We will learn about What is relationship marketing?
What is relationship marketing?
It is a long-term partnership, as well as a mutually satisfactory relationship between buyers and, are considered partners in developing a marketing mix as well as creating and exchanging value & satisfaction between two parties.
It focuses on customer retention and loyalty over a long period of time. Both parties cooperate and collaborate with each other while designing a marketing mix. It believes that long-term marketing can not be managed only on the basis of promotion. But it can be manage on the basis of relationship and network relations with buyers.
Hence, it is a process of identifying prospective buyers exchanging them to buy products, and finally converting them into long-term partners for exchanging or sharing ideas about the marketing mix.
Customer Development in Relationship Marketing
The customer development process consists of the following steps:
1. Prospects: People who have an interest in the product and the ability to pay for it. Hence, they are likely to buy the product.
2. First-Time Customers: Prospects who buy a product for the first time. Hence, they can be brand switchers.
3. Repeat Customers: First-time customers who repeatedly buy the product. They experienced satisfaction with first-time purchases. hence, they have the potential to become loyal customers.
4. Clients: Repeat customers who are treated specially and knowledgeable by the organization. They are loyal and satisfied customers. They buy products for a longer period of time.
5. Members: Clients who join the membership program to take advantage of benefits. Hence, Customer clubs are organized.
6. Advocates: Members who enthusiastically recommend the organization and its products to others.
7. Partners: Advocates who work together actively for the mutual benefit of the organization.
Other Important Links:
a. Model of Question of Marketing: CLICK HERE
b. SWOT analysis and examples: CLICK HERE
Frequently Asked Questions
a. What do you mean by relationship marketing?
= Creating, maintaining, and increasing good and strong relationship with customers and stakeholders is relationship marketing.
b. What are the benefits of relationship marketing?
= Following are the benefits of relationship marketing.
- It focuses on building strong, long-term relationships with customers, which leads to increased customer loyalty.
- Acquiring new customers can be more expensive than retaining existing ones. It helps marketers to reduce marketing costs by focusing on retaining existing customers
- Positive word-of-mouth referrals are generated through relationship marketing.
- Strong customer relationships and customer loyalty provide a competitive advantage against competitors.
- Building relationships with customers allows businesses to identify additional needs and preferences.
c. What are the 5 characteristics of relationship marketing?
= Following are the five characteristics
- Credit Facility
- Discount and other economic or financial benefits.
- Developing long-term relations between buyer and seller.
- Long-term partnership for achieving long-term goals.
- Customer loyalty and retention over a long period of time.
- The customer is regarded as a partner in creating and exchanging value and satisfaction.
- Quality Assurance
- Customer get-together programs.
- Social recognition to customers.