CHAPTER NO 1 INTRODUCTION

1. Introduction
.Customer Relationship Management is a strategy which is up to date domination of

relationship with consumers gains it meaning and today is regarded as necessary component in the functioning of enterprises in the global market. Customer Relationship Management is not a new idea in the business world because it comes to his mature phase and such is adopted and becomes a well-known trend of modern marketing and business philosophy. Although we can say and also verify that the Customer Relationship Management is business philosophy, the fact is that development, strategy, methodology and the evolution of Customer Relationship Management is based on information technology to information technology. Development of Customer Relationship Management is directly linked with the development of new technologies.

1.2.

Background of the study

Customer of all businesses are considered as a very attractive source of profitability, business firm lays dawn important initiatives for the sake of development and growth assisted by improved approaches to access customers as possible. They represents the market share and indicate the market growth if the customers are growing continuously. Therefore if business firm wants to earn profits and achieve a distinctive image in the market they are supposed to raise customers in form of attracting new one and retaining the old one with the help of mutually applicable offerings and support services. Marketers are developing such kind of approaches from time to time they offer value added services, discount services, quality products, targeting customer on the basis of their cultural context and try to develop long lasting relationship. They are using different techniques to reach to the desired customers with fully supporting and effective manner for the ultimate aims of the firms

There are different approaches used to target and serve with dignity the targeted customers one of the effective technique for raising customers from diversified classes and retaining the old one by giving them opportunities them to fulfill their needs up to the maximum extent that is customer relationship management. Pakistani markets are faced with uncertainties and barriers in different areas all around the country among them the most recognizable are the uncertain economic conditions, inflations, law in order, terrorism and lack of education raises extremism. Therefore the research study is following with the intention to investigate the role of Customer Relationship Management for the attraction of new customers and retention of old for the betterment of the tourism industry position and customer support services in Tourism Industry of Pakistan. With rapidly increase worldwide competition, now days every companies witness higher customer turnover, and focus on customer because there is only one boss in this world which is customer. Over the few decades, world has become witnessed (observe) a phenomenal growth of tourism industry. Development of tourism industry first time gives a large portion for companies to invest their capital in tourism sector. Tourism historically operated in a relatively stable environment for decades. But any how now a day the industry is facing forceful tough time and tourism sector have lost a substantial proportion of business. CRM is growing trend in tourism sector today, Tourism sector invest too much on CRM for survival and gain large portion of market. There is lots of definition of CRM which mentioned in literature Review. In these study researchers has made an attempt (effort) to find to implement (put into practice) CRM in tourism industry of Pakistan Companies which are focus on tourism sector can generate huge volume of profit and business but only to focus on business and profit is not only issue and it is not so important, the most reasonable thing is to maintain this huge volume through customer satisfaction and increase profitability of the business. This needs a strategy which can help Tourism Industry in maintaining long term valuable relations with their customers and offer them life time value like CRM.

Pakistan has the world of oldest civilizations such as mountain beauty and fabulous seasonal variety, has vast tourist potential. The Pakistan, which is full of religious places which spread throughout the country, make Pakistan attractive place for variety of people and religions. From geographic point of view Pakistan has bundle of tourism Assets such as Coastal zone which spread over one thousand kilometers along the Arabian sea which offer long term development for beach resorts, diversified (expand) natural desserts in the south and beautiful hill stations which is located in north. Pakistan has also potential for tourism sports like mountain climbing and trekking. In Pakistan PTDC is operating for tourism sector in Pakistan. 1.3 Statement of Problem Tourism Industry in Pakistan has deep stumbling block to attract tourist from any segment. Such as Political instability, terrorism, lack of customer relationship. Pakistan as a developing country needs a greater portion of tourism industry just like other Asian countries

1.4 Objective of the Study

Customer relationship management assist customer to satisfy their stated needs with the offered services or product, this process promote the understand level about the intentions of the organization towards customers. Therefore it research worth full outcomes that CRM plays a positive role for the customer value promotion and mutual wealth development of the organization. The significant aim the research is planned and focused with a path way to underline empirical approaches to logically understand the actual condition of CRM and its effect on the tourism industry of Pakistan there are some supporting objectives are drawn about this study, these are as under: To investigate for the existence of the Customer Relationship Management practices in the tourism industry of the Muree To investigate of the existing role of Customer Relationship Management on the promotion and retention of the customer in the tourism industry of Muree.

To investigate the factors those are found supporting and none supporting towards Customer Relationship Management of the tourism industry of Muree. To develop compatible recommendations for applicable implementation of Customer Relationship Management practices in the tourism industry of Muree. To check the level of relationship management with tourist as customers.

1.5 Outline of the Study

This study comprises of five chapters. The content of the first chapter that already presented consist of the introduction, background, statement of problem, and objective of the study. Chapter two is mainly for the literature review of the study. This consists of the relevant information on the are of the study that is studies by the other authors on the Customer relationship management and on tourism industry. More over chapter three is where the research methodology is presented and in this case, a case study of on Muree valley will be chosen. Chapter four includes and analyses of the experimental data. Finally chapter five includes the overall conclusions that can be drawn from the research conclusions will be given in relation to the three research questions and the chapter come to an end with implications for further research

CHAPTER NO 2 LITERATURE REVIEW

2. Introduction
This chapter focuses that to provide all information to reader about the relevant literature review that is connected to our problem statement. In this chapter previous research about with their objective of study will be reviewed. The aim of this chapter to provide relevant literature in the field of CRM. And also provide literature about the effect of CRM in various sectors. And at the end of this chapter literature review of CRM effect on Tourism Industry will be reviewed.

2.2.

What is CRM?

According to Avidian mentions that CRM is the abbreviation of Customer Relationship Management means to provide a road map to connect with customer and maintain ,keep up to date about the current information. CRM require all feature of communication that a company has with its customer, whether it is sales or service related. CRM is often thought of as a business strategy that enables businesses strategy in following ways. 2.3. Know the Customer. Keep customers through better customer experience. Focus on new customer. Make new clients and contracts which increase profit of business. Reduce customer management costs

Definition of CRM:

There are diverse definitions about CRM. According to (Usmani.W.2010) in common language CRM is used to express and communicate the managing of circumstances all the way due thorough the entire sales process. CRM is normally arranging the data that can also control, such as an index card system or computer automated system. There is particularly designed software for Customer Relationship Management (CRM) that can also install directly into a computer or through internet that is accessible only online. CRM is useful because due to this organization enable to access the details of customers. Such as name, addresses, phone numbers etc.

The best way to maintain your customer or somewhat makes a new customer , just remember the tools to how to deal with existing customer and make a positive relationship with customer and due to this reliability of customer on organization will be definitely increase and permanent customer help to manage the consumer in large quantity. Customer Relationship Management is the strongest and the most valid tool in maintaining and creating positive relationships with customers. Customer Relationship Management is not only pure business but also made a superior relationship with people. Development of this type of connection with customers obviously organization understand the customer and innovate a result to the level of success. 2.3 Importance of CRM: According to Taylor importance of CRM are given below. A CRM structure consists of a historical view and study of the essential or to be obtains customers. This helps in reduced stabbing and show a relationship with customers and to forecast customer needs effectively and increase business. CRM include each and every bit of information of a customer, hence it is very easy for follow a customer accordingly and can be used to decide which customer can be profitable and which not. In CRM structure, customers are collection according to different aspects according to the type of business they do or according to physical location and are to be paid to different customer managers often called as account managers. This helps in focusing and directed on and every customer separately.