Relationship marketing

RELATIONSHIP MARKETING

Plan:

1)The essence of marketing2) Main characteristics of relationship

marketing3) Relationship Marketing and the 4Ps

4)Comparison between TM and RM

• marks a significant paradigm shift in

marketing, a movement from thinking solely in terms of competition and conflict toward thinking in terms of mutual interdependence

and cooperation.

Relationship Marketing

Importance of different parties

Suppliers Employees

Distributors

Dealers Retailers

 Main characteristics of relationship marketing• It focuses on partners and customers rather than

on the company’s products.

• It puts more emphasis on customer retention and

growth than on customer acquisition.

• It relies on cross-functional teams rather than on

departmental-level work.

• It relies more on listening and learning than on

talking.

RELATIONSHIP MARKETING

Objectives Defining constructsInstruments

Relationship Marketing and the 4PsProduct More products are customized to the customers’ preferences. New products are developed and designed cooperatively with suppliers and distributors.

PriceThe company will set a price based on the relationship with the customer and the bundle of features and services ordered by the customer.In business-to-business marketing, there is more negotiation because products are often designed for each customer.

Relationship Marketing and the 4Ps

Distribution Communication RM favours more direct marketing to the customer, thus reducing the role of middlemen. RM favours offering alternatives to customers to choose the way they want to order, pay for, receive, install, and even repair the product.

RM favours more individual communication and dialogue with customers. RM favours more integrated marketing communications to deliver the same promise and image to the customer.RM sets up extranets with large customers to facilitate information exchange, joint planning, ordering, and payments

ComparisonTM RM

-Transaction based-Aim is to seek new customers-Focus on single sale-Discontinuous customer contact-Importance of product benefits-Short time scale-Less emphasis on service-Quality is the concern of production-Persuasive communication

-Focus on customer Relation-Continuous customer contact-Importance of customer benefits-Longer time scale-High customer service-Quality is the concern of all-Regular communication

Relationship is developed by:

• Satisfying customers• Adding value• Privileges• Customer orientation• Use of database• Two-way communications• Quality products• Loyalty schemes-enhanced knowledge of

customers ; allows for highly targeted promotion

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