Relationship Marketing in a Global Context
Part A: Relationship Marketing
Table of Contents
Part A: Relationship Marketing.
2.0 Definition of marketing.
3.0 Transaction and relationship marketing.
4.0 Relationship marketing in a global context
5.0 Development of relationship marketing in business.
6.0 Postmodern marketing approach.
7.0 Customer Relationship Management (CRM)
8.0 Customer value proposition.
9.0 Dimensions of the consumer relationship.
10.0 International marketing.
The importance of the relationship between businesses and their buyers has now been increased more than ever before. Marketing experts and practitioners have now been giving extra emphasis on building up and maintain stronger relationships with business stakeholders (Kotler et al, 2014). Most importantly, more attention is given to developing a relationship with customers and suppliers (Sheth and Parvatiyar, 2015). However, due to the recent emergence of the relationship marketing paradigm, marketers are still now conscious of the credibility and effectiveness of relational marketing activities (Pressey and Mathews, 2015).
This paper, first, defines the term marketing along with the analysis of transactional vs. relational marketing by focusing on relationship marketing orientation and features of marketing. Then, this paper defines relationship marketing in a global context and how relationship marketing can be developed. Next, this paper talks about postmodernism marketing, customer relationship management, and customer value proposition. Then, this paper discusses the dimension of relationship marketing. Finally, this paper outlines the concept of international marketing along with the international marketing environment, marketing channels, entry modes, and marketing mix.
2.0 Definition of marketing
The term “marketing” is defined by experts in different ways. Kotlter et al. (2014) defined marketing as the social as well as a managerial process to attract the potential and target customers and offer the products and services by meeting customer changing needs and expectations. Palmer (2016) said marketing is the process developed and implemented by organizations to promote their products and services to the target customers. Kotler et al. (2014) defined five key stages of marketing that are: a) understanding needs and expectation of customers; b) product and service development based on customer needs; c) identify value, cost and customer satisfaction; d) doing exchange, transaction, and relationship; and e) doing marketing to meet the organizational goals of marketers.
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3.0 Transaction and relationship marketing
Transactional vs. relationship marketing
According to Smith (2013), transactional marketing focuses on a single objective and exclusive promotions and advertising to gear up immediate sales. Palmer (2016) said the key benefits of transactional marketing are it makes a large volume of sales within short times by using discounts, incentives, and buzz words. However, Kotler et al. (2014) argued that transactional marketing does not focus on building up a long-term relationship with customers. That is why this marketing fails to retain and make loyal customers for a long-time or lifetime. On the other hand, as Johnson et al. (2015) note, relationship marketing has broader and long-time goals to build up and maintain long-lasting relationships with the customers to secure sales for the future. Brown (2018) stated that relationship marketing always focuses on understanding customer changing needs and expectations that, in turn, increase customer satisfaction and acquisition, customer retention, and loyalty. Therefore, Hartley and Starkey (2016) suggested that relationship marketing gives more long-term success to businesses than transactional marketing.
Table: Difference between transactional and relationship marketing Source: Claessens (2018)
Relationship marketing orientation
According to Martin et al. (2014), relationship marketing mainly focuses on customer services, quality of products and services, and marketing activities. Kotler et al. (2014) said many businesses focus on branding, the use of social media, referral programs, blogs and newsletters, community and media relations to build up stronger relationships with the target and potential customers. Johnson et al. (2015) said marketers focus on customer service representatives and training, sales staff, and point-of-sale displays to develop a relationship with the customers and to understanding their buying behavior and changing needs.
Figure: The relationship marketing orientation: customer service, quality, and marketing Source: Martin et al. (2014)
Key features of relationship marketing
Payne (2015) stated that relationship marketing holds three key features that are operational marketing, collaborative marketing, and analytical marketing. Sunil and Fornell (2014) said collaborative marketing is the main feature of relationship marketing that focuses on customer complaints and feedback to improve customer service and reduce costs. According to Robertson (2015), analytical relationship marketing helps a business to understand customer buying behavior and changing needs along with future sales trends that ultimately supports the business to make effective management decisions………………..