Introduction to Relationship marketing


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Introduction to Relationship marketing

  1. 1. Relationship Marketing Akash C.Mathapati Akash C.M
  2. 2. Remember Me ?? Im the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. Im the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. Im the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, Im a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy."Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby Akash C.M
  3. 3. RM Definition Attracting, maintaining and enhancing customer relationship - Berry 1983 Relationship marketing: the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders - Gummersson 1994 Activities directed towards establishing developing and maintaining successful relational exchanges - Morgan and Hunt 1994 Akash C.M
  4. 4.  It will reap greater rewards from long-lasting relationships with customers Thailand says, It is going from excessive mass marketing to Relationship Marketing Akash C.M
  5. 5. Transactional Vs Relationship MarketingTransactional Marketing Relationship Marketing Do the deal and disappear  Negotiate a win-win sale situation and stay around, being a resource for better result Push price  Promote value Short-term thinking and acting  Long-term thinking and acting Building the business on deals  Building the business on relationships Getting new customers  Keeping all customers and clients No structure for on-going  Structure created to support business relationship; special business club and memberships for frequent users/buyers Selling focused  Relationship focused for results Race for a sale result  Swift, strong, safe and enduring in results through relationship building After-sales support and service  After-sale support and service’ seen as an investment in the poor — seen as cost relationship Product-service focused  People expectations and perception focused Rewards-incentive for’ doing  Rewards incentives for maintaining and growing relationship deals’ and revenue The deal is the end. Pursuit of  The sale just the beginning. Pursuit of long-term relationship deals. and result. Akash C.M
  6. 6. Relationship Marketing Programs Literatures suggest 3 types of pgms  Continuity Marketing Programs  One to One Marketing  Partnering Programs These different forms depends on whether they are meant for end customers, distributor customers or B- 2-B customers Akash C.M
  7. 7. Continuity Marketing Programs Majority of Co’s have developed this program Aims at retaining customers and increasing loyalty Consumer in Mass Markets  Membership & loyalty card programs Distributor Customers  Continuous replenishment B-2-B  Preferred Customer Programs  Single and Dual Sourcing Programs Akash C.M
  8. 8. Source: Akash C.M
  9. 9. Source: Akash C.M
  10. 10. One to One Marketing One to One or individual marketing is grounded on account-based marketing Once this concept prevalent only in B2B Mass Market (dissemination of individualized info)  Online info & database of customers  Info used to develop frequency, interactive and after marketing programs to develop relation on high yielding customers Distributors Customers  Individual marketing pgms take the form of customer business development Akash C.M
  11. 11. conti.. B-2-B  Individual marketing has been in place for quite some time  Key Account Management (KAM) Akash C.M
  12. 12. Partnering Programs This pgm involves partnering relationships between customers & marketers to serve end-user needs Mass Market  Co-branding  Affinity Partnering Distributors Customers – Partnering pgms through  Logistics partnering  Cooperative marketing Akash C.M
  13. 13. ―IM Logistics will exclusively fulfill Amazon.coms desktop, notebook and related accessory sales, handling all the logistical pick, pack and ship functions on behalf of the e-tailer.‖ Source: programs/18815408/ingram-micro-amazon-com- announce-exclusive-logistics- partnership.htm;jsessionid=pDR4TQ1lAxj2uuyVeqs pAw**.ecappj01Source: Akash C.M
  14. 14. Affinity Program:A marketing effortsponsored by anorganization thatsolicits responsesfrom individuals whoshare commoninterests andactivities
  15. 15.  B-2-B  Partnering pgms involve co-development and co- marketing activity Akash C.M