Six Markets Model Of Relationship Marketing Marketing Essay

Six Markets Model Of Relationship Marketing Marketing Essay An Organization must exceed customer expectations in order to retain them and develop a healthy relationship with them. The methods and tactics involved to develop long term relationship with the customers in order to retain them is termed as Relationship Marketing. (http://www.learnmarketing.net/relationshipmarketing.htm) To attract and retain its customers the company must put into place some tactics and methods which may include promoting the product and brand, offering good quality product/services at competitive prices. At the same time its very difficult to keep the customers 100% satisfied reasons could be any as needs and wants of the customers change. So its a good practice to keep monitoring them in a number of ways. Internal Markets: The process of bringing support for a company and its activities within its own employees, in order to encourage them to promote its goals is defined as Internal Market. Internal Marketing did not play a vital role in traditional marketing but relational marketing sees the importance and treats the employees as an enabler to enhance external market place performance. If internal market is neglected external market would collapse. Its always the employees who create the trust and build the relationship with the customers. Therefore the firm must meet the needs of the employees are the basis to meet the customer needs. Customer MarketsSupplier Markets: Establishing long term relations with suppliers is a departure from traditional supplier positions. This development means that suppliers are seen as collaborators or partners in improving quality and managing costs.Relationships with suppliers is the main focus in recent years in relationship marketing. In traditional marketing the suppliers were unable to invest in the new plants and technologies which allowed them to deliver better products and services, faster and more cheaply. In relationship marketing manufacturers choose to build less exploitative relationships with fewer suppliers creating integrated and relatively stable supply chains thus allowing quality and flexibility in the system with low costs. Recruitment Markets: Recruitment marketing is the vital area for any organization to conduct strategic and effective partnerships with intermediaries in order to expose the company and capture the best trained and experienced workforce. Getting and retaining best people to work in the profession to build sustainability with the customers. Referral Markets: Developing relationships in referral markets means to link up with those people or institutions that have the power to direct business to the company. Key existing customers are often referral sources, and so are intermediaries, third party buyers, agencies and business networks. This is often the most effective part of an overall marketing plan and the best use of resources. (http://www.economicexpert.com/3a/Relationship:marketing.htm) Influence Markets: Influence markets are important to an organization in terms of relationship marketing as members of this market include bodies that directly impact on the organization. They involve sub markets like government regulators, stockholders, venture capitalists, financial analysts, stockbrokers, consumer associations, environmental associations, and labor associations. Developing relationships in referral markets means to link up with those people or institutions that have the power to direct business to the company. These activities are typically carried out by the public relations department. Customer Markets: The goal of customer markets is to get the customers and retain them. Sustained growth in business usually depends upon the same customer coming back again and again. Existing relationships with customers cost less to sustain than new ones. Traditional marketing: Marketing is the process to identify and retain the customer i.e. to know what products or services are of interest to the customer. In order to stay profitable companies should shift focus from production and build strong customer relationships. These factors are considered as the cutting edge over its competitors. Traditional marketing is a marketing mix with Four Ps. They refer to the four factors that a marketer has to consider comprising of Product, Price, Promotion and Placement. The first is the Product its production and management; second is the price; and the third is its promotion with advertising and branding etc finally the fourth is the placement or the distribution of the product. Before launching any product these four elements are to be well planned by any organization. (http://ezinearticles.com/?Overview-of-Traditional-marketingid=374128 ). Limitations of Traditional Marketing: Traditional marketing is company focused and product based with the intension to increase the visibility of the company and its brand. Its a failure since brand recall is very minimal as customer is exposed to many brands. The company becomes the active participant while the customer becomes inactive. Traditional marketing uses USP (Unique selling proposition) which is exclusive to a particular product from a particular brand. In todays world every brand is has all the features offered by its competitors therefore the USP marketing is becoming passive. Advertising is the main strategy for any business to give product visibility and boosts its sales. Traditional marketing uses Above the line advertising method which uses media as the main source like Newspapers, Magazines, TVs, all kind of mailers and leaflets. Its a drawback since the online marketing is offering a lots of hope to the marketer reaching out to a prospective customer at a faster pace. Internal Marketing is given little or no attention. Market share is taken as customer satisfaction indicator. Commitment to customers is very limited. (http://ezinearticles.com/?Overview-of-Traditional-marketingid=374128 ). Market Segmentation: Examples to evaluate the effective use of relationship marketing: New use of technology as marketing tools: To maximise organizations goals the companies have to adopt latest technologies and developments such as the Internet, Social Networks, Intelligent commercial websites, Media / Advertising using Billboards, Networking and Direct mail etc. (http://appreciativeinquiry.case.edu/uploads/E%20J%20Pullicino%20-%20MBA.pdf) Promoting the products through internet is termed as E-Commerce it is a network enabled business for selling products and services on the website. It is a practical medium for realizing the benefits of Relationship marketing. Consumers get greater and easier access to the market because information about competing offers is searchable and marketers are provided with the information they need to do their job more effectively. Email marketing strategy is used to build business through email marketing campaigns and online surveys. Advertising using Billboard is most common in 21st century. The use of signs along roadways to advertise a wide range of products, services etc. The signs used in these roadside advertising campaigns must be over a certain size in order to be referred to as a billboard and must be large enough for a driver or passenger in a vehicle to be able to clearly read the lettering while navigating the vehicle along a road. The effectiveness of these advertisements led to creating an entirely new branch of the advertising industry, as clients demanded newer and more attractive ads that would catch the eye and entice the traveler to stop and spend money. (http://www.wisegeek.com/what-is-billboard-advertising.htm) An integrated social media marketing strategy can help ecommerce site increase brand visibility, improve customer loyalty, and gain important insights about the markets served. (http://www.practicalecommerce.com/articles/961-Ecommerce-Know-How-Social-Media-as-a-Marketing-Tool) Mobility Marketing: Universal mobility programs are marketed through Mobility Marketing. Mobility programs consist of public, private, and human services modal alternatives. Mobility program is a success by implementing developing Techniques, Strategies, and Public Relations tools. Viral Marketing: A strategy that facilitates and encourages individuals to pass along a marketing message is termed as Viral Marketing. It depends on a high pass-along rate from person to person. If a large number of recipients forward something to a large number of friends, the overall growth rises very quickly. If the pass-along numbers get too low, the overall growth quickly falls down. Hotmail is cited as the first example of viral marketing. (http://www.marketingterms.com/dictionary/viral_marketing/) Its been referred as word of mouth, creating a buzz. Effortless and instant inexpensive communications to people is done through internet which is working out well in Viral Marketing. Another way to propagate the message is use others websites like placing text, graphics etc basically giving adverts in various websites to pass on the message. (http://www.wilsonweb.com/wmt5/viral-principles.htm) Guerrilla Marketing: Guerilla Marketing is unconventional marketing intended to get maximum results from minimal resources and it is specifically used in small business and entrepreneurs. Marketing is done in an unusual way at public places, street giveaways etc. In order to sell a product or a service, a company must establish a relationship with the customer build trust and support and understand the customers needs, and it must provide a product that delivers the promised benefits. Guerilla Marketing uses several tactics as follows: Providing service which is beyond customer expectations. Aiming efforts to impress the customers. Working hours that matches the customers requirements. Use of extreme specialization skills to market a product. (http://www.businessdictionary.com/definition/guerilla-marketing.html) Importance of Social Networks in Marketing: Social Networking is defined as grouping of individuals into groups like communities to make new friends and connect with old ones. Professionals use social networking to improve their career. In 21st century social networking is mainly done online through websites termed as Social sites. They function as online communities for internet users. Depending on the websites the users share their experiences, hobbies, politics etc thus socializing themselves from home. Another benefit is diversity because the internet gives individuals from all around the world to access the social sites. These sites are designed focusing on the interest of the individual. The websites without a main focus are referred to as traditional social networking sites and have open memberships. At the same time there are hidden dangers associated with these sites like data theft and viruses. These crimes are termed as cyber crimes. Depending on the cyber surrounding proceed with caution online conversations, marke ting etc. There are several Forums and groups such as Friendwise, Friendfinder, Facebook, Orkut, Twitter and many more. (http://www.whatissocialnetworking.com/) Promoting Products and Services using Social Networks: Facebook: Businesses large and small are actively connecting with customers through Facebook which has a number of tools that make it powerful helping them to spread brands by attract potential customers. It also helps business to review ways to make it better. Facebook is the second largest website with more than 321 million people. Ways Facebook can help business: Facebook Pages: Businesses can create their own profiles on Facebook using Pages. These pages help the business to give an identity by publishing companys information, photos, videos etc. When a individual is interested in a certain brand a note is written in those pages. These pages are posted back for all the friends to see thus promoting the product. Individuals are spreading the good word about products they are using making it easier for companies to market their products through word of mouth. People can know instantly about any news that they have to share. Applications: With powerful API developers write software helping to promote business on Facebook. For instance Visa Business Network application which takes information about users and allows them to better network with small business owners. Advertising: Facebook is a free application but gets its revenue through its powerful advertising engine that enables businesses to specify a specific demographic target, see how many people that demographic will hit, and advertise to that demographic. It also has advertising links at the bottom promoting products and services. Polls: Its a boon for marketers looking to get a quick answer about a particular feature theyd like to implement, or just to find out information and opinions. (http://www.insidefacebook.com/2008/07/28/facebook-for-business-what-it-needs-what-it-has/) Twitter: Twitter is one of the fast growing free online platforms that is being used for communication and conversation with over 1 million users and broadcasts over 3 million messages everyday. It can be used as a marketing tool, but the users must do it right by following the Twitter etiquette in order to be effective. (http://marketing.about.com/b/2008/10/07/twitter-a-marketing-tool.htm) Twitter is an application that allows to tweet with individuals. Search queries can be performed and notified if someone is searching for us. Its a great tool that can consistently run on the desktop. With the help of Twitterfeed one can post blog posts directly into ones Twitter account. Ubertwitter is a tool to get blogs on cell phone the users can reply and direct messages. Twitter is used as a media outlet by posting news and updates of the company or products. Ultimately Twitter provides an excellent source of free publicity. Twitter marketing is all about talking to the prospective customers, interacting with them thus providing optimal customer service. Its a fantastic tool giving the brand a voice and identity. It can be made as a best marketing tool by following unique style while twittering.