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Starbucks Relationship Marketing Strategy Sample

1.0 Introduction While marketing activities can be linked back to 7000 BC (Carratu, 1987), relationship marketing (RM) is relatively new, surfacing in the late 1980s as marketers transitioned from simply acquiring customers to keeping them (Sheth and Kellstadt, 2002). While numerous definitions of RM exist, this essay will use Gummesson’s (1996, p. 30) suggestion that “relationship marketing also includes relationships with other stakeholders, both inside and outside the organisation”. According to Sheth and Kellstadt (2002), three events sparked the interest in relationship marketing. First, the gasoline crunch in the late 1970s resulted in reduced demand for raw materials and surplus inventories and business globalization. These events forced companies to rethink their marketing approach focus from transactional marketing (TM) to retaining customers or relational marketing (RM) (Sheth, et al, 1988). Next, many researchers began to differentiate between services and product marketing techniques resulting in the emergence of a new term, “relationship marketing” (Berry, et al, 1983). Finally, product quality became a primary focus and companies launched new programs to establish strong supplier relationships to better manage, improve and control quality. This new attitude inspired a view of suppliers as relational partners rather than a necessary evil (Sheth, 2002). These events inspired a deepened interest and sudden increase of research into RM (Sheth and Parvatiyar, 2000). However, Sheth (2002) believes another transition is on the horizon as the Internet and related technology alter the meaning and future direction of RM. This paper will first, review research on how relationship marketing is viewed today, next, evaluate its importance and relevance to businesses, and finally, offer perspectives as to the potential future direction of

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