Relationship

A
Marketing
Tool
Marketing

For Customer Retention

PRESENTED BY:

Under the
guidance of:

GROUP
13

Binay
Kumar
Shuvajit
Biswas
Soumya
Jaiswal
Sonam
Sahu
Tarun
Mittal

Prof. Swapna Menon

CONTENT
S:

Marketing: Introduction
What is Relationship Marketing
Evolution of Relationship Marketing
Relationship Marketing according to Kotler
Characteristics of Relationship Marketing
Traditional Marketing VS Relationship Marketing
Who Employs Relationship Marketing?
Dimensions of Relationship Marketing
Benefits of Relationship Marketing
Levels of Relationship Marketing
Principles of Relationship Marketing
Example of Starbucks
Keys to Effective Relationship Marketing
Practices of Relationship Marketing
Reasons why Relationship Marketing is important in
business
Example of Sony
Dark side of Relationship Marketing
Customer Retention Marketing and Relationship
Marketing
E-CRM
Conclusion

What is Marketing?
AmericanMarketingAssociationsnewofficialdefinitionof
marketing(ApprovedJuly2013)

Marketingistheactivity,setofinstitutions,andprocesses
forcreating,communicating,delivering,andexchanging
offeringsthathavevalueforcustomers,clients,partners,
andsocietyatlarge.

WHAT is relationship
marketing?
Relationship marketing is a customer
relationship management strategy
designed to encourage strong, lasting
customer connections to a brand. The
goal is to generate repeat sales,
encourage word-of-mouth promotion and
gather customer information.

Pre-Industrial
Revolution

1860s-1920s

Simple Trade
Era

Production
Era

2010-Present

Social/Mobile
Marketing
Era

1920s-1940s

Sales
Era
Marketing
1940s-1960s Department
Era

1990s-2010

Relationship
Marketing
Era

1960s-1990s

Marketing
Company
Era

Newly Proposed Marketing Eras

Evolution of Relationship Marketing

Kotler

Says:

Relationship marketing (RM) marks a significant

paradigm shift in marketing, a movement from
thinking only in terms ofcompetitionand conflict
toward thinking in terms of mutual interdependence
and cooperation.It recognizes the importance of various
partiessuppliers, employees, distributors, dealers, retailers
cooperating to deliver the best value to the target customers.

Source: www.marsdd.com/mars-library/relationship-marketing-kotler-on-marketing

CHARACTERISTICS of
relationship marketing :
Here are the main characteristics of relationship
marketing:
It focuses
on partners
and
customers
rather than
on the
companys
products.

It puts more
emphasis on
customer
retention
and growth
than on
customer
acquisition.

It relies on
crossfunctional
teams
rather than
on
department
al-level
work.

It relies
more on
listening
and learning
than on
talking.

Source: www.marsdd.com/mars-library/relationship-marketing-kotler-on-marketing

TRansaction MARKETING VS RELATIONSHIP

MARKETING
CHARACTERISTI
CS

transaction
MARKETING

RELATIONSHIP
MARKETING

Time Orientation
Organization Goal

Short-Term
Make the sale

Customer Service
Priority
Customer Contact
Degree of Customer
Commitment
Basis for sellercustomer interaction
Source of quality

Relatively low

Long-Term
Emphasis on retaining
customers
Key component

Low to moderate
Low

Frequent
High

Conflict Manipulation

Cooperation; Trust

Primarily from
production

Companywide
Commitment

Who Employs RM?

Relationship Marketing
is very important for all
companies nowadays;
for businesses in all
industries, from cell
phones to baby food.

Larger companies
typically invest the
most in carrying out
sophisticated
relationship marketing
campaigns.

Many companies have

something to gain from
developing strong
relations with
customers.

Smaller business often

make a little effort to
draw in new customers;
instead they try to
maintain a healthy
relationship with their
customers.

In some major
companies, relationship
marketing is a strategy
that affects every
department with a
client facing purpose
(sales, customer
service, shipping etc.).

Industry leaders
constantly face
competition from new
companies who claim to
provide similar goods
with a higher-quality
level of service. Holding
onto their existing
customers is the only
way they can maintain
their position at the top
of their industry.

Dimensions of Relationship Marketing:

Understands the
economics of
customer
retention

Extends to more
diverse market

Ensures that
marketing is
considered a cross
functional context

Focuses on a
relationship
rather than
transactional
approach to
marketing

Highlights the
critical role of
internal
marketing in
achieving
external
marketing
success

Recognizes
the quality,
customer
services and
marketing
need to be
closely
integrated

Benefits of Relationship Marketing

From firms point of
view:

Profitability
Brand Loyalty
Product Differentiation &
Competitive Advantage
Continuous Interaction
with customer
Mass sourcing

From Customer point

of view:
Personalized Marketing
Anticipate Customers
Changing wants
Receive Relevant Insight
or Information

Levels of Relationship
Marketing

Basic
marketin
g

Reactive
marketin
g

Accountabl
e
marketing

Proactive
marketin
g

Partners
hip
marketin
g

Principles of
RM

Know your potential customers.

Show your expertise.

Start a dialog to establish trust.
Follow up
Offer good customer service.
Sell or recommend only quality products

Article Source: http://EzineArticles.com/143317

Keys to Effective Relationship Marketing

Practices of Relationship Marketing:

COMPANY:
conducts regular polls and surveys of its customer database to ensure it
understand the currents challenges and needs of the market.
strives to integrate customer feedback as much as possible in order to improve its
products and services.
understands the power of social media and has active profiles set up on all the
popular social sites such as Facebook, Twitter, LinkedIn, and Google+.
effectively listens and monitors the problems arising in front of them.

generates warm leads from all online and offline marketing efforts on a regular basis.

conducts regular training sessions for all members of staff

on proper customer relations and social media best practices.
stays on the cutting edge by evolving, adapting and
integrating new technologies.
embraces high-tech but always maintains high-touch by
reaching out to its customers, vendors and partners.
has a very high customer satisfaction rate.
consistently goes out of its way to let its customers know
how much it values them.

1.
1. Builds
Builds The
The Trust
Trust
Factor
Factor

4.
4. Stay
Stay On
On Top
Top Of
Of Customers
Customers
Needs
Needs

2.
2. Word
Word of
of Mouth
Mouth
Referrals
Referrals

5.
5. Adds
Adds Uniqueness
Uniqueness

3.
3. Create
Create Business
Business
Opportunities
Opportunities

Dark Side of Relationship Marketing

Dissent among loyal customers.

Company is viewed as enemies and not allies.

Souring relationships over time.

Attracting new customers may be more
important.
Managing an integrated communication program.

CRM and Relationship

Customer Retention Marketing has its roots in relationship
Marketing
marketing. Relationship marketing is a philosophy and
orientation towards customer retention and CRM is
regarded as the practical implementation of relationship
marketing.

In other words CRM is technological infrastructure, both

hardware and software, to manage large quantity of
customer data. But Relationship marketing is a way of
doing business. So, it is not a surprising fact that many
CRM projects fails to deliver the return on investment,
because of the inability to understand the business needs.
So, CRM is just an enabler of Relationship marketing.
So we should not assume that more technology leads to a
more effective CRM Program.

What is e-CRM?
E-CRM is the electronic based version of CRM. The user of the
e-CRM solution uses the sources of the internet to increase
the relationship with the customer. TheeCRMor electronic
customer relationship management encompasses all
theCRMfunctions with the use of the net environment i.e.,
intranet, extranet and internet. ElectronicCRMconcerns all
forms of managing relationships with customers making use of
information technology (IT).
Through eCRM customers can connect to the company
representatives instantly at anytime. It bridges the gap
between customers and the companies.

CONCLUSION
To conclude, beyond doubts relationship marketing
is a paradigm in marketing literature, even though it
is a new but old concept. But the conceptual bases
of relationship marketing are not yet completely
developed even after two decades of existence. The
future survival and status of relationship marketing
as a discipline depends on development of a solid
theoretical frame work based on empirical research.

BIBLIOGRAP
HY
www.youtube.com

www.ama.org
www.boomsocial.com
www.growsmartbiz.com
www.marsdd.com
www.EzineArticles.com/143317
International Marketing Conference on Marketing &
Society, 8-10 April, 2007, IIMK
www.slideshare.com
Keys to Effective RM IESE Business school

Q&A