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Unit 11 Relationship Marketing

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Mark Grant

on 8 May 2018

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Transcript of Unit 11 Relationship Marketing

LO 1) To understand the development and application of relationship marketing
Relationship Marketing
Who are Nike's customers?
Marketing activities that are aimed at developing and managing trusting and long-term relationships with larger customers.
(Businessdictionary.com 2016)
Relationship Marketing Definition
Theories link it to customer service
Relationship Marketing concepts
Reasons for development of relationship marketing 1:The difficulty of attracting new customers
Unit 11 Relationship Marketing
Reasons for development of relationship marketing 2: The cost of lost customers
Reasons for development of relationship marketing 3: The lifetime value of customers
Most business rely on repeat business from customers.
Relationship marketing and the strategic aims of an organisation
L3 Business
Relationship marketing: definition
Reasons for development of relationship marketing
Relationship marketing concepts
WebFinance Inc. (2016). relationship marketing . Available: http://www.businessdictionary.com/definition/relationship-marketing.html. Last accessed 13/10/16.
Also building a long term relationship with all customers!
Attracting New Customers
What do businesses do to get new customers?
Different price points: Nike at Sports Direct, Size? and Dover Street Market
New Markets: Nike in China, Brazil and India
Diversifying: Nike were originally track products; What now?
Quality issues?
Nike x Stone Island
JD Exclusives
Who endorses their products?
Federer, Jordan, Ronaldo etc
Nike spends $8,000,000 a day on marketing...
Gill McShane. (2016). UK supermarkets experience fastest sales growth in 12 months. Available: http://www.producebusinessuk.com/insight/insight-stories/2016/04/05/uk-supermarkets-experience-fastest-sales-growth-in-12-months. Last accessed 13/10/16.
If a customer leaves you...
Not only do you lose but a competitor wins!
May leave for what reasons?
Price, quality, customer service, accessibility
Look at the 7/8 P's
What are the consequences of your loss?
look at share price
Public Perception
Shops opening/closing
Staffing levels
Think how many pairs of shoes you'll buy in your lifetime. - What's your value to a brand?
Some products/brands get generational brand loyalty- "I get this because my parents did"
Need to think about the 7 P's

Place and Time




Physical Environment


Productivity and Quality
A Payne 1991: The link between Marketing, customer service and quality.
Payne, A. (1991). Relationship marketing: Bringing quality, customer service and marketing together. Available: https://dspace.lib.cranfield.ac.uk/bitstream/1826/621/2/SWP3191.pdf. Last accessed 13/10/16.
Nike want to increase revenues to $50 billion dollars a year.
New markets: China, Brazil and India
Diversified: Golf, Football and Cricket
Channels: Online, bricks and mortar, partnerships
Product: endorsements,numbers (knocking out resellers), diversity (Golf etc), packaging

Place and Time: every week new releases, rehashed old ones!

Price: 4 price points- low, medium, high and friends and family!

Promotion: stylists, Instagram, forums, partnerships, twitter releases

Process: How is product delivered? How do they interact? Apps, logistics, lean structure.

Physical Environment: Shops styling, partner shops

People: Endorsed athletes, musicians, actors, ALL SUCCESSFUL
= Customers PERCEPTION of being successful!

Productivity and Quality: weekly releases, variable quality- depending on price (sometimes)
Evaluate contribution of relationship marketing activities to the effectiveness of the marketing function
"Personal" emails
"Personal" sales
Targeted ads
Nike ID and Nike Lab ID
Partnerships: £60M a year with Chelsea
The Commitment-Trust Theory of Relationship Marketing
Relationship Marketing: Retaining customers
Free delivery
Checking delivery status
Feedback from delivery
What does your selected business do to in regards to keeping customers
Product updates
Social media:
Customer service
Text questionnaires
Postal brochures
Posted vouchers
Loyalty cards
Use 4 different techniques to identify perceived quality gaps for a selected service/product: The product you came up with...
Gap Analysis
Where your product is to where you want it to be
Fishbone Analysis
Looking at the different parts of what you do to improve things
Comparing your goods/service to the industry best
Quality Circle
Groups of employees get together regularly to discuss problems - helps if they all from different functional areas.
Value Chain
Michael Porter (1985) Change business inputs into more valuable business outputs
Primary Activities

Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service.
Support Activities

These activities support the primary functions above. In our diagram, the dotted lines show that each support, or secondary, activity can play a role in each primary activity. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities.
4 steps
1) Identify subactivities for each primary activity
2) Identify subactivities for each support activity
3) Identify links
4) Look for opportunities to increase value
Tracking and evaluating customer satisfaction:1
External Customers
Loyalty Cards: Tesco's club card the first.
Surveys/ Questionnaire : After sales
Mystery Shoppers
Differentiate Internal and External Customers
Internal Customers
Team Meetings
Sales figures
Customer Relationship Management
Understand the role of customer relationship management (CRM) systems.
Needs to be transparent
Need to be quick resolution
Can turn people to advocates
Customer always right?
CRM links together all customer interactions
Full transcript