Presenters: Shaikh Azhar . Joshi Sanjini. Shelke Omkar.

"Relationship marketing concerns attracting, developing, and retaining customer relationships." Berry & Parasuraman 1991

Relationship Marketing
It is the means by which the seller, and in

some cases the buyer, tries to move from a single transaction to a longer term, mutually profitable partnership behavior.
A profitable exchange for both parties is

central to the concept of relationship marketing.

Outcomes of Commitment & Trust:

Retention. Positive Word of Mouth. Cooperation. Ease of Complaining. Willingness to Complain. Uncertainty. Functional Conflict . Share of Wallet. New Product Adoption.
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Supplier Partnerships
Goods Suppliers Services Suppliers

Lateral Partnerships
Competitors

Business Units

Employees

Focal Firm

Nonprofit Organizations

Functional Departments

Government

Internal Partnerships

Intermediate Customers

Ultimate Customers

Buyer Partnerships

Relationships Economic Content

Attitudinal Outcomes

Relationships Resource Content

Relationship Attitudes

Relationships Social Content

Behavioral Outcomes

Economic Content:
The purely economic costs and benefits of

participating in the relationships.

Examples:
Service fees Interest rates Costs saved due to superior management of

customers wealth

Resource Content:
Benefits gained that match/complement the needs or

resources held by the partner.

Examples:
Professional competence. Comprehensive financial services. Business development assistance. Convenience (time as a resource). Tangibles. Brand equity.
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Social Content:
Psychic benefits gained due to feelings of

compatibility -- similar values, goals, etc. -- that result in a feeling of comfort.

Examples:
Relationships with employees. Fit of firms mission and actions with customers

values. High quality communication programs.

Attitudinal Outcomes:
Customer beliefs that result from relationship

dynamics, these attitudes can go on to impact behaviors and the development of even stronger attitudes.

Examples:
Uncertainty. Brand ambivalence. Brand equity. Brand personality.

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Behavioral Outcomes:
Partner behaviors and intended behaviors that

directly or indirectly impact the firms performance.

Examples:
Retention. Positive word of mouth. Complaining. Willingness to try new/other services.

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When does relationship marketing make sense?

Guiding Moments of Truth. Improving Profitability. Building Partnerships. Addressing Customers Better. Catching Customer Attention. Protecting Customer's Emotional Well-being. Understanding Customer Psyche. Building Trust with Customer.
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Taj Group of Hotels

Taj group of hotels is the largest chain in India-

with several Hotels abroad also.

The parent Hotel-The Taj Mahal Hotel, Bombay is

rated among the 10 best hotels in the world.

Mr.Mansheti Nuser wanji Tata, in 1894 formed the

Indian Hotels company and built the delicately beautiful Taj Mahal Hotel in Bombay.
Taj has 50 Hotels of which 48 are operational, 38

destinations and is the largest Hotel chain in the country.

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In Taj tradition, one finds pleasant atmosphere of

true business hotel coupled with local handicrafts and a special emphasis on cuisine.
The uniqueness of the Taj Group lies in the sum of

its parts in providing a living heritage of India, together facilities

Home away from home. 2 factors:- accomodation &services Orient express, Handi, My kind of place.
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with

superb

comforts

and

modern

Taj Inner Circle. Taj Epicure Plan. Benefits That Customers Enjoy As A Silver &

Gold Member:
Customers will be greeted with flowers & fruits in

their room.
Check-in & departure formalities will be easier,

faster & flexible, Receive special discount on rooms at Taj leisure hotels, avail of double occupancy at
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RM in the hotel industry:

A survey of Taj hotels in India revealed some best

practices in relationship marketing:

Relationship marketing cannot exist in isolation. A

good product or service needs to back up relationship marketing for a mutually profitable relationship to develop.
There is no one way of implementing relationship

marketing:
For example, one hotel has a dedicated team of

relationship

marketing

executives,

while

in

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The quality of service is used as vehicle for building

relationship, wherein the customer keeps coming back to the hotel.

Relationship marketing programs in hotels include:
Preferential rates, loyalty programs, frequency

marketing, tie-up with credit card companies, guest relationship program, preferred partner programs, newsletters and food festivals.
Relationships are also driven by rate fixing for room

rent, which goes on a variable rate depending on the 19

Findings:
Long turn, profitable relationships can be built when

both, the service provider and the customer, rise above the 'transaction' approach, and work in an atmosphere of mutuality and trust.

Relationships, like real life, goes through ups and

downs, and it takes a great amount of maturity and courage to handle the 'lows'.
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Top management must be committed to the

relationship,

as

their

example

is

followed

throughout the organization.

Cross functional teams are required to meet the

goals,

especially

where

quick

responses

are

required.
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Increased customer satisfaction and retention improves profitability - one of the key objectives of a marketing strategy. 1.A better understanding of the customer and his needs can be translated into profitable products and services. 2.Relationship driven transactions increase the switching cost for customers, which means a sustainable long term advantage for the organization. 3.A good relationship with customers can also aid in getting valuable and sincere inputs, which can result in improved selling policies, better pricing strategies

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