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‘Total Relationship Marketing’
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)
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.
Gummesson defines ‘Relationship
Marketing’ as:

“Relationship marketing is
marketing seen as
relationships, networks and
interactions.”
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
Interactions are hierarchical:

               Relationships

                Sequences

                 Episodes

                 Activities
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
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
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
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
These four types of relationship
 operate within one another:
                     Nano
                     relationships

                      Classic market
                      relationships

                      Special market
                      relationships

                      Mega
                      relationships
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.

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Total Relationship Marketing

  • 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. 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. Gummesson defines ‘Relationship Marketing’ as: “Relationship marketing is marketing seen as relationships, networks and interactions.”
  • 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. Interactions are hierarchical: Relationships Sequences Episodes Activities
  • 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. 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. 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. 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. These four types of relationship operate within one another: Nano relationships Classic market relationships Special market relationships Mega relationships
  • 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.