Relationship Marketing

Relationship marketing

Definition

According to Gummesson (2002, p.3), relationship marketing is defined as the marketing strategy that identifies the best customer relationships and through regular communications and incentives, grows those relationships so that they increase in value over time.

Objective

Nowadays, company transfers customer value to their target segment by relationship marketing. Relationship marketing can improve marketing productivity by achieving efficiency and effectiveness (Koler, 1991). Several relationship marketing practices can help achieve efficiency, such as customer retention, efficient consumer response (ECR), and the sharing of resources between marketing partners. Each of these activities has the potential to reduce operating costs of the marketer. Similarly, greater marketing effectiveness can be achieved because it attempts to involve customers in the early stages of marketing program development, facilitating the future marketing efforts of the company. Also, through individualized marketing and adoption of mass customization processes, relationship marketers can better address the needs of each selected customer, making marketing more effective.

Methodology

A successful relationship market campaign consist of three main steps, company may follow the steps in order to achieve their strategic goal effectively.

• Building credibility

Credibility is the essential element when building the relationship with customers. A firm must fulfill what they have promised and meets their customer’s expectations. When company decided to enter relationship market, the best way to gain credibility is to socialize the brand with the target segment. Media and the social media are the platform to provide information of company product and services. Once the customers understanding the company, customers might willing to have good relationship with the company.

• Establishing value

Value can be defined when a brand meets...