Describe and explain the importance of relationship marketing in contemporary business context. Relationship Marketing:
Relationship marketing is not about having a "buddy-buddy" relationship with customers. Customers do not want that. Relationship Marketing uses the event-driven tactics of customer retention marketing, but treats marketing as a process over time rather than single unconnected events. By molding the marketing message and tactics to the LifeCycle of the customer, the Relationship Marketing approach achieves very high customer satisfaction and is highly profitable. The relationship marketing process is usually defined as a series of stages, and there are many different names given to these stages, depending on the marketing perspective and the type of business. Benefits of Relationship Maketing:
Focus on providing value to customers.
Emphasis on customer retention.
The method is an integrated approach to marketing, service and quality. Therefore it provides a better basis for achieving Competitive Advantage. Studies in several industries show that the costs to keep an existing customer are just a fraction of the costs to acquire a new customer. So often it makes economic sense to pay more attention to existing customers. Long-term customers may initiate free word of mouth promotions and referrals. Long-term customers are less likely to switch to competitors. This makes it more difficult for competitors to enter the market. Happier customers may lead to happier employees.
Knowledge Management (KM) comprises a range of practices used in an organisation to identify, create, represent, distribute and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organisational processes or practice. An established discipline since 1995, KM includes courses taught in the fields of business administration, information systems, management, and library and information sciences. More recently, other fields, to include those focused on information and media, computer science, public health, and public policy, also have started contributing to KM research. Many large companies and non-profit organisations have resources dedicated to internal KM efforts, often as a part of their 'Business Strategy', 'Information Technology', or 'Human Resource Management' departments. Several consulting companies also exist that provide strategy and advice regarding KM to these organisations. KM efforts typically focus on organisational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, and continuous improvement of the organisation. KM efforts overlap with Organisational Learning, and may be distinguished from by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the exchange of knowledge. KM efforts can help individuals and groups to share valuable organisational insights, to reduce redundant work, to avoid reinventing the wheel per se, to reduce training time for new employees, to retain intellectual capital as employees turnover in an organisation, and to adapt to changing environments and markets. Knowledge management as a business activity with two primary aspects: Treating the knowledge component of business activities as an explicit concern of business reflected in strategy, policy, and practice at all levels of the organization. Making a direct connection between an organization’s intellectual assets — both explicit [recorded] and tacit [personal know-how] — and positive business results Relationship management:
The process of fostering good relations with customers to build loyalty and increase sales Customer RelationShip Management:
Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to...
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