Role of Information Technology in Relationship marketing

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Role of Information Technology in
Relationship marketing
By : Krishna Vaghela

Role of information technology in Relationship Marketing
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself."
- Peter Drucker


Abstarct:
In today’s market customer is king and every activity gives centre place to the customer because this is time to make your business customer oriented. RM is defined as the identification, establishment, maintenance, enhancement, modification and termination of relationships with Customers to create value for them and profit for organization by a series of relational exchanges that have both a history and a future and in which information technology plays vital role . Information technology in relationship marketing (RM) is one of the Key functions in enhancing business performance. This paper describes how I.T helps to maintain this relationship because market is enlarging with the customer as well as its importance in relationship marketing. General information may be converted in valuable source for any business through it. It also focuses on particular relationship marketing with some important aspects of it. Relationship marketing is mostly used by every firm and for every product. The first strategy of any firm is to maintain customer and without computerization it is not easy.

Introduction
Relationship marketing is designed to
develop strong connections with customers
by providing them with information directly
suited to their needs and interests and by
promoting open communication. This
approach often results in increased wordof-mouth activity, repeat business and a willingness on the customer’s part to
provide information to the organization.

Modern consumer marketing originated in
the 1950s and 1960s as companies found it
more profitable to sell relatively low-value
products to masses of customers. Over the
decades, attempts have been made to

broaden the scope of marketing,
relationship marketing being one of these
attempts. Arguably, customer value has
been
greatly
enriched
by
these
contributions.
Relationship is very much important
for any business which creates repo with
their customer. The consistent application
of up to date knowledge of individual
customers to product and service design in
order to develop a continuous long term
relationship In the 90s, studies have shown
that “it is 6 time more expensive to Gain a
new customer than to retain an existing
one”. Statistics like this pushed the industry
to become more knowledgeable and
intimate with customers.

Definition

marketing: increasing customer satisfaction
and increasing switching barriers”
Benefits through Relationship Marketing

We are talking about relationship marketing
then first start with some definition of it :
“Relationship Marketing refers to a
long-term and mutually beneficial
arrangement where both the buyer
and seller have an interest in
providing
a
more
satisfying
exchange. This approach attempts
to transcend the simple purchaseexchange process with a customer to make more meaningful and richer
contact by providing a more holistic,
personalized purchase, and uses the
experience to create stronger ties.”
According
to
Liam
Alvey,
“Relationship marketing can be
applied when there are competitive
product alternatives for customers
to choose from; and when there is
an ongoing and periodic desire for
the product or service.”
“Fornell and Wernerfelt used the term
"Defensive marketing" to describe attempts
to reduce customer turnover and increase
customer loyalty. This customer-retention
approach was contrasted with "offensive
marketing" which involved obtaining new
customers and increasing customers'
purchase frequency. Defensive marketing
focused on reducing or managing the
dissatisfaction of your customers, while
offensive marketing focused on "liberating"
dissatisfied...
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