Lesson 4: Relationship Marketing

Relationship Marketing
 It is the process of building and maintaining profitable customer relationship by
delivering superior customer value and satisfaction.
 Customer Loyalty
 also known as brand loyalty it is the key factor in relationship marketing.

LEVELS OF RELATIONSHIP MARKETING
Basic
 The company salesperson sells the product but does not follow up in any way.

Reactive
 The salesperson sells the product and encourages the customer to call whenever he or she
has any questions or problems.

Accountable
 The salesperson calls to the customer a short-time after the sales to check whether the
product is meeting customer satisfaction.

Proactive
 The salesperson phone the customer from time to time with suggestions about improve
product use or helpful new product.

Partnership
 The company works continuously with the customer and with other customers to discover
ways to deliver better value.
Customer Value
 It is defined as the satisfaction derived from what customer may experience or expect to
experience by choosing a particular action relative to the cost of action.

LEVELS OF CUSTOMER VALUE

Strangers
 Customers whose needs do not fit the company's offerings. The company does not need
to invest and exert effort to win them.

Butterflies
 Not loyal to specific brand because they keep on looking for the best deals which may
lead to patronizing other brands.

True friends
 Have needs that much the company's offering, they make repeat purchases and patronize
the brand so long as it satisfies their needs.

Freeloaders
 Are loyal but not profitable because of the limited fit between their needs and the
company's offerings.

RELATIONSHIP DEVELOPMENT STRATEGIES

 Communicate frequently
 Conduct special events and provide sponsorships
 Offer customer rewards
 Enhance your customer service
 Utilized languages to reach a wider customer base.
LESSON 5: SERVICES MARKETING

Marketing
 Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with
others.

PRODUCT AND SERVICE

Product
 Goods are produced
 Then they are stored and sold
Service
 Service are performed
 Process of performance is tied to the products

Services Marketing
 Services marketing is a specialized branch of Marketing.
 Services marketing emerged as a separate field of study in the early 1980s, following the
recognition that the unique characteristics of services required different strategies
compared with the marketing of physical goods.

DIFFERENCE BETWEEN GOODS AND SERVICES

Product
 A product or goods is a tangible thing that is offered for sale to satisfy a need.
 Examples: Goods are items like, food, clothing, toys, furniture, and toothpaste.
Service
 A service is any activity that one party can offer to another that is essentially intangible
and does not result in the ownership of anything.
 Example: Haircuts, medical check-ups, mail delivery, car repair, and teaching.
SERVICE-TANGIBILITY
 Intangible (can’t be touched or seen, but can be felt/experienced)
 Consumption
 Immediate/instantaneous
 Can’t be preserved for the future/can’t be stored
Intangibility Example
 Mobile network providers like Vodafone, Airtel, Reliance, etc.

SERVICE-VARIABILITY
 Owing to human delivery element may vary.
 Inconsistent
 Difficult to standardize
Perishability
 Immediate/Instantaneous
 Can’t be preserved for the future/can’t be stored

SERVICE-INSEPARABILITY
 Services cannot be separated from the service provider.
 Thus, the service provider would become a part of a service.
 Production and consumption of services go hand in hand.
Inseparability Example
 Taxi operator drives taxi, and the passenger uses it.
 The presence of taxi driver is essential to provide the service.

SERVICE-HETEROGENETY
 The quality of services cannot be standardized.
 Systems and procedures are put into place to make sure the service provided is consistent.
 The service firms should make an effort to deliver high and consistent quality by
selecting good and qualified personnel for rendering the service.
Heterogeneity Example
 Live concerts like singing, dancing and comedy shows, movies, etc.
COMPONENTS OF SERVICE MARKETING
 Product and its elements
 Time and place
 Process
 Quality service and productivity
 People and service provider
 Promotion

LESSON 6 : STRATEGIC VS. TACTICAL MARKETING

“A goal without a plan is just a wish”

-Antoine De Saint-Exupéry

LESSON 1: “The supreme art of war is to subdue the enemy without fighting.”
LESSON 2: “In the midst of chaos, there is also opportunity.”
LESSON 3: “Pretend inferiority and encourage his arrogance.”
LESSON 4: “Victorious warriors win first and then go to war, while defeated warriors go to war
first and then seek to win.”
LESSON 5: “Supreme excellence consist in breaking the enemy’s resistance without fighting.”
LESSON 6: “Opportunities multiply as they are seized.”
LESSON 7: “Earth gives birth to length. Length gives birth to volume. Volume gives birth to
counting. Counting gives birth to weighing. Weighing gives birth to victory.”
LESSON 8: “If ignorant both of your enemy and yourself, you are certain to be in peril.”
LESSON 9: “Put them in a spot where they have no place to go, and they will die before
fleeing”.
LESSON 10: “The general who advances without coveting fame and retreats without fearing
disgrace, whose only thought is to protect6 his county and do good service for his sovereign , is
the jewel of the kingdom.”
STRATEGIC MARKETING
 It is a general plan of action aligned with the company’s vision and goals.
 According to LAMBI- The role of strategic marketing is to “to lead the firm towards
attractive economic opportunities that company wants to achieve and how the outcomes
will be measured.

Strategic Marketing Planning

 Is the process in developing and maintaining viable fit between the organization’s
objectives, skills, resources and its changing marketing opportunities”. -JOTISHMITA I

TACTICAL MARKETING
 Refers to the actions a company undertakes in order to execute in organizations strategy.
It also refers to detailed action program covering a short period.

STEPS IN DESCRIBING MARKETING TACTICS IN MARKETING PLAN:

1. Prepare an action plan
2. Name the necessary resources and monitor the allocated budget
3. Identify how the success of the tactics will be measured

STRATEGIC TACTICAL
Timeframe Long term Short term
Focus Broad Narrow
Key tasks Defining market and Day-to-day marketing
competitive position activity
Information & problem Unstructured, external, Structured, internal,
solving speculative repetitive
Example Segmentation Price discounting
NPD Comms campaign