This presentation briefly covers the history of Relationship marketing and its benefits over traditional Transactional marketing. It discusses the. Relationship marketing, although it is a relatively new notional concept, has The concept of commitment in sociology, is used to examine both. The reviewed literature than discussed the evolution of marketing from the four P's principle towards more challenge structure combining environment factors.
To make a long story short, yes.
The fact that relationship marketing is evolving alongside technology isn't surprising — but discovering that you no longer control your brand can be.
The old days Back in the day aka, pre-Y2Kbusinesses didn't need to develop relationships with their customers in order to keep their business afloat; they simply needed to have the largest, boldest ad in the yellow pages.
Starting your business name with four A's didn't hurt, either. Whilst this is a broad over-simplification, there was no information superhighway in the 20th century.
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Consumers fulfilled their needs using businesses they found in the phone book, on the radio, or through a commercial on television. Because channels of communication were so sparse, marketers were able to simply talk at consumers. Furthermore, marketers were able to retain a very large amount of control over what information consumers had about their brands.
One upset customer might tell five of their friends about a bad experience, but there was no medium available for them to amplify their message.
No longer were businesses the only source of information about themselves - customers, competitors, and essentially anyone with a computer and Internet access was now competing with businesses for consumer attention.
Evolution of Relationship Marketing
At this point, businesses were forced to begin listening to and building better relationships with their customers. Until this period the products and services were always produced in smaller quality where things were in short supply and were marketed in the local area. Industrialization led to mass production as well as standardization of the products and services.
The businesses started expanding their geographic boundaries and exploring new markets where in it became necessary for them to evolve new methods of marketing.
They understood the importance of having to reach out and build a relationship with a customer and make efforts to retain the customer rather than keep spending on marketing to new customers every time. At this stage we do see significant changes that happened at an Organizational level.
Organizations realized the importance of having to put the Customer ahead of its business. Organizational philosophy seemed to have shifted from profits, products and markets to Customer first.
The Evolution of Customer Relationship Marketing
Right from product design to manufacturing as well as selling began to be designed around what the Customer wants, his needs, his comfort and satisfaction. Customer focus and relationship became the Organizational focus and lead to many new trends in manufacturing methods the most significant being the concept of TQM or Total Quality Management. On the marketing front too, the managers had to come up with new channels for marketing and sales for they had to reach out to bigger markets and new customer segments.
As a result we saw the emergence of Direct Mailer or catalogue sales was born in the s. Information technology further enhanced the marketing methods whereby database marketing, direct mailing and customer loyalty programs along with marketing services came into being. With the advent of internet we have see several more marketing methods like e commerce, online selling, one to one selling happening. All these marketing channels have been built around the concept of relationship marketing.