Relationship Marketing Thesis

Throughout The Marketing Era the tables have turned from producers to consumers, which changed the market with alluring choices. This was when businesses began to develop brands, to differentiate themselves from their competitors, helping their customers identify various unique products. Last but least The Relationship Era is where businesses aim to build long-term relationships, because they believe a satisfied customer can become great assets for a business. A satisfied customer is a loyal and businesses rely on customers to spread the word on their goods and services.

3.) Transactional marketing, in the perspective of luring the customer for a one off purchase, focuses strongly on price and short term benefits and product performance, with limited service. Relationship marketing is all about generating repeated sales and customer interactions, thus focusing on bringing value to the customer, and assuring long term performance and service, all aspects of quality become major concerns. Relationship marketing brings customer centricity to the spotlight. This vision has

According to Veloutso & Moutinho (2009, p.315) Brand relationship is defined as the continual exchanges between a specified brand and an established customer, where relationship characteristics of love, association, interdependence and loyalty are developed with the brand. However, Keller (2014, p.365) revealed that consumer-brand relationships are the quality of relationship between brands and consumers. As a result, there are many influences that formulate consumer brand relationship. Basically, brand loyalty , brand equity and trust Escalas and Bettman, (2005, p. 379) are the underpinning factors that generates brand relationships. Furthermore, this developing customer brand relationship constitutes a sum of long term experiences with the brand where the brand is the entirety of the customers experiences with the brand. However, supplementing the long term customer brand relationship, brand communications is the major catalyst in relation to enticing both customer and seller in the long term relationship, hence attaining a brand emotional connection. This brand relationship does not only lodge an essential position in the mental period of a brand connection, rather it stimulates greater sales due to customer retention, less price Vulnerability, superior customer loyalty and advanced profit margin.

So in order to maintain the consumer loyalty with the brand it is necessary to make a good relationship with the consumer as it is the first key of building good image of brand in the mind of the

 Customer Relationship Marketing is a practice that encompasses all marketing activities directed toward establishing, developing, and maintaining successful customer relationships. The focus of relationship marketing is on developing long-term relationships and improving corporate performance through customer loyalty and customer retention (Peppers & Rogers, 1997).

Customer relational management is an essential aspect to maintaining a company’s competitiveness and longevity since loyal customers are, “reluctant to patronize [competitive] firms” (textbook citation). SHOP.CA struggles within this aspect due to the lack of communication between customer service and the customer, and lack of stock available and uncompetitive prices.

The relationship marketing has the opportunity to satisfy the buyer as the seller which is the long-term relationship with the customers. This relationship help company to develop more interesting products to attract more attention and more revenue increasing economic opportunities to grow up to another area. For example, give discount coupon for employees of different companies could bring new clients and at the same time every new client could bring their relatives creating a big relationship

For my project I will explain what relationship marketing is. Relationship marketing is different from any other form of marketing. The reason for this is that relationship marketing identifies the long term value of customer relationships and relationship marketing extends communication beyond intrusive advertising and sales promotional messages. Relationship marketing is an arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. Also I will explain what the benefits are of relationship marketing to a business and to a customer. I also will explain the CRM stages, segmentation, technology in relation to relationship marketing and I will do a case study. I am looking at Boots for my case study. I will explain how Boots have managed to build valuable relationships with its customers.

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

In the context of relationship marketing, customer satisfaction is often viewed as a central determinant of customer retention (Henning-Thurau, 1998).” Customer satisfaction is one piece of the puzzle to and overall well-executed advertisement and essentially product. Advertising is important to the customer, who is the one who purchases the product after they have been made aware of the product’s availability. Advertising helps find the best fit for customers via product. Advertising is important to society because it helps to educate the masses. Advertisements go beyond the products and they address social standards and current issues, as well. There are many elements that make up a successful advertisement and or campaign.

Sorce, P. (2002). Relationship marketing: A research monograph of the printing industry center at RIT. New York, USA: Rochester Institute of Technology

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

5. RELATIONSHIP MARKETING: In this competitive era, companies are always looking for ways to develop and maintain a long lasting relationship with customers, employees and even suppliers. Relationship marketing is two way traffic; it goes beyond just making ‘sales’ and companies are beginning to realize. Good relationship with customers is a strategic weapon for any company, this is because long term customers buy more, do referrals and give back valuable and truthful feedback. Keeping a customer requires an extra effort. According to the founder of Walmart: “There is only one boss, the customer, and he can fire

It is our contention that RM is inherently an ethical activity, since enduring relationships cannot be built or sustained without a solid moral foundation. Before moving on, it is important to define and clarify our view of relationship marketing. As Kotler and Keller (2006), Gummesson (1999) and others have stated, RM has the aim of building mutually satisfying long-term relations with key parties – customers, suppliers, distributors – in order to earn and retain their businesses. Norberg (2001) listed 14 definitions of RM taken from the literature during the last 15 years. Most of the definitions indicate that there are separate phases of a relationship such as its foundation and maintenance. Furthermore, elements like trust, equity and involvement tend to foster this bond and contribute to long-term partner satisfaction. This paper is divided into four parts. First, we examine the historical roots of relationship marketing. The second section characterizes both the American and European views on RM. Third, we present a model of ethical relationship marketing and discuss its components. Within the model, the theory of virtue and several relevant virtues that we believe are essential for successful RM are examined. In the subsequent discussion, we lay the groundwork for those who might attempt to measure the presence of these characteristics in business and consumer partnerships that have been claimed to be successful. Finally, we draw implications for

In 1980 relationship marketing appeared as an alternative to the dominant perspective of marketing as a series of exchanges, because many of these transactions exclusively in the service industry have a relationship with nature (Berry, 1983; Dwyer et al., 1987; Gro ̈nroos, 1994; Gummesson, 1994; Sheth and Parvatiyar, 2000 (in Leverin and Liljander, 2006).