Nature of relationship marketing


nature of relationship marketing

Revolves around the 4 P's; The pb is to find an optimal mix that gets superior response and at the same time creates profit; Intangible service. This articles explains how relationship marketing can be utilized to the fullest in certain types of market and develop customer relationship to business advantage . The nature of relationship marketing in Greek SMEs Paper. A+. Pages:9 Words: This is just a sample. To get a unique paper. Hire Writer.

The categories will be analyzed to see how they fit together. Unitizing then takes place when the data is assigned to a category through the dissection of the transcripts. Hypotheses will be developed and tested to identify relationships between categories Saunders et al. Method-Quantitative The most appropriate method is a survey. Other quantitative methods are incompatible with the nature of research and are not selected. The data collection tools consists of questionnaire, structured observation and structured interviews.

In using a questionnaire the data is in a standardized form and comparison can be made easily and quickly. Structured interviews and observations were not selected as it was felt that in depth interviews would generate richer information on the topic. Sample The questionnaires will be sent by post to the remaining business from the sample. Questionnaire Design In designing the questionnaire, time will be spent planing, collecting and analyzing the data required, as you are unable to use prompts to explore further and have only one chance to collect the data.

nature of relationship marketing

Self-completion questionnaires will be used, as they are inexpensive. The owners of small businesses are unlikely to have assistants so it is felt that they will fill it in themselves.

A disadvantage of a postal survey it is low response rates and incomplete data. This can be solved by attaching a covering letter to the questionnaire explaining the purpose of the study will maximize response rates and the importance of completing it along with a pre paid envelope.

The questionnaire is designed with an attractive layout, clear instructions and a minimum number of questions. A reminder will be posted one week after the questionnaire to the sample. Data processing and analysis The closed questions will be coded at the design stage.

Open questions will be grouped into categories and coded once the questionnaires have been received.

nature of relationship marketing

A unique identification number will be assigned to each questionnaire to help when checking for errors after inserting data. The data is manually keyed and stored in the SPSS worksheet.

The advantage is that data can be input quickly with few errors. In using the commands available statistical tests can be carried out easily and quickly. The results can then be presented in the form of tables and graphs appropriate to the research questions. Ethical issues As an external researcher the main weakness is how to gain access to small business, as it could be difficult to negotiate and time consuming.

To overcome this the selected businesses will be contacted by telephone and informed of the study and its purpose allowing them to agree to take part in the questionnaire and interviews. Managers will be informed of the value and credibility of the research. The goodwill of the organizations in allowing access will be relied on. A consent form will be constricted and signed by all those participating. All information will be anonymous, as the study does not need to name participants.

Other techniques include the analysis of customers' complaints and competitive benchmarking see competitor analysis. Develop and implement a corrective plan — This could involve actions to improve employee practices, using benchmarking to determine best corrective practices, visible endorsement of top management, adjustments to the company's reward and recognition systems, and the use of "recovery teams" to eliminate the causes of defections.

A technique to calculate the value to a firm of a sustained customer relationship has been developed. This calculation is typically called customer lifetime value. Retention strategies may also include building barriers to customer switching. This can be done by product bundling combining several products or services into one "package" and offering them at a single pricecross-selling selling related products to current customerscross promotions giving discounts or other promotional incentives to purchasers of related productsloyalty programs giving incentives for frequent purchasesincreasing switching costs adding termination costs, such as mortgage termination feesand integrating computer systems of multiple organizations primarily in industrial marketing.

Many relationship marketers use a team-based approach. The rationale is that the more points of contact between the organization and customer, the stronger will be the bond, and the more secure the relationship. Application[ edit ] Relationship marketing and traditional or transactional marketing are not mutually exclusive and there is no need for a conflict between them.

nature of relationship marketing

In practice, a relationship-oriented marketer still has choices, depending on the situation. Most firms blend the two approaches to match their portfolio of products and services.

Relationship Marketing | What is Relationship Marketing?

Social bond refers to the relationship established through the collective blood relationship between people. Relationship marketing is to establish and strengthen these two kinds of bonds, especially the structural bond, so as to strengthen the relationship with clients and lock them in.

Morgan and Hunt made a distinction between economic and social exchange on the basis of exchange theory and concluded that the basic guarantee of social exchange was the spirit of the contract of trust and commitment. The traditional marketing concept of one-time transaction begins to transfer to the concept of relationship marketing. This is the transition from economic exchange theory to social exchange theory.

The theoretical core of enterprise relationship marketing in this period is the cooperative relationship based on commitment. They define the concept of relationship marketing from the perspective of exchange theory, and emphasize that relationship marketing is an activity related to the progress, maintenance and development of all marketing activities. Shows that trust and commitment is a trading enterprise and the basis of marketing activities to establish a long term good relations, also is the factors affecting the basis of cooperation for both sides, moreover the relationship effect of other factors include: Coptics and Wolf believe that relational marketing is the marketing of databases.

They think, the enterprise want to be able to continue to improve the effect of relationships with customers, when access to the data and information to improve the effect of relationship with the customer's cost is low, enterprises will pay the cost to improve relations with customers, at present, due to tell the development of communication technology and Internet technology, makes the information costs have dropped substantially, so the argument that relationship marketing is for database marketing is increasingly valued, this view emphasizes the relationship marketing is through the Internet technology database data lock with the customers, to establish and maintain good relationship with customers.

Chap 1: The nature of Relationship Marketing and Customer Re by Paulin Tchoualak Lenteu on Prezi

Liker and Klamath introduced the relationship between enterprises and suppliers into the scope of relational marketing, believing that in the marketing process, manufacturers make suppliers assume corresponding responsibilities, and enable them to give play to their technological and resource advantages in the production process, which can improve the marketing innovation ability of manufacturers.

Lukas and Bryan a. Ferrell believe that the implementation of customer-oriented marketing concept can greatly promote the innovation ability of marketing, and at the same time encourage enterprises to break through the traditional relationship model between enterprises and customers and propose new product Suggestions with technical feasibility.

Lethe through the observation of the benchmarking customer research, to confirm the relationship between enterprises and customers to enterprise's product innovation capacity there is a positive correlation, the enterprise can in the development and in the process of benchmarking customer good relationship, to identify those more market potential for development of new products, it can save a lot of for the enterprise cost of new product development and market acceptance of this kind of product is high.

In addition, he also proposed that all the relationships established with relevant parties to enterprise marketing activities are centered on the establishment of good customer relations, that is, the core relationship of relationship marketing is the relationship with customers.

Guinness believes that relationship marketing is essentially a consciousness that regards the marketing process as the interaction between enterprises and various aspects of relationships and networks.

The nature of relationship marketing in Greek SMEs Paper

According to his research, relationship is the relationship between two or more subjects, network is a larger set of relationships, and interactive interaction between people in the relationship or network process. It is claimed that many of the relationship marketing attributes like collaboration, loyalty and trust determine what "internal customers" say and do.

According to this theory, every employee, team, or department in the company is simultaneously a supplier and a customer of services and products.

An employee obtains a service at a point in the value chain and then provides a service to another employee further along the value chain.

If internal marketing is effective, every employee will both provide and receive exceptional service from and to other employees.

It also helps employees understand the significance of their roles and how their roles relate to others'. If implemented well, it can also encourage every employee to see the process in terms of the customer's perception of value added, and the organization's strategic mission.

nature of relationship marketing

Further it is claimed that an effective internal marketing program is a prerequisite for effective external marketing efforts. Referral marketing is developing and implementing a marketing plan to stimulate referrals.

Although it may take months before you see the effect of referral marketing, this is often the most effective part of an overall marketing plan and the best use of resources[ citation needed ].

Marketing to suppliers is aimed at ensuring a long-term conflict-free relationship in which all parties understand each other's needs and exceed each other's expectations. One of the ways is through mass customization. Customized product offer a great value to the customer and can help the company give edge over the competition. There are four ways through which to achieve mass customization. These four ways are combination of options, personalization, and postponement and bespoke.

This kind of technique is more prevalent with car manufactures. This allows consumer to create a unique product suiting their requirements. All components are manufactured along the supply chain but not assembled till the last moment. This allows retailer to create exactly customer required product.

This kind of technique is used by computer companies. They order different parts from different supplier and then assemble the product as per the customer requirement. This kind of technique is often used by cake shops, for example printing family pictures, favorite cartoon characters etc. This technique creates product and services which are expensive compared to customized product available through other techniques.

This kind of technique is used holiday specialist, tailors etc. The essence of any relationship is communication. Traditionally marketing encourages creating communication which target whole audience base rather than individuals.

This approach does not create relationship or value for the consumer. The direct mail is classic example of mass communication.