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Current issues in marketing.

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Introduction

Current issues in marketing: There are several current issues in marketing; this paper is concentrated on relationship marketing, its definition, relationship networks and total relationship management. Relationship Marketing: In recent years relationship marketing has been receiving increasing attention as more and more organizations are focusing their attention on retaining existing customers rather than attracting new customers. Over the last decade relationship marketing has emerged as an important topic in helping marketers focus on maintaining and enhancing customer relationships. Interactions between buyers and sellers take place on a continuum, ranging from transaction to relationship. The change from transaction marketing to relationship marketing is shown below (Payne, 1995; Advances in relationship Marketing): Transaction marketing: Relationship marketing includes: - Focus on single sale - Focus on customer retention - Orientation on product features - Orientation on product benefits - Short time-scale - Long time-scale - Little emphasis on customer service - High customer service emphasis - Limited customer commitment - High customer commitment - Moderate customer contact - High customer contact - Quality is primarily a concern of production - Quality is the concern of all Sheth and Parvatiyar (1995) 'attributed the emergence of relationship marketing as a reaction to the loss of direct interaction and emotional bonding between firms and their customers caused by mass production and the apparent separation of production and consumption activities of the pre- industrial area'. According to Wikstrom (1996) 'a transactional approach to marketing restricted the role of the end user to acceptance or rejection of the offer made and precluded firms from understanding the reasons underlying their decision as well as the process for the information of their preferences'. ...read more.

Middle

A network is a set of relationships, which can grow into enormously complex patterns. In relationships, the simple dyad as well as the complex networks, the parties enter into active contact with each other, interaction. Relationship networks As mentioned Mogan and Hunt (1994) and Coviello et al. (1997) said that relationship marketing has expended its boundaries and definitions to include related concepts such as network theory. Currently theorists from the area s of relationship marketing and network theory disagree as to the boundaries and the definitions of relationship marketing and network theory. Matterson (1997), said that the boundaries and definitions of relationship marketing and network theory are not internally consistent or homogenous'. New Australian theorists Healy, Hastings, Brown, Gardiner (2001) suggested that a framework of marketing relationship can be divided in three themes: relationship marketing, neo-relationship marketing and network theory. The common denominator is that marketing management needs to be built on independent relationships rather than on one-off transaction. 1. Relationship marketing: is a dyadic buyer-seller relationship that tends to ignore the role of other elements in the distribution channel and the role of other stakeholders. 2. Neo-relationship marketing (relationship marketing plus stakeholders): the relationship is still dyadic but goes beyond the buyer-seller relationship to include all marketing activities directed towards establishing, developing and maintaining successful relationship exchanges. 3. Network theory: is a more complex structure of networks involving three or more actors. Relationship marketing: According to Levitt (1993) ...read more.

Conclusion

- Quality of processes, the functional quality of how the customer receives the product of service ( Gr´┐Żnroos, 1990). - Quality of infrastructure: the quality of internal competence, experience, know-how, technology, internal relationships, motivation, attitudes, internal resources and activities, and the management of these activities. - Quality of interaction: the quality of information exchanges (Ford 1997). - Quality of atmosphere: the relationship and interaction process between the parties are influenced by the quality of the atmosphere (terms of dependence/ interdependence, conflict/ cooperation, mutual expectation, communication, trust and commitment) in a specific environment where they co-operate and operate. Conclusion: Relationship marketing is a new term, but it represents an old phenomenon. In the recent years relationship marketing has expended its boundaries and definitions to include related concepts such as network theory. The framework of marketing relationship can be divided in three themes: relationship marketing, neo-relationship marketing and network theory. The common denominator is that marketing management needs to be built on independent relationships rather than on one-off transaction. The philosophy of relationship marketing has to be changed into tangible relationships, which then can become part of a company's marketing planning. Converting the philosophy of relationship into tangible relationships was done by de defining the thirty relationships which can be grouped in four types: - classic market relationships; - special market relationships; - mega relationships and - nano relationships. TRM focuses on maintaining high products/services quality, and trying to keep customers by continuous improvement of five qualities: quality of object, processes, infrastructure, interaction and atmosphere. ...read more.

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