RELATIONSHIP

MARKETING
PRESENTED BY: NEERAJ GARWAL
 INDEX
• Introduction.
• Benefits.
• Transition of Relationship marketing.
• Transaction Vs. Relationship Marketing.
• Levels of Relationship.
• Six Market Model.
• Players in Relationship Marketing
• Relationship Marketing and 4P’s.
• Success in Relationship Marketing
 INTRODUCTION
• “Relationship Marketing is a strategy to attract, maintain and
enhance customer relationship”
- Berry.
• “Relational Marketing refers to all marketing activities directed towards
establishing, developing and maintaining successful relational
exchanges.”
- Morgan & Hunt (1994).
 Benefits of relationship marketing

1. Long-term retention of the customer.

2. Word of mouth.
3. Rise in the price of a product.
4. Valuable feedback.
5. Competitive edge.
 TRANSITION OF RELATIONSHIP MARKETING

PERIOD FOCUS AREA

1950’s Consumer Goods
Marketing EMPHASIS ON RELATIONSHIP
1960’s Industrial Goods Marketing CUSTOMER
MARKETING
RETENTION
1970’s Marketing of Non-Profit
Organization or Societal EMPHASIS ON
Marketing CUSTOMER TRANSACTION
ACQUISITION MARKETING
1980’s Services Marketing
FUNCTIONALLY CROSS-FUNCTIONALLY
1990’s Relationship Marketing BASED
BASED

PUT SIMPLY – Transactional marketing is short-term thinking,

While relationship marketing is long-term thinking.
TRANSACTION VS. RELATIONSHIP
MARKETING
LEVELS OF RELATIONSHIP MARKETING

1. Basic Marketing.
2. Reactive Marketing.
3. Accountable Marketing.
4. Proactive Marketing.
5. Partnership Marketing.
SIX MARKETS MODEL

1. Internal Markets
2. Referral Markets
3. Influence Markets
4. Employee Markets
5. Supplier Markets
6. Customer Markets
PLAYERS IN RELATIONSHIP MARKETING
1. Supplier
2. Distributor
3. End users
4. Employees
5. Financial Firms
6. Government
7. Media
8. Allies
9. Competitor
10. General Public
RELATIONSHIP MARKETING AND 4P’S

Product
i. Products are more customised to the customer’s
preferences.
ii. New products are developed and designed
cooperatively with supplier and distributor.
 PRICE
1. The company will set a price based on the relationship with the customer and the bundle of
features and services ordered by the customer.
2. In business to business marketing, there is more negotiation because products are often
designed for each customer

PLACE
3. RM favours more direct marketing to the customer, thus reducing the role of middlemen.
4. RM Favours offering alternatives to customers to choose the way, they want to order, pay for,
receive, install, and even repair the product.
 PROMOTION

1. RM favours more individual communication and dialogue with customers.

2. RM favours more integrated marketing communications to deliver the same promise and
image to the customer.
3. RM sets up extranets with large customers to facilitate information exchange, joint planning,
ordering, and payments.
FACTORS FOR SUCCESS IN RELATIONSHIP MARKETING

1. Market Knowledge
2. Training Programs.
3. Empowering Employees
REFERENCES
• https://
www.researchgate.net/publication/233894851_The_Commitment-Trust_Theory_of_Rela
tionship_Marketing
• https://businessjargons.com/relationship-marketing.html
• https://shodhganga.inflibnet.ac.in/bitstream/10603/35697/8/08_chapter_1.pdf
• https://
www.researchgate.net/publication/233894851_The_Commitment-Trust_Theory_of_Rela
tionship_Marketing
• https://accountlearning.com/six-markets-model-relationship-marketing-explanation/
• https://www.superoffice.com/blog/relationship-marketing/