The customer is the king: Relationship marketing

Ace p.

Order the writing of a tailor-made Services marketing Thesis

Free quote online

Dissertation Format .doc

The customer is the king: Relationship marketing

Download

Read an extract

Reader
Abstract
Contents
Extract

Abstract

Today it is the consumer who delivers the final verdict. The major application of Relationship Marketing is in industrial good markets and service markets. For relationship to start individual identifiable customers have to surface from the statistical mass of a target segment and for this to happen on a big scale technological transformation of the market place and the transaction are essential prerequisites. Relationship Marketing: Increasingly companies are moving away from a focus on individual transaction and towards a focus on building value-laden relationships with customers. In Relationship Marketing emphasis is placed on building longer term relationships with customers rather than on individual transactions. It involves understanding the customer's needs as they go through their life cycles.

The customer is KING. This millennium comes with new dreams, hopes, and aspiration. It heralds the emergence of new business paradigms that will keep pace with a world rapid changing under the impact of development in InfoTech and communications technologies. It touches the lives of individual all over the world. With the growing competition in Indian economy, virtually every company finds itself struggling for survival today.

Today it is the consumer who delivers the final verdict. A consumer who is finicky about what he wants. An important development in the consumer market is the emergence of the newer younger consumer. This consumer is more open to trying new products but he is more demanding and fickle in terms of brand loyalty. I believe smart Companies across the country are no longer talking about product or service quality rather successful brand will need to establish more meaningful and intimate relationship and delight their customers.

<ol class="ollevel1">
<li>An introduction to relationship marketing</li>
<li>Retailing- An overview </li>
<li>Key trends in retail industry </li>
<li>CRM and the retail industry</li>
<li>CRM in retail – Loyalty programs </li>
<li>Different levels of relationship</li>
<li>Tools to develop strong customer bounding<ol class="ollevel2">
<li>Create abiding relationships</li>
<li>Developing an action plan</li>
<li>Delivering customer value and satisfaction</li>
</ol></li>
<li>Building relationship by connecting customers through call center</li>
<li>The Indian retail scenario</li>
<li>Data analysis and interpretation</li>
<li>Conclusion and recommedations</li>
<li>Bibliography</li>
</ol>

Get this table of contents for free after login.

Extract

[...] Sales Performance since 1992 Since 1999 after recognizing the importance of relationship marketing Shoppers Stop has shown Fruitful investment in customer centric approach and has gained very good sales performance. The Past Situation In 1999, Shoppers' Stop implemented the ERP; JDA -MMS, well ahead of time and its capabilities 3 stores and a turnover of Rs 127 cr only Poor hit rate from partners Difficulty in tracking merchandise No sharing of inventory data with partners High Distribution Cost Customer Dissatisfaction Strategic Actions Shoppers' Stop Footprint Pentagon the Key 77% of total customers are from age group of 25-50 Bi annual tracks for customer satisfaction index The Customer Objectives Customer always gets the merchandise of his / her size and choice Merchandise is always presentable and ready before customer entry Customer easily locates price tags and product information Price on the price tag and Point of Sale System always match Timely replenishment of fast moving merchandise Results More Customer satisfaction Customer Loyalty No of stores increased from 3 to 13 Latest Merchandise available to customers Correct product and price information Financial Cumulative Saving of Rs 1.2 Cr FUTURE TRENDS Some future trends that were identified were as follows Most retailers today are going in for off the shelf SCM, CRM and ERP packages as opposed to the trend of their going in for bespoke application packages a few years ago. [...]

[...] Relationship Levels As A Function Of Profit Margin And Number Of Customers Profit Margins High Medium Low Number of Customer Many Accountable Reactive Basic Medium Proactive Accountable Basic Few Partnership Accountable Reactive The figure shows that a company's relationship marketing strategy will depend on how many customers it has and their profitability. For example, companies with many low-margin customers will practice basic marketing. At the other extreme, in markets with few customers and high margins, most sellers will move towards partnership marketing. [...]

[...] It is with such customers that relationship marketing has the greater paying off. In these situations, the “in-supplier” and “Out-supplier” face very difficult challenger. The in-supplier tries to make switching difficult for the customer. It develops product systems that are incompatible with those of competing suppliers and installs its own ordering systems that simplify inventory management and delivery. It works to become the customer's indispensable partner. Out suppliers, in contrast, try to make it easy and less costly to switch suppliers. [...]

[...] A good CRM Strategy should focus on three main things: Building dynamic relationship with the customer Making CRM the key element to building customer loyalty to a store brand To build a significant competitive advantage Objective of the Research To study the impact of relationship marketing in this changing business environment To study the impact of relationship marketing in Retail Industry To study and know different methods to develop abiding relationship with the customer To study the factors responsible for failures in relationship marketing RESEARCH METHODOLOGY Research Methodology: It is a way to systematically solve the research problem. [...]

[...] Ravissant wanted to go in for a CRM solution on the basis that is more important to retain a customer than to acquire a new one.' There was a distinct need for a solution that could help executives at Ravissant by supplying the intelligence to identify customer buying patterns, sales analysis and predict future demand, filling the demand-supply gap. By using the SAS Customer Intelligence Solution, executives at Ravissant now have information on customer-buying patterns, customer profiling, sales analysis and the ability to predict demand thus filling the demand-supply gap. [...]

doc