relationship marketing2.pptx

7/29/2019 RELATIONSHIP MARKETING2.pptx

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RELATIONSHIP

MARKETING


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Relationship marketing (or relationship

management) is a philosophy of doing business ,

a strategic orientation that focuses on keepingand improving current customers rather than on

acquiring new customer.


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What is Relationship Marketing?

Relationship designed to create,

maintain and enhance strongrelationship with customers and other

stakeholders


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Relationship Marketing Definition

Attracting, maintaining and enhancing

customer relationship.

Berry 1983

Activities directed towards establishing

developing and maintaining successfulrelational exchanges.

Morgan and Hunt 1994


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IBM

It will reap greater rewards from long-

lasting relationship with customers.


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Customer Lifetime Value

Losing an existing customer means

losing the entire revenue stream thatcustomer represents not just that

single encounter or sale


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5 levels of relationship marketing

1 Basic Marketing

The salesperson sells to the final

customers. This is also known as direct

sales.

2 Reactive Marketing

The sales person sells the product and

encourages the customer to call for anycomments or enquiries.


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3 Accountable Marketing

The sales person calls the customers to

ensure whether the product is working as

per satisfaction and if there is any problem

in the product. Furthermore he also asks

the customer for any suggestions /

feedback to improve the service / product.

Thus he is taking responsibility for the sale.


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4 Proactive marketing

The company works continuously with its large

customers to help improve performance. This is

especially seen in financial companies wherein

the movement in the financial market inducesthe company to make changes regularly.

However at the same time, these financial

companies have to take care of their customers

as well. Thus they take regular feedback fromtheir large customers thereby developing their

products accordingly.


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5 Partnership Marketing

The company works continuously with its

large customers to improve its

performance. An example would include

General Electric which has stationedEngineers to its third party service centers

to improve overall performance. Thus even

in partnerships GE is ensuring optimal

relationship development with the parentbrand.


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Objectives of Relationship Marketing

Customer satisfaction

Customer Delight

Share of Customer

Customer Retention

Loyalty


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Strengths of Relationship Marketing

Focus on providing value to customers

Emphasis on Customer Retention

It provides a better basis for achieving

competitive advantage

Longterm customers are less likely to

switch to competitors

Happier customers may lead to happier

employees.


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Relationship Marketing


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Bond ing :two parties must bond to

one another in order to develop a long-

term relationship

Empathy:the ability to see situations

from the perspective of the other party


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Reciproci ty:every long-term

relationship includes some give-and-

take between the parties

Trust :reflects the extent of one

partys confidence in another partysintegrity


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Thank You

relationship marketing2.pptx

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