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Relationship Marketing

INTRODUCTION

Relationship Marketing (or relationship management) is a philosophy of doing business, a strategic orientation that focuses on keeping and improving current customers rather than on acquiring new customer.

What is relationship marketing?

Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders.

Six Types Of Markets

1. internal markets

2. supplier markets

3. recruitment markets

4. referral markets

5. influence markets

6. customer markets

Customer Lifetime Value

Losing an existing customer means losing the entire revenue stream that customer represents – not just that single encounter or sale.

Attracting, retaining and growing customers

Customer delivered value – the

difference between total customer value and total customer cost.Value includes product, services,

personnel and image value.Cost includes monetary, time,

energy and psychic costs.

Growing “share of customer”

Increasing the share of the customer’s purchasing in your product category.

Best way is through cross-selling Getting more business from current

customers by selling them additional or complementary services

Managing your customers

Relationship marketing is designed to create, maintain, and enhance strong relationships with profitable customers and other stakeholders.

First need to define what your profit is on specific services…

How to calculate profit

In most business:

Gross income – (cost of goods + expenses) = net profit

In healthcare:

Reimbursement income – (cost of goods + expenses) = net profit

STRENGTHS OF RELATIONSHIP MARKETING Focus on providing value to customers. Emphasis on customer retention. it provides a better basis for achieving

Competitive advantage. Long-term customers may initiate free

word of mouth promotions. Long-term customers are less likely to

switch to competitors. Happier customers may lead to happier

employees

PROCESS

Chart the service delivery system. Identify critical service issues. Set service standards for all aspects of service

delivery. Develop customer communication systems. Train employees on building and maintaining a

good relationship with clients. Monitor service standards, reward staff for

exceeding service levels. Each employee fully understands the

importance of quality and relationships in the marketing philosophy.

RESEARCH METHODLOGY  Meaning of Research:

Research Methodology is a way to systematically solve the research problem .

RESEARCH DESIGN:

It is a major plan specifying the method and procedure for collecting and analyzing the needed information. It is framework within which research will be conducted.

It mainly includes following factors :

Means of obtaining the information.

Availability of time.

Availability of cost factor.

Skills of the researcher.

Sample size:

I interviewed 25 wholesalers & 25 retailers

RESEARCH OBJECTIVES

To find out how organizations devise their relationship strategies.

To find out the foundations for successful relationship marketing.

To find out the correlation between customer & relationship strategies.

To find determine the benefits of long term relationship for firms &customers.

SOURCES OF DATA COLLECTIONPRIMARY SOURCES:

The primary sources will be Questionnaire through survey will be

administered to the company managers .

 SECONDARY SOURCES:

Website and books will be used for obtaining data.

 

 

 

DATA ANALYSIS OR INTERPERATION

QUESTIONER FOR COMPANY’S EMPLOYERS

Q-1. Does your organization believes is having long term relationship with customers?

1) yes 2)no

INTETRPRETATION :

Above figure of the data tells about that 80% employees are believes in long term relationship with customers. But 20 % employees don’t believe in long term relationship with customer

YesNo

Que -2. What kind of incentive you provide to your customer to have a relationship with him?

Financial incentive. Social bonding. Customization incentives. All of the above Any other.

INTETRPRETATION : Above figure of the data tells about that company’s employs says that they provides 50% customization incentives 30% they provides financial incentives 10% provides social bonding to the customer

financial incentive

social bonding

customiza-tion incen-tive

All of the above

Any others

Que -3. “Customer is always right” do you agree? 1) always 2)some time 3) never

alwayssome thingnever

INTETRPRETATION : Above figure of the data tells about that 80% employs are says that customer is always right and 10% customer some time right and other 10% customers are never right believes in long term relationship with customers

 Que-4. Does relationship management provide benefits to the firm? 1) yes 2) no

YesNo

INTETRPRETATION : Above figure of the data tells about that 80% employees are says that relationship management provides benefits to the firm and 20% employ says relationship management doesn’t provide any benefits to the firm.

LIMITATIONS:

Study has been restricted to Punjab & Haryana Only and findings may not be reflect the true picture of

users spread over entire nation. Sample size of 20 customer& 10 company’s employers

has been taken due to time constraints which may be considered too small a sample to predict 100% results.

Shortage of time is also reason for incomprehensiveness. The views of the customers & company’s employers are

biased therefore it doesn’t reflect true picture

CONCLUSION

The research was of customers & company’s employers attitudes towards the relationship marketing. Over all it was resulted in very interesting a positive attitude. This research has shown that the customers & company’s employers who are using the service have a higher level of satisfaction after consuming their needs. This research had shown that the keen interest of customers & company’s employers on this service of its good level, service. More over they want to take another new service like this in the future.