The marketing practices are century?s old, but systematic marketing concept as a distinct discipline has been evolved in the beginning of 20th century. ?Customer are main decider of business? ? this concept is getting ultimate importance from this century. The motive of any business was profit maximization through volume of business according to Selling Concept, but in later years of 20th century, the motive of business has been shifted toward profit maximization through customer satisfaction. In today?s competitive world each and every company has to face cutthroat competition with other competitors for a foothold in ever slippery market. That is why mere customer satisfaction is not assuring loyalty towards any brand. As prospects are having many choices and they are more price sensitive now, companies need to do something additional to make its customers retail. Previously companies u EasyAzon sed to offer differentiated products and services to retain their customers. But in today?s world imitation of new features and offers are very common and that is why product and service differentiation are tough. So, not only creation of new customers but also retention of old customers is very vital step for profit maximization. The emphasis on relationship is now a key to successful business and the traditional concept of making sales is being replaced by making long time win ? win relationship with customers. It is emerging as the core marketing activity for business operating in fiercely competitive environments. On average, business spends six times more to acquire customers than they do to keep them (Gruen, 1997). Therefore most of the firms are now paying more attention to their relationships with existing customers to retain them and increase their share of customers? purchases.
IMPORTANCE OF RELATIONSHIP MARKETING IN SERVICE SECTOR
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