What is relationship marketing?


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.

Hence, Relationship Marketing aims to convert prospects into partners. So, it is partnership marketing where organizations and customers work together.

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.