RELATIONSHIP M

ARKETING
DEFINITION
BENEFITS OF RM
EXAMPLE COMPANIES
 MARKETING
aimed at developing
and managing
trusting and long
term relationships
with larger
customers.
FocusesMANAGEMENT
more on long-
term customer
retention than acquiring
large numbers of new
and potentially single-
transaction customers.
FocusesMANAGEMENT
more on long-
term customer
retention than acquiring
large numbers of new
and potentially single-
transaction customers.
 RELATIONSHIP
MKTG VS.
TRANSACTIONAL
MKTG
 TRADITIONAL MKTG
Tends to ignore
relationships
and relationship
building
CHARACTERISTI
CS OF
RELATIONSHIP
MARKETING
1. FOCUSES ON
LONG- TERM
RATHER THAN
ON SHORT-
TERM
2. FOCUSES ON
PARTNERS AND
CUSTOMER RATHER
THAN ON THE
COMPANY’S
PRODUCT
EMPHASIS ON
CUSTOMER
RETENTION AND
GROWTH RATHER
THAN ON CUSTOMER
ACQUISITION
4. RELIES ON CROSS-
FUNCTIONAL TEAMS
RATHER THAN
DEPARTMENTAL LEVEL
WORKS
5. RELIES MORE
ON LISTENING
AND LEARNING
RATHER ON
TALKING
6. RELATIONSHIP
MARKETING
CALLS FOR NEW
PRACTICES
WITHIN THE 4P’S
 A. PRODUCTS
More products
are customize
for customer’s
preferences
 PRODUCTS
developed and
designed
cooperatively with
suppliers and
distributors
The company will set a
B. PRICE
price based on the
relationship with the
customer and the
bundle of features and
services ordered by the
customer.
businessB.marketing,
PRICE
there is more
negotiation because
products are often
designed for each
customer
 C. PLACE
RM favors more
direct marketing to
the customer, thus
reducing the role of
middlemen
RM favors offering
C. PLACE
alternatives to
customers to choose
the way they want to
order, pay for, receive,
install, and even repair
the product
 D. PROMOTION
RM favors more
individual
communication and
dialogue with the
customers
RM sets up extranets
D. PROMOTION
with large customers
to facilitate
information
exchange, joint
planning, ordering,
and payments.
 BENEFITS OF
RELATIONSHIP
MARKETING
UNDERSTANDIN
G CUSTOMER
CHARACTERISTI
CS
2. DELIVERY
AND MEETING
EXPECTATIONS
3. REPEAT
BUSINESS
4. PREVENTS
NEGATIVE
TRANSITION
5. WORD- OF-
MOUTH
MARKETING
6. INCREASING
CUSTOMER
BASE
7. REDUCED
MARKETING
COSTS
MINIMIZATION
OF CUSTOMER
PRICE
SENSITIVITY
9.
IDENTIFICATION
WITH THE
COMPANY
10. PRODUCT
MARKET
EXPANSION
QUIZ BEE:
FACT OR
BLUFF?
MARKETING IS A
STRATEGY DESIGNED TO
FOSTER CUSTOMER
LOYALTY, INTERACTION
AND LONG- TERM
ENGAGEMENT
2. RELATIONSHIP MARKETING
RECOGNIZES THE IMPORTANCE
OF VARIOUS PARTIES SUCH AS
SUPPLIERS, EMPLOYEES,
DISTRIBUTORS, DEALERS,
RETAILERS THAT ARE
COOPERATING TO DELIVER THE
BEST VALUE TO THE TARGET
CUSTOMER
3. TRUST AND
LOYALTY GO HAND
IN HAND AND IT IS
SUPER BENEFICIAL
FOR ALL BUSINESS
4. IT IS NO SECRET
THAT A HAPPY
CUSTOMER WILL
BRING IN NEW
ONES
5. RELATIONSHIP
MARKETING HELPS
THE COMPANY
UNDERSTAND ITS
CUSTOMERS
MARKETING INCLUDES
ACTIVITIES AIMED AT
DEVELOPING AND
MANAGING TRUSTING
AND SHORT TERM
RELATIONSHIPS WITH
LARGER CUSTOMERS
7. TRADITIONAL
MARKETING TENDED
TO PAY ATTENTION TO
RELATIONSHIPS AND
RELATIONSHIP
BUILDING
RELATIONSHIP
MARKETING MEANS
THAT COMPANIES
ABANDON
TRANSACTION
MARKETING
9. RETAINING
CUSTOMERS FOR
THE LONG TERM
OFFERS NO
BENEFITS
10. CUSTOMERS DO
NOT PLAY AN
IMPORTANT ROLE
IN VALUE
GENERATION
PROCESS.
END