SlideShare a Scribd company logo
1 of 26
FOUNDATIONS OF RELATIONSHIP
MARKETING
.
• American Marketing Association’s new
official definition of marketing released
August 2007:
–Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.
• Kotler & Keller’s definition of marketing
management:
– The art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and communicating
superior customer value.
Value, Value, Value
• Successful products and services deliver value
and satisfaction to customers
– We make buying decisions based on which
product is perceived to offer the most value
– Tangible/Intangible benefits vs. cost
How do we create customers?
– Identifying customer needs
– Designing goods and services that meet those
needs
– Communicate Information about those goods and
services to prospective buyers
– Making the goods or services available at times
and places that meet customers’ needs
– Pricing goods and services to reflect costs,
competition, and customers’ ability to buy
– Providing for the necessary service and follow-up
How do we create VALUE?
• Identify the needs in the marketplace
• Find out which needs the organization can
profitably serve
• Design goods and services that meet those
needs
• Developing a marketing mix that will convert
potential customers into actual customers
• Providing for the necessary service and follow-
up after the service
“4 Eras” of Marketing
From transaction-based marketing to
relationship marketing…
From transaction-based marketing to
relationship marketing…
• Transaction–based marketing (Simple
exchanges)
• Relationship marketing
–Lifetime value of a customer
–Converting new customers to advocates
Transaction vs. Relationship Marketing
Criteria for differentiation Transaction Marketing Relationship Marketing
World View Managing a company’s
product portfolio, setting &
modifying marketing mix
parameters to achieve
optimal 4P configuration
Managing a company’s
customer portfolio, building
long term business
relationships
Assessment horizon Short-duration Long-duration
Key concepts 4Ps, segmentation, branding,
etc
Interaction, relationships and
networks
Marketing Focus Product/service Product, service and customer
Marketing goal customer acquisition customer acquisition, customer
retention, customer recovery
Marketing strategy Presentation of outcome dialogue
Marketing interaction One-way communication,
formal market studies
Interactive communication,
mutual learning & adaptations
Promotion strategy Non personal advertising,
brand and image
management
Through personal interaction,
developing identity as a
reliable supplier in a network
Definition of Relationship Marketing
Berry
1983
attracting, maintaining and enhancing customer
relationships
GrÖnro
os
1992
The goal of relationship marketing is to establish,
maintain and enhance relationships with customers
and other parties at a profit so that the objectives of
the parties involved are met
Shani &
Chalasa
ni 1992
RM is an integrated effort to identify, maintain and
build up a network with individual consumers and to
continuously strengthen the network for the mutual
benefit of both sides, through interactive,
individualised and value-added contacts over a long
period of time
Definition of Relationship Marketing
MÖLLER
1992
Marketing is of understanding, creating, and
managing exchange relationships between economic
parties; manufacturers, service providers, various
channel members and final consumers
GrÖnroos
1994
Marketing is establish, maintain, enhance and
commercialize customer relationships so that the
objectives of the parties involved are met. This is
done by a mutual exchange and fulfillment of
promises
Morgan
and Hunt
1994
RM refers to all marketing activities directed towards
establishing, developing and maintaining successful
relational exchange
Definition of Relationship Marketing
Sheth &
Parvatyar
1995
RM is a marketing orientation that seeks to
develop close interactions with selected
customers, supplier and competitors for value
creation through cooperative and collaborative
efforts
Gummesson
1996
RM is marketing seen as relationships, networks
and interaction
Parvatyar &
Sheth 2000
RM is the ongoing process of engaging in
cooperative and collaborative activities and
programs with immediate and end-user
customers to create or enhance mutual economic
value, at reduced cost
Dimensions of Relationship Marketing
• Stakeholder orientation
• Decision orientation
• Time-horizon orientation
• Value orientation
Let’s take a step back…
• Although it is very important to try to build
relationships with customers to ensure LT
success
• But, it is just as important to determine which
consumers we want this relationship with!!
– Target Market
– “Costly” Consumers
Customer Relationship Management
(CRM)
The combination of strategies and tools that
drive relationship programs, re-orientating the
entire organization to a concentrated focus on
satisfying customers
Strategies for Building Customer
Relationships
• Affinity Programs
– a marketing effort sponsored by an organization
that solicits responses from individuals who share
common interests and activities
Strategies for Building Customer
Relationships
• Frequency Marketing
– frequent-buyer or user marketing programs that
reward customers with cash, rebates,
merchandise, or other premiums
Strategies for Building Customer
Relationships
• Database Marketing
– software that analyzes marketing information,
then identifies and targets messages toward
specific groups of potential customers
Strategies for Building B2B
Relationships
• Strategic alliance
– a partnership formed to create a competitive
advantage
– These more formal long-term partnership
arrangements improved each partner supply-
chain relationships and enhance flexibility
Strategies for Building B2B
Relationships
• Electronic Data Interchange (EDI)
– involves computer-to-computer exchanges of
invoices, orders, and other business documents
• Vendor Managed Inventory (VMI)
– is an inventory-management system in which the
seller–based on existing agreement with a buyer–
determines how much of a product is needed
Strategies for Building B2B
Relationships
• Database Marketing
– software that analyzes marketing information,
then identifies and targets messages toward
specific groups of potential customers
Evaluating Relationships
• Lifetime Value (LTV)
–Refers to the net present value of the
potential revenue stream for any particular
customer over a # of years
–Starts with current purchase activity then
extrapolates to include potential additions
from cross-selling, upgrades, total
ownership, etc.
Building Buyer-Seller Relationships
• Many customers are seeking ways to simplify their
lives, and relationships provide a way to do this
• Customers find comfort with brands that have
become familiar through their ongoing relationships
with companies or when they feel like they can relate
to a company
– Dove’s Campaign for REAL Beauty
• Such relationships often lead to more efficient
decision-making customers and higher levels of
customer satisfaction
The Value of Customer Retention
• On average, it costs over 10 TIMES more to
acquire a new customer versus retain an
existing one
• A 5% gain in customer retention can result in
an 80% gain in profits.

More Related Content

What's hot

Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship managementcharanreddy589
 
Introduction To Retail Management
Introduction To Retail ManagementIntroduction To Retail Management
Introduction To Retail ManagementAsif Jamal
 
Relationship Marketing
Relationship MarketingRelationship Marketing
Relationship MarketingNeeraj Garwal
 
Relationship marketing
Relationship marketingRelationship marketing
Relationship marketingdeepu2000
 
Delivering and performing services through employees
Delivering and performing services through employeesDelivering and performing services through employees
Delivering and performing services through employeesDr. Sneha Sharma
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship ManagementDr. Praveen Pillai
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship ManagementPriyaRamalingam5493
 
Retail marketing strategy
Retail marketing strategyRetail marketing strategy
Retail marketing strategySakthivel R
 
Employees role in service delivery
Employees role in service deliveryEmployees role in service delivery
Employees role in service deliveryBinod Sinha
 
Chapter3 Marketing In The Internet Age
Chapter3 Marketing In The Internet AgeChapter3 Marketing In The Internet Age
Chapter3 Marketing In The Internet Agedr_ahmadov
 
Building and Sustaining Relationships in Retailing
Building and Sustaining      Relationships in RetailingBuilding and Sustaining      Relationships in Retailing
Building and Sustaining Relationships in RetailingChristian Bocalan
 
1a. the 4 ps of marketing
 1a. the 4 ps of marketing 1a. the 4 ps of marketing
1a. the 4 ps of marketingHarshruti
 
Evaluation of channel performance
Evaluation of channel performanceEvaluation of channel performance
Evaluation of channel performanceRicha Singhvi
 
Customer Relationship Management (Crm) By Ravinder Tulsiani
Customer Relationship Management (Crm) By Ravinder TulsianiCustomer Relationship Management (Crm) By Ravinder Tulsiani
Customer Relationship Management (Crm) By Ravinder TulsianiRavinder Tulsiani
 
Customer relationship management unit 1 introduction
Customer relationship management  unit 1 introductionCustomer relationship management  unit 1 introduction
Customer relationship management unit 1 introductionGanesha Pandian
 
Lecture 1 of Customer Relationship Management
Lecture 1 of Customer Relationship ManagementLecture 1 of Customer Relationship Management
Lecture 1 of Customer Relationship ManagementAli Noman
 

What's hot (20)

Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship management
 
Introduction To Retail Management
Introduction To Retail ManagementIntroduction To Retail Management
Introduction To Retail Management
 
Relationship Marketing
Relationship MarketingRelationship Marketing
Relationship Marketing
 
Relationship marketing
Relationship marketingRelationship marketing
Relationship marketing
 
Relationship Marketing
Relationship MarketingRelationship Marketing
Relationship Marketing
 
Delivering and performing services through employees
Delivering and performing services through employeesDelivering and performing services through employees
Delivering and performing services through employees
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship Management
 
Customer Relationship Management
Customer Relationship ManagementCustomer Relationship Management
Customer Relationship Management
 
Retail marketing strategy
Retail marketing strategyRetail marketing strategy
Retail marketing strategy
 
Employees role in service delivery
Employees role in service deliveryEmployees role in service delivery
Employees role in service delivery
 
Chapter3 Marketing In The Internet Age
Chapter3 Marketing In The Internet AgeChapter3 Marketing In The Internet Age
Chapter3 Marketing In The Internet Age
 
Building and Sustaining Relationships in Retailing
Building and Sustaining      Relationships in RetailingBuilding and Sustaining      Relationships in Retailing
Building and Sustaining Relationships in Retailing
 
1a. the 4 ps of marketing
 1a. the 4 ps of marketing 1a. the 4 ps of marketing
1a. the 4 ps of marketing
 
Crm
CrmCrm
Crm
 
Evaluation of channel performance
Evaluation of channel performanceEvaluation of channel performance
Evaluation of channel performance
 
Distributing service
Distributing serviceDistributing service
Distributing service
 
Retail Strategy
Retail StrategyRetail Strategy
Retail Strategy
 
Customer Relationship Management (Crm) By Ravinder Tulsiani
Customer Relationship Management (Crm) By Ravinder TulsianiCustomer Relationship Management (Crm) By Ravinder Tulsiani
Customer Relationship Management (Crm) By Ravinder Tulsiani
 
Customer relationship management unit 1 introduction
Customer relationship management  unit 1 introductionCustomer relationship management  unit 1 introduction
Customer relationship management unit 1 introduction
 
Lecture 1 of Customer Relationship Management
Lecture 1 of Customer Relationship ManagementLecture 1 of Customer Relationship Management
Lecture 1 of Customer Relationship Management
 

Viewers also liked

Video Trends - Things you should know about video
Video Trends - Things you should know about videoVideo Trends - Things you should know about video
Video Trends - Things you should know about videoNideo
 
viện da liễu thành phố hồ chí minh
viện da liễu thành phố hồ chí minhviện da liễu thành phố hồ chí minh
viện da liễu thành phố hồ chí minhPhụ Bì Khang
 
E1a2 social explanations for criminality
E1a2 social explanations for criminalityE1a2 social explanations for criminality
E1a2 social explanations for criminalityAarono1979
 
De koep Turnhout - een burgerbeweging in volle ontwikkeling
De koep Turnhout - een burgerbeweging in volle ontwikkelingDe koep Turnhout - een burgerbeweging in volle ontwikkeling
De koep Turnhout - een burgerbeweging in volle ontwikkelingJasminMinds
 
Betta Balustrades – Fulfilling all your fencing requirements in Australia
 Betta Balustrades – Fulfilling all your fencing requirements in Australia Betta Balustrades – Fulfilling all your fencing requirements in Australia
Betta Balustrades – Fulfilling all your fencing requirements in AustraliaBetta Balustrades
 
Oceanhub News Journalists-Information
Oceanhub News Journalists-InformationOceanhub News Journalists-Information
Oceanhub News Journalists-InformationOcean Hub AS
 
Armazenagem de mercadorias (1)
Armazenagem de mercadorias (1)Armazenagem de mercadorias (1)
Armazenagem de mercadorias (1)joaninha09
 
ardilla 702
ardilla 702ardilla 702
ardilla 702mtaurth
 

Viewers also liked (17)

Video Trends - Things you should know about video
Video Trends - Things you should know about videoVideo Trends - Things you should know about video
Video Trends - Things you should know about video
 
Ecos1
Ecos1Ecos1
Ecos1
 
Modem
Modem Modem
Modem
 
Episode 13
Episode 13Episode 13
Episode 13
 
viện da liễu thành phố hồ chí minh
viện da liễu thành phố hồ chí minhviện da liễu thành phố hồ chí minh
viện da liễu thành phố hồ chí minh
 
E1a2 social explanations for criminality
E1a2 social explanations for criminalityE1a2 social explanations for criminality
E1a2 social explanations for criminality
 
Ece 214 week 2 dq 1
Ece 214 week 2 dq 1Ece 214 week 2 dq 1
Ece 214 week 2 dq 1
 
Lookinheadhunt
LookinheadhuntLookinheadhunt
Lookinheadhunt
 
About Nitor Infotech
About Nitor InfotechAbout Nitor Infotech
About Nitor Infotech
 
De koep Turnhout - een burgerbeweging in volle ontwikkeling
De koep Turnhout - een burgerbeweging in volle ontwikkelingDe koep Turnhout - een burgerbeweging in volle ontwikkeling
De koep Turnhout - een burgerbeweging in volle ontwikkeling
 
Betta Balustrades – Fulfilling all your fencing requirements in Australia
 Betta Balustrades – Fulfilling all your fencing requirements in Australia Betta Balustrades – Fulfilling all your fencing requirements in Australia
Betta Balustrades – Fulfilling all your fencing requirements in Australia
 
Sổ tay bệnh học Spacaps
Sổ tay bệnh học SpacapsSổ tay bệnh học Spacaps
Sổ tay bệnh học Spacaps
 
Episode 9
Episode 9Episode 9
Episode 9
 
Oceanhub News Journalists-Information
Oceanhub News Journalists-InformationOceanhub News Journalists-Information
Oceanhub News Journalists-Information
 
Benefits of Granite Countertops
Benefits of Granite CountertopsBenefits of Granite Countertops
Benefits of Granite Countertops
 
Armazenagem de mercadorias (1)
Armazenagem de mercadorias (1)Armazenagem de mercadorias (1)
Armazenagem de mercadorias (1)
 
ardilla 702
ardilla 702ardilla 702
ardilla 702
 

Similar to Rm1 foundations of relationship marketing

MBA 1 - MARKETING.pptx
MBA 1 - MARKETING.pptxMBA 1 - MARKETING.pptx
MBA 1 - MARKETING.pptxmech43
 
Crm ppt final (1)
Crm ppt final (1)Crm ppt final (1)
Crm ppt final (1)Angad Singh
 
Marketing - Rami Show
Marketing - Rami   ShowMarketing - Rami   Show
Marketing - Rami ShowMaram Peace
 
Marketing Management - What is Marketing ?
Marketing Management - What is Marketing ?Marketing Management - What is Marketing ?
Marketing Management - What is Marketing ?FaHaD .H. NooR
 
KEY CONCEPTS OF MARKETING PROCESS
KEY CONCEPTS OF MARKETING PROCESSKEY CONCEPTS OF MARKETING PROCESS
KEY CONCEPTS OF MARKETING PROCESSClarisseGonzales6
 
Chapter # 1 kotler
Chapter # 1 kotlerChapter # 1 kotler
Chapter # 1 kotlerAqibSheikh10
 
Service marketing5
Service marketing5Service marketing5
Service marketing5Swarit Yadav
 
Module 1 marketing in a changing world
Module 1 marketing in a changing worldModule 1 marketing in a changing world
Module 1 marketing in a changing worldJeVaughn Ferguson
 
Module 1 marketing in a changing world
Module 1 marketing in a changing worldModule 1 marketing in a changing world
Module 1 marketing in a changing worldJeVaughn Ferguson
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship managementRam
 
Customer relationship
Customer relationshipCustomer relationship
Customer relationshipAsim Ramadan
 
Customer Relationship Management
Customer Relationship Management Customer Relationship Management
Customer Relationship Management Anıl Sural
 
Chapter_1_for_Principles_of_Marketing.ppt
Chapter_1_for_Principles_of_Marketing.pptChapter_1_for_Principles_of_Marketing.ppt
Chapter_1_for_Principles_of_Marketing.pptFatimaAbboud1
 
E Marketing Week12
E Marketing Week12E Marketing Week12
E Marketing Week12Stephen Dann
 

Similar to Rm1 foundations of relationship marketing (20)

Relationship marketing
Relationship marketingRelationship marketing
Relationship marketing
 
MBA 1 - MARKETING.pptx
MBA 1 - MARKETING.pptxMBA 1 - MARKETING.pptx
MBA 1 - MARKETING.pptx
 
Crm ppt final (1)
Crm ppt final (1)Crm ppt final (1)
Crm ppt final (1)
 
Marketing - Rami Show
Marketing - Rami   ShowMarketing - Rami   Show
Marketing - Rami Show
 
Marketing Management - What is Marketing ?
Marketing Management - What is Marketing ?Marketing Management - What is Marketing ?
Marketing Management - What is Marketing ?
 
Relationship marketing
Relationship marketingRelationship marketing
Relationship marketing
 
KEY CONCEPTS OF MARKETING PROCESS
KEY CONCEPTS OF MARKETING PROCESSKEY CONCEPTS OF MARKETING PROCESS
KEY CONCEPTS OF MARKETING PROCESS
 
Chapter # 1 kotler
Chapter # 1 kotlerChapter # 1 kotler
Chapter # 1 kotler
 
Service marketing5
Service marketing5Service marketing5
Service marketing5
 
Relationship marketing
Relationship marketingRelationship marketing
Relationship marketing
 
Module 1 marketing in a changing world
Module 1 marketing in a changing worldModule 1 marketing in a changing world
Module 1 marketing in a changing world
 
Module 1 marketing in a changing world
Module 1 marketing in a changing worldModule 1 marketing in a changing world
Module 1 marketing in a changing world
 
Marketing:Creating and Capturing Customer Value
Marketing:Creating and Capturing Customer ValueMarketing:Creating and Capturing Customer Value
Marketing:Creating and Capturing Customer Value
 
chapter-1.pdf
chapter-1.pdfchapter-1.pdf
chapter-1.pdf
 
Customer relationship management
Customer relationship managementCustomer relationship management
Customer relationship management
 
Customer relationship
Customer relationshipCustomer relationship
Customer relationship
 
Customer Relationship Management
Customer Relationship Management Customer Relationship Management
Customer Relationship Management
 
Ch 10
Ch 10Ch 10
Ch 10
 
Chapter_1_for_Principles_of_Marketing.ppt
Chapter_1_for_Principles_of_Marketing.pptChapter_1_for_Principles_of_Marketing.ppt
Chapter_1_for_Principles_of_Marketing.ppt
 
E Marketing Week12
E Marketing Week12E Marketing Week12
E Marketing Week12
 

More from Mawan Frans Leonard Tambunan (8)

Rm6 relationship marketing in practice
Rm6 relationship marketing in practiceRm6 relationship marketing in practice
Rm6 relationship marketing in practice
 
Rm4 analysis phase of rm
Rm4 analysis phase of rmRm4 analysis phase of rm
Rm4 analysis phase of rm
 
Rm3 konseptualisasi rm
Rm3 konseptualisasi rmRm3 konseptualisasi rm
Rm3 konseptualisasi rm
 
Rm2 theoritical foundation
Rm2 theoritical foundationRm2 theoritical foundation
Rm2 theoritical foundation
 
Presentasi manajemen pemasaran bab 1
Presentasi manajemen pemasaran   bab 1Presentasi manajemen pemasaran   bab 1
Presentasi manajemen pemasaran bab 1
 
Presentasi manajemen pemasaran bab 4
Presentasi manajemen pemasaran   bab 4Presentasi manajemen pemasaran   bab 4
Presentasi manajemen pemasaran bab 4
 
Presentasi manajemen pemasaran bab 2
Presentasi manajemen pemasaran   bab 2Presentasi manajemen pemasaran   bab 2
Presentasi manajemen pemasaran bab 2
 
Presentasi manajemen pemasaran bab 2
Presentasi manajemen pemasaran   bab 2Presentasi manajemen pemasaran   bab 2
Presentasi manajemen pemasaran bab 2
 

Recently uploaded

1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdfQucHHunhnh
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and ModificationsMJDuyan
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseAnaAcapella
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsTechSoup
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...Poonam Aher Patil
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsMebane Rash
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxAmanpreet Kaur
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxDenish Jangid
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxheathfieldcps1
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...Nguyen Thanh Tu Collection
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Association for Project Management
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentationcamerronhm
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...ZurliaSoop
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxVishalSingh1417
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfciinovamais
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfAdmir Softic
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docxPoojaSen20
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.pptRamjanShidvankar
 

Recently uploaded (20)

1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
Spatium Project Simulation student brief
Spatium Project Simulation student briefSpatium Project Simulation student brief
Spatium Project Simulation student brief
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptxSKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
SKILL OF INTRODUCING THE LESSON MICRO SKILLS.pptx
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...Making communications land - Are they received and understood as intended? we...
Making communications land - Are they received and understood as intended? we...
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docx
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 

Rm1 foundations of relationship marketing

  • 2. .
  • 3. • American Marketing Association’s new official definition of marketing released August 2007: –Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
  • 4. • Kotler & Keller’s definition of marketing management: – The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
  • 5. Value, Value, Value • Successful products and services deliver value and satisfaction to customers – We make buying decisions based on which product is perceived to offer the most value – Tangible/Intangible benefits vs. cost
  • 6. How do we create customers? – Identifying customer needs – Designing goods and services that meet those needs – Communicate Information about those goods and services to prospective buyers – Making the goods or services available at times and places that meet customers’ needs – Pricing goods and services to reflect costs, competition, and customers’ ability to buy – Providing for the necessary service and follow-up
  • 7. How do we create VALUE? • Identify the needs in the marketplace • Find out which needs the organization can profitably serve • Design goods and services that meet those needs • Developing a marketing mix that will convert potential customers into actual customers • Providing for the necessary service and follow- up after the service
  • 8. “4 Eras” of Marketing
  • 9. From transaction-based marketing to relationship marketing…
  • 10. From transaction-based marketing to relationship marketing… • Transaction–based marketing (Simple exchanges) • Relationship marketing –Lifetime value of a customer –Converting new customers to advocates
  • 11. Transaction vs. Relationship Marketing Criteria for differentiation Transaction Marketing Relationship Marketing World View Managing a company’s product portfolio, setting & modifying marketing mix parameters to achieve optimal 4P configuration Managing a company’s customer portfolio, building long term business relationships Assessment horizon Short-duration Long-duration Key concepts 4Ps, segmentation, branding, etc Interaction, relationships and networks Marketing Focus Product/service Product, service and customer Marketing goal customer acquisition customer acquisition, customer retention, customer recovery Marketing strategy Presentation of outcome dialogue Marketing interaction One-way communication, formal market studies Interactive communication, mutual learning & adaptations Promotion strategy Non personal advertising, brand and image management Through personal interaction, developing identity as a reliable supplier in a network
  • 12. Definition of Relationship Marketing Berry 1983 attracting, maintaining and enhancing customer relationships GrÖnro os 1992 The goal of relationship marketing is to establish, maintain and enhance relationships with customers and other parties at a profit so that the objectives of the parties involved are met Shani & Chalasa ni 1992 RM is an integrated effort to identify, maintain and build up a network with individual consumers and to continuously strengthen the network for the mutual benefit of both sides, through interactive, individualised and value-added contacts over a long period of time
  • 13. Definition of Relationship Marketing MÖLLER 1992 Marketing is of understanding, creating, and managing exchange relationships between economic parties; manufacturers, service providers, various channel members and final consumers GrÖnroos 1994 Marketing is establish, maintain, enhance and commercialize customer relationships so that the objectives of the parties involved are met. This is done by a mutual exchange and fulfillment of promises Morgan and Hunt 1994 RM refers to all marketing activities directed towards establishing, developing and maintaining successful relational exchange
  • 14. Definition of Relationship Marketing Sheth & Parvatyar 1995 RM is a marketing orientation that seeks to develop close interactions with selected customers, supplier and competitors for value creation through cooperative and collaborative efforts Gummesson 1996 RM is marketing seen as relationships, networks and interaction Parvatyar & Sheth 2000 RM is the ongoing process of engaging in cooperative and collaborative activities and programs with immediate and end-user customers to create or enhance mutual economic value, at reduced cost
  • 15. Dimensions of Relationship Marketing • Stakeholder orientation • Decision orientation • Time-horizon orientation • Value orientation
  • 16. Let’s take a step back… • Although it is very important to try to build relationships with customers to ensure LT success • But, it is just as important to determine which consumers we want this relationship with!! – Target Market – “Costly” Consumers
  • 17. Customer Relationship Management (CRM) The combination of strategies and tools that drive relationship programs, re-orientating the entire organization to a concentrated focus on satisfying customers
  • 18. Strategies for Building Customer Relationships • Affinity Programs – a marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities
  • 19. Strategies for Building Customer Relationships • Frequency Marketing – frequent-buyer or user marketing programs that reward customers with cash, rebates, merchandise, or other premiums
  • 20. Strategies for Building Customer Relationships • Database Marketing – software that analyzes marketing information, then identifies and targets messages toward specific groups of potential customers
  • 21. Strategies for Building B2B Relationships • Strategic alliance – a partnership formed to create a competitive advantage – These more formal long-term partnership arrangements improved each partner supply- chain relationships and enhance flexibility
  • 22. Strategies for Building B2B Relationships • Electronic Data Interchange (EDI) – involves computer-to-computer exchanges of invoices, orders, and other business documents • Vendor Managed Inventory (VMI) – is an inventory-management system in which the seller–based on existing agreement with a buyer– determines how much of a product is needed
  • 23. Strategies for Building B2B Relationships • Database Marketing – software that analyzes marketing information, then identifies and targets messages toward specific groups of potential customers
  • 24. Evaluating Relationships • Lifetime Value (LTV) –Refers to the net present value of the potential revenue stream for any particular customer over a # of years –Starts with current purchase activity then extrapolates to include potential additions from cross-selling, upgrades, total ownership, etc.
  • 25. Building Buyer-Seller Relationships • Many customers are seeking ways to simplify their lives, and relationships provide a way to do this • Customers find comfort with brands that have become familiar through their ongoing relationships with companies or when they feel like they can relate to a company – Dove’s Campaign for REAL Beauty • Such relationships often lead to more efficient decision-making customers and higher levels of customer satisfaction
  • 26. The Value of Customer Retention • On average, it costs over 10 TIMES more to acquire a new customer versus retain an existing one • A 5% gain in customer retention can result in an 80% gain in profits.