Relationship Marketing in Mass                       Markets                      Akash C.Mathapati             Akash C.Ma...
Conditions for Relationship Marketing   Relationship develops between a customer & an    organization, when there are ben...
   Customer Intimacy       Relationship involve one or more exchanges over time       Key features of RM is its explici...
   Two way interactions       An exchange relationship between the organization & the        customer requires a two int...
   Extended time intervals   The relationship between an organization & a customer    occurs over a time interval that m...
The role of marketing variables   Product variables that facilitate relationship   Perceived quality:       The notion ...
   Warranties increase trust in the organization,    improve the customers perceptions of the future    value of the rela...
Pricing & Promotion Policies that FacilitatesRelationship   Usage Rewards:       These programs create incentive for cus...
   These variables create perceived heterogeneity    within the product category   Personalization & customization incre...
Distributional Variables that FacilitatesRelationship   Flexibility:       In product delivery & distribution is another...
   People:       In mass markets, products are frequently delivered by        service employees       To be successful ...
Communication Strategies that FacilitateRelationship   Public Relations   Forums   Corporate partnerships and sponsorsh...
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Relationship marketing in mass markets

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Relationship marketing in mass markets

  1. 1. Relationship Marketing in Mass Markets Akash C.Mathapati Akash C.Mathapati
  2. 2. 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
  3. 3.  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
  4. 4.  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
  5. 5.  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
  6. 6. 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
  7. 7.  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
  8. 8. 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
  9. 9.  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
  10. 10. 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
  11. 11.  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
  12. 12. Communication Strategies that FacilitateRelationship Public Relations Forums Corporate partnerships and sponsorships Akash C.Mathapati
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