...“Relationship Marketing Across Value Delivery Network: A Literature Review” Author(s) *Dr. Tripti Singh Lecturer, School of Management Studies, Motilal Nehru National Institute of Technology, Allahabad, Uttar Pradesh-211004, India tripti@mnnit.ac.in, kumartripti@rediffmail.com www.mnnit.ac.in **Vibhava Srivastava Research Scholar, School of Management Studies, Motilal Nehru National Institute of Technology, Allahabad, Uttar Pradesh-211004, India vibhava.sri@gmail.com www.mnnit.ac.in Abstract Contemporary Marketing Management identifies Relationship Marketing (RM) as a paradigm shift from traditional marketing practices to a strategic function. It is not only concerned with Customer Relationship Management (CRM) but also plays a significant role in value creation process at all levels across the value delivery network. Effort is made hereby to further validate this statement through secondary literature sources and various references taken out from current industry practices. The focus of the study is to understand the concept of relationship marketing, its evolution and its role in current business scenario. This study is proposed to understand the basic research problem i.e. “How value is created in a value delivery network (Supply Chain) through relationship marketing”? The study concludes by proposing a hypothetical model of relationship marketing across a value delivery network. Effort is being made hereby to identify various types of relationships...
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...forms (network relationship) -facilitate the rapid info of ad hoc work groups -promote effective response to a crisis Trusting situation: A. Probity: focuses on honesty and integrity, for professional understanding and reputation B. equity: fair mindedness, benevolence, caring, values, and sincerity as evidence C. Reliability: firm having the required expertise to perform its business effectively and reliably. D. Satisfaction: when the service or product provided can meet customer expectation. Definition commitment: Situation where one or other partys intention to act and their sebsequent attitude towards interacting with each other. (Storbacka 1994) Number of precursors to trust and commitment: -relationship termination costs: all of the cost expected from terminating the relationship, switching cost, relationship dissolution expenses -relationship benefit: partner selection important, partner can deliver superior value benefit -shared value -communication: sharing of meaningful and timely information to build trust and commitment -opportunistic behavior: taking advantage from the partner. Can decrease trust and commitment Relationship between trust, commitment and satisfaction toward relationship development: Relationship marketing is establishing, developing and maintaining successful relational exchange to constitute a major shift in marketing theory and practice. Several theories of RM purpose that customers vary in their relationship in the firm on...
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...5 Reasons Why Relationship Marketing is Important in Business by Kim Garst on April 24, 2012 [pic][pic][pic] [pic] 1. Build the Know, Like and Trust Factor It's a phrase you've heard countless times, but are you living it? "To know and to not yet do it, is to not yet know." -Stephen R. Covey To consider the importance of follow through with your know, like and trust factor, start by thinking about your own shopping habits, as a consumer. These days, online, will you buy from a complete stranger? Will you purchase something from a random website you've landed on? Will you hire a consultant, coach or assistant that you've never heard of, worked with or seen? Chances are the answer is a big NO. In today's age of technology, we have the luxury of getting to know and deciding to trust the person or company behind each purchase. However, as business owners, this means that we MUST go that extra mile to consistently create our know, like and trust factor. To do this, it is important that we are consistently active on our social media platforms, website, and offline networking. For example, in social media, you want to welcome new followers, reply to comments using the commenter's name, and create relevant content that is both educational and entertaining. Moreover, test yourself! Ask a fellow entrepreneur to look at your social media postings and rate them for content, connection and consistency. The feedback can help you take your Know Like Trust Factor to...
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...RELATIONSHIP MARKETING 1) ADVERSARIAL MODEL M. PORTER’S 5FORCES MODEL 6 MARKETS FRAMEWORK – developed by the Anglo- Australian School ( Source: Helen Peck (2004) How Delta Beverages can create value thru managing relationships with the 6 markets Recruitment markets Referral markets Influence markets – consists of the gvt, regulatory bodies, legislature, pressure groups, media, financiers. There is need for good corporate citizenship (health, education, environ, philanthropy, compliance, entertainment) , need for compliance, need for lobbying strategies/lobbyists, Supplier markets - Internal markets Customer markets (at the Centre) – Kotler’s 4 players (Kotler, 1992) Supplier marketing – Case: NetOne Zimbabwe Base station equipment suppliers – ZTE, Recharge cards – Fidelity Printers, Paper Place, Fuels – Redan, CMED End-User Marketing – Case: CABS Individual customers – Platinum customers – high net-worth customers, have CR Managers, customized services, socialized events, corporate clients, Distributor marketing – Case: Delta Beverages Uses wholesalers and retailers Government Marketing Remittance of taxes, Supporting activities of national causes, Company registration and license, good corporate citizenry, compliance to statutes, by-laws, Financial Marketing Good corporate governance, salary remittances, transparency, incorporate bank senior mgt into boards, repayments of loans, alliance strategies, Competitor Marketing Resource sharing, affiliations...
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...culminates at 400’000 guest room and nearly 2500 hotels serviced. In 2007 a new solution has been introduced to the portfolio of XX . IP based customizable interactive TV was offered to the company’s clients as a response to the hospitality industry looking for solutions to differentiate themselves from their competitors. Throughout the last five years, X has acquired two more companies and changed its name to the latter. It has expended its geographical presence to the Middle East and Asia 2012. Although the company has suffered some disappointments and lost a fifth of its clients, it remains one of the key players on the market. It had tried to adapt his marketing strategy to the financial changes as well as to regional requirements and imperatives. What is the role and importance for the organisation in developing long-term relationships with its customers? What does it help the organisation to achieve? As numbers of studies have demonstrated, customers’ loyalty can be a very good way of ensuring revenue (Srivastava, Shervani, & Fahey, 2000) if not The very way for it (Reichheld and Sasser, 1990). It offers the advantage of costing...
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...Inter-Organizational Customer-Supplier Relationships Ricky Ryssel Siemens Business Services Management Consulting, Carl-Wery-Sraße 18, 81739 München, Germany Tel: +49 (89) 636-48887 E-mail: ricky.ryssel@mch20.sbs.de Thomas Ritter School of Management University of Bath, Bath BA2 7AY, U.K. Phone: +44 (1225) 32-33 19, E-Mail: t.ritter@bath.ac.uk Hans Georg Gemünden Institute of Technology and Innovation Management Technical University Berlin, HAD 29, Hardenbergstr. 4-5, D - 10623 Berlin, Germany Phone: +49 (30) 314-23 796 E-Mail: hans.gemuenden@tim.tu-berlin.de Abstract To strengthen their position in today’s highly competitive and fast paced business environment more and more supplier firms engage in relationships with their customers. These inter-organizational relationships have proven to create value for both parties involved. However, the management of such relationships requires resources and is a complex task. Recent advances in information technology offer new ways of managing inter-organizational relationships. The impact of those intra-organizational and inter-organizational information systems for creating value in business-to-business relationships has not been explored so far. In this paper, a conceptual model about the impact of information system deployment on value-creating functions of inter-organizational buyer-seller relationships is developed. Based on an empirical study with 60 German firms engaged in customer-supplier relationships this paper also gives some empirical...
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..."Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services". (Kotler, 2015) Marketing as a concept has evolved and broadened over the years. It encompasses all activities from before the product is made till it reaches the end customer. This process not only involves satisfying customer’s needs and wants; it also aims to retain customers for the long term. An important facet of Marketing is Relationship Marketing which focuses on developing and retaining long term relationships with prospects, stakeholders, peers and above all customers. “Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication." (Olenski, 2013) Many theorists have attempted to define Relationship Marketing which has been a topic of discussion for many. The idea of RM essentially developed inside of the fields of service and industrial marketing. Leonard Berry (1983) was one of the first theorists who defined RM as a strategy that...
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...PROJECT “Customer relationship managment” Performed by Mikhaylyuk Sergey Marketing Faculty Group 1509 Supervised by Mironova Dina Aleksandrovna Project defended on: ______________ 2010 __ Evaluation: ____________________ Tutor’s signature: ____________________ Moscow 2010 Contents Introduction 3 Contextual Background 4 The difference between CRM and relationship marketing 7 Benefits of Individualisation 8 1.1. to the organisation 8 1.2. to the consumer 8 Application of CRM 10 1.1. Electronic Customer Relationship Management (eCRM) 10 1.2 CRM and Supplier Management 10 1.3 Customer Relationship Management and the Marketing Plan 11 Conclusions 13 Bibliography 14 Introduction The study of marketing is one that has been fixed on an evolving range of marketing segments over the last fifty years or so. A look at the progress of the changing focus of marketing shows a considerable shift in thinking. In the 1950's marketers were mostly focused on consumer goods, while the 1960's saw a shift towards industrial markets. In the 1970's effort was focused on non-profit or societal marketing, while in the 1980's the services sector received increasing attention. This leads us to the 1990's and through to the present where relationship marketing is the new focus of marketing. It has evolved from other forms of marketing and has countless benefits for businesses that use the relationship strategy. It is limitless...
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...one 2 1. RM and TM 2 Chapter two 3 2. The company-TESCO: 3 Chapter three 4 3. The Six Markets Model. 4 3.1 Influence markets. 5 3.2 Referral markets 6 3.3 Supplier and Alliance markets. 7 3.4 Recruitment Markets 8 Chapter Four 8 4. Customer relationship. 8 4.1 Loyalty/retention 9 4.2 CRM (Customer relationship management) 12 4.3 The 30 R’s of relationship marketing. (Green-relationship and E-relationship) 13 4.31 Green-relationship (CSR) 13 4.32 E-relationship 15 Chapter Five 15 5. External relationship 15 5.1 Stakeholders 17 5.11 Customers. 17 5.12 Community. 17 Chapter Six 18 6. Internal relationship (Employees). 18 Chapter Seven 20 7.Supply chain （supply chain management） 20 Chapter Eight 21 8. Conclusion and recommendation. 21 Reference GUMMESSON, Evert (2002). Total Relationship Marketing. 2nd ed. Butterworth-Heinemann TESCOPLC. com (2011). Our history. [online]. Last accessed 2011 December 23 at: http://www.tescoplc.com/about-tesco/our-history/ VELOUTSOU, Cleopatra. et al. (2002). Relationship marketing: what if? European Journal of Marketing, 36(4), 433-449. PAYNE, Christopher, and BALLANTYNE (1991). Relationship Marketing: Bringing Quality, Customer Service and Marketing Together, Oxford, Butterworth Heinemann. THIS IS STAFFORDSHIRE.COM (2010). Government rejects Tesco plans to expand store. [online]. Last accessed 1 January 2012 at: http://www.thisisstaffordshire.co.uk/Tesco-facelift-plan-scrap-heap/story-12477119-detail/story...
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...CUSTOMER RELATIONSHIP MANAGEMENT Literature review: What is Customer Relationship Management (CRM)? Before we begin to examine other framework of the customer relationship management, we must first understand what we mean by customer relationship management. The modern day customer relationship management came into picture in 1960’s. The 4 Ps of the marketing i.e the product, price, promotion and place were found not so valuable in conducting the business when compared to the ongoing customer relationship management techniques. With the realization of this importance about the relationship marketing, in about two years after that, that is in 1980’s the relationship marketing was used extensively by the businesses, organizations and other service providers to maintain an ongoing, healthy relationship delivering high quality goods and services and achieving high satisfaction with their customers which in turn made their customer retention more easy for these businesses. In the mid of the 1990’s these customer relationship marketing was on full swing so a more automated system was developed to support the sales and the customer service techniques. This automated system made it easy for the customers to buy the product online in one click and get the detailed knowledge about the features of the products in the way they would have got if they would have gone manually at the shop to buy that product. This system was particularly developed for the customers, so as to allow...
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...Customer centricity is a word bandied around the most across conference rooms and in business discussions. Yet most debates in boardrooms focus on either product centricity (what are the strengths of our product and how do we make it relevant to consumers?) or competition centricity (how can we make our product look and feel better than the competition? ). While there is a focus on the customer’s view in such discussions, everything starts either from inside (our product) or from the world immediately outside us (other products). The customer exists only for us to make the sale to. Most customer researches also reflect the same bias. The research either explores the relevance of our product in customers’ lives or explores how our product (and its communication) is being perceived vis-a-vis competition. So, how much of business thinking is truly customer-centric? The Japanese school of TQM (Total Quality Management) ensures that every product that comes off a production line is defect-free. This reflects the Japanese penchant for “perfection in everything”. It helps increase production efficiency and ensures nothing needs to be reworked. It helps the customer get high-quality, reliable products. But was TQM an outcome of customer centricity or a by-product of cultural attitude and production excellence coming together? Many brands, especially in the fast-moving consumer goods category, have offered product in different pack sizes and forms to enable the consumer to buy more of...
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...INTRODUCTION TO RELATIONSHIP MARKETING: Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction, rather than a dominant focus on sales transactions. Relationship marketing is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication. This approach often results in increased word-of-mouth activity, repeat business and a willingness on the customer’s part to provide information to the organization. FIG -1 In traditional marketing, each sale and purchase follow an action flow that could be characterized as an 'attract – exchange – separate' process so that business growth and success is formed of a continuum of independent profitable sales events. Contrast, relationship marketing is about building long-term relationships with a network of influence markets in order to understand and, if possible, anticipate their needs and wants to better satisfy and retain them. It has been argued that this ultimately leads to increased market share and profit. Moreover, the probability of a satisfied customer to repurchase is higher than the one of a dissatisfied one. Indeed, relationships, networks, and interactions enable companies to create a more appropriate business climate and to better satisfy the influence markets. ROLE OF RELATIONSHIP MARKETING IN ENTRENEURSHIP: ...
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...MOI UNIVERSITY SCHOOL OF BUSINESS AND ECONOMICS COURSE TITLE : RELATIONSHIP MARKETING NAME : NGOYA TASK : ASSIGNMENT 1 PRESENTED TO : MR. BONUKE 1. DEFINE RELATIONSHIP MARKETING AND BRIEFLY EXPLAIN THE DIFFERENCE BETWEEN RELATIONSHIP MARKETING AND TRADITIONAL/TRANSACTIONAL MARKETING. Relationship Marketing: Refers to the development, growth, and maintenance of long-term, cost-effective exchange relationships with individual customers, suppliers, employees, and other partners for mutual benefits. It broaches the scope of external marketing relationships to include suppliers, customers, and referral sources. Relationship marketing recognizes the critical importance of internal marketing to the success of external marketing plans. Employees serve customers within an organization as well as outside it; individual employees and their departments are customers of and suppliers to one another. They must apply the same high standards of customer satisfaction to inter-departmental relationships as they do to external customer relationships. In very first days of relationship marketing it was described as an approach to attract, maintain and enhance customer relationships. But in later days Gronroos (1994) proposed the comprehensive definition of relationship marketing as, “The process to identify and establish, maintain and enhance, and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objective of all parties...
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...segment which identifies the market they serve best. CRM- Customer relationship marketing defined is having a relationship with customers and stakeholders, which involves meeting all their requirements and needs. This is usually met through mutual exchange and fulfillment promises. After identifying the needs and wants of customers, the business needs to ask them selves a simple question, how do we do it?’. This can be done through the company internally (e.g. managers and directors) or externally (e.g. suppliers and customers), but every company deals with customers differently, for example retailers and agents. CRM is needed to improve and maintain a relationship between the customer and the firm. This is done purely for profit. The business wants to get the most out of the customer’s lifetime value and share of wallet. If the relationship the business has with the customer is improved, it will enhance the customer lifetime. A long term relationship results in customer lifetime value. This is because customers have more chaise. This makes them more affluent. Having a bad customer relationship can mean: ❖ Less loyalty ❖ Would need a reason to stay connected for a long term ❖ Better informed (go else where) The importance of this is the performance in the shop. The business should be thinking: ❖ What do the customers need and want from us/ ❖ How do we adopt our marketing mix to fit our wants and needs? CRM became very popular in the 1990’s...
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...what type of products and services they want rather than conforming to traditional stereotypes. A likely value they have may be the concern for their environment; car-sharing reduces the amount of pollution and creates sustainability. A car-sharing program is more reliable and convenient than having to maintain your own vehicle that you already may pay for without much use. This emerging group of drivers are changing our traditional values and creating a new way of living life. 2) Consider the following statement, “Relationship marketing is not possible in a firm embracing the production orientation.” Do you agree or disagree with this statement? Explain your answer. I disagree with this statement that relationship marketing cannot exist with production orientation. Product orientation focuses on the internal capabilities of the firm and what they can do best. Relationship marketing is a strategy that focuses on keeping and improving relationships...
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