RELATIONSHIP
MARKETING
BUSINESS MARKETING
CALVIN J. CALIAT
1 DEFINITION
2 BENEFITS OF RM
CONTENT 3 EXAMPLES COMPANIES
CONSTANT DEALING
CREATES FEELINGS.
1
DEFINITION OF
RELATIONSHIP
MARKETING
DEFINITION OF RELATIONSHIP MARKETING
IT INCLUDES ACTIVITIES AIMED IT IS STRATEGY DESIGNED TO IT IS DESIGNED TO DEVELOP
AT DEVELOPING AND FOSTER CUSTOMER LOYALTY, STRONG CONNECTIONS WITH
MANAGING TRUSTING AND INTERACTION AND LONG- CUSTOMERS BY PROVIDING
LONG-TERM RELATIONSHIPS TERM ENGAGEMENT THEM WITH INFORMATION
WITH LARGER CUSTOMER. DIRECTLY SUITED TO THEIR
NEEDS AND INTERESTS AND BY
PROMOTING OPEN
In relationship marketing, COMMUNICATION.
This customer relationship
customer profile, buying
patterns, and history of management (CRM) This approach often
contacts are maintained strategy focuses more on results in increased word-
in a sales database and an long-term customer of-mouth activity, repeat
account executive is retention than acquiring
assigned to one or more business and a willingness
major customers to fulfill large numbers of new and on the customer’s part
their needs and maintain potentially single- to provide info to the
the relationship. transaction customers. organization
DEFINITION OF RELATIONSHIP MARKETING
IT CONTRAST WITH TRANSACTIONAL IT MARKS A SIGNIFICANT PARADIGM
MARKETING IS AN APPROACH THAT SHIFT IN MARKETING, A MOVEMENT
FOCUSES ON INCREASING THE FROM THINKING SOLELY IN TERMS OF
NUMBER OF INDIVIDUAL SALES. COMPETITION AND CONFLICT TOWARD
THINKING IN TERMS OF MUTUAL
INTERDEPENDENCE AND COOPERATION.
Traditional transaction
marketing (TM) tended to It recognizes the importance of
ignore relationships and various parties such as suppliers,
relationship building. The employees, distributors, dealers,
company was ready to switch retailers that are cooperating to
from one supplier or distributor
to another if there was an deliver the best value to the
immediate advantage. target customers.
THE MAIN CHARACTERISTICS OF RELATIONSHIP MARKETING:
It focuses on partners It puts more emphasis It relies on cross-
It focuses on the
and customers rather on customer retention functional teams
long-term rather and growth than on
than on the company rather than on
than the short term. customer acquisition. departmental
products.
work.
Product: Price:
• More products are • The company will set
customized to the a price based on the
customers’ preferences. relationship with
It relies more on Relationship • New products are customer and the
listening and marketing calls for developed and designed bundle of features
new practices within cooperatively with and services ordered
learning than on suppliers and by customer
talking. the 4 Ps:
distributors.
THE MAIN CHARACTERISTICS OF RELATIONSHIP MARKETING:
Relationship marketing calls for new practices within the 4 Ps:
Price: Place: Place:
In business-to-business RM favors offering
RM favors more direct
marketing, there is more alternatives to customers to
marketing to the customer,
negotiation because choose the way they want to
thus reducing the role of
products are often designed order, pay for, receive, install,
middlemen.
for each customer. and even repair the product.
Promotion: Promotion: Promotion:
RM sets up extranets with
RM favors more individual RM favors more integrated
large customers to facilitate
communication and marketing communications to
information exchange, joint
dialogue with customers. deliver the same promise
planning, ordering and
and image to the customer.
payments.
NOT TO ABANDON TRANSACTIONAL MARKETING BUT INSTEAD YOU
1 CAN MIXED IT
MOST COMPANIES NEED TO OPERATE WITH A MIXTURE OF THE TM
2 AND RM APPROACHES
COMPANIES SELLING IN LARGE CONSUMER MARKETS PRACTICE A
3 GREATER PERCENTAGE OF TM WHILE COMPANIES WITH A SMALLER
NUMBER OF CUSTOMERS PRACTICE A HIGHER PERCENTAGE OF RM.
2
BENEFITS OF
RELATIONSHIP
MARKETING
THE AIM IS FOR THE COMPANY TO OBTAIN LIFE TIME CUSTOMERS.
Enhancing and maintaining
relationship with existing
customers will prevent the
If the company knows what tendency of customers to
its customers’ needs are, it switch other
will help reduce wastage due products/services for a
to trial and error methods. better offer.
DELIVERY AND MEETING PREVENTS NEGATIVE
EXPECTATION TRANSITION
UNDERSTANDING REPEAT BUSINESS WORD-OF-MOUTH
CUSTOMER MARKETING
CHARACTERISTICS RM steps in and provides a
This marketing is an
positive reinforcement for
Relationship marketing effective strategy beyond
them to make a repeat
helps the company expensive advertising
purchase.
understand its customers campaigns that create
better. product/service awareness.
THE AIM IS FOR THE COMPANY TO OBTAIN LIFE TIME CUSTOMERS.
Benefits also include lesser It will keep customers
marketing costs and more coming in and build brand
value creation. equity for the company in
the long run.
REDUCED MARKETING
IDENTIFICATION WITH
COST
THE COMPANY
INCREASING MINIMIZATION OF PRODUCT MARKET
CUSTOMER BASE CUSTOMER PRICE EXPANSION
SENSITIVITY
It is no secret that a happy They are the ultimate
A happy customer will be
customer will bring in new consumers of products and
willing to pay more for a
ones. services, thus, they can help
product if there is a guaranteed
identify potential profitable
satisfaction of products and
fields for expansion and
after sales services attached to
diversification.
its price.
3 EXAMPLES
COMPANIES
4 5
2 3
1
IKEA DIRECT AMERICAN DELL VYVANSE
RECRUITMENT AIRLINES
A Swedish
furniture
maker
“I will never leave you nor forsake you.” (Hebrews 13:5)
THANK YOU
FOR YOUR LISTENING
