Relationship Marketing - A Paradigm Shift In Marketing Thought?

12 Pages 2993 Words

such schools of thought, as an effort to satisfy the demands of the consumer deluged by an ever-increasing array of alternatives.

Berry (1983) first introduced the term “relationship marketing” in a services context when he defined relationship marketing as “attracting, maintaining and – in multi service organisation – enhancing customer relationships”. The approach to service marketing of the Nordic School in the 1970’s became an internationally recognised approach to services marketing research (Grönroos, 1999). This ‘new’ perspective emerged as a counter reaction to the conventional view of marketing and the 4’Ps. The importance of establishing, strengthening and developing customer relations was stressed. A supporter of this school of thought is Grönroos, who proposed a customer-oriented definition of marketing that highlighted a number of essential elements in business relationships. He stressed the importance of marketing was to establish, maintain and enhance relationships with customers and other partners, at a profit, so that the objective of the parties involved are through a mutual exchange and fulfilment of promises (Grönroos, 1990).

The prominence of relationship marketing stems from the changing dynamics of the market place and the expanding requirements for competitive success. The emphasis shifted from the classical avenues of product, price, promotion and place to viewing the customer as the primary asset of the company. Rich (2000) suggests that these assets should be cultivated and grown in order to reduce the effects of ever increasing competition and potential pressure on pricing. This diverse and uncertain environment has forced businesses to restructure themselves in order to enhance their chances of survival and growth. In a marketplace where products and services are becoming increasingly commoditised and brand differentiation is losing its focus, relationship marketing can become...