Assignment

The Future Trends of Relationship

Marketing in Bangladesh
Course Name: Relationship Marketing
Course Code: MKT-524

Submitted To:
Fatema-Tuz-Zohora
Assistant Professor
Department of Marketing
University of Barisal

Submitted By:
GENESIS
Department of Marketing
University of Barisal

Date of Submission : January 3, 2018.

University of Barisal
Department of Marketing
Group Name: GENESIS

Serial Members Name ID No.

Number

1. Samia Siddika 16 MKT 001

2. Alimuzzaman Ahmmed 16 MKT 005

3. Md. Sefat- Ul- Islam 16 MKT 024

4. Md. Monir Hossen 16 MKT 026

5. Md. Iftikhar Rahman 16 MKT 038

Introduction

Relationship marketing is strategy that emphasizes customer retention, satisfaction, and lifetime
customer value. Relationship marketing can be defined as marketing to current customers vs.
new customer acquisition through sales and advertising. As opposed to transactional marketing’s
focus on one-off sales, a good relationship marketing strategy is rooted in building customer
loyalty and lasting, long-term engagement with your customer base. Benefits include increased
word-of-mouth, repeat business, and a willingness on the customer’s part to provide valuable
feedback to the company. For decades, one of the key roles of market research has been to help
companies forecast customer acceptance of innovation and of changes to the market mix (the
4Ps). However, traditional market research is in danger of being left behind by new practices in
Sales, Marketing and R & D. Reflecting an increasingly participative approach to customer
relationships, these disciplines are moving towards customer involvement and co-creation of
value rather than innovation mainly generated by head office and only then tested among
customers (Roberts, Baker and Walker, 2005). As companies invest in customer relationship
management (CRM) programs, they need to design new forms of relationships with those
directly affected: their customers. As customers use internet-related technologies to manage their
relationships with suppliers, co-creation will become a more important component of innovation
and growth strategies. In this context, traditional market research approaches begin to look
outdated.

Emerging Techniques of Relationship Marketing

Relationship marketing is a facet of customer relationship management (CRM) that focuses on

customer loyalty and long-term customer engagement rather than shorter-term goals like
customer acquisition and individual sales. Relationship marketing is a strategy designed to foster
customer loyalty, interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly suited to their needs
and interests and by promoting open communication.
 Social Media– an interconnected world

In today’s world, friend’s recommendations have become very crucial for buying decisions and
the online relationship networks provide a platform for this. Within a few years, even a few
months, numerous different internet communities developed into virtual market places with
immense dynamic. Actively taking advantage of these platforms might be absolutely crucial for
companies to survive in the online world.

 Customer intimacy

Customer intimacy is a marketing concept in which the customer accepts the service provider as
a partner, with a certain familiarity and knowledge of the customer's needs. Amazon is a good
example: the information from all previous purchases and searches are saved and used to actively
offer new products to the customer - automatically! This means, the more you know about your
customer as a person, including personality and life style, the easier it will be to target the
customer emotionally. Advertising messages can be adapted according to personality types, for
example making use of people's curiosity or need for safety. In this field it is especially
important to handle privacy issues with great care.

 Limitless access

Companies can make use of a lot of data from the internet. RM systems like different software
are able to enhance company profiles by collecting reference information from the internet.
Phone calls can be identified from the first incoming call. Social media monitoring is a one-click
solution, providing a wealth of information - be it a potential customer or job applicant. Even
information about the potential customer's credit history may be immediately available.

 Cockpits– intelligent transparency

Cockpits enable an overview and control of a situation at one glance. RM cockpits connect a lot
of different information sources, giving a clear overview, and provide information about live
data. New types of questions can be answered, e.g. „are there customer we are a lot in contact
with, but there is a low turnover?" but also even more importantly: „is communication slowing
down with high-turnover customers?" Answering such kind of questions allows companies to
react much earlier to changes in the customer relationship.
 Apps

The Apple app store is just the beginning of a new era of software developed according to
customer needs. Lean and highly specific applications can be integrated easily in a user's
working environment, e.g. RM connectors are integrated seamlessly with applications like email,
Facebook, XING or Wordpress.

 IT-service from the cloud

Cloud Computing enables processing power and cloud space via the Internet, providing
companies with a lot of advantages: employees are connected to customers and partners with the
option of file and data sharing, hybrid solutions make efficient use of the IT infrastructure and
administration and save a lot of costs and highly efficient data processing centers ensure data
safety.

 Competitive advantages

Extensive relationship marketing creates competitive advantages. Marketer must try to build
intimacy not just with customers, but also with employees, suppliers and partners to make use of
their ideas, needs and motivation for mutual success

New Trends Affecting Relationship Marketing

Business needs to focus and make clear the consumer expectations, imagine how wide the
consumer choice of platforms in now a high-speed technology developing the world such as
social media, marketing technologist, product globalization or internal communications, etc. The
new generation of shoppers does not trust brands; to target this group “influencer” is used.
“Influencers” included YouTube, blogger, and other tastemakers of the Internet. Brands sponsor
these figures by sending products to be reviewed or discussed on each respective platform. These
reviews give brands a chance to connect with customers on a more personal level. The
connection made through You Tubers and blogger allows purchasers to have a trusted source that
gives an honest opinion about the products. Influencer marketing is becoming increasingly
popular amongst the younger generation. Millennial spend a significant percentage of the day on
the internet, whether scrolling through social media or on some other form of online
entertainment. In all these avenues, the influencers are present through the picture on Instagram,
tweets on Twitter, videos on YouTube.

Social media is a digital reflection of today’s consumers’ lives. Platforms like Facebook or
Twitter are a natural environment, especially for the young users. They spent a massive amount
of time there. These digital networks are constantly adjusting to evolving consumers to meet
their expectations and make them spend even more time on social media. Audience creates a
wide space for brands to step in and communicate with clients and prospects. Users leave lots of
information about their interests and preferences. Marketers who do not listen to their audiences
miss the opportunity to reach out to the most promising leads. Channels are one of the most
effective channels for generating sales. Leads that you collect with social listening are
authentically interested. Customer care is at the heart of all successful companies. It can help you
develop customer loyalty and improve relationships with your customers.

Future Trends of Relationship Marketing

Marketers are constantly looking into the future, trying to predict the next big trend, be it for
their brands or their clients. Naturally, marketers are preoccupied with questions like: What is the
next big campaign? How can we turn our client into the “next big thing”? What is the next hot
trend going to be in retail? Etc. Here we have found 9 trends that we think are going to have the
biggest impact on the future of marketing relationships.

1. Mobile is going to become the center of marketing: From cell phones to smartphones,
tablets to wearable gadgets, the evolution of mobile devices is one of the prime factors
influencing the marketing world. As the focus is shifting to smaller screens, brands will be
able to strike up a more personalized relationship with their customers by leveraging the
power of mobile.
2. Transparency will dictate brand-customer relationship: Currently, customers are seeking
more engagement from brands. This trend will continue with customers becoming more
demanding in their expectation of transparency. Genuine brands – the ones that “walk the
talk” and create real value – will be rewarded. This means brands that still haven’t made their
customer dealings transparent are headed to a future of doom.
3. The need for good content will not slow down: Ever. Content, particularly visual content,
will rule the roost in the online marketing world, evolving into various forms and disrupting
the conventional marketing models. Moreover, the speed at which a brand can create
amazing content will play a part in their success.
4. User-generated content will be the new hit: The power of user-generated content will
surpass branded content as brands begin to relinquish control of their own brands’ marketing
to their customers. From online reviews, to social media posts and blogs, this means there
will be a strong need for brands to create a positive impact in their consumers’ minds. In
response to this model of content production, content co-creation between brands and
consumers will become a popular trend.
5. Social will become the next Internet: Social will become an integral part of the “broader
marketing discipline.” As its impact grows stronger, most brands will fully transition their
marketing efforts to social channels. As such, social has the full potential to become not just
one of the channels but the channel.
6. Brands will own their audience: By cultivating brand community and entering into direct
conversations with their customers, brands will begin to own their audience in a way that will
create loyalists and brand advocates. In the future of marketing, branding and marketing
efforts will have their seeds rooted in what customers are talking about. The customers’
responses and feelings toward the brand will dictate future campaigns. Essentially, if the
customers are happy, they’ll gladly wear the marketer’s hat and do what is needed to bring
their favorite brand in focus.
7. Brands solely-focused on Millennial will go out of relevance: Brands will need to
understand that the millennial are not a niche "youth" segment but a generation of people
who will ultimately give way to a newer generation. Therefore, millennial-focused brands
will have to change their game to stay relevant.
8. Good brands will behave like product companies and not like service companies: While
service companies aim to create a happy customer and look forward to a contract renewal,
product companies thrive on innovation. So, for brands of the future, customer satisfaction
and retention will not be enough. They will need to innovate more efficiently to create more
value for their customers. However, great service will NEVER go out of style.
9. Personalized, data-driven marketing will become more refined: There is a difference
between data-driven marketing and intrusive marketing. While the former is based on
relationship-building, the latter is nothing but old-school push marketing wrapped in a new
cover. The difference between these two formats will become even more prominent in future.
Marketers who focus on relationship building will be rewarded, while intruders will be shut
out.

Conclusion

There are lots benefits and the challenges associated with the future of relationship marketing
and its implementation. If we look at the future evolution of the relationship marketing solutions
and the future trends, we find that in the future, Relationship Marketing would be more internet
based and analytics driven. In other words, this means that Relationship Marketing would be
used along with Data Analytics and the emerging trend of Big Data that are the future drivers for
long term profitable customer relationship. Further, social media would need to be integrated
with the Relationship Marketing solutions so that customers can have the benefit of changing
trends of communication and their effective solutions. Apart from this, the emerging trend of
CRM or the electronic commerce based CRM would mean that EDI or Electronic Data
Interchange would be the transmission mechanism through which the CRM solutions will be
implemented. Moreover, the days of standalone CRM solutions are over and the future would
belong to CRM solutions being an integral part of the overall organizational automation and
process integration. This would mean that Relationship Marketing would not be an isolated
solution but would be part of the holistic approach towards integration of the entire
organizational activities.