RELATIONSHIP MARKETING: THE

DAWN OF NEW ERA

PRESENTED TO:
Prof. Atul Tandan

PRESENTED BY:
Nikhita Kanwar
Manpreet Kaur
Surinder Singh
Vinay Dhir
Varinder Virdi

DEFINITIONS
RELATIONSHIP: is the state & art of connection
between persons & things.
MARKETING: The ability to create & retain a
customer, at a profit.
RELATIONSHIP MARKETING:
Form of marketing, developed from direct
response marketing campaigns which
emphasizes customer retention and satisfaction ,
rather than a dominant focus on sales
transactions.

RELATIONSHIP MARKETING: A TOOL IN

B2B MARKETING

It is a business relationship between 2

companies actually it is network of relationships.

If the relationship between 2 organizations could

be viewed as a FOCAL ONE, number of
secondary relationships, concerned with the
marketing of products & services are observed.

It is slowly creating an identity of its own, it is an

useful strategy that can provide substance to its
identity.

CREDIBILITY FACTOR:
Quick growth of brand in the market.
Huge potential available
Multi product focus of many companies.
Increased awareness levels of consumers.
INDUSTRIAL MARKETING:
Pluralistic buying behavior.
Technology & applications major role.
Segmentation depends on product or service
Enhances brand value by creating satisfied
customers

BUYING CENTRE & RELATIONSHIPS:

No. of buying is important from pre-sale stage to
the post-sale stage. Buying stages are:

Initiator: He initiates the purchase process.

Influencer: Brings in buying influence.
Decider: Final decision taker.
Gatekeeper: Controls the flow of information.
Buyer: Personnel's who formalize the buying
process.

THE CUSTOMERS PERSPECTIVE OF

RELATIONSHIP
Customer Requirements:
The period during which customers are in a
relationship with the marketers may be long.

Opportunities to strengthen the relationship

occur just before, during, after the transactions.

Customers also distinguish between major

contacts & less important ones

Levels of relationship : It includes the following:

MEDIA: Through which the contact takes place.

FREQUENCY OF CONTACTS
WITH WHOM IS THE CONTACT: Organization or
individual.
SCOPE OF EACH CONTACT: Subjects covered.
INFORMATION EXCHANGED WITH CONTACTS
OUTCOMES OF EACH CONTACT: For seller &
customer both
COST OF EACH CONTACT: Money, time, stress,
other factors.

Marketers Perspective to
Relationship
Ability to Monitor

Different Roles in Customer

Relationship
The Role of Customer Information
Learning from Experience
Knowledge of Customers
Knowledge of the Organization

Changing Indian Market

The Old

The New

Products were developed

Products are developed

Brands were built to have

Brands are positioned to

to enter new Markets

differentiated associations.

Communications were
used to convey brand
associations

Relationships were less

important than sales.

to meet customer needs.

offer distinctive value.

Communications are

used to create
expectations of value.

Relationships are to offer

lifetime customer value.

EXAMPLES OF RELATIONSHIP
MARKETING
Welcome group of Hotels
Marico Industries
Nestle India

PREREQUISITES FOR
RELATIONSHIP MARKETING
The three Es of relationship marketing:
Empathy

Eagerness

Empowerment

WINDS OF CHANGE
NEW ORIENTATION

Relationship marketing today requires building a

new perspective. This perspective would call for

dealing with one customer at a time.
It would imply selling to a single customer, as
many products as possible. The market must
concentrate on building a unique relationship with
individual customer.
The marketer must segment the market carefully
to decide which customer are more valuable.

CHANGES FOR THE ORGANIZATION

Transforming the perspective of looking at the

market
Structure change
Change in decision making process
Attitude change

CHANNEL RELATIONSHIP
For the marketer, building a proper, fruitful
and functional relationship is a critical
factor in determining the effectiveness of
the channels performance.

DATABASE AND INFO-TECK

Use of information technology for building a

database on each individual customer.
Offers a complete information profile & the needs of
customer.
Concept of a database is the ability to collect
information, organize, analyze and segment it so
that the right people are targeted for the right
product.
A marketer should be making use of a variety of
ways to gather data about a market.

 The goal is to access a customer record and

know instantaneously what products that
customer has or does not have, what his
preference and how best to deal with him in the
future.

SINGLE POINT SERVICE STRATEGY

Customer wants a single interface with his

supplier & not dealing with several different
departments.
The relationship manager is designated to have
access to enough resources and backup to
resolve any problem the client needs to tackle.

STEPS IN RELATIONSHIP
MARKETING

STEP 1:RECOGNIZING
YOUR KEY CUSTOMERS

Target the customer who uses the

product frequently.
Interested in getting something
in return.
Depend on the value addition the company can
deliver.
Understanding the key customers needs and
desires.
Example: Lacoste India, Opel Astra Club,
Pantaloons

OBTAINING FEEDBACK
Relationship marketing is
deeply anchored on the
concept of collaboration.

Different methods of obtaining

feedback:
a.Surveys either personal, telephone or mail
b.Mystery shopping
c. Customer suggestions or comment cards
d.Focus groups
e.Toll free phone numbers

STEP 2: REWARDING YOUR KEY

CUSTOMERS
Much used in the service
industry.
Loyalty reward schemes.
Loyal customers.

3 steps to rewards
a.Identify best customers.
b.Divide and Reward.
c. Stay up to speed.

PARTNERING FOR LEVERAGE

Partnering is a process
of collaborative teamwork
to achieve measurable results
through agreements and
productive working relationships.
Example : Carlson Rezidor Hotel Group,
Tie-up of British Airways with
Taj Hotels

STEP 3:
REACHING YOUR
KEY CUSTOMERS

Cold Calling
E-mail Marketing
Social Media
Search Engine
Optimization

PITFALLS
Scale of operations makes bigger corporations
slightly impersonal in their dealings.
Tends to become impersonal and invade the
privacy of individuals.
It may involve in considerable capital investment
with no guarantee of return.

How Much Difference Does

Good Relationship
Marketing Make ?
Kinds of contracts customers perceive they
have with your company.
Known as contact audit
It shows the frequency with which the customer
contact occur.
Also indicate if the customer are being put off
by expected difficulty.

Outcome of these contacts are, in

terms of relationship
The company will realize that a positive outcome

leads to better Relationship Marketing.

To provide positive outcome many policy matters
come into play such
Use of customer information
Which provide right solution

How customers react to

these outcomes
Complex area
Realized by well handled complaints or time taken
to adjust to a customers needs
Reinforces the purchasing behavior
Satisfaction leads to recommendation,
The key here is to estimate change in lifetime
behavior of the customers affected and those they
tell about it.

Tactical vs. strategic application

of relationship marketing
More effectively used as strategies and
transforming the way business is done
These strategies factors too must be considered in
payback calculations.

Competitive Superiority
Established By building and exploiting a
database with comprehensive coverage

Their existing and potential customers for

current and future products and services

Alternative Sales Channels

Companies can utilize Relationship Marketing to
solve this supply problem.
Relationship Marketing can reduce cost of sales
through application such as telemarketing, mail order,
enquiry management and the like.
In the finance retailing industry, companies like
Burlington Catalogue are taking to mail order as
opposed to traditional means of retailing and mass
media advertising.

Barriers To Market Entry

Business may find themselves unable to enter a
market.
As high quality database hold by competitors.
Some cases this database can b unique assets.
Conversely, possession of a relationship
marketing is the key to
enter new markets

New Products And Services

Relationship Marketing is by itself creating new
products and services.

Credit card companies tie up with a lot of corporate

houses to utilize their database.

Qualifying Relationship
Marketing
In Competitive strategy formulation Relationship Marketing is most

frequently used to achieve either one or both of the following objectives

Revenue defense and development
Cost Reduction

Relationship Marketing must therefore be identified and quantified

category of customer
Category of products
Application introduced
Category of change
Time period
category of staff, function or marketing channel

Qualification Process
Target opportunities
A shortlist of target opportunities for managing customers
better is to be prepared. These involve
Recognizing workflow or changing organizational
structure.
Re-engineering process.
Policy development within existing functions,
department , products groups, etc.
Opening up of internal communication channels.
Revenue development opportunities.
Revenue protection ideas
Quality control measures.

Cost Changes
A comprehensive exercise is required to gather and
analyze cost information

The aim is to quantify costs which may be changed

by relationship marketing approach.

This exercise is carried out by questionnaires,

interviews and by analysis of financial and operating

information relating to the channels of communication
and distribution.

Examples of cost change

Sales staff are spending their time

Time spent on low productivity compared with time

spent on high productivity activities

Such as time spent converting high potential

customers or preventing their loss.

Sales revenue productivity statistics to measure the

productivity of the time actually devoted to your
customers

 Data on how the activity profile of your sales

force changes when you implement

relationship marketing and put relevant
applications to work.
Data on current cost of managing the sales
force.
Information on how the activities which
generate these cost affect the productivity of
your sales staff.
Information on how relationship marketing
disciplines will lead to a change in nature and
scale of these activities