Relationship marketing

Question 1

What is relationship marketing

Answer 1

Focuses on building customer relationships more than increasing sales.

Question 2

Models for relationship marketing

Answer 2

Six step model

Customer loyalty ladder

Question 3

Benefits of relationship marketing

Answer 3

Long lasting relationship with customer.
Less customer switching
Customers become advocates of the organisation
Less cost in marketing penetration as customers advocate product.
Closer to customer needs.

Question 4

Criticisms of relationship marketing

Answer 4

Requires investment in storing and analysing customer data.
Companies where price competitiveness is prevalent this may not be an option.
Customers may be averse to organisations holding their data for information purposes.