Buyer and seller exchanges are characterized by limited communications and little or no ongoing relationships.

ConflictConflict

Views customers as equal partners in buyer- seller transactions.

CooperationCooperation

Goes a step further and integrates the customer’s needs into all aspects of the firm’s operations and it’s relationships with suppliers, distributors, and strategic partners.

IntegrationIntegration

In general, the differences between In general, the differences between the narrow focus of transaction the narrow focus of transaction marketing and the much broader view of marketing and the much broader view of relationship marketing can be relationship marketing can be summarized as follows:summarized as follows:

Focuses on the long term rather than the short term

Emphasizes retaining customers over making a sale.

Ranks customer service as a high priority

Encourages frequent customer contact

Fosters customer commitment with the firm

Bases customer interactions on cooperation with the firm.

Commits all employees to provide high-quality products

They gather information about their customers.

They analyze the data collected and use it to modify their marketing mix to deliver differential messages and customized marketing programs to individual consumers

Through relationship marketing, they monitor their interactions with customer.

With customer relationship management (CRM) software

The concepts of customer satisfaction and relationship marketing usually are discussed in terms of:

External MarketingExternal MarketingPeople/Organizations that buy /use a firm’s

goods or services. But marketing in organizations concerned with customer satisfaction and long term relationships must also address.

Internal CustomersInternal CustomersEmployees or departments within the

organization whose success depends on the work of other employees or departments.

Internal marketingInternal marketing Depends on managerial actions that

enable all members of an organization to understand, accept, and fulfil their respective roles in implementing a marketing strategy.

Employee SatisfactionEmployee SatisfactionIs another critical objective of internal

marketing. Employees can seldom, if ever, satisfy customers when they are unhappy.

As an individual or firm progress from the lowest level to the highest level.

Degree of customization Low Medium Medium to high

Potential for sustained Low Moderate High competitive advantaged

Examples Fast- food TiVo-YouTube Southwest dollar- menu partnership Airlines items Business traveler program

First Level: Focus on Price Second Level: Social Interactions Third Level: Interdependent Partnership

First Level: Focus on Price - are the most superficial and the least likely to lead

to a long- term relationship.

Second Level: Social Interactions - theirs interactions develop on a social level, one that

features deeper and less superficial links than the financially motivated first level.

Third Level: Independent Partnership - relationship are transformed into structural

changes that ensure buyer and seller are true business partners.