Relationship Marketing In Consumer Markets- An Article Review

ARTICLE REVIEW

“Relationship marketing in consumer markets Rhetoric or reality?” By: O'Malley, Lisa; Tynan, Caroline. European Journal of Marketing, 2000, Vol. 34 Issue 7, p797, 19p; (AN 3497728)

Synopsis

This report is based on the notions of relationship marketing relative to consumer markets

This journal article (“Relationship Marketing in Consumer Markets: Rhetorical or Reality”)- focuses on the different aspects of relationship marketing and its effects on the business to consumer markets. This article addresses notions of relationship marketing such as its definition, stages in the Business Customer Relationships (BCR), Relationship marketing strategy in consumer markets, the four tangible manifestations of RM in Consumer Markets and situations where relationship exchange is taken.

Introduction

This case study report is solely based on the notions of relationship marketing relative to consumer markets.

Analysis would be made on the notions of relationship marketing such as its definition, stages in the Business Customer Relationships (BCR) and subsequently, the Relationship marketing strategy in consumer markets.

Discussion

Definition of Relationship Marketing

This journal article states that “…relationship marketing is conceptually distinct from transaction marketing, direct marketing, database marketing , loyalty marketing and retention marketing on the basis that these are tactical, while RM focuses on long-term interaction leading to emotional and social bondsвЂ¦Ð²Ð‚Ñœ(Lisa O’Malley, 2000).

Blythe defines relationship marketing as:

“…a business approach that concentrates on the long-term relationship between the firm and its stakeholders rather than on single transactions..”

(Blythe, “Essentials of Marketing”, 2001).

Hougaard and Bjerre define relationship marketing as:

“… company behaviour with the purpose of establishing, maintaining and developing competitive and profitable customer relationship to the benefit of both partiesвЂ¦Ð²Ð‚Ñœ

(Hougaard,S, Bjerre,M, “Strategic Relationship Marketing”,2003)

John Egan illustrates that “no definition will ever be perfect and it may well be that other ideas and concepts may in time also require inclusionвЂ¦Ð²Ð‚Ñœ (Egan, J, “ Relationship Marketing”, 2004) вЂ" relative to the definitions of relationship marketing.

Accordingly, the journal articles’ definition of relationship marketing doesn’t quite correspond with that of other sources and readings.

The journal article relates to relationship marketing as an emotional and social bond and distinct itself from the notions of retainment marketing and loyalty marketing.

Accordingly, Egan’s perspective does accommodate O’Malley’s interpretation of Relationship marketing through the word itself not having a perfect definition.

Henceforth, according to the above definitions, relationship marketing can be based on the principle of building a relationship (retaining existing customers and developing relationships with stakeholder groups) as opposed to simply generating transactions such as transaction-orientated marketing.

Conclusively, in the long run, the relationship marketing approach would tend to result in loyalty based customers as opposed to the transactional orientated approach to marketing, whereby the relationship does not extend beyond the transaction.

Stages in the Business to Customer Relationship

O’Malley illustrates the stages in the business to customer relationship as:

-Obscurity - marketers committed to transactional RM strategies.

-Discovery вЂ" developing relational bonds in turn, develop a repeat transaction.

-Acceptance- marketers committed to more relationship marketing strategies.

-Popularity вЂ" refining to closer business