Introduction of Relationship Marketing
The decade of 1980s- considerable attention towards Customer service
Customer Service can be traced back - to the Peters & Waterman's study. Published in a bestselling nonfiction book (In Search Of Excellence) - effort of top performing companies placed on "getting closer to customer"
The result of this increased attention to customers has diffused rapidly thru' western organization.
E.g. in UK most publicized is British Airways and Xerox—but no business sector has been unaffected.
In financial services sector every major player in retail financial services has adopted some form of customer care program.
Much attention has been directed at Customer Service in a wide range from hospitality sector to public utilities.
With much attention given ….. Why have the result been slow to materialize?
In spite of good intention, there often lack of company-wide alignment of purpose towards meeting customer's requirement
Some definitions of Relationship Marketing
‘Relationship Marketing is attracting, maintaining and – in multi-service organisations – enhancing customer relationships.’ (Berry, 1983)
‘Relationship marketing is marketing seen as relationships, networks and interaction.’ (Gummesson, 1984)
‘Relationship Marketing is to identify and establish, maintain, and enhance relationships with customers and other stakeholders at a profit, so that the objectives of all parties involved are met; and that this is done by mutual exchange and fulfilment of promises.’(Gronroos, 1996)
‘An emergent disciplinary framework for creating, developing and sustaining exchanges of value, between the parties involved, whereby exchange relationships evolve to provide continuous and stable links in the supply chain.’ (Ballantyne, 1994)
‘Relationship Marketing refers to all marketing activities directed to establishing, developing, and maintaining successful relational exchanges.’(Morgan and Hunt, 1994)
‘Relationship Marketing is the process whereby both parties – the buyer and provider – establish an effective, efficient, enjoyable, enthusiastic and ethical relationship: one that is personally, professionally and profitably rewarding to both parties.’(Porter, 1993)
