relationship mgmt- background and theory

7/27/2019 Relationship Mgmt- Background and Theory

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Relationship Management

Background and Theory


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Relationship Management

A strategy in which a continuous level of engagement

is maintained between the organization and its

stakeholderswith the objective of building and

maintaining long-term satisfying relationships


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Relationship Marketing

"Relationship Marketing is marketing seen asrelationships, networks and interaction"

Evert Gummesson


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Supplier Customer

Simple linear relationship betweensupplier and customer

The Classic Dyad


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Suppliers

Compan

y

Distributors

Customers

EmployeesRegulators &

Influencers

Partners &

Competitors

A constellation of relationships


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McCarthy's Four Ps Marketing Mix

Framework

Product

Price Promotion

Place


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Changing

Market

Dynamics

Inflexible

'Tool-Box'

Approach

Narrow

Scope

Isolation

of Marketing

Decline of Traditional Marketing


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Service

Quality

Industrial

Marketing

Total Quality

ManagementSupply Chain

Management

RELATIONSHIP

MARKETING

Marketing of

ServicesTraditional

Marketing

Network

Marketing

Customer

Retention

Influencers of RM


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RM Popularised by the Nordic School

Evert Gummesson (Stockholm UniversitySchool of Business)

Christian Gronroos (Swedish School ofEconomics and Business Administration)

Scandinavian marketing academics andpractitioners who championed the philosophy

of RM in 1990s


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Fundamental Values of RM

Long-term sustainable relationships

Everyone wins

Recognising that all parties can be active Service values, not 'bureaucratic and legal values'


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Examples of RM

Harley Davidson Owners Group (HOG)


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Examples of RM

British Airways Executive Club


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Examples of RM

Readers Digest


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Theories of Relationship Marketing

Evert Gummesson, 1988


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Four Partnership approach to RM

Supplier

Partnerships

Internal

Partnerships

Customer

Partnerships

FIRM

External

Partnerships

Source: Adapted from Morgan and Hunt (1994) and Doyle (1995)


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Internal

Markets

Supplier and

AllianceMarkets

Recruitment

Markets

Influence

Markets

ReferralMarketsCUSTOMER

MARKETS

The Six Markets Model

Source: Christopheret al. (1991) Relationship Marketing: Brin ging Qu ality, Custom er Service and Marketing

Together. Elsevier.


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Gummesson's 30Rs(2002)

30 identifiable relationships in business

Classic Relationships

Special Relationships

Mega Relationships

Nano Relationships


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Classic Marketing Relationships

Those form basis of all marketing and apply in

some form to all organizations


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R1 SupplierCustomer R2 CustomerSupplierCompetitor

R3 Physical Distribution/ Distribution

Channels


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Special Relationships

Derived from classic supplier customer

relationship but require special

consideration due to their unique

characteristics


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R4 Full-time marketers-part-time marketers

R5 The service encounter: interaction between the customer

R6 Many-headed customer -the many-headed supplier

R7 The relationship to the customer's customer

R8 Mental and physical proximity to customers

R9 Relationship to the dissatisfied customer

R10 Monopoly relationship: the customer or supplier as prisoner R11 The customer as 'member'

R12 IT: The electronic relationship

R13 Relationships to symbols and objects

R14 The non-commercial relationship

R15 The green relationship

R16 The law-based relationship

R17 The criminal network


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R18 Personal and social networks

R19 Mega-marketing: the real 'customer' is not

always found in the marketplace

R20 Alliances change the market mechanisms

R21 The knowledge relationship R22 Mega alliances

R23 The mass media relationship R24 Market

mechanisms are brought inside the company


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Nano Relationships

Internal relationships


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R25 The relationship between internal

customers and internal suppliers

R26 Quality providing a relationship between

operations management and marketing

R27 Internal marketing: relationships with the

'employee market

R28 The two-dimensional matrix relationship

R29 The relationship to external providers of

marketing services

R30 The owner and financier relationship


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relationship mgmt- background and theory

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