Relationship Marketing Flashcards
relationship marketing d
relationship marketing consists of attracting, developing and retaining customers
key characteristics of relationship
every customer considered individual person,
activities predominantly directed towards existing customers,
based upon interactions and dialogues
what is the Keiretsu system
companies in value chain become closely linked through system of arrangements often for exclusive supply of components and raw materials
how much more expensive is it to get a new customer than to retain an old one
6 times
what is functional conflict
positive conflict
how does the time perspective relate to transactional marketing and relationship marketing respectively
transactional marketing - short term,
relationship marketing - long term
what is transactional marketing
business strategy that focuses on single ‘point of sale’ transactions
what is the marketing emphasis of transactional and relationship marketing respectively
transactional - marketing mix,
relationship - interactive marketing
who is involved within the firm in maintaining the relationships (relationship marketing)
engineers, administrators, delivery drivers, the whole firm
example of relationship marketing for B2C
nectar card,
frequent flyer programmes
why is there a need for customer retention
constant flow of new customers needed to replace losses
what is price loyalty
provided the organisation remains the price leader, these customers will remain loyal (could desert due to increase in earnings)
what is monopoly loyalty
loyal because firm is the only one in the market
what is inertia loyalty
most will remain loyal to most products we buy simply because saves trouble of finding a new product
what is emotional loyalty
customers who are prepared to pay extra for the product who are loyal to it whatever happens
what is the best type of loyalty
emotional loyalty because the customer is prepared to pay extra for the product and are loyal to it whatever happens
what is disloyalty
dissatisfied customers will tell other customers about experiences and will often persuade others to leave
what do businesses have to have to resolve issues
a good problem resolution system
how do consumers work out the value of the relationship with companies
benefits gained less costs incurred compared with alternatives available
what are the most important things companies have to do when dealing with a problem (relationship marketing)
offer a fair outcome (refunds exchanges),
offer a fair procedure,
offer fair treatment (customers treated honestly politely and with concern)
are loyalty cards working
not a lot of evidence that customers remain loyal to one store,
customers do not value the benefits of the cards enough to change their shopping habits
