RELATIONSHIP MARKETING

RELATIONSHIP MARKETING Relationship Marketing • Acquiring • Maintaining • Retaining Customers Marketing Strategies that Build Customer Commitment and Loyalty Creating customer satisfaction. Building brand equity Creating and maintaining relationships. FOUNDATIONS OF RELATIONSHIP MARKETING STRATEGY • • • • Morgan and Hunt model Variables Commitment Trust Types of Relationships • Business Marketing Relationships (BMR) • Interpersonal Commercial Relationships (ICR) • Business to Customer Relationship (B-toC) BUSINESS MARKETING RELATIONSHIP FACTORS Business Marketing Relationship Factors Commitment Definition Implicit or explicit pledge of relational continuity between exchange partners; adoption of a long term orientation toward the relationship – a willingness to make short-term sacrifices to realize long term benefits One party’s belief that its need will be fulfilled in the future by the actions undertaken by the other party. Contingent on presence of uncertainty. Ability of one party to get another party to undertake an activity that the other party would not normally do. Outcome of power and results when a party is successful in modifying its partner’s behavior Balance = Symmetric power Imbalance = hierarchical; One party has dictated abilities over the other. Mutual state of dependence. Formal and informal sharing of meaningful and timely information between firms. Similar or complementary coordinated actions taken by firms to achieve mutual outcomes. Sunk costs that would not be recoverable in the event of a termination. Functionality of dispute resolution stimulates more creative and effective partnerships. Trust Power Control (Part of Power) Balance of Power (Part of Power) Interdependence Communication Cooperation Idiosyncratic Investments Conflict Resolution Interpersonal Commercial Relationships ICR: The interactions between a service firm and the final customer. Factors of interpersonal communication Interpersonal Communication Relationship Factors Definition Commitment Similarities of Shares Belief Systems Competence and Personal Factors Absence of Conflict Exchange of Information Similarities in preferences of apparent personality or demographic factors; similarities in goals and beliefs, social closeness. Capability of front line service providers such as service provider’s friendliness; same gender and physical attractiveness of provider. Ability to resolve disputes. 3 Kinds of Customer equity • Value equity • Brand equity • Retention equity Importance of Quality relationship interactions: The outcomes of the quality of relationship interactions are : • Satisfaction • Intentions to generate referrals • Positive evaluations of service provider • Profitability Technology Requirement for Relationship marketing TECHNOLOGY ENABLERS: • Internet ERP wide Management Information System. • CRM Software. The Study of Consumer The purpose of this exploratory study is to identify consumer preferences towards common relationship marketing and communication tactics of businesses they patronize. It helps us to know the kind of interactions that consumers like and also about there interaction preferences. Questionnaire 1.If I don’t get a live person when I phone a customer service line, I am disappointed. 2.I like it when the bank I patronize offers a number of diverse services. 3.I like the way my bank follows -up with a phone call after a service is performed. 4.I get catalogs in the mail or from executives from the bank that I show interest in. 5.I don’t want special treatment from a bank I patronize; rather, I just want good service. 6.I like getting mail about new products or services being introduced from the bank I do business with. 7.I prefer getting e-mail messages rather than the frequent disturbing phone calls. 8.I like being notified every time any transaction is being done from my account on time by e-mail or phone. 9.I like it when tele-marketers call me to offer additional services of the bank like loans etc. 10.I like it when telemarketers address me by name, even if I have never done business with them before. If I don’t get a live person when I phone a customer service line, I am disappointed. 7% 5% 1% 1` 33% 54% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like it when the bank I patronize offers a number of diverse services. 5% 16% 34% 1% 1` 44% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like the way my bank follows -up with a phone call after a service is performed. 12% 10% 4% 34% 1` 40% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I get catalogs in the mail or from executives from the bank that I show interest in. 6% 8% 4% 30% 1` 52% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I don’t want special treatment from a bank I patronize; rather, I just want good service. 15% 8% 1% 28% 1` 48% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like getting mail about new products or services being introduced from the bank I do business with. 6% 10% 24% 17% 1` 43% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I prefer getting e-mail messages rather than the frequent phone calls. 12% 10% 4% 34% 1` 40% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like being notified every time a transaction is made on my account by e-mail or phone. 11% 10% 20% 1` 25% 34% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like it when tele-marketers call me to offer additional services of the bank like loan etc. 4% 29% 18% 1` 22% 27% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral I like it when telemarketers address me by name, even if I have never done business with them before. 2% 6% 11% 1` 16% 65% Strongly Agree Somewhat Disagree Somewhat Agree Strongly Disagree Neutral Thank You