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relationship marketing (types of relationships (Stages of relationships…
relationship marketing
developing repeat purchases over the long term
aka "collaborative" exchanges as opposed to "discrete" exchanges as in one-off purchases
collaborative midset between companies and customers
networks not just one to one
keeping profit as focus - some customers more profitable than others
extent to which it is worthwhile is worth considering
benefits
more cost effective to retain than replenish customers
retaining customers brings profit over time
long-term customers can improve production and delivery
better understanding of market
product improvements or enhancements can be targeted to loyal customers
Customer lifetime value concept (kotler and armstrong 2016)
focus on customer value rather than brand
customer equity = sum of lifetime values of customers
customer loyalty can insulate companies from having to lower prices
less price sensitivity among long-term customers
definition of loyalty "repeat patronage accompanied by favourable attitude" - must be both.
negatives
perceived or real loyalty to certain "types" of customer can be taken negatively
Service dominant logic (vargo and lusch 2004)
marketing = service-for-service exchange
value co-created by those involved in the exchange
5 core premises (axioms)
service is fundamental value of exchange
value co-created by multiple actors including beneficiary
allsocial and economic actors are resource integrators
value determined by beneficiary
value co-creation coordinated through institutions and institutional arrangements
"product" and "consumer" replaced with co-creators of value - "actors"
the means by which marketers retain customers (flint, 2006)
types of relationships
seller mainained
buye maintained
bilateral
Gummesson's 30 relationship (30Rs)
4 broad categories
Classic
Mega
Nano
SPecial
Peck et al (1999) and Christopher et al (2002) "Ladder of loyalty"
Stages of relationships (Dwyer et al 87)
awareness
exploration
expansion
commitment
Dissolution
Baines eta 2017 Relationship identity
3 indicators
Psychological
behavioural
economic
Customer relationship life cycle
customer relationship life-cycle
Development
Retention
Decline
Acquisition
business to business relationships
Zhang et al 2016
4 dynamic relationship states
transitional
communal
damaged
Transactional
customer entry point
4 key relational constructs
commitment
norms
trust
dependence
transactional vs relational strategies
drivers for relational strategies
higher acquisition vs retention costs
competitive advantage
requirement for trust and commitment
high exit barriers
drivers against relational strategies
minimal acquisition vs retention coasts
low exit barriers
saturated market
competitive advantage unsustainable
Varey 2013 "relationship mimicry"
adversarial strategies can exploit customers
American Market Association statement of ethics
3 ethical norms
do no harm
foster trust
embrace ethical values
maintaining long term relationships
big brand marketing
offering has to be good
must listen to customers and what they want
monitor what people are aying
be clear about what brand stands for
keep innovating and building brand over time
successfully respond to change