One of the most significant developments in the practice of marketing is the shift in emphasis to customer relationship management from a transaction orientation. There are ten forms of relationship marketing that can be grouped into the relational exchanges involving suppliers, lateral organizations, customers or one’s own employees or business units. The need for relationship marketing stems from the changing dynamics of the global marketplace and the expanding requirements for competitive success. Obviously, the marketer’s objective is to eventually maximize the dollar value of transactions. Rather than attacking that objective through the classical avenues of product, price, place, and promotion, marketers through relationships view the customer as a primary asset. That asset should be cultivated and grown in order to reduce the effects of ever-increasing competition and potential pressure on pricing
…Not all opinions and research rush to support the merits of relationship marketing. Research reveals a tide of discontent from those outside marketing, finding marketers to be less than productive for the compensation they receive. Opinions from those viewing marketing from a distance indicate that marketers should eliminate their obsession with loving customers since it has become a distraction from the basics of selling and tracking the origins of sales success.
Author: Michael Rich
Subjects: Customer Related, Marketing / Sales