Marketing - week 15 - Lecture notes 15 PDF

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value through relationships...

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Marketing – week 15 Value through relationships Relationship marketing – is the process of creating, maintaining and enhancing strong relationships with customers and other stakeholders. Core service: is a firms offer that meets customers’ needs in a distinctive manner and around which a core service can be developed. Value and relational networks involve people and roles they play within the network. A network is a term used to describe a set of connections among people, which form a marketing perspective which may be used as a resource to solve the problems and extend the network by adding new connections. Types of relationships: -

Market relationships Special market relationships Relationship with economy and society Nano-relationships

For successful relationship marketing: Two conditions must be met: -

A relationship should be a mutually rewarding connection between two or more parties The parties involved in the relationship should commit to the relationship over time and be willing to make adaptions to their own behaviour to maintain its continuity

Relationship marketing can be applied to many industries it is particular important in services. Potential areas for relationship marketing activities: -

Where there is an ongoing or periodic desires for the service by the consumer Where the customer controls the selection of a service provider

To build relationships 5 key things are required: - Technical support - Expertise - Risk reduction - Service levels - Resource support Benefits for the organisation: -

Increase purchases Lower cost

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Lifetime value of a customer Sustainable competitive advantage Word of mouth Employee satisfaction and retention

Benefits for the customer: -

Risk and stress reduction Higher quality service Avoidance of switching costs Social and status benefits

In regard to managing multiple cross-channel touchpoints, there are rules in ways to use them and their CRM systems effectively: 1. Don’t try to please everyone 2. Optimize the journey not the touchpoint 3. Manage the transitions...