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Unit 11 P1 Describe the development of relationship marketing

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Introduction

P1- Describe the development of relationship marketing Introduction:- This report will describe the developments of relationship marketing Things that make a good relationship: Things that make a good relationship include person to person relationship not a business to customer relationship. The elements of a successful relationship have been stated below * Honesty * Forgiveness * Communication * Passion * Trust * Time-apart * Friendship * Monogamy * Similar values * patience CRM: customer relationship management Customer relationship management is developing into a major element of corporate strategy for many organisations Customer relationship marketing is concerned with the creation development and enhancement of individualised relationships with carefully targeted customers and customer and customer groups, the desired results being maximised the total customer life time value The definition is from CBI (confederation of British industry) Customer relationship management is an enterprise approach to understanding and influencing customer behaviour through meaningful communications in order to improve customer acquisition, customer retention, customer loyalty, and customer profitability The definition is from Robert Swift, Accelerating Customer Relationship (it is a book) The elements that would make a customer return or be loyal to an organisation are: * honesty * communication * similar value * patience * trust I have concluded from what has been stated above that RM is about creating a lifetime partner e.g. lifetime partner such as a marriage Define relationship marketing as the building of long term relationships of mutual advantage with customers: Relationship marketing is ...read more.

Middle

Loosing not so very loyal customer will not be impacted on the organisation as they don?t spend large amount of their income in the supermarket and they only spend when your prices are lower/ better promotions. But organisations should try to make those customers come back in order to make them a loyal customer Explain the how lifetime value of customers might be measured: Everyone has the potential to become a lifetime partner, you just don?t know who they will be. The lifetime of customers will be measured by how often and how much a customer spends at the organisations. They can also be measured through their buying behaviour and how interactive the customer is with the organisation, if the customer has a loyalty card, if the customer has a mobile contract with the organisation etc. due to lifetime customer organisations achieve increase sales, profit and recommendation, lifetime customers also tend to spend 33% more and they also tend to spend more often Outline how relationship marketing links with an organisations missions and objectives, connect with an organisation strategic aims and objectives and forms of stakeholders needs and expectations: Relationship marketing should link very closely with the organisations mission and aims, as one of the organisation strategic aims and objective will be satisfying the stakeholders needs and objectives. The organisation will try to meet the need and expectations the customers through adapting the organisations services and products as much as they can based upon ...read more.

Conclusion

the internet has enabled direct marketing which is marketing products directly to customers. Direct marketing and e-business has grown massively in business to business/consumer market business are now able to promote directly to customers opposed to 20 years ago, business are now able to launch and also promote their products directly and follow ups by the interested business can be made through the use of IT, this has led to decrease in cost of having a person directly promoting the product to business individually and wasting resources such as hotel and food expenses. By a sales team directly marketing their product to a supermarket once they are able to show their pitch and leave, the supermarket can then use the internet to follow up on the product, through this the promotion team don?t have to keep and coming back in order to achieve sales, they don?t even need to take orders as they can be made directly, i.e. online or phone Conclusion: This report has explained how relationship marketing has developed along with outlining the importance of customer service and quality in building relationship with consumer the difficulty of attracting new customer was explained as the cost of lost customers. The benefits of building of long term relationships of mutual advantage with customers are that those customers not only buy more but buy more often and actively and positively promote the business to others all of which result in higher revenue and profits ...read more.

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