Relationship Marketing Essay

2276 WordsApr 25, 200710 Pages
Relationship marketing has become a dominant form of marketing theory in recent times. It has evolved from other forms of marketing and has countless benefits for businesses that use the relationship strategy. It is limitless in the type of businesses it can be adopted by with new technology and media making it even more popular. The study of marketing is one that has been fixed on an evolving range of marketing segments over the last fifty years or so. A look at the progress of the changing focus of marketing shows a considerable shift in thinking. In the 1950's marketers were mostly focused on consumer goods, while the 1960's saw a shift towards industrial markets. In the 1970's effort was focused on non-profit or societal marketing,…show more content…
This is aimed at increasing the customer's share of purchases with the company rather than a share of the total market. (Pride et al, 2007) The retail industry is one of the areas where relationship marketing is most beneficial. This type of marketing allows retailers to form a close relationship with customers, while giving them the opportunity to understand the customers' lifestyles and purchasing habits. Through this form of marketing retailers are able to focus their offers, add new scope to transactions using buyer information and also learn from the transactions. This allows the retailer to collate information on their customers into a database and use it in a way that will maintain their customer base while also trying to attract new customers. (Gordon, 1994) A perfect example of the value of relationship marketing to a business is a person buying a car. They might have been motivated to buy a car as a result of promotional activity by the car manufacturer, only to be highly disappointed by the following lack of interest by the dealer in maintaining the car and satisfactorily rectifying faults that occurred within the warranty period. The consumer may be further upset when they seek to obtain redress directly from the manufacturer and find the manufacturer is totally uninterested in having any dialogue with them. (Martin, 2002)
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