Relationship Marketing in Mass Markets Akash C.Mathapati Akash C.Mathapati
Conditions for Relationship Marketing Relationship develops between a customer & an organization, when there are benefits to both Customization Relationship in mass markets requires that the market consist of different benefit segments that can be served Other words, for relationship to develop, customization must be possible within the product category Mass customization begins in service industry E.g., FedEx Akash C.Mathapati
Customer Intimacy Relationship involve one or more exchanges over time Key features of RM is its explicit recognition that exchanges between organization & customer extend beyond strict economic boundaries In mass markets, RM can facilitate customer intimacy by invoking emotions in a variety of contexts Akash C.Mathapati
Two way interactions An exchange relationship between the organization & the customer requires a two interaction To practice RM in mass markets, managers must ask, can customers contact the organization ? Many organizations keep the address & no. of customer on file to respond Two way interactions can reduce the propensity of customer to switch to new suppliers Akash C.Mathapati
Extended time intervals The relationship between an organization & a customer occurs over a time interval that may encompass one or more exchange Exchange relationship often extends beyond the time of the actual sale Exchange involves psychological /social resources as well as economic resources, the duration of the relationship include the various stages of the selling process In case of multiple exchanges, the relationship can include regular or intermittent transaction or continuous transaction Akash C.Mathapati
The role of marketing variables Product variables that facilitate relationship Perceived quality: The notion that customer satisfaction& perceived value depends on perceived quality Delivery & high quality product can strengthen relationship with customers in mass markets Warranties: Warranties, guarantees & return policies are signals that create customer expectations about product performance as well as reduce perceived risk Akash C.Mathapati
Warranties increase trust in the organization, improve the customers perceptions of the future value of the relationship Warranties encourage 2 way interaction Akash C.Mathapati
Pricing & Promotion Policies that FacilitatesRelationship Usage Rewards: These programs create incentive for customer to stay with same organization to collect the rewards Rewards that directly support the products value proposition are better from a loyalty standpoint than are indirect rewards Rewards that are relatively immediate are better than rewards that are delayed Tailored Promotions: Marketers deploy tailored promotions using direct mail, telemarketing & regional events Akash C.Mathapati
These variables create perceived heterogeneity within the product category Personalization & customization increase the customers perception of the future value of the relationship & increase perceived switching costs Akash C.Mathapati
Distributional Variables that FacilitatesRelationship Flexibility: In product delivery & distribution is another critical marketing variable used by organization to strengthen relationship with customers Flexibility leads to customization, which increases customer satisfaction and the perceived value of the relationship E.g., travel agents, Hotels, L.L Bean Akash C.Mathapati
People: In mass markets, products are frequently delivered by service employees To be successful in stimulating relational behavior, effective HR management is critical to ensure that service employees can create customer satisfaction, develop trust Akash C.Mathapati
Communication Strategies that FacilitateRelationship Public Relations Forums Corporate partnerships and sponsorships Akash C.Mathapati
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