Defining Relation Marketing in Principles of Marketing

1. DEFINING RELATIONSHIP MARKETING
PRINCIPLES OF MARKETING
GROUP 1
ADAYO, MARK JOHN
DELARA, EVALAINE
CORREOS, DAYLENE

2. Relationship Marketing
• According to Gilaninia et al (2011), Relationship Marketing involves creating,
maintining and enhancing strong relationsips with customers and other
stakeholders.
• Relationship marketing is oriented more towards the long term. The goal is to
deliver long-term value to customers and the measure of succes is long-term
customer satisfaction.
• It requires that all the company’s departments work together with marketing
as a team to serve the customer. It involves building relationships at many
levels- economic, social, technical and legal- resulting in high customer
loyalty.

3. Relationship
Marketing: • Basic. The company salesperson sells
the product but does not follow up in any
way.
• Reactive. The salesperson sells the
product and encourages the costumer to
call whenever he or she has any
questions or problems.
• Accountable. The salesperson phones
the customer a short time after the sale to
check wether the product is meeting the
customer’s expectations.
We can distinguished five
different levels of
relationships that can be
formed with costumers who
have purchased a company’s
product , such as car or a
piece of equipment:

4. Relationship
Marketing: • Proactive. The salesperson or others in
the company phone the costumer from
time to time with suggestions about
improved product use or helpful new
products.
• Partnership. The company works
continously with the customer and with
other customers to discover ways to
deliver better value.
We can distinguished five
different levels of
relationships that can be
formed with costumers who
have purchased a company’s
product , such as car or a
piece of equipment:

5. Concept of Relationship Marketing
• Forbes.com defined Relationship marketing is a strategy designed for
customer loyalty, interaction, and long-term engagement to be fostered. it is
designed to develop strong connections with customers by providing them
with information directly suited to their needs and interests by promoting open
communication.
• Costumer relationship is the development of an ongoing connection
between a company and its customers. The relationship involves marketing
communications, sales support, technical assistance and costumer service.
• According to Serrano, Relationship Marketing includes activities aimed at
developing and managing trusting and long-term relationships with larger
customers. (Costumer profiles, buying patterns and history of contacts are
kept in a sales distribution)

6. Characteristics of Relationship Marketing
• 1. It focuses on the long-term rather than the short-term.
• 2. It focus on partners and customers rather than on the
company’s products.
• 3. It puts more emphasis on customer retention and
growth than on customer acquisition.
• 4. It relies on cross-functional teams rather than on
departmental-level work.
• 5. It relies more on listening and learning than on talking.

7. Benefits in Developing and Implementing
Customer Relationship:
• 1. Consistent customer experience.
• 2. Customers Feedback
• 3. Customer Profitability
• 4. Customer Advocate
• 5. Innovation

8. Benefits of Relationship Marketing:
• In the business world, retaining costumers has a lesser cost at
least eight times compared to accquiring new ones.
• A. Understanding Costumer Characteristics- the company can
segregate its costumers into groups based on their characteristics
like purchasing power, frequency and volume of sale tranactions.

9. Benefits of Relationship Marketing:
• B. Delivery and Meeting Expectations. if the company knows
what is customer’s needs are, it will help reduce wastage due to
trial and error methods. It is easier to create a product if the
features and specifications of the product are known.
• C. Repeat Business. Sellers should maintain good attitude to the
buyers. By doing this, buyers will feel they do not need to switch
sellers.

10. Benefits of Relationship Marketing:
• D. Prevents Negative Transition. Trust and loyalty go hand
in hand and it is super beneficial for all business. It will prevent
costumers from turning to competitors.
• E. World of Mouth Marketing.
• Increasing Customer Base- satisfied existing customer is
100% more likely to recommend a product/service to a prospective
customer. Apart from costumer, referrals, there are several other
ways to increase customer satisfaction by employing methods of
utilizing social networking websites, blogs, informal surveys,

11. Benefits of Relationship Marketing:
benefits on loyalty cards, timely response to complaints and requests
as a constant reminder of its presence around and retention equity is
improved by enhancing customer satisfaction.
• F. Reduced Marketing Cost. benefits also include lesser
marketing costs and more value creation. This can be explained
by stating the following statistics: every 5% increase in customer
retention can increase a company’s annual profits from at least
25% to as much as 125%, while simultaneously leading to a
reduction of 10% in marketing costs.

12. Benefits of Relationship Marketing:
• G. Identification with the company. the benefits are reaped both
by the company and the customers. It helps customers identify
more with the company. Keeping your communication lines open
and keeping in touch with the customers makes them feel like they
are being valued.
• H. Product Market Expansion. the company’s employees must
be ready to deliver beyond the company’s boundaries on
customer demand.