Customer relationship menagement
The Hong Kong Institute of Vocational Education
Department of Business Administration
Customer Relationship Management
c55fb2db164da7c3d0dd3d66d2235cce.doc
LECTURE OBJECTIVES
Understand relationship marketing.
Understand the differences between relationship marketing and transaction marketing.
Understand customer relationship management
Identify the essential concepts on customer relations – customer satisfaction and customer loyalty
1. Understand Relationship Marketing
1.1 What is ‘Relationship Marketing’?
Marketing consists of actions taken to build and maintain desirable exchange relationships with target audience. They want to build strong economic and social relationships by consistently delivering superior value. Successful firms work to build long-term relationships with their customers and initiate relationship marketing strategy.
Relationship marketing is a strategy that maintains long-term partnerships with customers. It starts by understanding who your customers are what they value, what they want to buy. Companies then build relationships with customers by offering value that satisfied their customers.
Relationship marketing is also known as one-to-one marketing, which is about marketing to customers, individually, one at a time. It is grounded in the idea of establishing a learning relationship with each customer, starting with the most valuable ones. The customer tells the firm of some need, and the firm customize it 's product or service to meet it. Every interaction and modification improves the ability to fits the firm 's product to this particular customer.
Successful firms have to be relationship oriented. They know that their customers – buyers who purchase promises of satisfaction – prefer to do business repeatedly with people and organizations they trust. They know that establish relationships with customers can increase long-run sales and reduce marketing costs.
Consequently, the term
Department of Business Administration
Customer Relationship Management
c55fb2db164da7c3d0dd3d66d2235cce.doc
LECTURE OBJECTIVES
Understand relationship marketing.
Understand the differences between relationship marketing and transaction marketing.
Understand customer relationship management
Identify the essential concepts on customer relations – customer satisfaction and customer loyalty
1. Understand Relationship Marketing
1.1 What is ‘Relationship Marketing’?
Marketing consists of actions taken to build and maintain desirable exchange relationships with target audience. They want to build strong economic and social relationships by consistently delivering superior value. Successful firms work to build long-term relationships with their customers and initiate relationship marketing strategy.
Relationship marketing is a strategy that maintains long-term partnerships with customers. It starts by understanding who your customers are what they value, what they want to buy. Companies then build relationships with customers by offering value that satisfied their customers.
Relationship marketing is also known as one-to-one marketing, which is about marketing to customers, individually, one at a time. It is grounded in the idea of establishing a learning relationship with each customer, starting with the most valuable ones. The customer tells the firm of some need, and the firm customize it 's product or service to meet it. Every interaction and modification improves the ability to fits the firm 's product to this particular customer.
Successful firms have to be relationship oriented. They know that their customers – buyers who purchase promises of satisfaction – prefer to do business repeatedly with people and organizations they trust. They know that establish relationships with customers can increase long-run sales and reduce marketing costs.
Consequently, the term
References: M.Stone & N.Woodstock "Relationship marketing" ch.2 pp 28-49 Zikmund, G William, Mcleod Raymond, Jr & Gilbert Faye W. Customer Relationship Management integrating Marketing Strategy and Information Technology, Wiley 2003. Chapter 1 & 5