In a business context, what does 'customer relationship management' (CRM) focus on?

Customer relationship management (CRM) focuses on building and managing customer relationships, which is crucial for businesses aiming to enhance customer satisfaction and loyalty. The essence of CRM revolves around understanding customers' needs, behaviors, and preferences to provide personalized services and improve communication. By fostering strong relationships, businesses can increase customer retention and drive sales through repeat purchases and referrals. This approach not only enhances the overall customer experience but also contributes to a company’s long-term success.

The other options do not align with the fundamental objectives of CRM. While increasing product prices or reducing manufacturing costs may have their own roles in business strategy, they do not directly relate to the management of customer interactions and relationships. Developing internal company policies, although important for organizational function, also does not pertain to the external focus that CRM embodies regarding customer engagement and satisfaction.