Vache Zohrabyan
Unit 11
Relationship Marketing
Task A
Introduction-In this task I will describe the development of relationship
marketing and I will explain how relationship marketing can be applied to
alza.cz.
Relationship marketing this is a marketing activities that are aimed at
developing and managing trusting and long-term relations with larger
customer.
Relationship marketing differs from other forms of marketing in that it
recognizes the long term value of customer relationships and extends
communication beyond intrusive advertising and sales promotional
messages.
Reasons for development of relationship marketing
Relationship marketing involves developing long term relationship with
customers so that they provide you with ongoing business. An organisation
must exceed customer satisfaction expectations to retain and develop long
term relationships with customers. However, it takes a lot of work to
persuade customers to make their first purchase with you, so if you can
persuade customers to give you repeat business it will cost you less time
and money.
Companies spend a lot of time and money to attract new customers, but
less effort goes into figuring out why they lose customers. However, the
cost to business of losing customers, as well as the impact on the overall
company, is dangerously high, which is why it’s more profitable to expend
your efforts on retaining existing clients.
In marketing, customer lifetime value (CLV) is a prediction of the net
profit attributed to the entire future relationship with a customer.
, A mission statement is a statement of the overriding direction and
purpose of an organisation. It is the foundation for any strategic plan.
Objectives are statements of specific outcomes that are to be achieved,
from the strategic to operational levels. Objectives are developed and
extended from an organisations mission statement and goals.
Each stakeholder has concerns that it expects to be met by the business.
For example, the business's owners expect it to be profitable and to
distribute that profit to them.
Business-to-business, or b2b direct marketing, requires a different
mindset and strategies than marketing directed to consumers. In business-
to-business sales, one business is providing products and services to
another business.
The B2B E-business model works in the same manner as other B2B
models. The goal is to connect businesses to their suppliers, distributors
and other parts of the supply chain.
Business to consumer (B2C) is business or transactions conducted
directly between a company and consumers who are the end-users of its
products or services. The business-to-consumer as a business model
differs significantly from the business-to-business model, which refers to
commerce between two or more businesses.
Relationship marketing concepts
expanding the marketing mix to the 7 Ps
Product: the good or service that the customer buys
Price: how much the customer pays for the product
Place: how the product is distributed to the customer
Promotion: how the customer is found & persuaded to buy
People: the people who make contact with customers in delivering the
product
Process: the systems and processes that deliver a product to a customer
Physical: the elements of the physical environment the customer
experiences
Unit 11
Relationship Marketing
Task A
Introduction-In this task I will describe the development of relationship
marketing and I will explain how relationship marketing can be applied to
alza.cz.
Relationship marketing this is a marketing activities that are aimed at
developing and managing trusting and long-term relations with larger
customer.
Relationship marketing differs from other forms of marketing in that it
recognizes the long term value of customer relationships and extends
communication beyond intrusive advertising and sales promotional
messages.
Reasons for development of relationship marketing
Relationship marketing involves developing long term relationship with
customers so that they provide you with ongoing business. An organisation
must exceed customer satisfaction expectations to retain and develop long
term relationships with customers. However, it takes a lot of work to
persuade customers to make their first purchase with you, so if you can
persuade customers to give you repeat business it will cost you less time
and money.
Companies spend a lot of time and money to attract new customers, but
less effort goes into figuring out why they lose customers. However, the
cost to business of losing customers, as well as the impact on the overall
company, is dangerously high, which is why it’s more profitable to expend
your efforts on retaining existing clients.
In marketing, customer lifetime value (CLV) is a prediction of the net
profit attributed to the entire future relationship with a customer.
, A mission statement is a statement of the overriding direction and
purpose of an organisation. It is the foundation for any strategic plan.
Objectives are statements of specific outcomes that are to be achieved,
from the strategic to operational levels. Objectives are developed and
extended from an organisations mission statement and goals.
Each stakeholder has concerns that it expects to be met by the business.
For example, the business's owners expect it to be profitable and to
distribute that profit to them.
Business-to-business, or b2b direct marketing, requires a different
mindset and strategies than marketing directed to consumers. In business-
to-business sales, one business is providing products and services to
another business.
The B2B E-business model works in the same manner as other B2B
models. The goal is to connect businesses to their suppliers, distributors
and other parts of the supply chain.
Business to consumer (B2C) is business or transactions conducted
directly between a company and consumers who are the end-users of its
products or services. The business-to-consumer as a business model
differs significantly from the business-to-business model, which refers to
commerce between two or more businesses.
Relationship marketing concepts
expanding the marketing mix to the 7 Ps
Product: the good or service that the customer buys
Price: how much the customer pays for the product
Place: how the product is distributed to the customer
Promotion: how the customer is found & persuaded to buy
People: the people who make contact with customers in delivering the
product
Process: the systems and processes that deliver a product to a customer
Physical: the elements of the physical environment the customer
experiences
