Relationship Marketing
Relationship marketing has become a dominant form of marketing theory in recent times. It has evolved from other forms of marketing and has countless benefits for businesses that use the relationship strategy. It is limitless in the type of businesses it can be adopted by with new technology and media making it even more popular.
The study of marketing is one that has been fixed on an evolving range of marketing segments over the last fifty years or so. A look at the progress of the changing focus of marketing shows a considerable shift in thinking. In the 1950's marketers were mostly focused on consumer goods, while the 1960's saw a shift towards industrial markets. In the 1970's effort was focused on non-profit or societal marketing, while in the 1980's the services sector received increasing attention. This leads us to the 1990's and through to the present where relationship marketing is the new focus of marketing. This new form of marketing has seen a shift from a transaction focus to a relationship focus (Martin, 1991).
There is much debate over what is the real meaning of relationship marketing, with different authors having differing views as to what are the key concepts that make up relationship marketing. This is mainly due to the relatively new emergence of the term as a major form of marketing theory (Harker, 1999)
One definition comes from the Chartered Management Institute and they describe relationship marketing as the building of long-term, loyal, committed and profitable relationships with potential and existing customers through communication and the provision of quality goods and services'(n.a. 2005).
The concept can often be described as a developmental process that evolves through a six stage process: prospect (a potential customer); customer (sale is made); client (repeat sale is made); supporter (regular customer); loyal customer (regular customer who actively supports the organisation); and partner (customer working in partnership
The study of marketing is one that has been fixed on an evolving range of marketing segments over the last fifty years or so. A look at the progress of the changing focus of marketing shows a considerable shift in thinking. In the 1950's marketers were mostly focused on consumer goods, while the 1960's saw a shift towards industrial markets. In the 1970's effort was focused on non-profit or societal marketing, while in the 1980's the services sector received increasing attention. This leads us to the 1990's and through to the present where relationship marketing is the new focus of marketing. This new form of marketing has seen a shift from a transaction focus to a relationship focus (Martin, 1991).
There is much debate over what is the real meaning of relationship marketing, with different authors having differing views as to what are the key concepts that make up relationship marketing. This is mainly due to the relatively new emergence of the term as a major form of marketing theory (Harker, 1999)
One definition comes from the Chartered Management Institute and they describe relationship marketing as the building of long-term, loyal, committed and profitable relationships with potential and existing customers through communication and the provision of quality goods and services'(n.a. 2005).
The concept can often be described as a developmental process that evolves through a six stage process: prospect (a potential customer); customer (sale is made); client (repeat sale is made); supporter (regular customer); loyal customer (regular customer who actively supports the organisation); and partner (customer working in partnership
Bibliography: Batterley, R, 2004, Leading through relationship marketing: how winning organisations leverage stakeholder relationships to improve business performance, McGraw-Hill, Sydney. Bergeron, K, 2001, ‘Relationship Marketing: A key to success and survival ', Public Roads. Dauer, C, 1991, ‘Banker describes benefits of relationship marketing ', National Underwriter Property & Casualty-Risk & Benefits Management. Gordon, H, 1994, ‘Retailers are ready for relationship marketing ', Direct Marketing. Harker, M, 1999, ‘Relationship marketing defined? An examination of current relationship marketing definitions ', Marketing Intelligence and Planning, pp 13-20. Martin, C, 1991, Relationship marketing: bringing quality, customer service, and marketing together, Butterworth-Heinemann, Boston. Martin, C, 2002, Relationship marketing: creating stakeholder value, Butterworth-Heinemann, Oxford. Morgan, R, Hunt, S, 1994, ‘The Commitment-Trust Theory of Relationship Marketing ', Journal of Marketing, Vol. 58, No. 3, pp. 20-38. n.a. 2005, ‘Relationship Marketing ', Chartered Management Institute. Rosenfield, J, 1994, ‘The hidden dangers of relationship marketing ', Direct. Sharp, D, 2000, ‘Libraries need relationship marketing ', Information Outlook. Stacey, R, 1994, ‘How not to do relationship marketing ', Direct Marketing. Wong, A, 2001, Customer-salesperson relationships: the effects of trust and commitment on relationship quality, Monash University, Faculty of Business and Economics, Department of Management, Caulfield.