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Fundamental Concepts in Relationship Marketing

CHAPTER 2. Fundamental Concepts in Relationship Marketing. Winning confidence and loyalty of customers are the prime foci of any business Market-driven organisations excel at retaining their most valuable customers. Chapter 2: Fundamental Concepts in Relationship Marketing.

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Fundamental Concepts in Relationship Marketing

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  1. CHAPTER 2 Fundamental Concepts in Relationship Marketing

  2. Winning confidence and loyalty of customers are the prime foci of any business • Market-driven organisations excel at retaining their most valuable customers Chapter 2: Fundamental Concepts in Relationship Marketing

  3. BASIS OF BUILDING RELATIONSHIP • Establishing a relationship can be divided into two parts: • Attractingright type of the customer • Building relationship with that them in a mutually beneficial manner Chapter 2: Fundamental Concepts in Relationship Marketing

  4. SERVICE COMPETITION Every organisation irrespective of whether it is a service firm or a manufacturing firm should learn to cope with the new competition of the service economy Relationship marketing makes customers less price sensitive Mind share analysis and customer satisfaction surveys inputs for building relationship strategies Customer perceived quality (CPQ) is basically a function of the customer perception of two dimensions viz., technical quality and functional quality Chapter 2: Fundamental Concepts in Relationship Marketing

  5. BUILDING BRAND EQUITY Positive associations and predisposition in the mind of the consumer brought by building brand equity result in more favorable response to the firm’s marketing efforts A brand creates value by creating positive attitude towards firm’s offer Chapter 2: Fundamental Concepts in Relationship Marketing

  6. RELATIONSHIP MARKETING AND VALUE CHAIN The concept of relationship marketing is built around the concept of customer value and the value chain • Managing the customer as an asset is becoming increasingly important where emphasis is given to customer retention, lifetime value and customer affinity Chapter 2: Fundamental Concepts in Relationship Marketing

  7. RELATIONSHIP MARKETING PROGRAMMES Continuity marketing Partnering One-to-one marketing Integrated telephone marketing Chapter 2: Fundamental Concepts in Relationship Marketing

  8. STRIVING FOR INTERRACTIVITY Interactivity results in high lifetime value Recency is the most powerful predictor Chapter 2: Fundamental Concepts in Relationship Marketing

  9. RFM MODEL A customer who has visited the company website recently (R) and frequently (F), and created a lot of monetary value (M) through purchase is the target audience for e-promotion campaign Higher the RFM score, more profitable the customer is Chapter 2: Fundamental Concepts in Relationship Marketing

  10. WEB ANALYTICAL SOFTWARE helps in building better relationship with the customer Chapter 2: Fundamental Concepts in Relationship Marketing

  11. END OF SLIDE SHOW - CHAPTER 2

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