Relationship Marketing

Description
This is ppt about relationship marketing it includes various theories like one to one marketing, permission marketing, 3D marketing(McKinsey).

New Perspective of Marketing

Relationship Marketing

New Perspective of Marketing

Digitalization and connectivity Disintermediation and re-intermediation Customization and Customerization Industry Convergence

How Business practices are changing

Old Economy
Organize by product Units Look at Financial scorecard Focus on Profitable transaction Focus on Shareholder Brand Building thro’ advertising Focus on Customer acquisition

New Economy
Organize customer segment Look also at Marketing scorecard Focus on CLTV Focus on Stakeholder Brand Building thro’ Marketing Focus on Customer retention

No CSM
Over promise, under deliver

Measure CS and retention rate
Under promise, overdiver deliver

New Perspective of Marketing
Personalizing Marketing
Experiential Marketing Premise - Sense, feel, think, act and relate – Bernd Schmitt

Radical Marketing (Sam Hill & Rifkin)
Premise CEO is marketing head Marketing Dept is flat and small Get out of Head Office Hire passionate missionaries Be true to brand Love and respect your Customer

New Perspective of Marketing
One to One Marketing (Pepper & Roger)
From Transaction based Marketing to Relationship based Marketing 1 Focus on Individual consumers through consumer databases “We single out consumers” 2 Respond to consumer dialogue via interactivity “The consumer talks to us” 3 Customize products and services “ We make something unique for him”

New Perspective of Marketing
Permission Marketing (Godin)
This methodology of marketing is possible because of high Technological development in internet. The practice of Marketing to the consumers only after gaining their express Permission Steps to effective permission marketing 1. Offer the prospect an incentive to volunteer 2. Teach the consumer about the product or service 3. Offer additional incentive to guarantee that the volunteer maintains the permission 4. Leverage, the change to consumer behavior & make profit.

Amazon.com

New Perspective of Marketing
3D Marketing – McKinsey Consulting
It communicates 3 types of benefits 1. Functional Benefits – Product, performance attributes, Value; quality etc. 2. Process Benefits – Ease of information, broad product selection, automated product replenishment, convenient transactions 3. Relationship benefits – Value based on personalized service; information sharing; value exchange

Relationship Marketing
FEW FACTS
Acquiring new customer can cost 5 times more than retaining it On an average company losses 10 % of its customer every year ( exception is Retail) 5% reduction in the customer defection arte can increase profits to 25 to 85 %

Relationship Marketing
Mass Customization
The premise is to make products to fit the customer’s exact specification It requires digital age technology Customer can communicate their preferences directly to the company Has sophisticated production line Dell Computer, Levi’s jeans, My Design - Barbie

Relationship Marketing
After Marketing
The activity occurs after the purchase is completed Creates better brand equity This technique can be used were the Company is very confident about the performance The product Has long lasting Customer resonance The Activities involve 1. Create information file 2. Analyze customer feedback 3. Conduct CS survey 4. Formulate & mange communication program 5. Host special customer events or program 6. Identify and reclaim lost customers.

Relationship Marketing
Loyalty Program
Can create strong ties with customer It is frequency marketing It is defined as identifying, maintaining and increasing the yield from a firm’s best customers through long-term, interactive, value-added relationships

Most effective in Retail & Aviation
Effectiveness tips 1. Know your customer 2. Change in goods / merchandise 3. Listen to your best customer 4. Engage and respect them 5. Enhance their purchase by rewards or loyalty points



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