1. Marketing service management
Market demand and forecasting
Marketing service management
relationship marketing

2. To investigate the role of relationship marketing in conjunction with service marketing.
To appraise the importance of relationship marketing in a micro and macro perspective.
Aims

3. Introduction
Relationship marketing (RM) emerged as a dominant aspect of marketing thinking in the 1990’s.
Major companies in the UK have adopted and incorporated RM into their marketing operations (BA, Boots, Tesco and Sainsbury's).

4. Relationship Marketing
Marketing variants
Relationship Marketing
. Emphasis on analysis of relationships.
. Identifies interactions between all parties.
. Value added.
. Example = Motor car companies selling motor insurance.

5. Major marketing developments
1950’s – Consumer Marketing.
1960’s – Industrial (B2B) Marketing.
1970’s – Non Profit & Societal Marketing.
1980’s – Services Marketing.
1990’s – Relationship Marketing.

6. RM A major shift in marketing practice:
from mass marketing to individualized marketing.
from focusing on acquiring lots of new customers to retaining and building more business .
from a smaller base of loyal high-value customers.
Strauss, J. El-Ansary, A and Frost, R.(2003).E-Marketing in Emerging Economies. London. Prentice Hall .

7. RM
Relationship marketing (marketing): is about establishing, maintaining, enhancing, and commercializing customer relationships through promise fulfillment. Strauss, J. El-Ansary, A and Frost, R.(2003).E-Marketing in Emerging Economies. London. Prentice Hall

8. Activity
Can you think of any relationships you have recently had with a company / organisation.
What kind of relationship was it (positive or negative, characteristics of the service).

9. Factors effecting marketing
Consumers are becoming more demanding.
Recognise that they have spending power.
More sophisticated.

10. Technology facilitating relationships

11. Factors effecting marketing
Growing retail power.
Environmental pressures.
Growth in technology.
Computerised ordering and inventory.
Internet.
E-commerce.

12. Adaptations of the marketing mix
Adding dimensions
Delivery, instillation, repairs, servicing and maintenance, billing, complaints, customer education etc.
Adding P’s
People, Physical Evidence, Processes, Political Power, Public Opinion etc.
Also see:- Booms, B & Bitner, M. (1981) Marketing Strategies and Organizational Structures for Service Firms. In J.H. Donnelly, W.R. George (Eds.), Marketing of Services. Chicago. , American Marketing Association.

13. Adaptations of the marketing mix
Development of
Direct marketing.
Database marketing.
Business / Customer partnering.
(These incorporate basic relationship marketing principles)

14. Kotler et al.(2012)
Suggested that the marketing mix represented the sellers view of marketing.
Proposed that marketing be viewed from a customer-orientated perspective.
Kotler, P., Keller, K, Brady, M., Goodman, M. and T. Hansen (2012) Marketing Management, 2nd Edition, London: Pearson.

15. Customer needs and wants Communication
4P’s to 4C’s (Kotler 2012)
Price
Place
Product / Service
Promotion
Cost to customer
Convenience
Customer needs and wants
Communication
Kotler, P., Keller, K, Brady, M., Goodman, M. and T. Hansen (2012) Marketing Management, 2nd Edition, London: Pearson.
McCarthy, E. J.(1964), Basic Marketing. Homewood IL.

16. Recognition of a flawed view of customers
Many marketers view customers as being:
Passive recipients of marketing messages and prompts.
Part of a confrontational relationship.

17. The new reality Traditional marketing model
Unsuitable for complex modern marketing.
Based on short-term economic transactions.
Required a paradigm shift, enter RM

18. RM
Grönroos, c.(1997) From marketing mix to relationship marketing - towards a paradigm shift in marketing. Management Decision, Vol. 35 Iss: 4, pp

19. RM ASSOCIATED WITH
attracting, maintaining and enhancing customer relationships.
identifying and creating new value with individual customers.
sharing the value benefits with your customers over the lifetime of the association.

20. Definition of RM
Storbaca et al (1995) focussed on three key objectives:
The management of the initiation of customer relationships.
The maintenance and enhancement of existing relationships.
The handling of the termination of relationships.
Storbaca, K., Strandvik, T. and Gronroos, C. (1995) Managing customer relationships for profit. London. Kogan Page

21. Definitions of RM Gronroos (1997)
Identify and establish, maintain and enhance and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties involved are met; and this is done by mutual exchange and fulfilment of promises.
Grönroos, c.(1997) From marketing mix to relationship marketing - towards a paradigm
shift in marketing. Management Decision, Vol. 35 Iss: 4, pp

22. RM Relationship marketing Orientation to customer retention.
Continuous customer contact.
Focus on customer value.
Long time scale.
High emphasis on customer service.
Quality as the concern of all staff.

23. Interactions
Clearly relationship marketing is associated with interactions.
These interactions are associated with stakeholders.
All organisations want to make a relationship with their customers.

24. Networks Relationship marketing:
Involves a two-way communication network with individual stakeholders, one at a time.
Firm focuses on share of mind rather than share of market.
Firm differentiates individual customers based on need rather than differentiating products for target groups.

25. Networks (using the VC to create relationship with suppliers, buyers and distributors)
Porter, M. (1985) Competitive advantage: creating and. sustaining superior performance. London. Free Press.

26. Relationship marketing Discrete transactions Continuing transactions
Mass marketing
Relationship marketing
Discrete transactions
Continuing transactions
Short-term emphasis
Long-term emphasis
One-way communication
Two-way communication /collaboration
Acquisition focus
Retention focus
Share of market
Share of mind
Product Differentiation
Customer Differentiation
Continuum from Mass Marketing to Relationship Marketing

27. Conclusion
Establishing a relationship will customers is key to developing good business practices.
Those businesses that do not create positive relationships with their customers will soon become non operational.
The future is to create and maintain positive relationship with all customers, suppliers and all intermediary types.

28. References
Booms, B & Bitner, M. (1981) Marketing Strategies and Organizational Structures for Service Firms. In J.H. Donnelly, W.R. George (Eds.), Marketing of Services. Chicago. , American Marketing Association. Grönroos, c.(1997) From marketing mix to relationship marketing - towards a paradigm shift in marketing. Management Decision, Vol. 35 Iss: 4, pp Kotler, P., Keller, K, Brady, M., Goodman, M. and T. Hansen (2012) Marketing Management, 2nd Edition, London: Pearson. McCarthy, E. J.(1964), Basic Marketing. Homewood IL Porter, M. (1985) Competitive advantage: creating and. sustaining superior performance. London. Free Press. Storbaca, K., Strandvik, T. and Gronroos, C. (1995) Managing customer relationships for profit. London. Kogan Page Strauss, J. El-Ansary, A and Frost, R.(2003).E-Marketing in Emerging Economies. London. Prentice Hall