You are on page 1of 17

RELATIONSHIP MARKETING

RELATIONSHIP MARKETING
• marketing approach that acknowledges
the importance of both the buyer and
the seller in the marketing process.

• the core concept is to build long-term


relationships with customers.
EVOLUTION OF RELATIONSHIP
MARKETING
P ER I O D F O C U S ARE A

1950’s Customer Good Marketing

1960’s Industrial Goods Marketing

Marketing of non-profit
1970’s
organization or Societal marketing

1980’s Services Marketing

1990’s Customer Relationship Marketing


STAGES OF CUSTOMER
RELATIONSHIP
1. Exploration
2. Awareness
3. Expansion
4. Commitment
5. Dissolution
LEVELS OF CUSTOMER
RELATIONSHIP
• BASIC MARKETING
– sells the product without call backs or feed-
back from the customer. No effort to build the
relationship.
• REACTIVE MARKETING
–Marketers encourage customers to report
their comments, complaints, and suggestions.
LEVELS OF CUSTOMER
RELATIONSHIP
• ACCOUNTABLE MARKETING
– calls back the customer after a short time to
find out the customer’s satisfaction. Increased
level of effort in building the relationship.
• PROACTIVE MARKETING
– remains in regular contact with customer and
provide suggestions for better use of the
product.
LEVELS OF CUSTOMER
RELATIONSHIP
• PARTNERSHIP MARKETING
– calls back the customer after a short time to
find out the customer’s satisfaction. Increased
level of effort in building the relationship.
• PROACTIVE MARKETING
– remains in regular contact with customer and
provide suggestions for better use of the
product.
LEVELS OF CUSTOMER
RELATIONSHIP
• PARTNERSHIP MARKETING
– continuously works with customers and
stakeholders for mutual benefits.
– best form of relationship marketing.
GOALS OF RELATIONSHIP
MARKETING
• Customer Acquisition
• Customer Satisfaction
• Retention of the customers
• Enhancing the customer base
IMPORTANCE OF RELATIONSHIP
MARKETING
• Retain long-term customers
• Increase likelihood of referrals
• Makes price change easier
• Creates opportunity for feedback
• Competitive edge
THE CUSTOMER PYRAMID
CUSTOMER VALUE
• satisfaction the customer experiences
(or expects to experience) by taking a
given action relative to the cost of that
action.
CUSTOMER LIFETIME VALUE
• forecasted sales or profits that a
company can derive from the entire
span of the future relationship with a
particular customer.
CUSTOMER RELATIONSHIP
MANAGEMENT
• It is the development and maintenance of
mutually beneficial long-term relationships with
strategically significant customers.
• It is also a business strategy directed to
understand, anticipate and respond to the
needs of an enterprise’s current and potential
customers in order to grow the relationship
value.
CUSTOMER RELATIONSHIP
MANAGEMENT
• becoming standard terminology, replacing
what is widely perceived to be a misleadingly
narrow term - relationship marketing.
DETERMINANTS OF CRM
• the willingness to rely on the ability, integrity, and
TRUST motivation of one company to serve the needs of the other
company as agreed upon the implicitly and explicitly

• the ability of a selling organization to satisfy the needs of the


VALUE customer at a comparatively lower cost or higher benefit than
that offered by competitors and measure in monetary,
temporal, functional and psychological terms.