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Description

Relationship marketing is all about acquiring new customers and retaining existing customers. The concept of relationship marketing has received a great deal of attention from Scholars in the field of marketing. The concept has been investigated from many perspectives and examined in many ways indicating its conceptual and practical importance.

See Samples Of Undergraduate Project Topics Ideas For Students

Relationship marketing concept is based on the paradigm of a true balance between "giving and getting" as a key benefit to encourage an active role and is conducive in delivering two- way value, where loyalty is based on trust and partnership, will prove to be one of the most significant policies to be pursued in development and sustenance of competitive advantage. The real purpose of business is to create and sustain mutually beneficial relationships, especially with selected customers. With the main proposition which assume that successful relationships is the two-way flow of value. Positive relationship has been established between relationship marketing and organization performance. Relationship marketing usually results in strong economic, technical and social ties among the stakeholders parties thereby reducing their transactions costs and increasing exchange efficiencies included in relationship marketing which are not only buyers or sellers exchanges but also business partnerships, strategic alliances, and cooperative marketing networks. The relationship typically involves seller- customer exchange, but it could involve any stakeholder's relationship.

RELATIONSHIP MARKETING

Relationship Marketing (RM) was popularised as an approach aimed at “attracting, maintaining and enhancing customer relationships”. This understanding of doing business from a marketing point of view implied a radical change from the previous perspective: Although not explicitly outlined above, the transactional marketing approach emphasised the application of the marketing mix. The simplification of the marketing mix, composed of four ingredients (e.g. Product, Price, Place and Promotion), has received severe criticism regarding its limitations. Technological advances and further research, favoured a change of scope in marketing and its implications for organisations. There have being some criticism concerning the “4P’s” as it is not a model, but a tool to use in order to implement the marketing concept over time. Other sources of limitations argue that it constitutes a production orientated approach rather than focusing on customers’ needs and wants. In addition to this, the concept of marketing as a functional activity rather than as a culture involving the whole organisation provoked the existence of conflict with other areas for resources and relevance in the strategic decision. Moreover, Transactional marketing has been attacked for being narrow-minded with a clear emphasis on short-term profits based on transaction volume, hence possibly forgoing the opportunity for long term prosperity.

THE NEED FOR RELATIONSHIP MARKETING

Relationship Marketing allows personalized marketing, which deals with direct one-to-one interactions between a marketer and its customers. One of the great benefits of interactive marketing is that buyers are in better positions to tell sellers what they want, and sellers can match their offerings to the needs of buyers. Nike uses its ―Product Recommendation system‖ to help meet customer’s needs. The prospective customer answers about a dozen questions about himself and how he‘ll use the shoes and the Product Recommendation System reveals which shoes are right for the customer. Armed with this information, the customer goes into his local shoe store to ask for shoes that are exactly right for him. Relationship Marketing allows a firm to anticipate customers’ wants: marketers see a lot of customers with similar needs, tastes, and interests. They can use this experience, which is not available to individual customers, to anticipate what may appeal to an individual. This is particularly important because, a customer may have a general idea of what he or she wants, but the actual product design that matches his needs may not be immediately known to him. A good example is the BookMatcher system, which Amazon uses to perform what it calls the collaborative filtering function. Collaborative filtering works by collecting the likes and dislikes of many people on a collection of items (in this case, books). It then looks for books the other person has read and ranked highly which you haven’t read and recommends them to you. In this case, relationship marketing allows an individual to gain exposure to a product that suits his individual needs that he would otherwise not have known existed. Relationship marketing allows customers to receive relevant Information: An effective Relationship Marketing program provides customers with sufficient information to empower them to make correct purchase decisions. A very good example can be seen on the various on-line airline booking services. When a customer signs on with these on-line services and tries to book a flight, most of them provide the customers with a variety of choices that are in most cases sufficient to allow the traveler to make an appropriate travel plan. The most important thing about this system is that it allows the traveler instant comparative information which enables him to minimize transaction time, and in many cases maximize savings.

RELATIONSHIP MARKETING AND PERFORMANCE OF COMMERCIAL BANKS

All relationship marketing activities are ultimately evaluated on the basis of the company’s overall performance. However, as a firm’s profitability is influenced by a number of variables largely independent of relationship marketing activities that may include leadership style, capital base and technological know-how, it seems appropriate to conceptualize relationship marketing outcomes on a more concrete level when investigating possible antecedents. Performance indicator such as target goals, sales goals, customer retention (customer loyalty and positive customer word-of-mouth communication), better reputation in quality product and new product development and employee satisfaction measured by employee turnover rate are found appropriate in this context.

Description

Relationship marketing is all about acquiring new customers and retaining existing customers. The concept of relationship marketing has received a great deal of attention from Scholars in the field of marketing. The concept has been investigated from many perspectives and examined in many ways indicating its conceptual and practical importance.

See Samples Of Undergraduate Project Topics Ideas For Students

Relationship marketing concept is based on the paradigm of a true balance between "giving and getting" as a key benefit to encourage an active role and is conducive in delivering two- way value, where loyalty is based on trust and partnership, will prove to be one of the most significant policies to be pursued in development and sustenance of competitive advantage. The real purpose of business is to create and sustain mutually beneficial relationships, especially with selected customers. With the main proposition which assume that successful relationships is the two-way flow of value. Positive relationship has been established between relationship marketing and organization performance. Relationship marketing usually results in strong economic, technical and social ties among the stakeholders parties thereby reducing their transactions costs and increasing exchange efficiencies included in relationship marketing which are not only buyers or sellers exchanges but also business partnerships, strategic alliances, and cooperative marketing networks. The relationship typically involves seller- customer exchange, but it could involve any stakeholder's relationship.

RELATIONSHIP MARKETING

Relationship Marketing (RM) was popularised as an approach aimed at “attracting, maintaining and enhancing customer relationships”. This understanding of doing business from a marketing point of view implied a radical change from the previous perspective: Although not explicitly outlined above, the transactional marketing approach emphasised the application of the marketing mix. The simplification of the marketing mix, composed of four ingredients (e.g. Product, Price, Place and Promotion), has received severe criticism regarding its limitations. Technological advances and further research, favoured a change of scope in marketing and its implications for organisations. There have being some criticism concerning the “4P’s” as it is not a model, but a tool to use in order to implement the marketing concept over time. Other sources of limitations argue that it constitutes a production orientated approach rather than focusing on customers’ needs and wants. In addition to this, the concept of marketing as a functional activity rather than as a culture involving the whole organisation provoked the existence of conflict with other areas for resources and relevance in the strategic decision. Moreover, Transactional marketing has been attacked for being narrow-minded with a clear emphasis on short-term profits based on transaction volume, hence possibly forgoing the opportunity for long term prosperity.

THE NEED FOR RELATIONSHIP MARKETING

Relationship Marketing allows personalized marketing, which deals with direct one-to-one interactions between a marketer and its customers. One of the great benefits of interactive marketing is that buyers are in better positions to tell sellers what they want, and sellers can match their offerings to the needs of buyers. Nike uses its ―Product Recommendation system‖ to help meet customer’s needs. The prospective customer answers about a dozen questions about himself and how he‘ll use the shoes and the Product Recommendation System reveals which shoes are right for the customer. Armed with this information, the customer goes into his local shoe store to ask for shoes that are exactly right for him. Relationship Marketing allows a firm to anticipate customers’ wants: marketers see a lot of customers with similar needs, tastes, and interests. They can use this experience, which is not available to individual customers, to anticipate what may appeal to an individual. This is particularly important because, a customer may have a general idea of what he or she wants, but the actual product design that matches his needs may not be immediately known to him. A good example is the BookMatcher system, which Amazon uses to perform what it calls the collaborative filtering function. Collaborative filtering works by collecting the likes and dislikes of many people on a collection of items (in this case, books). It then looks for books the other person has read and ranked highly which you haven’t read and recommends them to you. In this case, relationship marketing allows an individual to gain exposure to a product that suits his individual needs that he would otherwise not have known existed. Relationship marketing allows customers to receive relevant Information: An effective Relationship Marketing program provides customers with sufficient information to empower them to make correct purchase decisions. A very good example can be seen on the various on-line airline booking services. When a customer signs on with these on-line services and tries to book a flight, most of them provide the customers with a variety of choices that are in most cases sufficient to allow the traveler to make an appropriate travel plan. The most important thing about this system is that it allows the traveler instant comparative information which enables him to minimize transaction time, and in many cases maximize savings.

RELATIONSHIP MARKETING AND PERFORMANCE OF COMMERCIAL BANKS

All relationship marketing activities are ultimately evaluated on the basis of the company’s overall performance. However, as a firm’s profitability is influenced by a number of variables largely independent of relationship marketing activities that may include leadership style, capital base and technological know-how, it seems appropriate to conceptualize relationship marketing outcomes on a more concrete level when investigating possible antecedents. Performance indicator such as target goals, sales goals, customer retention (customer loyalty and positive customer word-of-mouth communication), better reputation in quality product and new product development and employee satisfaction measured by employee turnover rate are found appropriate in this context.