Relationship Marketing - A Paradigm Shift In Marketing Thought?

12 Pages 2993 Words

RELATIONSHIP MARKETING
In many marketing texts the marketing mix paradigm and its ‘Four P’s are still considered to be the backbone theory of marketing. In recent years a number of alternative theories have been put forward which describe relationship marketing is a paradigm shift in thought (Brodie et al., 1997, Grönroos, 1995). Although often viewed as a relatively new theoretical concept, the writer argues that relationship marketing has been practised in various business contexts for many years and that relationship marketing is the ‘old’ concept repackaged. The corner shop owner, the visit from the Avon lady, the local barber shop or the family owned public house may be quickly fading from memory however, they could be viewed as pioneers of relationship marketing. The local turn of the century grocer had a one to one relationship with most of his customers and held all the information about them in his head. The fact is that in any service based business; relationship building has always been an important aspect of marketing concept and questioning the importance of good customer relations in a customer-oriented business is incongruent with services marketing.

The services business originally evolved around keeping close relationships with customers. However, because of the increasing number of customers and the stressing of the marketing mix paradigm, the relationship with customers moved into the background during the 1960s (Grönroos, 1995). As mass markets developed the hard core loyal users diminished amidst the ever-increasing opportunity for the consumer to switch to alternative brands and sellers. Services, in particular, are vulnerable to imitation and it was recognised that moving to a relationship focus, rather than transaction focus, could provide competitive advantage through long term customer retention. Programmes emphasising ‘putting the customer first’ and ‘smile’ campaigns were the outcome of ...