Corporate Culture in Relationship Marketing

Topics: Marketing, Qualitative research, Research Pages: 8 (2436 words) Published: December 16, 2011
Objective : To study and review an article that focuses on the corporate culture in relationship marketing. (The role of corporate culture in relationship marketing – Ilesias.O, 2009) Methodology : The paper used a qualitative methodology involving interviews of related personnel. The interviews were then analyzed throught the grounded theory method. Conclusion : It was learnt that there are two key values that are needed to put relationship marketing in effect, which are client orientation and high degree of concern for employees. It was also found that there are six other values named trust, commitment, teamwork, innovation, flexibility and results orientation that also help facilitate the instillation of relationship marketing. Research limitations/implications : The research paper provided insights into the role of corporate culture in relationship marketing. It did not actually have a statistical study but had a qualitative approach. Paper type : Literature Review

The Relationship Marketing concept was one of the most popular concepts during the 1980’s and 1990’s (Little and Marandi, 2003). This concept provided a paradigm shift in marketing theory and practice from the traditional transactional approach (Igelias.O et al, 2009; Buttle, 1996; Gronroos, 1997). According to the literature, it states that to succesfully implement and execute a relationship marketing orientation, it is necessary to first instill and develop a corporate culture (Gronroos, 1997; Iglesias.O; 2009). The paper is an in depth analysis of the corporate culture of a relationship marketing oriented company. The methodology is qualitative and fieldwork is done by 58 in-depth interviews on three case studies.

Literature Review
Relationship Marketing
Previous marketing concepts were traditional and based upon a transactional type of approach. Using the marketing mix concept, more useful tools were brought in to market the mass consumer goods, but this approach failed when dealing with services and business between companies (Gronroos, 1994; Coviello et al, 1997; Iglesias.O et al, 2009). Current trends have shown the emergence of a new apporach named relationship marketing, which emphasises the importance of establishing and maintaining relationships between customers and buyers. The term Relationship Marketing was first used by Berry (1983) 20 years ago (Little and Marandi, 2003). The concept was also studied before by Culliton (1948) who used the term “customer marketing”. Relationship marketing is offered as an alternative strategy to the traditional marketing mix approach, that provides a means of obtaining sustainable competitive advantage and the best way to retain customers (Little and Marandi, 2003). Relationship of this sort is defined as a series of voluntary repeat business between a supplier and a customer where the behaviour is planned, coopoerative, intended to continue for mutual benefit and is perceived by both parties as a relationship (Little and Marandi, 2003). According to the paper reviewed, for this new relationship marketing to be developed succesfully, a basic requirement would be the creation and development of a corporate culture which supports the new approach (Hunt and Morgan, 1994; Gronroos, 1997; Gummeson, 1997; Iglesias.O, 2009).

Corporate Culture
Culture consists of the beliefs, behaviors, objects, and other characteristics common to the members of a particular group or society (Cliff, 2011). Management scholars began to get interested in the concept during the 1980’s. In 1979, Andrew Pettigrew was one of the first to study the topic of organizational cultures. The studies prior to the reviewed paper focused mainly on he influence of corporate culture on companies’ performance. Schein (1992) was the first to create a model for analysing and intervening in the culture of an organisations. Geertz (2000), Smircich (1983), Louis (1985), Shultz (1995) and Alvesson (2002) have...
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