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Total Relationship Marketing



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Total Relationship Marketing

  1. 1. ‘Total Relationship Marketing’
  2. 2. This presentation contains some of the key concepts formularised by Evert Gummesson in his book: Total Relationship Marketing: Rethinking Marketing Management: From 4Ps to 30Rs (Butterworth & Heinemann 1999)
  3. 3. Who is Evert Gummesson? Evert Gummesson is Emeritus Professor of the Stockholm University School of Business and a leading management consultant. He was one of the international pioneers of services marketing and the CIM regard him as one of the 50 most important contributors to the development of marketing.
  4. 4. Gummesson defines ‘Relationship Marketing’ as: “Relationship marketing is marketing seen as relationships, networks and interactions.”
  5. 5. There are three types of connection which form Business-to-business relationships. 1. Activity links - Of technical, administrative and marketing functions 2. Resource ties - Exchanging and sharing tangible (goods) and intangible (services and knowledge) resources 3. Actor bonds - Created by the interaction of people, exertion of influence and forming of opinions
  6. 6. Interactions are hierarchical: Relationships Sequences Episodes Activities
  7. 7. The total number of an organisation’s relationships constitute the partner base Partner organisation Supplier Retailer Partner Organisation Customer Supplier Partner Services Distribution partner partner
  8. 8. Relationships have properties and dimensions, for example • Collaboration / • Frequency, regularity Competition and intensity • Commitment, depende • Closeness and ncy and importance remoteness • Trust, risk and • Formality, informality uncertainty and openness • Power • Routinization • Longevity • Content • Personal and social properties
  9. 9. Each relationship should be analysed and assessed and incorporated into the company’s marketing planning Gummesson has defined thirty types of relationship s – the 30Rs
  10. 10. The 30Rs can be grouped in four types Market relationships: • Classic market relationships – eg: supplier-customer; customer-supplier-competitor • Special market relationships – eg: marketing & sales departments; service encounter; ‘electronic relationships’ Non-market relationships: • Mega relationships – ‘Super-market’ platforms, eg: EU organisations, social networks, mass media • Nano relationships – ‘Infra-market’ relations, internal markets
  11. 11. These four types of relationship operate within one another: Nano relationships Classic market relationships Special market relationships Mega relationships
  12. 12. Total relationship marketing: • is marketing based on relationships, networks and interaction, • recognises that marketing is embedded in the total management of the networks of the selling organisation, the market and society. • Is directed to long-term win-win relationships with individual customers, • value is jointly created between the parties involved. • It transcends the boundaries between specialist functions and disciplines. • It is made tangible through the thirty market, mega and nano relationships - the 30Rs.