Description
Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.
RELATIONSHIP MARKETING
• The term relationship marketing was first coined in America in the early 1980?s. • According to American Marketing Association (1995) , “ Relationship Marketing is marketing with the conscious aim to develop and manage long term and / or trusting relationship with customers, distributors, suppliers , or other parties in the marketing environment”.
• The building of good personal relationship with customer is usually integral to small business management and example of owner of small corner shop is often used to illustrate the essence of relationship marketing.
• The small shopkeeper has direct knowledge of all regular customers and becomes familiar with their needs and their likes and dislikes. • This enables the shopkeeper to provide services tailored to individual needs, planned on the basis of known customer requirements. • Overtime, a bond of loyalty is likely to develop between shopkeeper and the regular customer.
Relationship marketing defined
• Pathmarajah(1993)defines relationship marketing as “ the process whereby the seller and the buyer join in a strong personal, professional and mutually profitable relationship over a time”.
5 E?s of relationship marketing
He characterized relationship as having following properties • Effective • Efficient • Enjoyable • Enthusiastic • Ethical
Companies which are genuinely committed „ to the 5E?s are far less common than one may expect, but those who are aim to• Offer the most value, personally and professionally • Become a unique source in helping the buyer build something better e.g. better peace of mind. •
Levitt has opined that scale transaction should be regarded as a start rather than end of relationship.
Comparison of seller and buyer reactions when the sale is first made seller Objective achieved Buyer Judgement postponed
Selling stops Focus goes elsewhere
Tension released
Shopping continues Focus on purchase
Tension increased
Relationship reduced or ended
Commitment made
• The extent of relationship marketing concept varies with the customer as some are more disposed towards it than others.
doc_563704110.ppt
Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions.
RELATIONSHIP MARKETING
• The term relationship marketing was first coined in America in the early 1980?s. • According to American Marketing Association (1995) , “ Relationship Marketing is marketing with the conscious aim to develop and manage long term and / or trusting relationship with customers, distributors, suppliers , or other parties in the marketing environment”.
• The building of good personal relationship with customer is usually integral to small business management and example of owner of small corner shop is often used to illustrate the essence of relationship marketing.
• The small shopkeeper has direct knowledge of all regular customers and becomes familiar with their needs and their likes and dislikes. • This enables the shopkeeper to provide services tailored to individual needs, planned on the basis of known customer requirements. • Overtime, a bond of loyalty is likely to develop between shopkeeper and the regular customer.
Relationship marketing defined
• Pathmarajah(1993)defines relationship marketing as “ the process whereby the seller and the buyer join in a strong personal, professional and mutually profitable relationship over a time”.
5 E?s of relationship marketing
He characterized relationship as having following properties • Effective • Efficient • Enjoyable • Enthusiastic • Ethical
Companies which are genuinely committed „ to the 5E?s are far less common than one may expect, but those who are aim to• Offer the most value, personally and professionally • Become a unique source in helping the buyer build something better e.g. better peace of mind. •
Levitt has opined that scale transaction should be regarded as a start rather than end of relationship.
Comparison of seller and buyer reactions when the sale is first made seller Objective achieved Buyer Judgement postponed
Selling stops Focus goes elsewhere
Tension released
Shopping continues Focus on purchase
Tension increased
Relationship reduced or ended
Commitment made
• The extent of relationship marketing concept varies with the customer as some are more disposed towards it than others.
doc_563704110.ppt