Scribd
Upload
10 views25 pages

Module 2

Relationship marketing focuses on creating, maintaining, and enhancing long-term relationships with customers to ensure their satisfaction and loyalty. It distinguishes five levels of customer relationships: Basic, Reactive, Accountable, Proactive, and Partnership, each indicating the degree of engagement and support provided by the company. The benefits of relationship marketing include improved customer experience, increased profitability, and reduced marketing costs through customer loyalty and feedback.

Uploaded by

tomycruz346
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
10 views25 pages

Module 2

Relationship marketing focuses on creating, maintaining, and enhancing long-term relationships with customers to ensure their satisfaction and loyalty. It distinguishes five levels of customer relationships: Basic, Reactive, Accountable, Proactive, and Partnership, each indicating the degree of engagement and support provided by the company. The benefits of relationship marketing include improved customer experience, increased profitability, and reduced marketing costs through customer loyalty and feedback.

Uploaded by

tomycruz346
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 25

RELATIONSHIP

MARKETING
According to Gilaninia et al (2011),
Relationship Marketing involves creating,
maintaining and enhancing strong relationships
with customers and other stakeholders.
Relationship marketing is oriented more
towards the long term. The goal is to
deliver long- term value to customers and
the measure of success is long-term
customer satisfaction.
We can distinguish five different levels of relationships that can be
formed with customers who have purchased a company’s product,
such as a car or a piece of equipment:

1. BASIC
2. REACTIVE
3. ACCOUNTABLE
4. PROACTIVE
5. PARTNERSHIP
1. Basic. The company salesperson sells the product
but does not follow up in any way.

2. Reactive. The salesperson sells the product and


encourages the customer to call whenever he or she
has any questions or problems.
3. Accountable. The salesperson phones the customer a short time after
the sale to check whether the product is meeting the customer’s
expectations.

4. Proactive. The salesperson or others in the company phone the


customer from time to time with suggestions about improved product
use or helpful new products.

5. Partnership. The company works continuously with the customer


and with other customers to discover ways to deliver better value.
We can distinguish five different levels of relationships that can be
formed with customers who have purchased a company’s product,
such as a car or a piece of equipment:

1. BASIC
2. REACTIVE
3. ACCOUNTABLE
4. PROACTIVE
5. PARTNERSHIP
1. Basic. The company salesperson sells the product but does not follow up in
any way.

2. Reactive. The salesperson sells the product and encourages the customer
to call whenever he or she has any questions or problems.

3. Accountable. The salesperson phones the customer a short time after the
sale to check whether the product is meeting the customer’s expectations. The
salespersonalso solicits from the customer any product improvement
suggestions and any specific disappointments.
4. Proactive. The salesperson or others in the company phone the
customer from time to time with suggestions about improved product
use or helpful new products.

5. Partnership. The company works continuously with the customer


and with other customers to discover ways to deliver better value.
TRY TO ANSWER:

1. Barbie walks into a store to buy a washing machine.


John , the salesperson explains the features, processes the
payment, and hands over the receipt. Once the sale is
complete, the John does not contact the customer again.
2. Two weeks after selling a refrigerator, the salesperson
calls the customer and says:
"Hi, I’m checking in to see how the refrigerator is
working for you. Is it meeting your expectations? Do you
have any feedback for us or suggestions for
improvement?"
3. A company that provides office furniture schedules
quarterly meetings with its clients. During these meetings,
the company discusses workplace needs and collaborates
with the clients to design custom furniture solutions that
improve productivity and employee comfort.
Concept of
Relationship
Marketing
Forbes.com defined Relationship marketing is a
strategy designed for customer loyalty, interaction,
and long-term engagement to be fostered. It is
designed to develop strong connections with
customers by providing them with information
directly suited to their needs and interests by
promoting open communication.
Customer relationship is the development of an
ongoing connection between a company and its
customers. The relationship involves marketing
communications, sales support, technical
assistance and customer service.
According to Serrano, Relationship Marketing
includes activities aimed at developing and
managing trusting and long-term relationships
with larger customers
Characteristics of Relationship Marketing
1. It focuses on the long-term rather than the short-term.
2. It focuses on partners and customers rather than on the company’s
products.
3. It puts more emphasis on customer retention and growth than on
customer acquisition.
4. It relies on cross-functional teams rather than on departmental-level
work.
5. It relies more on listening and learning than on talking1. It focuses on
the long-term rather than the short-term.
Benefits in Developing and Implementing Customer
Relationship
1. Consistent customer experience
2. Customer Feedback
3. Customer Profitability
4. Customer advocate
5. Innovation
Benefits of Relationship Marketing

A. Understanding Customer Characteristics; - the


company can segregate its customers into groups based on
their characteristics like purchasing power, frequency and
volume of sale transactions. It also helps the company get
valuable feedback from its customers and understand their
needs and expectations.
B. Delivery and Meeting Expectations -
if the company knows what its customers’ needs
are, it will help reduce wastage due to trial and
error methods. It is easier to create a product if the
features and specifications of the product are
known.
C. Repeat Business - Sellers should maintain good
attitude to the buyers. By doing this, buyers will feel that
they do not need to switch sellers.

D. Prevents Negative Transition. - Trust and loyalty go


hand in hand and it is super beneficial for all business. It
will help prevent customers from turning to competitors.
E. Word-of-Mouth Marketing
❖ Increasing customer base - satisfied existing customer is
100% more likely to recommend a product/service to a
prospective customer.

F. Reduced Marketing Cost - benefits also include lesser


marketing costs and more value creation
G. Identification with the company - the benefits are
reaped both by the company and the customers. It helps
customers identify more with the company.

H. Product Market Expansion - the company’s


employees must be ready to deliver beyond the company’s
boundaries on customer demand
G. Identification with the company - the benefits are
reaped both by the company and the customers. It helps
customers identify more with the company.

H. Product Market Expansion - the company’s


employees must be ready to deliver beyond the company’s
boundaries on customer demand
THE END

You might also like