Contemporary Issues in Marketing
Outcome 1:
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,
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,
Bibliography: www.bized.ac.uk provides useful business case studies for educational purposes www.cim.co.uk The Chartered Institute of Marketing’s site contains a useful Knowledge Centre www.ft.com The Financial Times business sections www.marketing.haynet.com Marketing magazine www.studentshout.com a useful academic website www.thetimes100.co.uk business educational resources