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Using relationship marketing concepts, how would you describe Uber’s…
Using relationship marketing concepts, how would you describe Uber’s relationship with its customers?
- conceptual approaches for making sense of customer and other stakeholder relationships
Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales.
benefits: more cost effective to retain than replenish customers
retaining customers provides profit over the customer lifetime
One of the ‘fundamental goals’ of relationship marketing is usually said to be ‘maximising the lifetime value of a customer’ (Christopher et al., 2002, p. 5).
focuses on the value of customers rather than the brand. Following on from this, customer equity is ‘the sum of the lifetime values of all the firm’s customers, across all the firm’s brands’ (Rust et al., 2004, p.113).
value of retaining customers over the long term and is described as being ‘the ultimate aim of customer relationship management’ (Kotler and Armstrong, 2016, p. 47).
Customer loyalty
The aim of customer relationship management is ‘to foster loyalty and repeat purchasing’ (Dibb et al., 2016, p. 223).
Customer value and customer satisfaction Kotler and Armstrong (2016) regard customer value and satisfaction as two key building blocks of customer relationship building.
Commitment, trust, customer orientation and communication Other factors commonly cited as being important to building successful relationships are commitment, trust, the seller’s customer orientation/ empathy and communication (Conway and Swift, 2000).
Two-way communication helps to build a relationship and effective collaboration (Conway and Swift, 2000)
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The main difference between relationship selling and transactional selling r in the approach. Transactional Selling: This strategy is all about short-term solutions. The sales rep is primarily concerned with the promotion and selling of the product with little or no emphasis on customer needs.
Relationship marketing involves taking a long-term perspective on exchanges between parties (or ‘actors’ to use S-D logic’s terminology). Organisations need to be mindful of not only building strong relationships but simultaneously of avoiding damaging them.
- how internal marketing plays a crucial role in delivering on brand promises and building relationships
Internal Marketing (IM) is an ongoing process that occurs strictly within a company or organization whereby the functional process is to aligns, motivates and empowers employees at all management levels to consistently deliver a satisfying customer experience
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There are two primary types of internal marketing: Campaign or communications strategy specifically targeting your employees. For example, employee engagement campaigns or benefits/wellness initiatives. Campaigns designed to socialize, educate and involve employees in the launch of an external campaign.