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relationship marketing vs traditional marketing

relationship marketing vs traditional marketing

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Published by: $ayan@ on Feb 26, 2010
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Relationship MarketingVS TraditionalMarketing
Written by:
Farhan Saqib
Relationship Marketing VS Traditional Marketing
Change does not roll in on the wheel of inevitability, it requires a continuous struggle.
There has been growing interest in the future of marketing and changes in marketing's organization androle within the firm. However, there has not been research that holistically explores key changes inmarketing organization. There is growing evidence in the business press that the way firms are organizingtheir marketing activities is subject to major changes. As an example, many companies have changedtheir organizational structures to become more responsive to customer needs. In this vein, there havebeen some voices questioning the adequacy of classical organizational forms in marketing, especiallyproduct or brand management. There have recently been a number of articles that consider innovativeways of organizing marketing activities.Achrol (1991), focusing on the effect of increasing environmental turbulence on marketing organization,argues that a higher level of organizational flexibility is needed and suggests two ideal forms that herefers to as the marketing exchange company and the marketing coalition company. Webster (1992)discusses changes in marketing's role within the firm and argues that "managing strategic partnerships andpositioning the firm between vendors and customers in the value chain" will become the focus ofmarketing. Day (1997) claims that "firms will increasingly evolve toward a hybrid or hypertext form oforganization---combining the best features of horizontal process and vertical functional forms--in order toget closer to their customers".Every thing around us is being marketed since the beginning & everyone around us is playing the role ofmarketer. Before 1970 there was a trend that firms used to sell what so ever they used to produce. Therewhole focus is on increasing sales, without thinking of what a customer wants. Moreover they do not feelthe need of providing after sales services. But then a revolution took place & during the era of 70’s to80’s a new concept came into being, known as relationship marketing. Customers became the God for theorganizations. Then the firms just start developing long-lasting relations with their customers. Theorganizations who adopted this new trend realized that their profits are increasing at a tremendous pace.Developing long-lasting relations does not only helped in spreading the good word of mouth, but alsohelped in retaining & in the acquisition of new customers. The loyal customers served as an in-directmarketers for the organization.
Relationship marketing is not about having a "buddy-buddy" relationship with your customers. Customersdo not want that. Relationship Marketing uses the event-driven tactics ofcustomer retention marketing,but treats marketing as a process over time rather than single unconnected events. By molding themarketing message and tactics to theLifeCycleof the customer, the Relationship Marketing approachachieves very high customer satisfaction and is highly profitable.The relationship marketing process is usually defined as a series of stages, and there are many differentnames given to these stages, depending on the marketing perspective and the type of business. Forexample, working from the relationship beginning to the end:Interaction > Communication > Valuation > TerminationAwareness > Comparison > Transaction > Reinforcement > AdvocacySuspect > Prospect > Customer > Partner > Advocate > Former CustomerUsing the relationship marketing approach, you customize programs for individual consumer groups andthe stage of the process they are going through as opposed to some forms of database marketing whereeverybody would get virtually the same promotions, with perhaps a change in offer. The stage in thecustomerLifeCycledetermines the marketing approach used with the customer.

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