Block 3 Session 11: Marketing in the long-term – relationship marketing…
Block 3 Session 11: Marketing in the long-term – relationship marketing
is about developing repeat purchases or exchanges with customers over the long-term, rather than merely promoting one-off transactions.
The two main purported economic benefits of relationship marketing are:
it is more cost-effective to retain than replenish customer
retaining customers provides profit over the customer lifetime.
business to business relationship
: is important for relationship marketing as well as for branding, and internal and external marketing go hand in hand (Egan, 2011).
For staff to be able to represent the brand effectively to customers and improve the service their company provides, they need to believe in the brand themselves.
Mitchell (2002) proposed a number of principles for internal marketing, including:
timing an internal marketing campaign at turning points, such as organisational change or new leadership
linking internal and external marketing, so that they match
using internal marketing to bring the brand alive for all staff, not just customer-facing staff, to inform their daily decision making and interactions in their jobs.
Reading 17: Internal marketing
is marketing conducted within an organisation to encourage staff’s identification with the brand and improve their customeroriented behaviour in representing and communicating the brand externally to consumers.
The key benefits of internal marketing include
It helps to promote a coherent brand identity
It provides a focus for staff’s diverse organisational roles and
It supports relationship building with customers
It enables staff to feed back information to the organisation and
contribute ideas to improve customer-orientation
the role and impact of staff
The relationship between staff and consumers is at the ‘heart of the brand
experience’ with staff behaviour key to creating value (Ind, 2007, p. 22).
Normann (2002) recognised that
moments of truth also take place through technology-enabled services.
Internal marketing communication
The need for two-way communication in
internal marketing has long been recognised
Effective internal marketing also facilitates innovation through feeding back staff’s experience and expertise to improve customer service and the organisation’s offering and operations.
Internal communication has been defined as ‘
the strategic management of interactions and relationships between stakeholders within organisations across a number of interrelated dimensions’
(Welch and Jackson, 2007)
four levels of internal communication:
Internal corporate communication
Internal project peer communication
Internal team peer communication
Line management communication
Critical service interactions
are specific, self-contained customer service interactions that are memorable for being either particularly satisfying or dissatisfying from the customer’s perspective
Berry and Seiders (2008, p. 29) argue that ‘customers can be not only wrong but also blatantly unjust’. They identified the following common
of unfair customers:
Berry and Seiders (2008) made a number of recommendations for
with unfair customers. These included:
dealing ‘fairly but firmly’ with unfair customers
encouraging managers to intervene to deal with unfair customers when necessary
planning in advance by identifying situations in which unfair customer behaviour might rise
training both frontline staff and managers how best to prevent, manage and communicate with unfair customers
using explanations as a communication strategy
terminating relationships with unfair customers if necessary
Types of employees