Relationship marketing aims to build long-term relationships with key stakeholders like customers, suppliers, and distributors to retain their business over time. It develops strong economic, technical, and social ties between parties through interaction and networks of relationships. Relationship marketing differs from transactional marketing by focusing on developing and maintaining relationships rather than single sales. It uses methods like customer relationship management to apply relationship marketing strategies and emphasize customer relationships in practice.

1. Relationship Marketing
AMAL BENNY
MAR IVANIOS COLLEGE
TRIVANDRUM

2. Relationship marketing Meaning
Relationship marketing aims to build mutually
satisfying long term relationship with key parties in
order to earn and retain their business. It builds strong
economic, technical and social ties among the parties.

3. Relationship marketing Definition
Relationship marketing is based on interaction within networks of
relationships
-EVERT GUMMESSON

4. RMVs transactional marketing
• Relationship marketing uses methods to develop long
term relationship with customer in order to retain and
develop a healthy relationship with their customer
• Transactional marketing is focusing all of its marketing
efforts on attracting customer for one off sale

5. Customer Relationship Marketing
• CRM is the values and strategies of relationship marketing with particular
emphasis on customer relationship turned into practical application

6. Customer lifetime value
• Losing an existing customer means losing the entire revenue stream that
customer represents not just that single encounter or sale

7. Customer loyalty and satisfaction
Highly satisfied customer are ;
• Less price sensitive
• More likely to talk favorably about product
• More likely to refer products to others
• Remain loyal for long

8. 5 levels of relationship marketing
• Basic marketing
• Reactive marketing
• Accountable marketing
• Proactive marketing
• Partnership marketing

9. • Basic Marketing –The salesperson sells to the final
customers.This is also known as direct sales.
• Reactive Marketing –The sales person sells the product and
encourages the customer to call for any comments or
enquiries.
• Accountable Marketing –The sales person calls the
customers to ensure whether the product is working as per
satisfaction and if there is any problem in the product.
Furthermore he also asks the customer for any suggestions /
feedback to improve the service / product.Thus he is taking
responsibility for the sale.

10. • Proactive marketing –The company works continuously
with its large customers to help improve performance.
This is especially seen in financial companies wherein the
movement in the financial market induces the company to
make changes regularly. However at the same time, these
financial companies have to take care of their customers
as well.Thus they take regular feedback from their large
customers thereby developing their products accordingly.
• Partnership Marketing –The company works
continuously with its large customers to improve its
performance.

11. 10 Critical players in Relationship Marketing.
Supplier
Distributors
End users
Employees
Financial firms
Government
Media
Allies
Competitors
General public

12. Relationship Marketing and the 4Ps
Product
• More products are customized to the customers’ preferences.
• New products are developed and designed cooperatively with suppliers and
distributors.

13. Price
• The company will set a price based on the relationship with the
customer and the bundle of features and services ordered by the
customer.
• In business-to-business marketing, there is more negotiation
because products are often designed for each customer.

14. Distribution (Place)
• RM favours more direct marketing to the customer, thus
reducing the role of middlemen.
• RM favours offering alternatives to customers to choose
the way they want to order, pay for, receive, install, and
even repair the product.

15. Communication (Promotion)
• RM favours more individual communication and dialogue
with customers.
• RM favours more integrated marketing communications
to deliver the same promise and image to the customer.
• RM sets up extranets with large customers to facilitate
information exchange, joint planning, ordering, and
payments.

16. Properties of relationship marketing
• Collaboration
• Commitment, Dependency
• Trust, risk and uncertainty
• Power
• Longevity
• Frequency, regularity and intensity

17. • Formality, informality and openness
• Reutilization
• Content
• Personal and social properties

18. Why Relationship Marketing is important ?
• It costs five times as much to attract a new customer as it does to keep a
current one satisfied
• It is claimed that a 5% improvement in customer retention can cause an
increase in profitability b/w 25% and 85% depending on the industry
• Like wise it is easier to deliver additional products and services to an existing
customer than to a first time “buyer”

19. conclusion
• Relationship marketing is the practice of building long-term satisfying
relations with key parties—customers, suppliers, distributors—in order to
retain their long-term preference and business.

20. Thank you