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Journal of Management and Marketing Research
Role of Relationship Marketing in Competitive Marketing Strategy
Nagasimha Kanagal
Indian Institute of Management, Bangalore
Abstract
Competitive Marketing Strategy (CMS) has relationship marketing (RM) as one of the
key functionality in enhancing business performance. RM is defined as the identification,
establishment, maintenance, enhancement, modification and termination of relationships with
customers to create value for customers and profit for organization by a series of relational
exchanges that have both a history and a future. Relational exchanges can be viewed under
transaction cost analysis and social exchange theories depending on the context. The role of RM
in CMS includes: guide moments of truth, improve profitability, build partnering, address
‘Customer Better’, buy in of customer attention, protect emotional well being, understand
consumer psyche, build trust with customer. All these roles are observed empirically in the hotel
industry, with some hotels placing emphasis on their extraordinary operations and services to
engage with the customer.
Key words:
relational exchanges, emotional well being, trust, profitability, partnering
Journal of Management and Marketing Research
1.0.
INTRODUCTION
The purpose of competitive strategy is to achieve a sustainable competitive advantage
(SCA) and thereby enhance a business performance (Bharadwaj, 1993). One of the major
objectives of marketing strategy is to enhance the long-term financial performance of a firm. As
such competitive marketing strategy serves to improve financial performance of the firm through
the route of sustainable competitive advantages. There are four essential requirements for a
resource/ skill to be a source of SCA (Barney, 1991). It must be valuable; it must be rare among
competitors; it must be imperfectly imitable; there must not be any strategically equivalent
substitutes for this resource skill....