Essay about Relationship Marketing and the Uk Telecommunications Market

2418 Words Nov 23rd, 2011 10 Pages
Relationship Marketing in Action:
The UK Mobile Telecommunications Market

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Managing Business Relationships

Word Count: 1918

Relationship Marketing (RM) is a strategy designed to foster customer loyalty, interaction and long-term engagement. It focuses more on customer retention rather than customer acquisition; in other words, it is about keeping your existing customers happy. Christopher et al. (1991) proposed that RM is where “customer service, quality management and marketing come together” whereas Grönroos (1994), cited by Varey (2002, p.17) includes the concept of other stakeholders, not just customers. He states that it involves “identifying and
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The individual brands are retained but customers can now benefit from offers and technology from both companies (EverythingEverywhere, 2011). The third largest network provider of telecommunications and broadband with around 25% of the market is Vodafone. Its strong position is due to the fact that it was the first network provider within the UK and throughout the 1990’s; undertaking several mergers for expansion and as a defensive move.

The concept of RM is particularly significant within the UK MTM. A feature of RM is addressing multiple markets, i.e. it is essential to recognise the diversity of key markets that companies have to consider (Payne, 2000). The RM multiple markets model (see appendix 1, fig.1) represents the key market domains where companies have to direct marketing activity and where to apply more detailed marketing strategies. Customers are central for MTM. However, referral market (intermediary stores such as Carphone Warehouse), supplier and alliance market (i.e. Orange and T-Mobile merger), recruitment markets (qualified staff for service recovery), influencer markets (government regulations) and internal markets (internal customers/ suppliers) also play crucial role in company’s decision making as each market may require its own explicit RM strategies. Market segmentation must be undertaken at all levels of the customer market

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