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DEFINING RELATIONSHIP MARKETING
PRINCIPLES OF MARKETING GROUP 1
ADAYO, MARK JOHN
DELARA, EVALAINE CORREOS, DAYLENE Relationship Marketing • According to Gilaninia et al (2011), Relationship Marketing involves creating, maintining and enhancing strong relationsips with customers and other stakeholders. • Relationship marketing is oriented more towards the long term. The goal is to deliver long-term value to customers and the measure of succes is long-term customer satisfaction. • It requires that all the company’s departments work together with marketing as a team to serve the customer. It involves building relationships at many levels- economic, social, technical and legal- resulting in high customer loyalty. Relationship Marketing: • Basic. The company salesperson sells the product but does not follow up in any way. We can distinguished five different levels of • Reactive. The salesperson sells the relationships that can be product and encourages the costumer to formed with costumers who call whenever he or she has any have purchased a company’s questions or problems. product , such as car or a piece of equipment: • Accountable. The salesperson phones the customer a short time after the sale to check wether the product is meeting the customer’s expectations. Relationship Marketing: • Proactive. The salesperson or others in the company phone the costumer from time to time with suggestions about We can distinguished five different levels of improved product use or helpful new relationships that can be products. formed with costumers who • Partnership. The company works have purchased a company’s continously with the customer and with product , such as car or a piece of equipment: other customers to discover ways to deliver better value. Concept of Relationship Marketing • Forbes.com defined Relationship marketing is a strategy designed for customer loyalty, interaction, and long-term engagement to be fostered. it is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests by promoting open communication. • Costumer relationship is the development of an ongoing connection between a company and its customers. The relationship involves marketing communications, sales support, technical assistance and costumer service.
• According to Serrano, Relationship Marketing includes activities aimed at
developing and managing trusting and long-term relationships with larger customers. (Costumer profiles, buying patterns and history of contacts are kept in a sales distribution) Characteristics of Relationship Marketing • 1. It focuses on the long-term rather than the short-term. • 2. It focus on partners and customers rather than on the company’s products. • 3. It puts more emphasis on customer retention and growth than on customer acquisition. • 4. It relies on cross-functional teams rather than on departmental-level work. • 5. It relies more on listening and learning than on talking. Benefits in Developing and Implementing Customer Relationship:
• 1. Consistent customer experience.
• 2. Customers Feedback • 3. Customer Profitability • 4. Customer Advocate • 5. Innovation Benefits of Relationship Marketing: • In the business world, retaining costumers has a lesser cost at least eight times compared to accquiring new ones.
• A. Understanding Costumer Characteristics- the company can
segregate its costumers into groups based on their characteristics like purchasing power, frequency and volume of sale tranactions. Benefits of Relationship Marketing: • B. Delivery and Meeting Expectations. if the company knows what is customer’s needs are, it will help reduce wastage due to trial and error methods. It is easier to create a product if the features and specifications of the product are known.
• C. Repeat Business. Sellers should maintain good attitude to the
buyers. By doing this, buyers will feel they do not need to switch sellers. Benefits of Relationship Marketing: • D. Prevents Negative Transition. Trust and loyalty go hand in hand and it is super beneficial for all business. It will prevent costumers from turning to competitors.
• E. World of Mouth Marketing.
• Increasing Customer Base- satisfied existing customer is 100% more likely to recommend a product/service to a prospective customer. Apart from costumer, referrals, there are several other ways to increase customer satisfaction by employing methods of utilizing social networking websites, blogs, informal surveys, Benefits of Relationship Marketing: benefits on loyalty cards, timely response to complaints and requests as a constant reminder of its presence around and retention equity is improved by enhancing customer satisfaction.
• F. Reduced Marketing Cost. benefits also include lesser
marketing costs and more value creation. This can be explained by stating the following statistics: every 5% increase in customer retention can increase a company’s annual profits from at least 25% to as much as 125%, while simultaneously leading to a reduction of 10% in marketing costs. Benefits of Relationship Marketing: • G. Identification with the company. the benefits are reaped both by the company and the customers. It helps customers identify more with the company. Keeping your communication lines open and keeping in touch with the customers makes them feel like they are being valued.
• H. Product Market Expansion. the company’s employees must
be ready to deliver beyond the company’s boundaries on customer demand.