Customer Relationship Management (CRM) and Products Development Process as Marketing Knowledge in the Jewelry Industry: Cases in Guadalajara, Mexico

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EXECUTIVE SUMMARY

Marketing has always adopted and adapted concepts from other discipline areas. The concept of marketing knowledge describes relationships observed over different circumstances embodied in principles. Marketing knowledge should be helpful to businesses to better understand their customers, allowing business firms to make wise decisions, take successful actions and thus keepg their competitive edge. This study analyzes the marketing knowledge in the Jewelry Industry, located in Guadalajara, Mexico, by analyzing the marketing information system, customer relationship management and the new product development process.

Keywords: Marketing Knowledge, New Product Development, Marketing Information, Costumer Relationship Management.

INTRODUCTION

Marketing knowledge management has been used in different ways; some of them are the generation, dissemination and storage of marketing knowledge.

We may group marketing knowledge or "theory" as taught and documented by marketing academicians in the following way (after Nagle, 1961): Theories/models; Concepts; Methods/Techniques; and Facts.

The primary theory for examining knowledge in real-world domains has been the categorical model of memory. A cognitive category structures our knowledge about a domain by organizing similar items into a cohesive grouping (Rosch et al., 1976).

Two types of knowledge are associated with categories-declarative knowledge of facts about a domain and procedural knowledge of heuristics that guide behavior related to the domain. The quantity and the quality of categorical knowledge could be expected to change with expertise. Experts appear to organize knowledge on the basis of domain-relevant functionality. Expert-level knowledge may require learning by doing, rather than simply textbook education (Anazai, 1979).

To make knowledge useful, people will often need time-consuming and focused experience of applying knowledge to tasks/problems in the real context.

Jalisco's Regional Chamber of Jewelry and Silver Industry has 800 members; 80 percent are micro-enterprises and/or familyowned workshops. This sector generates 9 thousand direct jobs and 18 thousand indirect jobs regionally. Sixty metric tons of gold jewelry is processed annually in Mexico, from which 60 percent comes from in the state of Jalisco thus making Jalisco the top producer of gold jewelry nationwide. Jalisco is also ranked second in the manufacture of silver jewelry, after Taxco in Guerrero's state.

The jewelry industry in Jalisco, one of the most solid and active sectors in the state, has witnessed a 7 percent decrease in production. This is attributable in part to lacklustre consumer spending due to economic insecurity but also to a luxury tax imposed by the Mexican Government as part of its fiscal reform plan. The rising global price of gold had also had an impact. As a result of a targeted local marketing campaign and the high cost of gold, silver jewelry sales increased by 40 percent in Jalisco and the sector ended up processing 40 metric tons of silver in 2007.

LITERATURE REVIEW

The marketing concept has been revised over the years aligning marketing activities closer with strategic organizational activities. Kotier (1997) defines a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals.

In terms of how marketing performance measurement might eventually trickle through to performance, research inside and outside marketing suggests that learning is a likely mediating mechanism (Morgan 2004). Performance measurement should help the organization learn how to improve its "theory in use" of what works in the market place (Argrys, 1978).

Marketing knowledge is different from technological knowledge which narrowly focuses on product research and development, inner design and manufacturing. …