relationship marketing
DESCRIPTION
TRANSCRIPT
Buyer and seller exchanges are characterized by limited communications and little or no ongoing relationships.
ConflictConflict
Views customers as equal partners in buyer- seller transactions.
CooperationCooperation
Goes a step further and integrates the customer’s needs into all aspects of the firm’s operations and it’s relationships with suppliers, distributors, and strategic partners.
IntegrationIntegration
In general, the differences between In general, the differences between the narrow focus of transaction the narrow focus of transaction marketing and the much broader view of marketing and the much broader view of relationship marketing can be relationship marketing can be summarized as follows:summarized as follows:
Focuses on the long term rather than the short term
Emphasizes retaining customers over making a sale.
Ranks customer service as a high priority
Encourages frequent customer contact
Fosters customer commitment with the firm
Bases customer interactions on cooperation with the firm.
Commits all employees to provide high-quality products
They gather information about their customers.
They analyze the data collected and use it to modify their marketing mix to deliver differential messages and customized marketing programs to individual consumers
Through relationship marketing, they monitor their interactions with customer.
With customer relationship management (CRM) software
The concepts of customer satisfaction and relationship marketing usually are discussed in terms of:
External MarketingExternal MarketingPeople/Organizations that buy /use a firm’s
goods or services. But marketing in organizations concerned with customer satisfaction and long term relationships must also address.
Internal CustomersInternal CustomersEmployees or departments within the
organization whose success depends on the work of other employees or departments.
Internal marketingInternal marketing Depends on managerial actions that
enable all members of an organization to understand, accept, and fulfil their respective roles in implementing a marketing strategy.
Employee SatisfactionEmployee SatisfactionIs another critical objective of internal
marketing. Employees can seldom, if ever, satisfy customers when they are unhappy.
As an individual or firm progress from the lowest level to the highest level.
Degree of customization Low Medium Medium to high
Potential for sustained Low Moderate High competitive advantaged
Examples Fast- food TiVo-YouTube Southwest dollar- menu partnership Airlines items Business traveler program
First Level: Focus on Price Second Level: Social Interactions Third Level: Interdependent Partnership
First Level: Focus on Price - are the most superficial and the least likely to lead
to a long- term relationship.
Second Level: Social Interactions - theirs interactions develop on a social level, one that
features deeper and less superficial links than the financially motivated first level.
Third Level: Independent Partnership - relationship are transformed into structural
changes that ensure buyer and seller are true business partners.