Relationship Marketing VS Traditional Marketing

Written by:
Farhan Saqib


Moreover they do not feel the need of providing after sales services. In this vein.Relationship Marketing VS Traditional Marketing Change does not roll in on the wheel of inevitability. there have been some voices questioning the adequacy of classical organizational forms in marketing. especially product or brand management. There has been growing interest in the future of marketing and changes in marketing's organization and role within the firm. Before 1970 there was a trend that firms used to sell what so ever they used to produce. But then a revolution took place & during the era of 70’s to 80’s a new concept came into being. many companies have changed their organizational structures to become more responsive to customer needs. argues that a higher level of organizational flexibility is needed and suggests two ideal forms that he refers to as the marketing exchange company and the marketing coalition company. The organizations who adopted this new trend realized that their profits are increasing at a tremendous pace. There whole focus is on increasing sales. Achrol (1991). without thinking of what a customer wants. Customers became the God for the organizations. it requires a continuous struggle. Every thing around us is being marketed since the beginning & everyone around us is playing the role of marketer. Day (1997) claims that "firms will increasingly evolve toward a hybrid or hypertext form of organization---combining the best features of horizontal process and vertical functional forms--in order to get closer to their customers". Then the firms just start developing long-lasting relations with their customers. The loyal customers served as an in-direct marketers for the organization. However. Developing long-lasting relations does not only helped in spreading the good word of mouth. known as relationship marketing. As an example. focusing on the effect of increasing environmental turbulence on marketing organization. Webster (1992) discusses changes in marketing's role within the firm and argues that "managing strategic partnerships and positioning the firm between vendors and customers in the value chain" will become the focus of marketing. There have recently been a number of articles that consider innovative ways of organizing marketing activities. but also helped in retaining & in the acquisition of new customers. There is growing evidence in the business press that the way firms are organizing their marketing activities is subject to major changes. 2 . there has not been research that holistically explores key changes in marketing organization.

and there are many different names given to these stages. 3 . the Relationship Marketing approach achieves very high customer satisfaction and is highly profitable.Relationship marketing is not about having a "buddy-buddy" relationship with your customers. you customize programs for individual consumer groups and the stage of the process they are going through as opposed to some forms of database marketing where everybody would get virtually the same promotions. By molding the marketing message and tactics to the LifeCycle of the customer. but treats marketing as a process over time rather than single unconnected events. The relationship marketing process is usually defined as a series of stages. Customers do not want that. The stage in the customer LifeCycle determines the marketing approach used with the customer. working from the relationship beginning to the end: Interaction > Communication > Valuation > Termination Awareness > Comparison > Transaction > Reinforcement > Advocacy Suspect > Prospect > Customer > Partner > Advocate > Former Customer Using the relationship marketing approach. Relationship Marketing uses the event-driven tactics of customer retention marketing. For example. depending on the marketing perspective and the type of business. with perhaps a change in offer.

and you need to react to the change with communication. This is an enormously important piece of data. because it indicates a very significant change in behavior. The cycle is complete until the next time the data indicates a change in behavior. Something has happened. If you can track customer LifeCycles. you would follow up with an e-mailed discount. or they have found an alternative source. All of the marketing decisions in the examples above were triggered by customer behavior. This inaction on their part is a trigger telling you something has happened to change the way this customer thinks about your site and perhaps your service. and the money you spend is much more effective. All of the above is accomplished by using the data customers create through their interactions with you to build simple LifeCycle models or rules to follow. You are using customer behavior over time (the customer LifeCycle) to trigger the marketing approach. Let’s say this same customer then makes a first purchase. and if you can predict them.A simple example of this would be sending new customers a "Welcome Kit." which might have an incentive to make a second purchase. a return of the first purchase. You spend less money overall. you can target your marketing efforts at the most critical trigger points in the customer LifeCycle. Let's say a customer visits your site every day and then just stops. You should react and look for feedback. with the most profitable offer. If you improve the content. Or perhaps they’re just plain not interested in the subject anymore. You send a welcome message. They are unhappy with the content. and provide a second purchase discount. This activity tracked over time is the customer LifeCycle. New technologies like the Internet emerged and changed deeply 4 . in the form of a second purchase. the feedback has been given. email them a notice. the actions of the customer as tracked by their activity (or lack of activity). you can begin to predict them. or increased visits. You have a new relationship now. If 60 days pass and the customer has not made a second purchase. You should react to this and then look for feedback from the customer. The relationship marketing approach then uses this LifeCycle model as a "timing blueprint" to follow. This approach eliminates a lot of wasted marketing spending. React to this new feedback and repeat the process. and if the customer starts visiting again. a deeper one. Perhaps you get negative feedback. thank the customer for the trust they have displayed in your site. and creates very high ROI marketing campaigns. targeting the right customers at the right time. Traditional marketing concepts were generated in the Fast Consumer Goods Sectors that were the powerhouse industrial sectors of the United States until the 80´s However in post industrial societies services become the dominant activities of the most developed countries. Then you await feedback from the customer.

The secret to a good newsletter is to avoid blatant self-promotion. reinforces your brand. With their permission. and other relevant info that subtly promotes your services. and instead offer valuable information to your subscribers. your client isn't as likely to think of you as their first port of call for a solution to their problem. Relationship marketing delivers many benefits to a design firm. Fortunately. build referrals. 3. you'll be able to reduce marketing expenses. and grow your business in step with your clients' needs. and builds trust. you might be in touch with your client several times a week. 2. big or small.people’s daily activities and the way firms created links with customers. In this course we will cover some concepts of relationship marketing and we will develop an applied project based on the net that allows you to put in practice marketing concepts. New Marketing ideas and concepts appeared as a result to these changes: acquiring customers was replaced by a new marketing objective. but keeping in touch often sinks to the bottom of the 'to do' list. Recognize your Vulnerability: In the midst of a project. FAQs. an affordable solution can help you retain those clients you worked so hard to acquire. Ask clients to subscribe and insert a subscription box on your site to capture email addresses of prospects who like the look of what you're doing. 1. Keep in touch: It's such a simple concept. you have the opportunity to drop into their email boxes every month with news. But it's the time between projects that is crucial to relationship-building. case-studies. 5 . Once the work is done. and new ideas like loyalty programs and marketing one-to-one started to appear. New Information Technology developments allowed the appearance of new tools like database marketing and internet marketing that supported and put in practice loyalty programs. This is when you're most vulnerable to replacement by a competitor. Slowly but surely. tips. retaining customers. Over time. The single easiest way to keep in touch is to publish an email newsletter. you drop out of that enviable top-of-mind awareness position. Change your Perspective from "Here's what I do" to "What do you need?" The cornerstone of successful relationships is to discover precisely what your clients need and want. as you build your client and prospect list. educates your clients.

whether it's in an email. or are sold. Ask your client if you may use his words and name in your brochure and on your site. Your client views you as a valuable consultant. Use a handful of client case studies in industries you're targeting for new business development. If you can retain more clients for longer periods. or a conversation. Media-related commercial marketing aimed at promoting the purchase of products and services by children.problem -. rather than a cost center. But. Your email newsletter won't do much good unless you publish it regularly and the content is valued by your subscribers. stressing the benefits the client now enjoys as a result of your work. And the truth is that no matter how wonderful you are. 5. change focus. and by adults for children. Position Yourself as an Expert. If you ask. too. Grow to Meet Client Needs. It requires a change in thinking and some discipline along the way. thank-you letter. clients go away. 6 . Most often. including reduced marketing expenses measured in both time and money. with a link to his business.4.perfect for your Website or for inclusion in printed marketing materials. the answer is yes. Priceless word-of-mouth endorsements from satisfied customers will result in new business which magically walks in the door. Their businesses close down.solution -. There's payoff for you. You won't even have to request client testimonials. Testimonials are a critical piece of successful service marketing and worth their weight in whatever precious metal you value. Examples of "just like me" situations help prospective clients understand exactly how useful your services are. Start by recognizing when you receive a spontaneous testimonial. But the rewards can be significant. Your potential for increased revenues and a long-lasting relationship is real. The Payoff The benefits of a relationship marketing approach go both ways. as Douglas Evans points out. Increasingly savvy social marketers have begun to make extensive use of the same techniques and strategies used by commercial marketers to promote healthful behaviors and to counter some of the negative effects of conventional media marketing to children and adolescents.benefits' flow to highlight how you solved the client's problem. Case-studies will be a breeze and add a powerful marketing tool . is ubiquitous and has been associated with negative health consequences such as poor nutrition and physical inactivity. Follow a 'situation -. you'll trim costly space advertising and other marketing costs. Media has played an important role in this perspective. Relationship-focused marketing isn't something that will happen overnight. not all marketing in the electronic media is confined to the sale of products. you'll get more referrals from your clients.

7 . and adolescents and suggests a brand based on personal interaction as a desirable alternative to "virtual interaction. He reviews the evidence from a number of major recent campaigns and programming in the United States and overseas and describes the evaluation and research methods used to determine their effectiveness. Relationship marketing is something which has helped a lot to the organizations in generating abnormal profits. and promote condom use. how it can counter media messages about unhealthful behavior. He begins his review of the field of social marketing by describing how it uses many of the strategies practiced so successfully in commercial marketing. improve nutrition. He notes the recent development of public health brands and the use of branding as a health promotion strategy. as well as other positive health behaviors. Evans also outlines a message strategy to promote "smart media use" to parents. increase physical activity.Evans points out that social marketing campaigns have been effective in helping to prevent and control tobacco use. and how it can encourage discussions between parents and children. such as delivering branded messages that promote healthful alternative behaviors. children. These include adapting lessons learned from previous successful campaigns. He then goes on to show how social marketing can promote healthful behavior." In the end it could easily be revealed that change is compulsory for survival in market. Evans concludes by noting some potential future applications to promote healthful media use by children and adolescents and to mitigate the effects of exposure to commercial marketing.

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