This essay is a critical literature review of Relationship Marketing in relation to customer satisfaction, customer loyalty and technology. In this review, I will provide a brief orientation of relationship marketing; identify the benefits of relationship marketing for companies and customers and critically analyse the concept of RM with regards to customer satisfaction, customer loyalty and analyse the role of technology in relationship marketing. Leahy (2011:651) defined relationship marketing as “attracting and keeping customers for a long period of time”. RM is used by firms to change consumer attitudes and increase the frequency of purchase in a business using marketing techniques such as promotions and advertising. According to Ndubisi and Chan (2005), relationship marketing provides an organisation the opportunity to get access to the right information about their customers, meet the customers’ needs effectively, efficiently and gain competitive advantage.
Marketing is about value creation of the product or service, the more you add value, the more you will get competitive advantage in the competitions in the market. The purpose of marketing is to build and develop strong relationship with the customer in a specific customer segment. In today’s world of business marketing’s role is to provide differentiations of the products and services and capture a strong customers’ focus and build loyalty for long term business commitments. Understanding the core marketplace, identification of needs, want and demand of the customers and coordination of these tasks is the aim of marketing to satisfy the customers. Marketing can easily figure out the satisfaction criteria of the customers, market offerings and value of which customers are keen on.
Consumer’s quality experiences and subsequent satisfaction with the service are primarily an outcome of interaction relationship between service provider and the customer. In mid1980’s, rapidly developing information technological trends have been creating a primarily practice based and consultant driven approach to CRM like Data base Marketing, direct marketing, e-CRM. Relationship marketing is a specific approach in the discipline of marketing management which has the potential to improve its productivity and create the value for both the customer and also the company. Reasons for growth of
The primary goal of building relationships with customers is to create Customer loyalty. Creating value can be a foundation of not only building relationships with customers but also maintaining the bond with company’s potential customers. The authors (Miao-Que & Yi-Fang, 2010)described that the environment clues impacts the customer perceived value and finally theses perceived value influence the behavioral intention of customers. The importance of the perceived value in travel websites is mentioned by the author in article.The perception about the different value is described by the author. The customer value is typically built on experiential perception and is the result of direct or indirect interaction during the consumption process.
For this essay, I am going to talk about relationship marketing and the developments, processes, theories, and apply them to customer and use Tesco as examples. By the end I want to see why is it highly used and is it necessary. Firstly, I will provide my first definition of relationship marketing to make sure I have a deeper understanding of Relationship Marketing: Relationship Marketing is a strategy used by businesses which aims to build customer loyalty and by doing so, retain existing customers more effectively. Simply put; it is building relationships with the customers by using marketing techniques which appeal to either a specific segment or a broader market. By appealing to these customers, they are more likely to remain loyal to your organisation and continue to purchase your products.
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999).
Today, companies are re-engineering their operations and investing in enhanced IT infrastructures, which enable them to provide customized, personalized, information-rich products and services. The new objective for marketers and business developers involves understanding the needs of their clients and the markets that they serve. This new focus on providing customer value is redefining business processes. Professionals, who understand and anticipate this shift, are positioning themselves ahead of the competition. The Impact of Technology Enabled Business Processes There is no denying the effect that technology has had on the way we conduct business.
This rather simplistic definition does not explain how businesses should share the ‘benefits’ to the customers when the article mainly talks about how marketers do not understand what customers feel about their relationship with the company. However, this suggests that one-on-one relationship is very important in order to develop a real relationship to the customers as it focuses on customer retention and satisfaction as well as recognising the value of customer relationships. Seybold (2001) says that by using scenarios, it does not only strengthen the relationship of companies to their customers, but also it is about understanding customers on a deeper level and customising offerings. Seybold’s CRM (Consumer Relationship Management) solution is an effective tool in terms of capturing customers effectively and it also allows the companies to understand the customers in a deeper level as well as being able to provide customised
This assignment is about marketing, where I will produce a marketing strategy for a new or existing product. This unit introduces the major principle and functions of marketing; I will look on customer needs, and creating a suitable strategy or marketing mix, which will satisfy customer needs. In this unit I will experience the marketing process from carrying out initial research about a market, investigating the principles of functions of marketing and the way in which it contributes generating income/profit in a business. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Marketing also involves analyzing customer needs, securing information needed to design and produce goods or services that match buyer expectations, and creating and maintaining relationships with customers and suppliers.
Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction. Know the problems of your customers and what they are looking for, then offer them the right products and outline the benefits to them.