MKT 3107

Relationship Marketing
Chapter 02: Relationships

Chapter Content:
 Six market model (Text 02/Chp. 03)
 Relationship loyalty
 Constrained relationship development
 Relationships in context
 The art of soft sell

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Building Marketing Relationships:
The Six Markets Model

A number of researchers working in the relationship

marketing field have developed models which propose
the broadening of marketing to include relationships
with a number of stakeholders or market domains.
The six markets relationship marketing framework is a
useful and well-tested tool for creating total
organisational value in B2C and B2B market to develop
relationship.
This framework proposes six key market domains;

3
Building Marketing Relationships:
The Six Markets Model….

FIGURE 3.1
The six markets framework

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The Six Markets Model….

 The customer market

 The referral market
 The influencer market
 The recruitment market
 The supplier and alliance market
 The internal market

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The Six Markets Model….

1. The Customer Market Internal

market
The customer market domain is the central
market within the six markets model. Companies
Supplier
should direct their marketing activities less at & alliance
market
Custome Referral
market
transactional marketing and more at building
long-term customer relationships. The customer
r Market

market domain addresses three broad groups: 
Direct buyer/customer
Intermediaries
 Final consumers
 Direct buyer/customer
Recruitme Influence
 Intermediaries nt market r market

 Final consumers

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The Six Markets Model….
2. The Referral Market
An organisation’s existing customers are often its best
marketers. Internal
market Advocacy referrals

Customer-base development
Supplier &
alliance Referral General referrals
market
Customer Market Reciprocal referrals
Market
Staff referrals

Incentive-based referrals

Recruitmen Influencer
t market market

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The Six Markets Model….

2. The Referral Market…..

There are two main categories within the referral market domain – customer
and non-customer referral sources.
 Customer Referral
 Advocacy referrals (advocate-initiated customer referrals
 Customer-base development (company-initiated customer referrals)
 Non-customer referrals (third party and staff referrals)
 General referrals (Professional, expertise, specification, Substitute and complementary)
 Reciprocal referrals
 Incentive-based referrals
 Staff referrals

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 The Six Markets Model….
Customer Referral

Company-initiated customer referrals strategy by bkash. 9

 The Six Markets Model….
Non Customer Referral

Reciprocal referral marketing strategy of

standard chartered bank with GP and Robi.

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The Six Markets Model….
3. The Influencer Market
The influence market domain usually has the most diverse
range of constituent groups who have significance influence
on the organization and customers.

al
ntern et al
I rk
ma err
Ref rket Financial & Investors groups
Ma

Environmentalist
r
me
sto ket
c er
r u
plie C ar
p M n
ue t Competitors
u
S &
Infl arke
e
an c
alli rket
ma m
Business Press & Media

it m
cru Political and regulatory group
Re ent t
rke
ma
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The Six Markets Model….

4. The Recruitment Market

The scarcest resource for most organisations is no longer capital or raw materials, but
skilled people. A trained and experienced workforce is perhaps the most vital element
in delivering customer service. Sup
pl I
ie nt
alli & r ma ernal
a
ma nce rke
rke t
Executive Search Consultant t

Agency Re Cu
cr u s
Ma tome
ma itme rke r Re
t Ma ferra
rke nt rke l
Advertisement
t t

Infl
Own staff reference r m uenc
ark e
et
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 The Six Markets Model….
5. The Supplier and Alliance Market
Supplier and alliance relationships both need to be viewed as
partnerships. Suppliers are upstream source of raw materials,
components, products or other tangible items.
Alliances are typically they supply
competencies and cap- abilities that are
Internal
knowledge based rather than product market
based.
Referral
Supplier market Supplier & Market
alliance Customer
Market
market
Alliance market
Influencer
market
Recruitm
ent
market
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The Six Markets Model….

6. The Internal Market

Every employee and every department in an Internal
organisation is both an internal customer and/or market
an internal supplier. So organisations need to work
as effectively as possible to ensure that every Supplier &
alliance
department and individual provides and receives market Referral
Market
high standards of internal service.
Customer
Internal marketing should ensure that all staff of Market

the organization ‘live the brand’.

Recruitment
market Influencer
market

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Applying Six market model

FIGURE 3.9
The six markets network diagram
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Applying Six market model

FIGURE 3.10
Relationship marketing network diagram of a typical company
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Types of Relationship based
Motivational investments

The type of relationship that develops between a supplier and a customer is

determined by the different amounts of motivational investment that buyers
and sellers are prepared to commit to the relationship.
Four types of buyer-seller relationship are hypothesised based on their
motivational investment to the relationship;
 Bilateral relationships;
 Seller-maintained relationships;
 Buyer-maintained relationships;
 Discrete exchanges.

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Types of Relationship based
Motivational investments……

Figure 3.1
Hypothesised realm
of buyer–seller relationships 18
Relationship loyalty

The phrase ‘loyalty marketing’ is frequently used interchangeably with

relationship marketing.
Loyalty is defined as “the proportion of time a purchaser chooses the same
product or service in a category compared with his or her total number of
purchases in the category, assuming that acceptable competitive products or
services are conveniently available.”

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 Antecedents to loyalty
There are two distinct viewpoints as to the
antecedents to loyalty.
In the first, loyalty is seen as more often built on
‘hard’ dimensions, such as value for money,
convenience, reliability, safety and functionality, and
that these are the prime drivers for product or service
choice.

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Antecedents to loyalty……

Figure 3.2
Customer loyalty: an
integrated model

(Source: Adapted from Fredericks and Salter, 1998, p. 64)

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Antecedents to loyalty……

An alternative viewpoint suggests that customer loyalty

is viewed principally as a result of the bond between an
individual’s relative attitude and repeat patronage, again
mediated by social norms and situational influences or
experiences.
In this concept, ‘softer’, more intangible factors such as
emotion and satisfaction are seen to affect attitude in a
decisive way.

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 Antecedents to loyalty……

Figure 3.3
Framework for
customer loyalty

(Source: Adapted from Dick and Basu, 1994, p. 100)

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 Loyalty-type behaviour
There are many ways of describing loyalty-type and non-
loyal customer behaviour. For example, Uncles (1994, p.
342) proposes three ways of considering customer
patronising behaviour:
i. Switching behaviour
ii. Promiscuous behaviour
iii. Polygamous behaviour

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Loyalty-type behaviour…..

 Switching behaviour: where purchasing is seen as an ‘either/or’

decision – either the customer stays with you (loyalty) or turns
against you (switching).
 Promiscuous behaviour: where customers are seen as making a
‘stream of purchases’ but still within the context of an either/or
decision – either the customer is always with you (loyalty) or flits
among an array of alternatives (promiscuous).

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Loyalty-type behaviour……

 Polygamous behaviour: again, the customer

makes a stream of purchases but their loyalty is
divided among a number of products. They may
be more or less loyal to your brand than any
other.

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Loyalty schemes
Besides customer retention one of the increasingly important
objectives of loyalty programmes and other schemes is the collection
and qualification of customer data.
 Frequency program
 Club membership

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Loyalty schemes…..

Apex reward programs

https://www.apex4u.com/apex-rewards
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Loyalty schemes…….

https://lotto.expressleather.com.bd/privilegeclub/
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Loyalty schemes…..

https://www.grameenphone.com/star-program
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Constrained relational
development

Constrained customer relationship development

 Low likelihood of repurchase

 Dependency avoidance
 Formalised contracts
 Low-risk situations
 Price-sensitive markets

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Constrained relational
development….

Constrained supplier relationship development

 Low likelihood of repurchase

 Dependency avoidance
 Formalised contracts
 Undifferentiated markets
 Price-sensitive markets

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Case study

‘The art of the soft sell’ (Text 01, page: 67-68)

 Case study questions
1. What does the author mean by ‘customer centric’?
2. Why does Yoforia go out of its way to reward good
customer service?

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End of Topic 02

Q&A
Next Topic: Relationship Economics

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