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How relationship marketing has developed

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Introduction

´╗┐How relationship marketing has developed? Definition of marketing Marketing is the management process responsible for identifying, anticipating and satisfying customers? requirements profitably What is relationship marketing? Relationship marketing is the management process responsible for identifying anticipating and satisfying customers? requirements profitably. Difference between transactional and relationship marketing The difference between relationship marketing and transactional marketing is that transitional marketing is about boosting sales and marking one off sales with customers whereas relationship marketing is when the business really cares about their customers and try to keep them coming by offering them deals and offers all the time. In relationship marketing businesses also offer customers loyalty cards and quality on all products they purchase. How and why relationship marketing has developed? Relationship marketing has developed for many reasons, but the most important of them is that nowadays it is getting more and more difficult for businesses to attract new customers without which they would be unable to grow as their business. It is difficult for businesses to attract new customers because of the competition that already exists between most businesses. ...read more.

Middle

The loss of customers could also lead the business to poor performance which will in turn lead the business make less profit and benefits. Lifetime value of customers Lifetime customers make up about 80% of sales from a business and they also make about 20% of the overall customers a business has so therefore any business to prosper, they ought to gain customers, build a good relation with them and retain these lifetime customers. Some businesses spend 80% of their marketing budgets on gaining new customers, rather than nurturing existing ones. They should aim on retaining also all their general customers they already have because according to statistics, it cost 5 times more to attract new customers than to keep an existing one therefore they should concentrate more on satisfying the one they already have to avoid losing them. Existing customers spend 33% more than new customers therefore businesses should encourage them to stay. Link with organisational mission and objectives In order for businesses to easily attract new customers, they should plant relationship marketing at the heart of their business values because it helps attract customers and leads them to believe that the business really does care about them. ...read more.

Conclusion

Role of information and communication technologies ICT has enabled businesses to better engage in direct marketing with customers because when we, the customers buy something online, the website from where we did our shopping collects our information about our taste of products and what kind of products we like to buy. That information is then used to provide us with products that will suit our needs because the business now has a better picture of our shopping taste and habits. They can send direct emails with personalised offers based on the information and CRM data from club cards for example. Technologies have really helped businesses development in recent years because everyone uses the internet nowadays and this makes it much easier for them to attract new customers. In business to customers, ICT is used to contact customers by sending them emails to try and maintain the relationship whereas in b2b, it?s more about writing letters and phone calls where businesses contact their business customers to make sure they are still interested in their mutual relationship. Conclusion Having outlined how relationship marketing has developed and why this happened overall, I have described importance of the functions of customer services and quality in relationship marketing within accompany. I have also role of information and communication technologies. ...read more.

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