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Discover factors that led to success of relationship marketing, which is the key for firms to survive in the increasingly competitive environment

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Introduction

Abstract The purpose of this essay is to discover factors that led to success of relationship marketing, which is the key for firms to survive in the increasingly competitive environment. It is important for marketers to grasp its principles and to evaluate how to establish a long-term relationship with the customers. Key words Relationship, Relationship marketing, Long-term relation ship, Satisfaction, Credibility, Loyalty, Technology. Introduction As the global economy develops at an unbelievable fast speed nowadays, the products become more and more abundant and the initiative of marketing has turned to the buying side. As a result, the more intense the competition is, the more pluralistic the competing methods are; while the uniform trend is that, it is more and more essential to establish a satisfied long-term relationship between companies and customers. At the same time, due to the great development of information technology, distance among people has been reduced and the connection has been enhanced. The evolution of relationship marketing has been one of the most notable topics in marketing over the last decade in general and industrial marketing in particular, (Dwyer et al, 1987; Morgan and Hunt, 1994). In the old industrial market, products were huge in numbers but lack of sorts. On opposite, in the twenty-first century, there are various products to satisfy different requirements of customers, on which marketers should focus when market segmentation goes further. ...read more.

Middle

They might even abuse the company to others so that there is an awareness of losing potential customers. So the consequence is disastrous but once marketers realize the problems and make right decision, the demise of relationship marketing can be prevented in the future. Long-term Relationship Relationship marketing emphasizes retaining current customers rather than getting new ones. So it is important to establish long-term relationship with customers, depending on creating trust and credibility. Approach comes from making existing customers happy and satisfied so that they can become loyal repeat customers. There is an example in China. In Da'lian, the marketers of Tianbai Shopping Centre did a serial of research and found that the key to win customers' trust was to solve the problem that they wanted to return the unsatisfied products. So they made a promise to the customers from 1994 that, 'return the products whenever you fell unsatisfied'. And several years later, the sense of 'everyday-shopping at Tianbai', 'safe shopping at Tianbai ' had been established through out the customers. So customers are the basic for firm to survival and develop. Without them, the marketing becomes river without a source or a tree without a root. Take McDonald for another instance. They have done very successfully to realize the long-term relationship with millions of customers from all over the world. ...read more.

Conclusion

At the same time, many Mans United fans become their loyal customers. So beyond the face to face relationship, such way in building and maintaining a long-term relationship using new technology is exactly more effective. Finally, related firms should emphasis cooperation nowadays and explore market together. According to the theory of relationship marketing, different companies are possible to cooperate and sometimes it works better to reach the marketing goals. At the very beginning when Honda from Korea referred into the field of automobile industry, they cooperated with famous corporations from America and Japan, maintaining and developing such kind of B2B( business to business) relationship. Then during the next nearly ten years, Korea had turned to be the main automobile export country and Honda became the world-known brand. Conclusion Relationship marketing is the process of attracting, maintaining, and enhancing relationships with key people, (Leonard Berry,1983). In a word, the modern relationship marketing is not to simply produce, promote and retail anymore, but to focus on establishing and maintaining satisfied long-term relationship. Marketers should always satisfy their customers and try their best to reduce the distance with them. Furthermore, the rapidly improving technology plays a significant role in this case. To survive in the enhancing competitive environment, markers have to learn how to create credibility to enhance customer relationship and have a good cycle with them. ...read more.

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