Marketing: Customer Relationship Management
[pic] FACULTY OF COMMERCE
MARKETING DEPARTMENT
Some Scholars like John Pestrof regard R M as “old wine in a new bottle” while others regard it as a new approach representing a paradigm shift Discuss (30)
Relationship Marketing can be defined as a strategy that is used by business organisation to learn more about customer’s mood and behaviours so as to develop stronger relationship with them. Peter Druker stated that the purpose of the business is to create customers and keep them. To do that a company must do those things that make people or customers want to make business with it. Thus relationship marketing is not a short term tactic but a strategy that should be done in a vacuum. Kotler P (2000) defined Customer Relationship Marketing as a strategy to identify and attract profitable customers and retaining them by creating efficient relationships in order to guarantee a profitable growth. In this definition it is clear that relationship marketing is not all about making customers, but rather is a marketing concept that should be conducted at managerial level so that an element of mutual benefit between the customer and the organisation can result. However by maintaining and managing such a relationship, relationship marketing would have been achieves. Though the case some scholars such as John Petrof regard Relationship marketing as an “old wine in a new bottle” while others regard it as a new approach representing a paradigm shift in marketing. But to know where relationship marketing lies we need to know the evolution of it first
Evolution of relationship marketing
Relationship marketing is witnessed long back in enceinte times of barter trading. Back then traders used to personalise trade and what was practiced was customised trading. With the law of barter trading, there was supposed to be a double coincidence of wants for it to be successful which means it was the duty of a seller to
MARKETING DEPARTMENT
Some Scholars like John Pestrof regard R M as “old wine in a new bottle” while others regard it as a new approach representing a paradigm shift Discuss (30)
Relationship Marketing can be defined as a strategy that is used by business organisation to learn more about customer’s mood and behaviours so as to develop stronger relationship with them. Peter Druker stated that the purpose of the business is to create customers and keep them. To do that a company must do those things that make people or customers want to make business with it. Thus relationship marketing is not a short term tactic but a strategy that should be done in a vacuum. Kotler P (2000) defined Customer Relationship Marketing as a strategy to identify and attract profitable customers and retaining them by creating efficient relationships in order to guarantee a profitable growth. In this definition it is clear that relationship marketing is not all about making customers, but rather is a marketing concept that should be conducted at managerial level so that an element of mutual benefit between the customer and the organisation can result. However by maintaining and managing such a relationship, relationship marketing would have been achieves. Though the case some scholars such as John Petrof regard Relationship marketing as an “old wine in a new bottle” while others regard it as a new approach representing a paradigm shift in marketing. But to know where relationship marketing lies we need to know the evolution of it first
Evolution of relationship marketing
Relationship marketing is witnessed long back in enceinte times of barter trading. Back then traders used to personalise trade and what was practiced was customised trading. With the law of barter trading, there was supposed to be a double coincidence of wants for it to be successful which means it was the duty of a seller to