Relationship marketing is aimed at building stronger and long-term relationships with customers and other companies. The business is conducted with a strategic orientation, where the relationship is better with existing customers rather than finding new customers. It is meant to cater to the needs of individual customers. Its large part involves studying the need for the customer and how it changes in different situations.
Relationship marketing applies techniques like marketing, sales, customer care and communication. The relationship is not only enhanced but its life period is increased by these strategies. And as the customer realizes the value of the relationship, and they are drawn closer. This marketing not only focuses on building relationships and getting customers to their products and services, but also how to keep them.
A raw form of Marketing came into existence in 1960. However, organizations were still facing problems in selling products, so that the system was developed to sell low cost goods to larger group of customers. Leonard Berry and Jag Sheth originated this marketing, in 1982. It was started in B2B markets and industries, which involved long-term contracts for many years. Over time, different marketing strategies were improved and relationship marketing was one of them.
Relationship marketing is applicable where customers have many options in the market for the same product or service and the customer is entitled to make a selective decision. In such a form of market, companies are trying to maintain their customers by offering relatively better products and services and thus achieve customer loyalty. And when it is achieved it becomes difficult for competitors to do well in the market.
Customer turnover was? Not paying much attention because the main focus was on customer satisfaction. This type of marketing was initially named as defensive marketing. Aggressive marketing is the marketing strategy where not only new customers are attracted, but also for sales are stepped up by increasing the purchase frequency. This type of marketing is focused on the freeing dissatisfied customers and acquiring new customers.