Relationship Marketing (or relationshipmanagement) is a philosophy of doingbusiness, a strategic orientation that focuseson keeping and improving currentcustomers rather than on acquiring newcustomer.
What is relationship marketing? Marketing designed to create,maintain, and enhance strongrelationships with customersand other stakeholders.
Six Types Of Markets1. internal markets2. supplier markets3. recruitment markets4. referral markets5. influence markets6. customer markets
Customer Lifetime ValueLosing an existing customer meanslosing the entire revenue streamthat customer represents – not justthat single encounter or sale.
Attracting, retaining and growing customersCustomer delivered value – the difference between total customer value and total customer cost. Value includes product, services, personnel and image value. Cost includes monetary, time, energy and psychic costs.
Growing “share of customer” Increasing the share of the customer’s purchasing in your product category. Best way is through cross-selling Getting more business from current customers by selling them additional or complementary services
Managing your customers Relationship marketing is designed to create, maintain, and enhance strong relationships with profitable customers and other stakeholders. First need to define what your profit is on specific services…
How to calculate profit In most business: Gross income – (cost of goods + expenses) = net profit In healthcare: Reimbursement income – (cost of goods + expenses) = net profit
STRENGTHS OF RELATIONSHIP MARKETING Focus on providing value to customers. Emphasis on customer retention. it provides a better basis for achieving Competitive advantage. Long-term customers may initiate free word of mouth promotions. Long-term customers are less likely to switch to competitors. Happier customers may lead to happier employees
PROCESS Chart the service delivery system. Identify critical service issues. Set service standards for all aspects of service delivery. Develop customer communication systems. Train employees on building and maintaining a good relationship with clients. Monitor service standards, reward staff for exceeding service levels. Each employee fully understands the importance of quality and relationships in the marketing philosophy.
RESEARCH METHODLOGYMeaning of Research:Research Methodology is a way to systematically solve the research problem .RESEARCH DESIGN:It is a major plan specifying the method and procedure for collecting and analyzing the needed information. It is framework within which research will be conducted. It mainly includes following factors :Means of obtaining the information.Availability of time.Availability of cost factor.Skills of the researcher.Sample size:I interviewed 25 wholesalers & 25 retailers
RESEARCH OBJECTIVES To find out how organizations devise their relationship strategies. To find out the foundations for successful relationship marketing. To find out the correlation between customer & relationship strategies. To find determine the benefits of long term relationship for firms &customers.
SOURCES OF DATA COLLECTIONPRIMARY SOURCES: The primary sources will be Questionnaire through survey will be administered to the company managers .SECONDARY SOURCES: Website and books will be used for obtaining data.
QUESTIONER FOR COMPANY’S EMPLOYERSQ-1. Does your organization believes is having long term relationship with customers?1) yes 2)no Yes NoINTETRPRETATION :Above figure of the data tells about that 80% employees are believes in long term relationship with customers. But 20 % employees don’t believe in long term relationship with customer
Que -2. What kind of incentive you provide to yourcustomer to have a relationship with him? financial Financial incentive. incentive Social bonding. social bonding Customization incentives. customizati All of the above on incentive Any other. All of the above Any others INTETRPRETATION : Above figure of the data tells about that company’s employs says that they provides 50% customization incentives 30% they provides financial incentives 10% provides social bonding to the customer
Que -3. “Customer is always right” do you agree? 1) always 2)some time 3) never always some thing neverINTETRPRETATION : Above figure of the data tells about that80% employs are says that customer is always right and 10%customer some time right and other 10% customers are never rightbelieves in long term relationship with customers
Que-4. Does relationship management provide benefits to the firm? 1) yes 2) no Yes NoINTETRPRETATION : Above figure of the data tells aboutthat 80% employees are says that relationship managementprovides benefits to the firm and 20% employ says relationshipmanagement doesn’t provide any benefits to the firm.
LIMITATIONS: Study has been restricted to Punjab & Haryana Only and findings may not be reflect the true picture of users spread over entire nation. Sample size of 20 customer& 10 company’s employers has been taken due to time constraints which may be considered too small a sample to predict 100% results. Shortage of time is also reason for incomprehensiveness. The views of the customers & company’s employers are biased therefore it doesn’t reflect true picture
CONCLUSION The research was of customers & company’s employers attitudes towards the relationship marketing. Over all it was resulted in very interesting a positive attitude. This research has shown that the customers & company’s employers who are using the service have a higher level of satisfaction after consuming their needs. This research had shown that the keen interest of customers & company’s employers on this service of its good level, service. More over they want to take another new service like this in the future.