Relationship Marketing Course Emerging Themes in Marketing Prepared

Relationship Marketing Course: Emerging Themes in Marketing Prepared by: Alexandra Tarassova Saniyaz Ordanbayev

Outline • Definition • Components of Relationship Marketing • Cross-channel Marketing Report • Interfirm Relationship Marketing • Interpersonal Relationship Marketing • Best Practices Of Relationship Marketing • Conclusion

Definition • Relationship Marketing (RM) is the process of identifying, developing, maintaining, and terminating relational exchanges with the purpose of enhancing performance (Robert W. Palmatier, “Relationship Marketing”, 2008)

Examples Of RM • Ikea – The Swedish furniture maker has a worldwide base of intensely loyal customers. When the company changed the font in their ubiquitous catalog, Ikea lovers took to the Internet to air their complaints. Rather than alienate their customers for a trivial reason, Ikea changed the font back in the next catalog • Direct Recruitment – The direct mail marketing firm sends out handwritten birthday cards to clients and associates every year. This simple, personal touch helps clients feel like Direct Recruitment cares about them as people rather than simply consumers • American Airlines – The airline maintains a comprehensive frequent flyer program that rewards customer loyalty with the promise of free flights, upgrades, and discounts • Dell – Dell computers created a special online store for high volume corporate customers. By tailoring the ordering process to the specific customer's needs, Dell was able to expedite many of the hassles corporate technology buyers face. Providing a higher level of service leads to increased loyalty

Components of RM Technology Branding Social Media

Components of RM

Cross-Chanel Marketing Report by Econsultancy

Cross-Chanel Marketing Report by Econsultancy

Model of Interfirm RM Relationship Breadth Relationship Strength (Quality x Breadth) Seller Relationship Marketing Activities Seller Performance Outcomes Relationship Quality Relationship Efficacy (Quality x Composition) Relationship Composition

Interpersonal RM Consumer Gratitude Seller RM Activities Consumer Norms of Reciprocity Short-term Seller Performance Outcomes Long-term Seller Performance Outcomes Consumer Trust and Commitment Short-term RM Effects Long-term RM Effects

Best Practices Of RM • Conduct regular polls and surveys to solicit feedback from customers • Respect that feedback and incorporate it into the company's business practices • Use any and all social media outlets to connect with customers • Have effective customer monitoring technologies in place • Use clear policies to dictate how all company employees should interact with customers in both positive and negative situations • Leverage the value of warm leads – customers who have already expressed an interest in the company • Have a comprehensive customer relationship management strategy • Conduct regular training sessions for all members of staff • Stay on the cutting edge of product offerings • Do not sacrifice quality for innovativeness • Maintain a high customer satisfaction rate in all areas of the company • Make an effort to inform customers how much they are appreciated

Conclusion • “The mass marketing era is over, replaced by the relationship era of marketing, in which personalization and delivering relevant content at scale across all the digital channels reigns supreme” (Simon Robinson, Senior Marketing and Alliances Director for Responsys)

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