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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. Retained customers are extremely valuable to businesses and can have a large effect on their performance, especially in the retail industry.

A definition by (Little and Marandi, 2003) of relationship in marketing terms is, “…voluntary repeat business between a supplier and a customer where the behaviour is planned, cooperative, intended to continue for mutual benefit and is perceived by both parties to be a relationship.”

The definition has more covered than my definition, yet it has not gone into great detail. It explains that the relationship is between the two are somewhat mutual, where both benefit. This has reason, the company has retained its custom, and that the customer will be highly benefited.

The benefit to the supplier means that there is a strong, loyal consumer base and repeat business. The result is increased market share, which allows them to compete with other similar businesses more effectively and increases their prof...

... middle of paper ...

...ching the market.

Below, is some general data on what is the most influential forms of advertising: It was been mentioned that marketing communication has many tools to communicate and notably because most will be familiar with advertising, this will be used here. This is what companies must do - research on how perceptions change and find the most effective channel of communicating an effective advert. Word-of-mouth is a difficult one, this is what branding will help with and create a positive look upon the company. It must be seen as ethical – but they have little control over this. It is incredibly biased information, it’s based on experience and view. But according to Allan Kimmel word of mouth represents a primary source of information for consumers, where the influence of mass media has diminished compared to the influence of word of mouth (Kimmel, 2010)