your
recommendations based on the data, to address those issues.

.2.what is customer satisfaction how do you measure customer satisfaction illustrate your
answer

Customer satisfaction is a marketing term that measures how products or services supplied by
a company meet or surpass a customer's expectation.Customer satisfaction is important
because it provides marketers and business owners with a metric that they can use to manage
and improve their businesses

Managing customers’ satisfaction efficiently is one the biggest challenge an organization face.
The tools or methods to measure customer satisfaction needs to be defined sophisticatedly to
fulfill the desired norms. There are following methods to measure customer satisfaction:
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 1. Direct Methods: Directly contacting customers and getting their valuable feedback is
very important. Following are some of the ways by which customers could be directly
tabbed:
a. Getting customer feedback through third party agencies.
b. Direct marketing, in-house call centers, complaint handling department could be
treated as first point of contact for getting customer feedback. These feedbacks are
compiled to analyze customers’ perception.
c. Getting customer feedback through face to face conversation or meeting.
d. Feedback through complaint or appreciation letter.
e. Direct customer feedback through surveys and questionnaires.

2.Organizations mostly employ external agencies to listen to their customers and provide
dedicated feedback to them. These feedbacks needs to be sophisticated and in structured format
so that conclusive results could be fetched out. Face to face meetings and complaint or
appreciation letter engages immediate issues. The feedback received in this is not uniformed as
different types of customers are addressed with different domains of questions. This hiders the
analysis process to be performed accurately and consistently. Hence the best way is to
implement a proper survey which consists of uniformed questionnaire to get customer feedback
from well segmented customers. The design of the prepared questionnaire is an important aspect
and should enclose all the essential factors of business. The questions asked should be in a way
that the customer is encouraged to respond in a obvious way/. These feedback could received by
the organizations can be treated as one of the best way to measure customer satisfaction.

Apart from the above methods there is another very popular direct method which is
surprise market visit. By this, information regarding different segment of products and
services provided to the customers could be obtained in an efficient manner. It becomes
easy for the supplier to know the weak and strong aspects of products and services.

2. Indirect Method: The major drawback of direct methods is that it turns out to be very
costly and requires a lot of pre compiled preparations to implement. For getting the
valuable feedbacks the supplier totally depends on the customer due to which they looses
options and chances to take corrective measure at correct time. Hence there are other
following indirect methods of getting feedback regarding customer satisfaction:
a. Customer Complaints: Customer’s complaints are the issues and problems
reported by the customer to supplier with regards to any specific product or related
service. These complaints can be classified under different segments according to
the severity and department. If the complaints under a particular segment go high
in a specific period of time then the performance of the organization is degrading
in that specific area or segment. But if the complaints diminish in a specific period
of time then that means the organization is performing well and customer
satisfaction level is also higher.
b. Customer Loyalty: It is necessarily required for an organization to interact and
communicate with customers on a regular basis to increase customer loyalty. In

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 these interactions and communications it is required to learn and determine all
individual customer needs and respond accordingly. A customer is said to be loyal
if he revisits supplier on regular basis for purchases. These loyal customers are the
satisfied ones and hence they are bounded with a relationship with the supplier.
Hence by obtaining the customer loyalty index, suppliers can indirectly measure
customer satisfaction.

3.IS market research is vital for business success .explain

Successful businesses worldwide periodically conduct market research in order to stay

tuned to changing market trends and to retain their competitive edge. Whether your
business is in a start-up stage or in an expansion phase, market research is vital for
understanding the critical characteristics of your target market to increase sales revenue,
profit, ROI and overall business success.
The importance of market research can be best perceived by understanding the various
factors that impact your business.
Market Information
This includes factors such as market size (in terms of number of customers), sales
revenues (for existing products), market segmentation (geographic, gender, personality,
etc.), the demand and supply scenario, and other factors.
nsight into Existing Customers
This requires understanding important customer decision-making triggers such as:
 Why do customers select your products or those of your competitors?
 What value do they perceive in your products?
 What is the key decision factor? Is it service, product quality or prestige?
 What factors influence buying decisions?
 Which magazines and websites do they browse?
Identifying Potential Customers
New customers can be identified by understanding:
 Who are likely to use your products?
 What is their age group?
 What is their gender?
 What is their marital status (single, married or divorced)?
 How many children do they have?
 Where do they reside?

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 Customer Needs
Evaluate and understand the precise needs of potential customers and develop your
products and services accordingly. Even existing products and services can be suitably
modified based on the results of such market research.
Customer Behavior Patterns
Potential customers may exhibit behavior patterns and preferences, such as a preference
for only one brand or switching brands frequently; trying out new products; a preference
for products of a particular type, size, color, price range, or other such parameters.
Competitor Analysis
Research can provide you with valuable information about existing competitors, their
adopted strategies, impact on target consumers (and their reactions), and other such
details.
Identify Business Opportunities
Market research helps identify existing gaps and new business opportunities such as
untapped or underserviced markets, as well as changing market trends such as population
shifts, higher education levels, increased leisure spends and more.
Resolving Business Problems
A market research company can identify the cause of your business problems, if any, and
suggest possible remedies. For example, decreased sales could result from the entry of a
new competitor, a substitute product, reduced brand awareness or negative brand image.
Accurate Business Decisions
The information collected through research can enable you to set realistic expectations
and make appropriate estimations about sales forecasting, market share, growth rate and
other such critical factors.
Develop Business Strategies
Research data can help you in developing strategies for product or service pricing,
distribution and logistics, advertising media usage (radio, TV, newspapers etc.), making
decisions for new products and services, and timing the market. It can guide you towards
better decisions on starting, consolidating, diversifying or reducing business activity.
The significance of market research is seen in the following benefits accrued by
businesses:
 Improved communications between the company and its target customers through accurate
understanding of customer needs and meeting them effectively, leading to enhanced customer
satisfaction
 Minimized risk through precise analysis of the customer's exact demands and developing
perfectly matching products and services, thus reducing errors and failures

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 Measuring business success through analysis of the research data and evaluation of business
progress and growth. Even possible pitfalls and solutions can be gauged
Flatworld Solutions is a leading market research company with expertise and experience
in market research. We have a successful track record of providing cutting-edge reports to
our clients and enabling them to make informed decisions and achieving rapid growth.
Our team of qualified and experienced professionals has consistently met our customers'
expectations.

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