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Principles of Marketing M2

Relationship marketing focuses on building strong relationships with customers and other stakeholders through cooperation and engagement rather than individual transactions. It involves five levels of customer relationships from basic to partnership. Relationship marketing benefits companies by improving customer retention, advocacy, feedback and reducing costs compared to acquiring new customers. Key practices for effective customer relationship marketing include understanding customer characteristics, meeting expectations, providing quality service, preventing negative experiences, utilizing word-of-mouth, and expanding products to meet customer needs.

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Kelly Bianca Montesclaros
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25 views

Principles of Marketing M2

Relationship marketing focuses on building strong relationships with customers and other stakeholders through cooperation and engagement rather than individual transactions. It involves five levels of customer relationships from basic to partnership. Relationship marketing benefits companies by improving customer retention, advocacy, feedback and reducing costs compared to acquiring new customers. Key practices for effective customer relationship marketing include understanding customer characteristics, meeting expectations, providing quality service, preventing negative experiences, utilizing word-of-mouth, and expanding products to meet customer needs.

Uploaded by

Kelly Bianca Montesclaros
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Principles of Marketing

Relationship
Marketing
Relationship Marketing
According to Gilaninia et al (2011), Relationship Marketing involves
creating, maintaining and enhancing strong relationships with customers and
other stakeholders. Increasingly, marketing is moving away from a focus on
individual transactions and towards a focus on building value-laden
relationships and marketing networks.
Five Different Levels Relationship
1 Basic

The company salesperson sells the product but


does not follow up in any way.

2 Reactive

The salesperson sells the product and


encourages the customer to call whenever he or
she has any questions or problems.
Five Different Levels Relationship
Accountable
3 The salesperson phones the customer a short time after the
sale to check whether the product is meeting the customer’s
expectations. The salesperson also solicits from the
customer any product improvement suggestions and any
specific disappointments.

4 Proactive
The salesperson or others in the company phone
the customer from time to time with suggestions
about improved product use or helpful new
products.
Five Different Levels Relationship
Partnership
5
The company works continuously with the customer and
with other customers to discover ways to deliver better
value.
Concept of Relationship
Marketing
Forbes.com defined Relationship marketing is a strategy designed
for customer loyalty, interaction, and long-term engagement to be
fostered. It is designed to develop strong connections with customers
by providing them with information directly suited to their needs and
interests by promoting open communication.
Concept of Relationship
Marketing
Customer relationship is the development of an ongoing
connection between a company and its customers. The
relationship involves marketing communications, sales support,
technical assistance and customer service. Customer
relationship is a big part of marketing. Relationship marketing
is an interaction with current customers and potential ones.
Characteristics of
Relationship Marketing
1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the
company’s products.
3. It puts more emphasis on customer retention and growth
than on customer acquisition.
4. It relies on cross-functional teams rather than on
departmental-level work.
5. It relies more on listening and learning than on talking
Benefits in Developing and
Implementing Customer Relationship
1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
In the business world, retaining customers has a lesser cost at least eight times
compared to acquiring new ones. Thus, this marketing capitalizes on the same
fact and is beneficial to the company in several ways.
MARKETING PRACTICES IN
CUSTOMER RELATIONSHIP
Understanding Customer Delivery and Meeting
Characteristics Expectations
The company can segregate its customers into
If the company knows what its customers’
groups based on their characteristics like
needs are, it will help reduce wastage due to
purchasing power, frequency and volume of
trial and error methods. It is easier to create
sale transactions. It also helps the company
a product if the features and specifications
get valuable feedback from its customers and
of the product are known.
understand their needs and expectations.
Repeat Business Prevents Negative Transition
Sellers should maintain good attitude to the
buyers. By doing this, buyers will feel that Trust and loyalty go hand in hand and it is
they do not need to switch sellers. super beneficial for all business. It will help
prevent customers from turning to
competitors.
Word-of-Mouth Marketing Reduced marketing cost
Benefits also include lesser marketing costs
and more value creation. This can be
Apart from customer, referrals, there are explained by stating the following statistics:
several other ways to increase customer every 5% increase in customer retention can
satisfaction by employing methods of utilizing increase a company’s annual profits from at
social networking websites, blogs, informal least 25% to as much as 125%, while
surveys, benefits on loyalty cards, timely simultaneously leading to a reduction of
response to complaints and requests as a 10% in marketing costs. An existing
constant reminder of its presence around and customer will spend 33% more than a new
retention equity is improved by enhancing customer to buy a company’s
customer satisfaction product/service.
Identification with the Product Market Expansion
company
It helps customers identify more with the The company’s employees must be ready to
company. Keeping your communication lines deliver beyond the company’s boundaries
open and keeping in touch with the customers on customer demand.
makes them feel like they are being valued. It
will keep customers coming in and build
brand equity for the company in the long run.
Thanks
Hope you learn
something!

Principles of Marketing

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