OVERVIEW OF

Relationship Marketing
in the Millennium
Market place has been
evolving under the
converging pressures of
changing demographics,
global politics, economics,
technology and so on.
PARADIGM SHIFT IN MARKETING
Prominent marketing scholars like
Philip Kotler and Frederick
Webster have expressed that there
has been a shift from a
transactions to a relationship focus
Customer orientation focus on profitability rather
than sales volumes and emphasis on market
segmentation are gaining importance.

New trend in marketing has replaced products
and services with value

Relationship Marketing concept requires specific
resource commitments, key part of which is the
use of marketing research,
DRIVING FORCES



THEMES FOR NEW MARKETING
The 4Ps are also loosing credibility. They are more
production than customer oriented
and poses lot of flaws in its definition

A creative process to look at the market;

Understand potential customer needs and wants

Consider the basic capabilities of the firm;

Conceive potential product offerings based on
the present and potential capabilities;

Design and develop products and services for
their customers
Relationship marketing gives a solution for
many problems

Emphasis should be given to create value for
chosen customer value segments and gain
profitability for the company

The focus on value equity enables the company to
assume and exert control over matching customers
perception with the firms objective

Managing the customer as an asset is more
critical to a firms success

MOVING TOWARDS RELATIONSHIP MARKETING

Managers need to create a business model for
their organisations that uses technology for
strategic purposes

Customers gain near-perfect information on
their alternatives, dropping switching barriers
dramatically

Direct selling, target marketing, technological
marketing and cross selling are some of the
successful emerging practices in marketing
INTERGRATING RELATIONSHIP STRATEGIES
WITH INFORMATION TECHNOLOGY (IT)
ADOPTING RELATIONSHIP MARKEING
PRACTICES
Many companies sensing the pulse of the market
trend have opted for relationship marketing practices.

On an average, business firms spend six times more
to acquire customers than they do to retain them

Developments in IT, data warehousing and data
mining have made it possible for firms to maintain a
one-to-one relationship with their customers.
Contd.
developing customer-centric processes,

selecting and implementing technology solutions,

employee empowerment,

customer information and knowledge generation
capabilities and

the ability of the organisation to learn from best
practices
Successful implementation of relationship
marketing practices requires a strategic approach
which encompasses