BUILDING CUSTOMER RELATIONSHIP

Presented by

Deepak KhandelwalDeepak Khandelwal

RELATIONSHIP MARKETING

• Relationship marketing is a philosophy of doing business, a strategic orientation that focuses on keeping and improving current customer rather than on acquiring new customer.

• Bucket theory of marketing

• Marketing relationships could take any form, including promotion, sales, rivalry relationship.

• Relationship marketing is focus on cooperative and collaborative relationship between the firm and its customers.

Relationship Marketing v/s

Marketing Relationships

• The primary goal of relationship marketing is to build and maintain a base of committed customer who are profitable for the organization.

GOALS OF RELATIONSHIP MARKETING

GOALS OF RELATIONSHIP MARKETING

GettingGetting

o Effectiveo Efficiento Enjoyableo Enthusiastico Ethical

5 E’s RELATIONSHIP MARKETING

BENEFIT FOR CUSTOMER

BENEFIT FOR ORGANIZATION

Reduced marketing and administrative cost. Increase revenue over time. Increase purchase over time.Lower cost.Free advertising.Employee retention.

Relationship development Strategies

• Leonard Berry and A. Parasuraman have developed a framework for understanding various types of retention strategies.

• The framework suggest that relationship marketing can occur at different levels and each successive of strategy result in ties that bind the customer

LEVELS OF Relationship Strategies

StructuralBonds

1.Financial Bond

• Volume and frequency reward

• Bundling and cross selling.

• Stable pricing

2.Social bond

• Continuous relationship

• Personal relationship

• Social bond among customer

3.Customization Bond

• Customer intimacy

• Mass communication

• Anticipation/innovation

4.Structural Bond

• Integrated information system

• Joint investment

• Shared process and equipment