Relationship Marketing

5/01/2012

Akash C.M

Remember Me ??

I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book.

"Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy."

Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby

Akash C.M

RM Definition

Attracting, maintaining and enhancing customer relationship

- Berry 1983

Relationship marketing: the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders
- Gummersson 1994

Activities directed towards establishing developing and maintaining successful relational exchanges
- Morgan and Hunt 1994
Akash C.M

It will reap greater rewards from long-lasting relationships with customers

says, It is going from excessive mass marketing to Relationship Marketing

Akash C.M

Transactional Vs Relationship Marketing

Transactional Marketing Do the deal and disappear Push price Relationship Marketing Negotiate a win-win sale situation and stay around, being a resource for better result Promote value

Short-term thinking and acting

Building the business on deals Getting new customers No structure for on-going business Selling focused Race for a sale result After-sales support and service poor seen as cost Product-service focused Rewards-incentive for doing deals The deal is the end. Pursuit of deals.

Long-term thinking and acting

Building the business on relationships Keeping all customers and clients Structure created to support business relationship; special club and memberships for frequent users/buyers Relationship focused for results Swift, strong, safe and enduring in results through relationship building After-sale support and service seen as an investment in the relationship People expectations and perception focused Rewards incentives for maintaining and growing relationship and revenue The sale just the beginning. Pursuit of long-term relationship and result. Akash C.M

Relationship Marketing Programs

Literatures suggest 3 types of pgms

Continuity Marketing Programs One to One Marketing Partnering Programs

These different forms depends on whether they are meant for end customers, distributor customers or B2-B customers

Akash C.M

Continuity Marketing Programs

Majority of Cos have developed this program Aims at retaining customers and increasing loyalty Consumer in Mass Markets

Membership & loyalty card programs

Distributor Customers

Continuous replenishment
Preferred Customer Programs Single and Dual Sourcing Programs

B-2-B

Akash C.M

Source: www.mycokerewards.com
Akash C.M

Source:http://www.staplespreferred.ca
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One to One Marketing

One to One or individual marketing is grounded on account-based marketing Once this concept prevalent only in B2B Mass Market (dissemination of individualized info)

Online info & database of customers Info used to develop frequency, interactive and after marketing programs to develop relation on high yielding customers

Distributors Customers

Individual marketing pgms take the form of customer business development

Akash C.M

conti..

B-2-B

Individual marketing has been in place for quite some time Key Account Management (KAM)

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Partnering Programs

This pgm involves partnering relationships between customers & marketers to serve end-user needs Mass Market

Co-branding Affinity Partnering

Distributors Customers Partnering pgms through

Logistics partnering Cooperative marketing

Akash C.M

Amazon.com
IM Logistics will exclusively fulfill Amazon.com's desktop, notebook and related accessory sales,

handling all the logistical pick,

pack and ship functions on behalf of the e-tailer.

Source: http://www.crn.com/news/channelprograms/18815408/ingram-micro-amazon-comannounce-exclusive-logisticspartnership.htm;jsessionid=pDR4TQ1lAxj2uuyVeqs pAw**.ecappj01

Source: http://www.ingrammicro.com
Akash C.M

Affinity Program: A marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities

B-2-B

Partnering pgms marketing activity

involve

co-development

and

co-

Akash C.M

Worlds Largest Mens Store

Source: http://www.slaters.co.uk/
Akash C.M