Relationship Marketing
...3
Relationship Quality and Value 6
Customer satisfaction 8
Trust & Commitment 9
Importance of management 10
C. Discussion 11
CRM, the tool to apply relationship marketing 11
Selecting the Right Customer 14
Customer Information, a Strategic Marketing tool 16
Buyer Supplier Relationship 20
Reverse Marketing, another perspective to Relationship Marketing 23
Buyer is Marketer 24
D. Conclusion 26
E. References 27
A. Introduction
Maximizing long-term profitability comes from maximizing customer equityfirms must maximize the lifetime value of the customer, including revenues, referrals as well as costs of serving the customer. Customer acquisition and retention efforts must be guided by the worth of the customer to the firm.
Maytag provides premium service to its premium customersthose who purchase the Neptune line of laundry machines. Neptune customers get a dedicated staff, a separate toll-free number and fast response on service calls. This is an example of the common business practice where firms allocate resources by the profitability and value of the customer. They utilize the opportunity in directly interacting with individual customers to determine customer profitability and allocate assets accordingly. And what are the benefits of the practice of differentiating among your customers?
B. Theoretical framework
Introduction to Relationship Marketing
The definition for relationship marketing according to the chartered institute of marketing is "
the process of getting closer to the customer by developing a long-term relationship through careful attention to service needs and their quality delivery".
The need for relationship marketing stems from the changing dynamics of the global marketplace and the expanding requirements for competitive success (Rich 2000). Literature seems to agree that the relationship approach...
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