RELATIONSHIP

MARKETING
 Relationship Marketing
• Acquiring
• Maintaining
• Retaining Customers
 Marketing Strategies that Build
Customer Commitment and
Loyalty
 Creating customer satisfaction.
 Building brand equity
 Creating and maintaining relationships.
 FOUNDATIONS OF RELATIONSHIP
MARKETING STRATEGY
• Morgan and Hunt model
• Variables
• Commitment
• Trust
 Types of Relationships
• Business Marketing Relationships (BMR)
• Interpersonal Commercial Relationships
(ICR)
• Business to Customer Relationship (B-to-
C)
 BUSINESS MARKETING RELATIONSHIP
FACTORS
Business Marketing
Definition
Relationship Factors

Commitment Implicit or explicit pledge of relational continuity between exchange partners; adoption of a
long term orientation toward the relationship – a willingness to make short-term sacrifices to
realize long term benefits
Trust One party’s belief that its need will be fulfilled in the future by the actions undertaken by the
other party. Contingent on presence of uncertainty.
Power Ability of one party to get another party to undertake an activity that the other party would not
normally do.
Control (Part of Power) Outcome of power and results when a party is successful in modifying its partner’s behavior

Balance of Power (Part of Balance = Symmetric power

Power) Imbalance = hierarchical; One party has dictated abilities over the other.
Interdependence Mutual state of dependence.

Communication Formal and informal sharing of meaningful and timely information between firms.

Cooperation Similar or complementary coordinated actions taken by firms to achieve mutual outcomes.

Idiosyncratic Investments Sunk costs that would not be recoverable in the event of a termination.

Conflict Resolution Functionality of dispute resolution stimulates more creative and effective partnerships.
 Interpersonal Commercial
Relationships

ICR: The interactions between a service firm

and the final customer.
 Factors of interpersonal
communication
Interpersonal
Communication
Definition
Relationship
Factors
Commitment Exchange of Information
Similarities of Similarities in preferences of apparent personality or
Shares Belief demographic factors; similarities in goals and beliefs,
Systems social closeness.
Competence and Capability of front line service providers such as service
Personal Factors provider’s friendliness; same gender and physical
attractiveness of provider.
Absence of Ability to resolve disputes.
Conflict
 3 Kinds of Customer equity
• Value equity
• Brand equity
• Retention equity
 Importance of Quality
relationship interactions:
The outcomes of the quality of relationship
interactions are :
• Satisfaction
• Intentions to generate referrals
• Positive evaluations of service provider
• Profitability
 Technology Requirement for
Relationship marketing
TECHNOLOGY ENABLERS:
• Internet ERP wide Management
Information System.
• CRM Software.
 The Study of Consumer

The purpose of this exploratory study is to identify

consumer preferences towards common relationship
marketing and communication tactics of businesses they
patronize. It helps us to know the kind of interactions that
consumers like and also about there interaction
preferences.
 Questionnaire
1.If I don’t get a live person when I phone a customer service line, I am
disappointed.
2.I like it when the bank I patronize offers a number of diverse services.
3.I like the way my bank follows -up with a phone call after a service is
performed.
4.I get catalogs in the mail or from executives from the bank that I show
interest in.
5.I don’t want special treatment from a bank I patronize; rather, I just want
good service.
6.I like getting mail about new products or services being introduced from
the bank I do business with.
7.I prefer getting e-mail messages rather than the frequent disturbing
phone calls.
8.I like being notified every time any transaction is being done from my
account on time by e-mail or phone.
9.I like it when tele-marketers call me to offer additional services of the
bank like loans etc.
10.I like it when telemarketers address me by name, even if I have never
done business with them before.
 If I don’t get a live person when I
phone a customer service line, I am
disappointed.
5% 1%
7%

1`

54%
33%

Strongly Agree Somewhat Agree Neutral

Somewhat Disagree Strongly Disagree
 I like it when the bank I patronize
offers a number of diverse services.
5% 1%
16%
34%

1`

44%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
I like the way my bank follows -up
with a phone call after a service is
performed.
4%
12%
34%
10%

1`

40%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
I get catalogs in the mail or from
executives from the bank that I
show interest in.
6% 4%
8% 30%

1`

52%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
I don’t want special treatment from
a bank I patronize; rather, I just
want good service.
1%
15%
28%

8%

1`

48%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
 I like getting mail about new
products or services being
introduced from the bank I do
business with.
6%
10% 24%

17%

1`

43%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
 I prefer getting e-mail messages
rather than the frequent phone
calls.
4%
12%
34%
10%

1`

40%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
 I like being notified every time a
transaction is made on my account
by e-mail or phone.
11%
20%
10%

1`

25%
34%

Strongly Agree Somewhat Agree Neutral

Somewhat Disagree Strongly Disagree
I like it when tele-marketers call me
to offer additional services of the
bank like loan etc.
4%
18%
29%

1`

22%

27%
Strongly Agree Somewhat Agree Neutral
Somewhat Disagree Strongly Disagree
I like it when telemarketers address
me by name, even if I have never
done business with them before.
2% 6%
11%

1`

16%
65%

Strongly Agree Somewhat Agree Neutral

Somewhat Disagree Strongly Disagree
Thank You