Marketing - Relational Marketing

27/01/08

There are 2 types of marketing:

Strategic marketing : segmentation, positioning, targeting

Operational marketing: 5 P: How to sell your product? Place – promotion – product –price- positioning = transactional marketing. Try to generate more transactions than in the past, try to adapt the product to the different P’s to motivate people to buy the product. It focuses on the consumers with a risk to lose them, focus on the retention.

Relationship marketing (company perspective): generating loyal customers, how to motivate people to stay? Type of strategy, how to collect information about the customers: how companies try to adapt the strategy to different segments of customers to make them loyal. What type of information do they need therefore? How to motivate the clients?

Relational chain (Consumer perspective): which type of relationship does the customer want to keep with a brand? It’s a matter of trust in the brand.

We will focus on this second type of marketing.

Ex: retailing sector - offer a lot of loyalty cards. This will generate more benefits if it succeeds to keep them.

Ex: banks try to keep clients for a long time, this will lead to more loans, more bank accounts. The students seem not very interesting for a bank since they don’t have a lot of money but the bank knows that in the future they will earn money.

Commitment in the relationship: how much the customer is inclined to pay a little more for the product because they value the relationship? How to measure the trust, the commitment, and the loyalty? The company needs to know if it’s important to keep the loyalty or not?

03/02/09

Agenda

1. What is relationship marketing / customer relationship management?

2. Variations across contexts

3. Models of CRM

4. Why is CRM a big issue today?

5. Business case: revenues / costs

6. Critical success factors / risks

7. Some concluding issues

What is relationship marketing/customer relationship management?...