Principles of relationship marketing This essay will initially describe and provide an understanding of the principles of Relationship Marketing RMgiving a brief outline of the elements involved, and also discussing the development, Scope, and approaches to real.
Customer Integration Table 1: The technique has traditionally sought to apply its marketing communications to its customers depending on their relative needs.
This involves customising marketing and product offerings to the various individual consumer groups to create a more personalised service as well as to develop a relationship based on interactivity. CRM, on the other hand, adheres more to the individual marketing attributes summarised above.
Hence, consumers need not be grouped together into lifecycles with others, as companies can adapt their services to meet individual requirements. Using this system, large organisations are able to provide mass customisation of its services to its consumers; unfeasible in preceding years.
Mass customisation could be seen as the ultimate form of customer service for large global companies who were previously not able to provide the sort of personalised service smaller or individual businesses could.
The hotel chain Ritz Carlton, for instance, developed technology to provide individualised service via an electronic customer database which records previous guest requests so staff can better tailor their next stay. Integration of databases and technology, in this respect, can lead to high quality personalised service on a mass scale.
CRM systems are able to provide the sort of strong customer relationships found within RM approaches, and also tailor products, services and communications.
By offering one on one communications, a company is able to build up detailed individual customer profiles based on individual choices, purchase decisions and attribute behaviour over time. An example of a company using such knowledge to provide individualised service to its customers is the online retailer Amazon.
The company has built up a database of its customers which provides information on a whole range of behaviours, such as purchase frequencies or product tastes, allowing them to construct a profile of that customer.
Using reinforcement techniques such as customised email newsletters and special offers, the company is able to provide genuine benefits to its customers, explored in further detail later in this essay.
Benefits of Individualisation to the Organisation The benefits that the accuracy of this kind of relationship with customers has to an organisation are wide ranging, on strategic, business and functional levels Muther It is argued here that companies are able to make better decisions when moving into new markets due to the knowledge accrued from existing customers.
The kinds of databases which can be extrapolated from the utilisation of CRM can be used to build up sophisticated understanding of the consumer.
Such knowledge gives the company many strategic advantages such opportunities to better target their marketing. By developing greater ties with the consumer, retention and loyalty can be better maintained. It would be arguably valid to suggest, from a consumer behaviour perspective, that CRM compliments the kind of reinforcement and cognitive based buying processes referred to by East Hence, both extrinsic and intrinsic purchase loyalties can be facilitated from the implementation of CRM systems.
By creating a two way relationship between buyer and supplier, the buyer has the opportunity to understand more about the details of a product or service, and can even contact the supplier often via customisation of service, of which Web based e-retailers are a good example.
There can be little doubt that the combination of Internet functionality and CRM implementation has improved the quality and availability of information available in markets today. In addition, many functional and aesthetic benefits arise through CRM techniques to improve the customer experience, such as customisation of the shop storefront in online retailing outletsand personalised special offers and content.
Electronic Customer Relationship Management eCRM It could be argued that CRM and the evolution of relationship marketing to the fully integrated interactive consumer models of today is due in part to the parallel development of technology, and specifically the Internet. In the former model, the authors have presented information technology as a separate function to marketing as indeed they have with all other business departments.
The amalgamation of IT and other business functions is becoming increasingly central to the concept of CRM as technology improves opportunities in this area.
Handen, writing in Brownsuggests that technology has improved the process in three core areas: The three advancements provide a company with improved cross departmental functionality in various ways; a technological solution to the Payne et al. It could be argued that CRM places strong emphasis on supplier management in particular, ultimately to further individualise its service offerings to consumers.
An integrated approach to the formation of inter-company networks could be seen to be an important part in the move to mass customisation. Through the use of horizontal i.
The use of technological advancements in supplier management systems may lead to reduced lead times between the deliveries of specific goods between organisations. The integration of supplier management and other areas of CRM e. Customer Relationship Management and the Marketing Plan For the reasons explored above, organisations are increasingly utilising the power of the latest information technology to develop integrated CRM systems to better serve the requirements of consumers.
The applications of CRM within the marketing plan touched upon above shall now be addressed. The use of marketing communications has been considered by many marketing practitioners e.Nov 26, · Relationship Marketing - Words.
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.
Essay on Relationship Marketing - Relationship marketing is recommended as a strategy to overcome service intangibility (Berry ) and may be appropriate for "credence" services, that is, services that are difficult for customers to evaluate even after purchase and use (Zeithaml ).
what is relationship marketing "Relationship marketing is the ongoing process of identifying and creating new values with individual customers and then sharing the /5(1). Essay about Relationship Marketing and the Uk Telecommunications Market Relationship Marketing in Action: The UK Mobile Telecommunications Market [pic] [pic] [pic] Managing Business Relationships Word Count: Relationship Marketing (RM) is a strategy designed to foster customer loyalty, interaction and long-term engagement.
Promoting relationship marketing in the Hotel industry will ultimately contribute to a well structured marketing mix this influences the service quality to the customer. We will write a custom essay sample on The pro’s of Relationship Marketing in the Hotel Industry specifically for you.
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