This presentation would cover the following topics: 1.Transactional marketing approach to relationship marketing philosophy – competitive advantage through Relationship Marketing 2. Key concepts in relationship marketing 3. Relationship Marketing Programmes-Continuity Marketing, Individual marketing & Co-Marketing

1. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 1

2. Learning Outcome
• Difference in Marketing strategies of the Past and Present
• Concept of Relationship Marketing

3. Introduction
• Purpose of the Business to create a satisfied cutomer-
P.Drucker
• Profit is objective, but reward
• Assumption of Satisfied Customer?
• What happened prior to development of Marketing
Concept?
• Goal of Marketing activity- Produce a sale
• Profitability and Sales Volume(Relation)

4. Paradigm Shift in Marketing
• A set of theories that explain the way a particular subject
is understood at a particular time:
• A model of something, or a very clear and typical example
of something
• Is Market Place Undergoing Changes?
• Why?
• Role of Marketing has undergone Transformation
• Organisation needs to be organised wit latest information
• Knowledge oriented Systems

5. Paradigm Shift in Marketing
• Interview In the Marketing Science Institute Review in
1991
• PHILIP KOTLER
• Paradigm shift-Not satisfied with Explainatory variables
• Away from Focus of Exchange
• Focus on Building value laden Relationship
• Thinking is moving from Marketing mix focus to
relationship Focus

6. • FEDRICK WEBSTER
• Prominent American Opinion Leader In Marketing
• Shift from Transactions to relationship focus
• Emphasis on Long term Customer relationship
MARKETING CONCEPT OF 21ST CENTURY
• Could not be confined to few Specialist
• Functional Boundaries are disappearing
• Boundaries between the Firm and environment are getting Blurred
Paradigm Shift in Marketing

7. • Focus on Customer Driven Marketing Practices
• Focus on Profitability
• Focus on strategic Marketing Practices
THREE FUNDAMENTAL REQUIREMENTS
OF PARADIGM SHIFT

8. Focus on Customer Driven Marketing
Practices

9. • Shifting Focus from Sales Volume to Profitability
• Focus on Value
Focus on Profitability

10. • STP
• Deserve heart of marketing
• Market segmentation- Recognition of customers have distinct
needs, preferences and buying pattern
• Market Targeting-Aimed at Specific Parts of the total market
• Positioning-Developing Value Preposition
Focus on strategic Marketing Practices

11. Marketing Mix-1950
Competitive forces-1980
Relationship Marketing-1990
Solution and Value-21st Century
Themes for New Marketing

12. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 2

13. Learning Outcome
• Moving Towards Relationship marketing
• Fallacy of Competition Analysis
• Paradigm Shift in Marketing Orientation
• Value Chain- Process of customers
• Managing Customer As an Asset
• Focus on Knowledge Management and Experience
Marketing

14. Moving Towards Relationship marketing
• Academic Perspective- Rigorous use of Mathematical and
statistical analysis
• Limited application in marketing
• Dynamic Nature
• Is there inherent difficulty in Nature of Marketing
problems?
• Is it Possible to find Strong Casual Relationship?

15. Fallacy of Competition Analysis
• Over time- Marketing dept. has become distinct
organizational entity
• What was Marketing earlier identified with?
• Sales?
• What is the Marketing Department considered?
• Expert on Customer
• Keep the rest of the organization informed/focused on
organization
• Very existence of Marketing Rule-Crushing the competition?

16. Fallacy of Competition Analysis
• What would Marketing strategies help company to do?
• Create Value
• Make the firms Customers profitable
• Perform Better than competitor

17. Paradigm Shift in Marketing Orientation

18. Value Chain- Process of customers

19. • Due to three reasons:
1. Asset based view of the customer
2. Computing Technology makes precise customer asset
Management possible
3. Understand and manage the Value of each Individual
Customer
Managing Customer As an Asset

20. • Use of Technology for
Strategic Purpose
• Addition of value for its
customer
• Increasing productivity and
financial impact
• ATM
Focus on Knowledge Management and
Experience Marketing

21. • Growth of electronic Channels
• Remote contacts that operate ANYWHERE,ANYTIME
• Key Driving forces behind such moves
• Time
• Interest
Impact on electronic Channels

22. Richman Norman
Goods that allow Customers to unlock the value through
self services
Frozen Services

23. Business Success is the result of Symbiosis of technology and
marketing
Blending technology with customer requirements
Emerging practices:
Selling through multichannel or directly
Information based target Marketing
As customers gain near perfect Information
Process well furnished database on customer purchase
behaviour
Integrating Relationship Strategies with
Information Technology

24. Understanding asset value of the customer more
valuable than Mass Marketer
Free and smooth flow of Information about certain
factors
Integrating Relationship Strategies with
Information Technology

25. Business Strategy and planning hold the key
Rm would come naturally to Market lead company
Customer Acquisition and retention?
Service Organization pioneer in developing customer
retention strategies
Adopting Relationship Marketing Practices

26. ADVANTAGES OF RELATIONSHIP MARKETING
Reduce cost and improve effectiveness for attracting
customers
Manpower cost is reduced
Financial Cost is reduced
Improve Marketing Productivity

27. In Context to Sevices
Attracting ,Maintaining and in Multiservice organization
enhancing the customer relationship
80-20 Rule

28. Conclusion
Relationship Marketing has a potential to radically
transform the company
Irds eye view of Emerging trends, issues,and approaches
in Relationship building and Marketing

29. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 3

30. Learning Outcome
• Integrating Relationship Strategies with Information
Technology
• Adopting Relationship Marketing Practices
• Advantages Of Relationship Marketing

31. Business Success is the result of Symbiosis of technology and
marketing
Blending technology with customer requirements
Emerging practices:
Selling through multichannel or directly
Information based target Marketing
As customers gain near perfect Information
Process well furnished database on customer purchase
behaviour
Integrating Relationship Strategies with
Information Technology

32. Understanding asset value of the customer more
valuable than Mass Marketer
Free and smooth flow of Information about certain
factors
Integrating Relationship Strategies with
Information Technology

33. Business Strategy and planning hold the key
Rm would come naturally to Market lead company
Customer Acquisition and retention?
Service Organization pioneer in developing customer
retention strategies
Adopting Relationship Marketing Practices

34. ADVANTAGES OF RELATIONSHIP MARKETING
Reduce cost and improve effectiveness for attracting
customers
Manpower cost is reduced
Financial Cost is reduced
Improve Marketing Productivity

35. In Context to Sevices
Attracting ,Maintaining and in Multiservice organization
enhancing the customer relationship
80-20 Rule

36. Conclusion
Relationship Marketing has a potential to radically
transform the company
Irds eye view of Emerging trends, issues,and approaches
in Relationship building and Marketing

37. • FUNDAMENTAL CONCEPTS IN RELATIONSHIP MARKETING

38. How Corporate relationship is build, keeping in mind the
interest of the consumer
Ay meaningful relationship with expectation of mutual
benefit
What is customers expectation?
Realize cost saving
Improve the efficiency of DM?
Reduce the risk
Acquire a solution that is tailored
Realize the social and other VAB

39. Motives of Business Enterprise
Transparent
Motives are
Gaining an advantage-Cannot be easily copied
Cost of acquiring new customers
Improving predictability and efficiency of operations
Reducing the risk exposure
WINNING THE CONFIDENCE AND LOYALTY ARE FOCAL POINTS

40. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 4

41. Learning Outcome
• Fundamental Concepts In Relationship Marketing
• Steps in Building Brand equity

42. • FUNDAMENTAL CONCEPTS IN RELATIONSHIP MARKETING

43. How Corporate relationship is build, keeping in mind the
interest of the consumer
Ay meaningful relationship with expectation of mutual
benefit
What is customers expectation?
Realize cost saving
Improve the efficiency of DM?
Reduce the risk
Acquire a solution that is tailored
Realize the social and other VAB

44. Motives of Business Enterprise
Transparent
Motives are
Gaining an advantage-Cannot be easily copied
Cost of acquiring new customers
Improving predictability and efficiency of operations
Reducing the risk exposure
WINNING THE CONFIDENCE AND LOYALTY ARE FOCAL POINTS

45. BASIS OF BUIDING RELATIONSHIP
1.TREATING
CUSTOMERS
DIFFERENTKY
2.INFORMATION BASED
DECISIONS
3.CUSTOMER CENTRIC
4.FLEXIBILITY

46. DEFINING CONCEPTS OF RELATIONSHIP MARKETING
GRONROOS
Marketing is to establish ,maintain and enhance
relationship with customers and other partners , at a
profit , so that the objectives of the parties involved
are met . This is achieved by a mutual ex-change and
fulfillment of promises .
A. To attract the customer
B. To build the relationship with the customer so that
the economic goals of that relationship are achieved

47. DEFINING CONCEPTS OF RELATIONSHIP MARKETING
The Promise Concept
Relevance of Trust

48. DEFINING CONCEPTS OF RELATIONSHIP MARKETING
The Promise Concept
An integral element of the relationship
Emphasised by Henrik Calonius
May attract new customers and initially build the
relationships
Fulfilling promises is as important as means of
achieving customer satisfaction
Promises are mutually given and fulfilled accordingly

49. DEFINING CONCEPTS OF RELATIONSHIP MARKETING
Relevance of Trust
A WILLINGNESS TO RELY ON AN EXCHANGE
PARTNER IN WHOM ONE HAS CONFIDENCE

50. • STEPS INVOLVED IN CUSTOMER BASED BRAND EQUITY

51. BUILDING BRAND EQUITY
What is the base of Brand Equity?
Customers Knowledge and feeling for the brand
Includes
Recognise
Recall
Association
Using this for DM

52. BUILDING BRAND EQUITY
Distinctive Competence
Brand is quality perceived by the customer
Creates set of Expectations
Most powerful form of product differentiation

53. STEPS IN BUILDING CUSTOMER BASED BRAND EQUITY
Kelvin Lane keller(1998)
Four Steps
1. Creating Brand Identity-Brand awareness/Brand
Salience
2. Developing Brand Meaning-Brand performance/Image
3. Defining desired brand Response
4. Defining the desired brand Relationship

54. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 5

55. Learning Outcome
• Value Creation
• Relationship Marketing and Value Chain

56. • Value Chain

57. Value Chain
1. High awareness reflects the Familiarity gained from
past experience
2. A perception of High Quality represents what the
customer know about the ability of a product or service
to meet their needs
3. A meaningful brand promise captures all the positive
association
4. Strong Brand loyalty is commanded by string Brands

58. Value Chain
 A brand plays different role in the low risk consumer
products than they do in high risk technology Products
Value Proposition to be communicated
Market targeting and Positioning

59. RELATIONSHIP MARKETING AND VALUE CHAIN
 Relationship Marketing is built around the concept of
Customer value and the value chain
Fedrick E Webstar (2002)
Marketing as Defining, Developing and delivering Value
to Customers

60. RELATIONSHIP MARKETING AND VALUE CHAIN
 Finding the Customer Needs that are not satisfied
Being Expert
Creating Solutions
Communicating and Delivery those solution

61. RELATIONSHIP MARKETING AND VALUE CHAIN
 Customer relationship are the key strategic Assets of
firm
The purpose of marketing is to create Customer not Just
to make a sale

62. RELATIONSHIP MARKETING AND VALUE CHAIN
 Finding the Customer Needs that are not satisfied
Being Expert
Creating Solutions
Communicating and Delivery those solution

63. Factors determining the Nature of Relationship
 Effect of Experience
Word of Mouth

64. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 4 :Paradigm Shift in Marketing
Session 6
64

65. Learning Outcome
• RELATIONSHIP MARKETING PROGRAMMES
• TYPES OF RELATIONSHIP MARKETING PROGRAMMES
65

66. RELATIONSHIP MARKETING PROGRAMMES
• The present millennium has been witnessing vehement changes in the
strategies and focus of many promotions and campaigns .
• A fundamental shift is taking place from mass marketing that sends
messages about a standard product offering tailored to the specific
individual
66

67. RELATIONSHIP MARKETING PROGRAMMES
• Among the most commonly found techniques for enhancing the
customer profitability are the programmes that reward customers for
frequent and loyal purchasing behaviour
• These take the familiar form of -
(a) airline frequent flyer awards programme based on mileage flown
(b) hotel guests awards based on nights stayed
(c) credit card rebates based on amount charged
• The marketing practitioners in search of new creative ideas develop
many variations and combinations of these programmes to build closer
and mutually beneficial relationships with their customers
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68. 68

69. TYPES OF RELATIONSHIP MARKETING PROGRAMMES
1. CONTINUITY MARKETING PROGRAMMES
Due to the growing concern for retaining customers as well as many
emerging knowledge bout customer retention economics , many
companies developed continuity marketing programmes
These aim at -
a. Retaining the customers
b. Increasing their loyalty
For consumers in mass markets these programmes take shape of
membership
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70. TYPES OF RELATIONSHIP MARKETING PROGRAMMES
2. PARTNERING PROGRAMMES
This is major type of programme in the business-to-business (B to B)
and business-to-customer (B to C) segment
It involves partnership between customers and marketers
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71. TYPES OF RELATIONSHIP MARKETING PROGRAMMES
PARTNERING PROGRAMMES
These are of two types :
a. Co-branding : two marketers combine their resources and skills to
offer advanced products and services to mass market customers
Ex : BPL mobile and ICICI bank co branded the ICICI BPL mobile
b. Affinity partnering : marketers do not create new brands , rather
they use endorsement strategies
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72. TYPES OF RELATIONSHIP MARKETING PROGRAMMES
3. ONE TO ONE MARKETING
Marketing approach is grounded in account based marketing .
These are aimed at meeting each customer’s need in a unique and
individual manner
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73. TYPES OF RELATIONSHIP MARKETING PROGRAMMES
4. INTEGRATED TELEPHONE MARKETING
 A successful and effective direct response campaign could be achieved
by this type of marketing
 This is possible when message that the firm in question communicate
with customer complements with -
a. message delivered by phone representative
b. The fulfilment package
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74. STRIVING FOR INTERACTIVITY
• Most customer responsive strategies fall short of this interactive ideal
• They could address only microsegments extracted from huge
databases and send personalised message to carefully selected
individuals
• A modicum of interactivity is achieved when an advertisement elicits a
response such as returning a coupon or making in toll free call
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75. STRIVING FOR INTERACTIVITY
• ROLE OF INTERNET
1) The rapid rise of the internet has changed the rules of interactive
marketing
2) It permits complete addressability and two way interaction
3) When a customer visits a web site , many cycles of messages could
be exchanged in a short time and remembered on next visit
4) The relationship marketing could be delivered by variety of media ,
depending on nature of contact
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76. STRIVING FOR INTERACTIVITY
• ROLE OF INTERNET
5) The replacement of people based marketing by automated
relationship marketing provides a challenge to a relationship delivery
6) The experiences covers all the touchpoints with the customers, from
branding , through marketing, sales and service , to the product
consumption experience
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77. STRIVING FOR INTERACTIVITY
• INTERRACTIVE MARKETING
Peter Drucker has given the best definition of marketing when he
referred marketing as “everything the company does , seen from the
perspective of customer”
The interactive marketers influence the customers during each
customer facing touchpoint in the customer experience .
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78. STRIVING FOR INTERACTIVITY
• INTERRACTIVE MARKETING
The persons involved in interactive marketing include
a. the field force
b. operations or just any other person who could influence the
customers sensibility , feelings and thoughts .
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79. STRIVING FOR INTERACTIVITY
• INTERRACTIVE MARKETING
An in-depth study to understand
a. Real factors that influence the customer appraisal during every
customer experience
b. The factors that influence the formation of real relationships , has
revealed the role of marketing department is dwindling in the
present day context though much of present day marketing is still
product driven , rather than customer driven
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