What is Relationship Marketing? Definition and Benefits
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With the rising competition in the market, an organization has to create a niche brand identity to survive among the peers and to develop a sustainable future. The technological advancements in the industry have brought an adverse effect on the industry in the recent times. There are a lot of complexities that have aroused in the marketing relationships such as mounting prices of goods acting as obstacles. The main focus on relationship marketing is to develop a strong consumer base for the customers which will help create potential for newer business based on positive customer sentiments.
Benefits of Relationship Marketing
Having a strong end user base of an organization ensures the profitability of the organization along with long term sustainability. Many marketing activities such as campaigning, makes potential customers realize the value of interaction furthermore expanding the loyalty. The main significance of a business plan based on marketing are centered on keeping the existing customers and making them devoted to the brand.
For any organization, creating a profit in the long term business requires the loyal customers to be engaged with the brand while attracting more and more new customers. If any organization can attract a newer customer segment the brand appeal tends to widen. Loyalty to the customer leads to a better result of the practicing business as this factor is responsible for lowering the costs of marketing, provided there is an excellent track record of the brand and an invigorating image of the company.
A customer will be un-loyal to the brand if they are unsatisfied. There should not be any communication barriers, as the consumer influences a brand in making tactical decisions for the overall improvement of the organization. Evaluating the needs of each and every customer becomes crucial for a firm to accumulate knowledge for research and development of future products. Customers those are able to recognize that the ongoing relationship with the organization is providing benefits to them, they are most likely to be loyal towards the organization. The contentment of the end users ensures the satisfaction of the entire organization. While an organization is able to build an appropriate organizational relationship with customers, the effective and sustainable relationship attracts the attention of the customers towards the organization in a significant manner, thus the customers will rely upon the organization for a long term.
Within this context, satisfaction of the clientele will entirely bound with that specific organization and therefore, the customers want to have products from that precise brand. The concept of loyalty is mainly interpreted by two methods, firstly affective loyalty and secondly attitudinal loyalty. Affective loyalty defines the positive approach towards the organization, brand, or company while attitudinal loyalty signifies the breakdowns of the customer base on the degree of product purchase. Forerunner of satisfaction is loyalty, and it is an aid for any organization for a successful business relationship marketing plan.
For bringing success to every organization there are certain factors of relationship marketing such as customer retention and organizational promises. To develop a sustainable relationship development process, some attributes such as developing awareness of the new products of the organization in the market, exploring newer segments of end users, expansion of product and devolving a product with a long life-cycle, commitment of the brand towards providing a good after sales service and termination of goods that are unsuitable. For any organization to survive in the market of competition, some strategies are very important to be laid out that helps to develop a transactional marketing scheme to work in correlation with the relationship marketing for avoiding the redundant conflicts and developing a strong mutual cooperation.
The primary objective of marketing is to obtain profit. For that purpose providing reasonable benefits to the customers is utmost necessary. The establishment of relationship marketing must be showed to the eyes of customers and for this objective a good relationship with customers must be established. Requirement new offers and promises is extremely necessary, in order to flourish the relationship it is essential to keep the made promises. New promises must be made after or side with previous promises. Promotions and discounts also needed for the customers attraction as well. Perception of customers is also very important because execution of marketing methods is greatly influenced by the perception of customers.
A good satisfactory delivery is the most basic and common service a customers would expect to have and this must be the core trait of the service. Good technical service or satisfactory delivery service is the most vital aspect provided by the firm if it desires to continue and stands on the good spot in business. Although just simply providing these services is not good enough for the relationship, the customers expect to receive the benefits according to the services they selected. In order to gain a satisfactory relationship with the consumers the organization needed to provide bonus benefits with the core services.
For the better future of the organization and achieving the desired goals the organization need to establish a close relation with the customer. The commitment and confidence must be sitting juxtaposed between various parties. Providing satisfactory solution in personal problems and needs of the customers is very essential for a better relationship. If it seen that that the relationships remained close and trustworthy the marketing goals will be achieved. So according to this formula a good behavior of service provider and the attention of the customers will influence the organization directly. These benefits will obtain directly influence the social structure, confidence, quantity of risks and financial advantages. These benefits will be defined by how the organization reacts with the customer and the relation between customer and suppliers.
The benefits can be categorized in two sectors such as practical benefits and communal benefits. These categorized benefits works in two different segments. The small established organizations receive greater advantages and opportunities from these benefits. The practical and communal benefits provides benefits such as saving of time, enjoyment of close relations, convincing customers, helps to take better purchase decisions, value the customer will, creating opportunities to make friendship between employees and customers. So it can be said that establishing good relationship and executing better services help an organization in term of increase marketing.
On the other hand, organization can attract the attention of the customers by delivering brand loyalty through the organizational products. In that case, an organization should build a relationship with the customers in a slow process, for which the relationship with the organization may help to care service users in an appropriate manner. Simultaneously, this kind of organizational culture may help to become a part of the organizational environment. On the basis of that, it can be conducted that brand loyalty is one of the organizational work ethics that also helps organizations in the context of setting flexible prices. In that manner, an organization will be able to generate both productivity and profitability along with satisfactory customer service.
Relationship marketing is one of the organizational strategies that help organizations to interact with both the existing and potential customers for a sustainable and long term. In order to build long and sustainable relationship with the customers, every organization must have to follow some adequate business strategy, for which both the organization and customers will be benefitted. In that case, an organization must offer satisfactory services to the customers. In that manner, an organization will be able to attract the attention of the customers in a large amount, simultaneously; large numbers of customers may help the organizations to enhance both the productivity and the profitability within the organizations.