Organisational Studies

15 Pages 3692 Words

ategies and processes will have a competitive advantage as they will be organised around all their stakeholders, who seek to create the value that each wants, and integrate it into the business process. This will lead to a series of trust-based relationships, as the company will understand the importance of specific capabilities in advancing relationships.



1. THE RELATIONSHIP FUNCTION

1.1 Introduction
Relationship marketing emphasises building longer-term relationships with customers, rather than on individual transactions. Traditionally marketing, through the 4 P’s of the marketing mix (Product, Place, Price, Promotion) focuses on a specific market segment. However, relationship marketing focuses on a single person or company with the object of creating mutual & shared value with the customer over a lifetime of purchasing. It involves understanding the customers’ needs as they go through their life cycles, and emphasizes providing a range of products or services to existing customers, as they need them.
Relationship marketing is “a continuous attempt, by the organisation, to offer a range of quality products as well as a quality after-sales service” (Damelin, nd. P 3.)


1.2 The Eight Concepts of Relationship Marketing

The goal of relationship marketing is to align all of the following aspects of a company within its chosen customers and stakeholders.

1. Culture and Values – the customer’s culture and values must be conducive to the formation of an enduring relationship.

2. Leadership – the company’s leadership must view sharing as a virtue and understand the real meaning of a relationship, before committing the company to relationship marketing.

3. Strategy – this needs to be customer-centric, with relationship objectives and strategies geared to individual customers.

4. Structure – the company structure needs to be organised by relationship and capability. They must have managers...