Showing papers on "Relationship marketing published in 2000"

Marketing management: analysis. planning. implementation and control

Abstract: I. UNDERSTANDING MARKETING MANAGEMENT. 1. Understanding the Critical Role of Marketing in Organizations and Society. 2. Building Customer Satisfaction Through Quality, Service, and Value. 3. Laying the Groundwork Through Market-Oriented Strategic Planning. 4. Managing the Marketing Process and Marketing Planning. II. ANALYZING MARKETING OPPORTUNITIES. 5. Marketing Information Systems and Marketing Research. 6. Analyzing the Marketing Environment. 7. Analyzing Consumer Markets and Buyer Behavior. 8. Analyzing Business Markets and Business Buying Behavior. 9. Analyzing Industries and Competitors. III. RESEARCHING AND SELECTING TARGET MARKETS. 10. Measuring and Forecasting Market Demand. 11. Identifying Market Segments and Selecting Target Markets. IV. DEVELOPING MARKETING STRATEGIES. 12. Differentiating and Positioning the Market Offer. 13. Developing, Testing, and Launching New Products and Services. 14. Managing Product Life Cycles and Strategies. 15. Designing Marketing Strategies for Market Leaders, Challengers, Followers, and Nichers. 16. Designing Strategies for the Global Marketplace. V. PLANNING MARKETING PROGRAMS. 17. Managing Products Lines, Brands, and Packaging. 18. Managing Service Businesses and Ancillary Services. 19. Designing Pricing Strategies and Programs. 20. Selecting and Managing Marketing Channels. 21. Managing Retailing, Wholesaling, and Physical-Distribution Systems. 22. Designing Communication and Promotion-Mix Strategies. 23. Designing Effective Advertising Programs. 24. Designing Direct-Marketing, Sales-Promotion, and Public- Relations Programs. 25. Managing the Salesforce. VI. ORGANIZING, IMPLEMENTING, AND CONTROLLING MARKETING EFFORT. 26. Organizing and Implementing Marketing Programs. 27. Evaluating and Controlling Marketing Performance. Author Index. Company/Brand Index. Subject Index.

On the Profitability of Long-Life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing

Abstract: Relationship marketing emphasizes the need for maintaining long-term customer relationships. It is beneficial, in general, to serve customers over a longer time, especially in a contractual relationship. However, it is not clear whether some of the findings observed in a contractual setting hold good in noncontractual scenarios: relationships between a seller and a buyer that are not governed by a contract or membership. The authors offer four different propositions in this study and subsequently test each one in a noncontractual context. The four propositions relate to whether (1) there exists a strong positive customer lifetime-profitability relationship, (2) profits increase over time, (3) the costs of serving long-life customers are less, and (4) long-life customers pay higher prices. The authors develop arguments both for and against each of the propositions. The data for this study, obtained from a large catalog retailer, cover a three-year window and are recorded on a daily basis. The empi...

The Antecedents and Consequences of Customer-Centric Marketing:

Abstract: As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption.

Switching costs, alternative attractiveness and experience as moderators of relationship commitment in professional, consumer services

Abstract: To date, empirical and conceptual models of relationship marketing have focused almost exclusively on a range of direct antecedents and mediator variables to explain variations in a dependent variable – usually relationship commitment. No attempt has been made to examine under what conditions these various antecedents have a stronger/weaker impact on relationship commitment. This paper extends the relationship marketing literature by testing a contingency model to assess the impact of trust and service satisfaction on relationship commitment under conditions of varying switching costs, alternative attractiveness and experience‐based norms, in the context of a professional consumer service. Employing a sample of 201 clients of financial planning services, we test 11 hypotheses formulated on the basis of a review of the services and relationship marketing literature, and a series of qualitative interviews with clients. The results clearly indicate that the impact of trust and satisfaction vary according to contingency conditions of switching costs, attractiveness of alternatives and client experience.

Advances in the internal marketing concept: definition, synthesis and extension

Abstract: Over 20 years ago internal marketing was first proposed as a solution to the problem of delivering consistently high service quality. However, despite the rapidly growing literature, very few organisations actually implement the concept in practice as there does not, as yet, exist a single unified concept of what is meant by internal marketing. Critically examines the internal marketing concept and delineates its scope by tracing the major developments in the concept since its inception. The literature review suggests three major phases in the development of the concept, namely an employee motivation and satisfaction phase, a customer orientation phase, and a strategy implementation/change management phase. Proposes a definition and a set of core criteria that are essential features of an internal marketing program. Also explores the interrelationship between the proposed criteria and suggests a framework for empirical investigation of the IM concept in the context of services marketing. Discusses managerial implications arising from the proposed definition and model of internal marketing.

Relationship Marketing Theory: Its Roots and Direction

Abstract: This paper participates in the latest discussion on theory formation in the marketing discipline. We argue that some of the novelty and generality claims in current relationship-marketing (RM) propositions are inflated. On the basis of a conceptual analysis of the disciplinary roots of RM thinking, we argue that RM does not form a general theory of marketing, and that actually two types of relationship theory exist: Market-based, more consumer-oriented RM, and Network-based, more interorganisationally-oriented RM. The fundamental differences between these two types of theory are identified and discussed. Theoretical conclusions and managerial challenges originating from the dual nature of relationship marketing conclude the paper.

Relationship marketing in consumer markets – Rhetoric or reality?

Abstract: Relationship marketing (RM) was conceived as an approach to industrial and service markets, and was considered inappropriate in other marketing contexts. Recently, however, the domain of RM has been extended to incorporate innovative applications in mass consumer markets. Much has changed in a few short years. Recent applications of RM in consumer markets have been facilitated by developments in direct and database marketing within an increasingly competitive and fragmented marketplace. This paper presents a critical review of the history of RM in consumer markets, and incorporates important conceptual, practical, empirical and popular contributions. A number of critical issues which remain unresolved are identified in the paper. These form the basis of ten research propositions which are crucial to justifying and advancing the domain extension into consumer markets.

Putting Entrepreneurship into Marketing: The Processes of Entrepreneurial Marketing

Abstract: This paper considers how marketing can be made more appropriate in entrepreneurial contexts by proposing a conceptual model of the processes of marketing as undertaken by entrepreneurs. Although marketing is a key factor in the survival and development of business ventures, a number of entrepreneurial characteristics seem to be at variance with marketing according to the textbook. These include over‐reliance on a restricted customer base, limited marketing expertise, and variable, unplanned effort. However, entrepreneurs and small business owners interpret marketing in ways that do not conform to standard textbook theory and practise. An examination of four key marketing concepts indicates ways in which entrepreneurial marketing differs from traditional marketing theory. Entrepreneurs tend to be “innovation‐oriented”, driven by new ideas and intuitive market feel, rather than customer oriented, or driven by rigorous assessment of market needs. They target markets through “bottom‐up” self‐selection and recommendations of customers and other influence groups, rather than relying on “top‐down” segmentation, targeting and positioning processes. They prefer interactive marketing methods to the traditional mix of the four or seven “P’s”. They gather information through informal networking rather than formalised intelligence systems. These processes play to entrepreneurial strengths and represent marketing that is more appropriate in entrepreneurial contexts, rather than marketing which is second best due to resource limitations.

Relationship selling and customer loyalty: an empirical investigation

Abstract: Examines how customers’ loyalty is influenced by their relationship with the firm at two distinct levels: the specific relationship customers have with their salesperson; and the overall relationship customers have with the firm. The findings highlight the importance of strong customer‐salesperson relationships in the development of customers’ overall evaluations of the supplier firm. Furthermore, both types of relationship were found to impact positively on the probability of customers exhibiting behavioral loyalty.

Value-based marketing

Abstract: Marketing has not had the impact on the boardroom that its importance justifies. A major reason is that today's top management are focused on shareholder value. Surprisingly, marketing has never sought to align itself to this goal, even though effective marketing is the central determinant of returns to investors. This paper explores how marketing creates value and shows how shareholder value analysis can be used as a powerful technique for developing and justifying marketing strategies.

An exposition of consumer behaviour in the financial services industry

Abstract: Deregulation and the emergence of new forms of technology have created highly competitive market conditions which have had a critical impact upon consumer behaviour. Bank providers must, therefore, attempt to better understand their customers in an attempt not only to anticipate but also to influence and determine consumer buying behaviour. The paper accordingly presents and develops a model which attempts to articulate and classify consumer behaviour in the purchasing of financial products and services. The theoretical insights generated by this model are then used to examine qualitative research data gained from focus group discussions on consumers’ attitudes to their financial providers and their financial products. Finally, these findings are examined for the potential insights they provide to bank providers attempting to identify appropriate strategies which are conducive to increased customer retention and profitability.

The drivers of customer satisfaction and loyalty: Cross-industry findings from Denmark

Abstract: (2000). The drivers of customer satisfaction and loyalty: Cross-industry findings from Denmark. Total Quality Management: Vol. 11, No. 4-6, pp. 544-553.

Toward effective use of cause‐related marketing alliances

Abstract: Companies have become increasingly active in developing relationships between their brands and popular causes in such areas as the environment (e.g. nature conservancy) and health issues (e.g. breast cancer awareness crusade). As such alliances become a more important strategic component of the brand’s marketing mix, managers seek direction as to how to generate the most impact with these tie‐ins. This article uses associative learning principles as a framework for understanding how to facilitate building connections between brands and causes so as to increase the value of this highly visible marketing activity. Specific associative learning principles are detailed and applied, improving the use of cause‐related marketing alliances.

Marketing on the internet - who can benefit from an online marketing approach

Abstract: The research builds upon the literature in electronic commerce and past research in marketing with the objective of understanding factors that impact a product's adaptability to online marketing. A review of marketing channel choice literature reveals a set of factors and channel choice functions that are considered important in making channel decisions. Using this as a basis, four major channel functions, namely, product customization, availability, logistics, and transaction complexity are considered relevant in understanding the implications for Internet marketing. By building upon previous research in the area of channel selection, we provide a means of classifying Internet marketing initiatives based on product characteristics. The classification scheme based on product characteristics can help analyze the significance of each factor on the success of a firm's online marketing approach. Further, the classification scheme is used to discuss decision support implications.

Viral Marketing - Establishing Customer Relationships by 'Word-of-mouse'

Abstract: Newcomers to electronic markets are forced to accumulate customers as rapidly as possible. One strategy to fulfil this aim is so called viral marketing, which seems an appropriate term for describing the pattern in which Internet companies spread by making use of customer referrals. The aim of this article is to describe and explain common features of viral marketing strategies and to outline chances and risks associated with using Internet word-of-mouth in consumer settings.

The role of marketing in supply chain management

Abstract: The concept of supply chain management (SCM) started in the logistics literature, and logistics has continued to have a significant impact on the concept. This study, however, proposes that the concepts of the marketing concept, a market orientation, relationship marketing, and SCM are not separate. Rather they are inextricably intertwined. The main purpose of this study is to highlight the role of marketing in the implementation of SCM by suggesting cause‐and‐effect relationships. Research propositions are presented and future empirical studies are called for to test the cause‐and‐effect relationships suggested in an integrative model.

Beyond relationship marketing: technologicalship marketing

Abstract: Argues that relationship marketing is not a complete paradigm shift Without effective use of technology, relationship marketing is not an effective strategy Hence, relationship marketing, based on technological advances, can be considered as a new paradigm It is demonstrated that everything companies do to build consumer loyalty is affected by technology It is shown that traditional, relationship, and technologicalship marketing are fundamentally different The technologicalship marketing allows for different types of synergy effects, solutions, different customers, and different types of interactions and relationships

Consumption values and relationships: segmenting the market for frequency programs

Abstract: Because consumers can vary greatly in the nature of their relationship with a service provider, it is reasonable to expect that a wide range of different values may influence consumption behavior. Additionally, consumers’ values composition may predispose them to interpret their relationships with service providers differently and those service providers’ marketing communications. The present study explores the range of values which motivate business consumers’ reactions to service providers, specifically airlines’ frequent flyer programs. As part of this process, consumers are segmented in terms of their values and relationships with airlines in order to better understand the motives and behavior that drive choice of service providers. Based on the results, specific communications strategies are offered for each of the identified segments that address the desired benefits sought by each value segment.

Marketing at the Interface: Not ‘What’ but ‘How’

Abstract: The purpose of this paper is to contribute to theory at the marketing/entrepreneurship interface. Consideration is given to the unique characteristics of SMEs and the unique nature of marketing in small firms given that marketing is performed differently in SMEs than in large firms. This paper offers a conceptual model of SME marketing that illustrates how it is different to the conventional descriptions and practices espoused in the textbook literature. A step-by-step process of determining how SMEs do marketing in context is described.

Relationship Marketing: New Strategies, Techniques and Technologies to Win the Customers You Want and Keep Them Forever

Abstract: Preface Acknowledgements Chapter 1: Marketing is Dead Long Live Marketing The Marketing Challenge: The Relationship Marketing Solution 1. Time Horizon 2. Market Segmentation 3. Product or Service Design 4. Market Research 5. Marketing Communications 6. Customer Service 7. Pricing What is Relationship Marketing 1. Using Technology to Communicate with and Serve Individual Customers 2. Growing Through Scope and Partnering 3. Customer Selection and Rejection 4. Chains of Relationships 5. Rethinking the 4 Ps of Marketing 6. Using Relationship Managers to Manage the Relationship What Relationship Market is NOT Marketing Relationship Selling Database Marketing Loyalty Marketing Partnering The Eight Components of Relationship Marketing 1. Culture and Values 2. Leadership 3. Strategy 4. Structure 5. People 6. Technology 7. Knowledge and Insight 8. Process The Enablers of Relationship Marketing 1. Manufacturing Technology 2. Customer Knowledge 3. Customer Access Chapter 2: Relationship as Strategy Market Segments and Individual Customers Digitalization of the Marketing Mix New Roles for the Marketer Focus on Strategic Capabilities Economics of Data Strategic Capabilities for Relationship Marketing Business Is People Business Is Process Business Is Technology Business Is Knowledge and Insight Chapter 3: Making the Case for Relationship Marketing Is Relationship Marketing a Good Idea Does Relationship Marketing Fit With Our Strategies Marketing Strategies in the 1960s Marketing Strategies in the 1970s Marketing Strategies in the 1980s Marketing Strategies in the 1990s Is Relationship Marketing Part of Our Customers' Future What Are the Barriers to Relationship Marketing Will Relationship Marketing Create Additional Shareholder Value The Value-Driver Model New Value from Current Customers The Value of Growth Opportunities Calculating the Financial Benefits of Relationship Marketing Money Making Strategies Calculating the Lifetime Value of a Customer Questions to Ask Issues to Be Considered Information Technology Support Approaches Chapter 4: Customer Bonding A Customer Is Not a Customer Categories of Customer Bonding Bonding Staircase Issues The Shape of the Customer Profile Levels of Customer Bonding 1. Structural Bonding 2. Brand Equity Bonding 3. Attitudinal Bonding 4. Personal Bonding 5. Information and Control Bonding 6. Value Bonding 7. Zero Option Bonding Chapter 5: Consumer Versus Business Relationships Consumer Versus Business-to-Business Market Places Good and Services Market Structure Distribution Channels Decision-Making Criteria Decision-Making Process Buyer-Seller Relationship Reciprocity Mutual Value Creation One-Way Relationships Brand Equity Chapter 6: Planning for Better Relationships Phase 0: Plan for a Plan Phase 1: Customer Assessment Phase 2: Benchmarking Phase 3: Company Assessment Phase 4: Statement of Opportunity Core Customers, Processes and Capabilities Positioning for Relationship Marketing Does the Customer Merit Relationship Marketing Attention Preconditions for Relationship Marketing Phase 5: Future State Identify the Gaps Strategies to Close the Gap and Capture the Vision Check Your Assumptions Involve Your Customers in the Vision Overcoming Barriers to Change Phase 6: Business Case Risks to Attainment Phase 7: Change Management and Implementation The Governance Process of Change Management Measure How You Are Doing Chapter 7: Technology for Relationship Marketing Technology Changes Everything 1. Customer 2. Categories 3. Capabilities 4. Cost, Profitability and Value 5. Control of the Contract to Cash Processes 6. Collaboration and Integration 7. Customization 8. Communications, Interaction and Positioning 9. Customer Measurements 10. Customer Care 11. Chain of Relationships The Changing Roles for Technology 1. The Internet 2. Computer Telephony Integration 3. Data Warehouses Chapter 8: Customizing for the Masses Preconditions for Mass Customization 1. Individual Needs and Preferences 2. Assembling Unique Offerings 3. Customer Appreciation 4. Adaptable Technology and Processes 5. Support Intermediaries and Suppliers A Range of Approaches to Mass Customization Customization Versus Standardization of Product, Service and Communications Developing a Mass-Customization Strategy Assessment of Mass Customization A Mass-Customization Plan Insource or Outsource Each Component of Mass Customization Chapter 9: Building a Chain of Relationships Relationships with Investors/Owners and Financial Institutions Conditions for Relationship-Driven Progress Companies and Financial Value Relationships with Distribution Channel Intermediaries How to Build the Relationship Relationships with Employees Employee Skills Increasing Scope Challenges Traditional Job Descriptions Employee Trust Important Trustworthy Leaders Relationship with Suppliers Essential Ingredients Opening Up Relationships with Coventure Partners Customer Access Models for Collaboration Management and Control for the Chain of Relationships Challenges The New Role of Management Measurement Issues Chapter 10: The Relationship Marketing Company of Tomorrow Relationships Determine Future Success Connections Will Become More Fluid Relationships Can Extend the Duration and Value of Connections Relationships Will Increasingly Require More Investment in Strategy Customer Mix Focus Access Bonding Collaboration Chain of Relationships Novelty Customer's Customer Relationships Will Also Depend More on Flexible Capabilities The Customer Data Warehouse Is Only the Beginning Involve Users in Process Design Structure Follows Strategy and Process The President's Role Benefits of this Approach Stop Along the Road to the Future 1. Changing Customer Expectations 2. Segment Customer, Not Markets 3. Best Customers Deserve Best Value 4. Value Provided to Customers Depends on the Chain of Relationships 5. Data, Data, Data 6. Technology for Mass Customization 7. Board and Investor Support Needed 8. Recognition and Reward for Teamwork 9. Relationships and Capabilities, Not Silos 10. Organize by Relationship and Capability Index

Beyond Market Orientation: When Customers and Suppliers Disagree

Abstract: The essence of market orientation is the successful management of a relationship between suppliers and customers During the past 15 years, a body of scholarship on antecedents and consequences of market orientation has emerged But what is the appropriate level of market orientation, and what happens when customers and suppliers disagree about the appropriate level of a supplier's market orientation? To what extent does such disagreement concerning market orientation affect the customer-supplier relationship? Do answers to these questions vary by country? The authors examine these issues using data from a survey of leading Japanese and US business firms and their key customers that employed a unique matched supplier-customer sampling methodology The authors report several interesting results

Entrepreneurial marketing: a conceptualisation from qualitative research

Abstract: Proposes a conceptualisation of “entrepreneurial marketing” based on the practices of successful entrepreneurs. The methodology took account of specific issues in researching entrepreneurs such as lack of common understanding of management terms, and the influence of ego on participants’ responses. Depth interviews used critical incident technique to elicit accounts from entrepreneurs of their marketing practices. Focus groups supplemented individual interviews to test the candour of responses. The results indicated that successful entrepreneurs undertake marketing in unconventional ways. They tend to focus first on innovations, and only second on customer needs. They target customers through a bottom‐up process of elimination, rather than deliberate segmentation, targeting and positioning strategies. They rely on interactive marketing methods communicated through word‐of‐mouth, rather than a more conventional marketing mix. They monitor the marketplace through informal networks, rather than formalised ma...

The Service Brand as Relationships Builder

Abstract: This article examines the appropriateness of the notion and application of relationship marketing in various contexts. Theoretical and conceptual similarities between the broad notions of ‘the brand’ and of relationship marketing as risk reducers, simplifiers of choice and guarantee of quality are uncovered. We put forward a notion of relationship marketing as a further step in the branding process, whereby whenever perceived risk and consumer involvement are high, relationship marketing acts as a supplementary tool enabling consumers to maintain cognitive consistency and psychological comfort. Experts' opinions regarding branding in a service context expanded on these concepts. Especially for more intangible offerings, such as financial services, the experts stressed the use of corporate brand identity as the basis of relationship building both inside and outside the organization and as a means to achieve differentiation and provide the focus for homogeneous and consistent service delivery. Finally, we suggest the concept of the service brand as a holistic process beginning with the relationship between the firm and its staff and coming alive during the interactions between staff and customers.

International relationship marketing ‐ The importance of psychic distance

Abstract: This conceptual paper outlines why, when working in the international as opposed to the domestic environment, the success of a relationship marketing strategy is heavily dependent on levels of psychic distance. The higher the level of psychic distance, the greater the time and effort required to develop successful business relationships. At the different stages of relationship development, different variables of psychic distance assume relatively greater levels of importance which are likely to have implications for the implementation of a relationship marketing strategy.

Financial Services Marketing

Abstract: * The Financial Services Environment. * The Financial Services Consumer. * Identifying and Targeting Financial Prospects. * Development and Management of Financial Products. * Branch Networks and Distribution Through Branches. * Technology-Driven Distribution Channels. * Pricing for Financial Services. * Financial Services Promotion. * Customer Retention and Customer Loyalty. * Relationship Marketing. * Corporate Financial Services Marketing. * Projects.

Relationship Quality and Customer Retention through Strategic Communication of Customer Skills

Abstract: This article discusses the idea of a strategic communication of customer skills - a rather neglected relationship marketing strategy. This idea is based on an interpretation of the customer as the company's partner in the value production process. Customer skills are defined as the total of all product-related knowledge and skills of relevance to any aspect of the customer's post-purchase behaviour (e.g. the ability to use the full range of product features). The author assesses whether communicating customer skills strategically may lead to an increase in perceived relationship quality and customer retention as key variables in relationship marketing. Several hypotheses regarding the interrelations between an increase in customer skills and relationship quality are drawn out from a conceptualisation of both constructs. The validity of these hypotheses is then tested empirically using a structural equation modelling approach for two products, i.e. video recorders and reflex cameras. Results give strong su...

Is relationship marketing for everyone

Abstract: Marketing academics and practitioners have been examining the relationship between relationship marketing orientation (RMO) and business performance and yet, to date, there has been no systematic analysis of its effect on a business’s performance across various industries. This paper compares RMO with market orientation (MO) in terms of their impact on firms’ business performance, with particular interest in three industries. It first reviews the concept of relationship marketing and its relationship with business performance, leading to the development of two hypotheses. Next, a measurement scale was used to capture the dimensions of RMO. The reliability and validity of the scale were briefly described to provide readers the background for data analysis. Then several stepwise regression analyses were performed to test the hypotheses. Results indicated that the hypotheses received support, suggesting that RMO is for every industry with particular importance in the manufacturing industry.