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27 Cards in this Set
- Front
- Back
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What is the definition of Relationship Marketing?
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IDENTIFYING,
DEVELOPING, MAINTAINING, and TERMINATING relationships that are TRUSTING, COMMITED, and INTERACTIVE with customers/partners in order to create MUTUAL VALUE |
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What environmental changes lead to RM?
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Markets (globalisation)
Technology (inexpensive, efficient) Consumers (sophisticated) |
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What are components of Traditional Marketing (TM)?
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- Focus on a single sale
- Short term focus - Focus on quality of output - Customers are more sensitive to price - Satisfaction measured by monitoring market share - Moderate customer contact |
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What are components of Relationship Marketing (RM)?
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- Focus on customer retention
- Long term focus - Focus on quality of interaction - Customers are less price sensitive - Satisfaction measured by managing the customer base directly - High customer contact |
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What is the '6 Markets Model'?
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Customer
Influence Internal Recruitment Referral Supplier |
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What is the definition of TRUST?
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A willingness to rely on an exhange partner in whom one has confidence
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What are components of TRUST?
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- Predictability
- Reassurance - Consistency - Familiarity - Reliability - Confidence - Expertise - Communication |
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What is the definition of COMMITMENT?
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Investing in a relationship with short term sacrifices to make it last a long time'
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What are the different benefits of relationship?
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- Strategic (competitive advantage)
- Social (networking, friendships, informal) - Customisation (goods/services specifically for you) - Economic (increase revenue, decrease costs) - Operational (access to process that didnt have before) - Symbiotic (part of a cohesive whole) |
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What is value?
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The discrepancy between benefits and cost
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What are the negatives to relationships?
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- Loss of control
- Unpredictability - Resource demanding - Restrictions - Unexpected demands |
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What are 'the 5 stages of relationship development'
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- Awareness (evaulation)
- Exploration (show commitment) - Development (investment) - Maturity (consistency) - Dissolution (manage) |
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Whate is 'the 5 step ladder of customer loyalty'
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- Advocate
- Supporter - Client - Customer - Prospect |
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What is the definition of LOYALTY?
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The seller's perception of teh consumer's positive attitude to the product resulting in repurchasing
(satisfaction =/= loyalty) |
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What are some loyalty indicators resulting in customer retention?
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- Buying frequency
- Repeat business - Cross buying - Word of mouth - Customer loyalty duration - Percentage of a customer's spending in a segment - Level of customer integration |
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What are 'the 7 types of Loyalty'
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- SWITCHING COST loyalty
- CONVENIENCE loyalty - FAMILIARITY loyalty - EMOTIONAL loyalty - IDENTITY loyalty - DIFFERENTIATED loyalty - SOCIAL CONTRACT loyalty |
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What are the switching barriers to customers changing brands?
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1) Contractual
2) Economic 3) Technical/Functional 4) Emotional 5) Inertial 6) Social 7) Risk 8) Search 9) Learning |
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What is the definition of Customer Lifetime Value?
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The net value of an individual consumer's purchases over their lifetime.
Takes a long term view. |
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What are the 4 groups of customer share consumers (profit/potential grid)
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1) RETENTION
2) REACTIVE STRATEGY 3) DISCOURAGE 4) KEY TARGET |
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What is a Network?
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- A group of actors with relationships among them
- Can be represented by nodes and links - Need to distinguish between core/periphery and centrality/density |
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What is Network Centrality?
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Refers to the POWER GAINED from being central in a networks structure
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What is Network Density?
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- Is the characteristic of a whole network.
- Measures relative numbers of ties in the network that link actors together. |
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What are the 4 kinds of nodes in a network?
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1) Compromiser (high centrality, high density)
2) Commander (high centrality, low density) 3) Solitarian (low centrality, low density) 4) Subordinate (low centrality, high density) |
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Can networks be managed?
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NO.
it is only possible to cope, react and manage the relationships within networks (IMP view) i.e. control who you are in a relationship with |
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What is the 'network management model'?
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- Network Pictures: views of network held by participants in the network. This wil form the basis of their actions.
- Networking Strategies: all interactions of a company in a network (conform/confront, consolidate/create, coerce/concede) - Network Outcomes: results that could be examined on the level for a a single actor, relationship or network. |
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What is the '6S Model'
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1) Shared values (over arching goals)
2) Style (way managers behave) 3) Structure (make up of the company) 4) Skills/staffing (internal HR) 5) Systems (process and procedures) 6) Strategy (set of actions) |
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What is the sequence for implementing a RM process?
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1) management commitment
2) Communication with employees 3) Setting up project team to execute action programs 4) Employee commitment |
