PRINCIPLES

OF
MARKETING
 RELATIONSHIP DEVELOPMENT
STRATEGIES

The previous discussion pointed out the

importance of satisfying customers-
doing so will encourage retention, which
in turn will provide various benefits to
the company.
Companies need to exert
effort in order to satisfy the
needs of their customers and
keep them buying. Three
factors affect the rationale of
organizations’ strategies in
keeping their customers:

1. Core Service Provision

2.Switching Barrier
3.Relationship Bonds
1.CORE SERVICE PROVISION includes
service foundations that are built upon
delivery of excellent service. In order to do
so, the company must be able to satisfy the
customer by meeting the expectations from a
product. This, however, will be influenced by
the perceived quality of the product, or the
subjective evaluation of the product’s worth
by a customer in relation to his or her
expectations from the product; and its
perceived value.
2. SWITCHING BARRIER
can also affect the loyalty of
customers. It is the economic
and psychological difficulty
perceived by the customers if
they switch from one brand to
another.
RELATIONSHIP BONDS are retention
strategies that keep the customer buying
the same brand. This strategy has four
level.

1.Financial Bond
2.Social Bond
3.Customization Bond
4.Structural Bond
 RELATIONSHIP DEVELOPMENT
STAGES

Business deal with customers on a daily

basis. A company’s relationship with the
various customers differs depending on
how well the staff knows the customer,
how long the customer has been shopping
at the store, and how knowledgeable the
customer is of the company’s products,
among others.
Evolution of customer relationships and the
marketing goal at each stage

Partners
• Enhancing

Friend
• Retaining

Acquaintances
• Satisfying

Strangers
• Acquiring
Evolu Strang Acquain Friends Partners
tion ers tances
Stage
Marke Acquiri Satisfying Retaining Enhancing
ting ng
Goals
Marke Advertis Superior Product Rewards/points
ting ing, customer and service /incentive
Strate sales service consistenc program,
gies promoti and y, special exclusive
on product offers, privileges
quality sales
promotion