Impact of Relationship Marketing Strategy - MyAssignmenthelp.com

Question: Discuss about the Impact of Relationship Marketing Strategy. Answer: Introduction In todays business world, Relationship Marketing (RM) plays an integral part for the success of the companies (Hollensen 2015). RM can be considered as a part of customer relationship management that put focus on the aspects like customer loyalty and long-term engagement with the customers. Thus, it can be said that RM is a tool for creating and maintaining long-term relationships with the customers that is helpful in generating greater amount of revenue for the companies. Long-term relationships with the customers help the marketing managers in the development of effective marketing strategies so that the performance of the companies can be improved (Christopher, Payne and Ballantyne 2013). Objectives of the Project The objectives of this research paper are shown below: The main objective of this research paper is to analyze and evaluate the impact of RM on the performance of the companies. With the help of this research paper, one will be able to get insight about how RM deals with the establishment of customer relationship and their advancements. The next objective of this research paper is to analyze the role of RM in getting competitive advantage for the companies. Another major objective of this research paper is to analyze the impact of RM on different associations of the companies. The last objective of this research paper is to analyze the advantages of RM for the customers and associates. Scope of the Project It needs to be mentioned that this research project has many scope. With the implementation of the strategies of relationship marketing, business organizations become able to strike a balance among the new business opportunities, making new customer base along with retaining the existing customers so that the profitability of the companies can be maximized. In addition, business organizations will be able to identify the loopholes in their marketing strategies with the help of this. Thus, it can be seen that the companies will be largely beneficial from the implementation of RM in their marketing strategies (Peck et al. 2013). Literature Review Relationship Marketing (RM) is not a new idea in the field of marketing as the use of it can be seen over the last twenty years. RM has an important influence on the marketing aspects of the companies along with the administrative mechanism. It can be seen that many business organizations have been able to improve their performance by impeding the strategies of RM (Halinen 2012). For this reason, in this era of business, one cannot simply ignore the importance of RM for improving the performance of the companies. In the techniques of RM, one can observe that there are four major values. First, RM does not put focus on any specific aspect of marketing as it covers all the marketing aspects of the entire organization. Secondly, the implementation of RM makes the companies able to share business value with all of their major stakeholders like customers, associates and others. Third, the implementation of RM helps in adding intelligence in the process of marketing so that the clients can be largely beneficial. Fourth, the clients are required to be considered as the main aspect for creating value in the organizations (Buhler and Nufer 2012). In the process of relationship marketing, various components can be seen. The first component is Trust. The existence of truest can be seen when the teams of the companies believe in their qualities that they have the ability to achieve the objectives and goals of the companies. The next component is Responsibility as it is regarded as an essential part for RM. It is considered as the desire of the employees of the companies to keep up the value of relationship (Brettel, Strese and Flatten 2012). For this reason, responsibility is considered as a major variable for the success of the companies. Another major component of RM is Communication. With the help of effective communication strategies, business organizations become able to make the marketing objective and goals known to the employees. Bonding is another major component of RM that refers to an important measurement of business relationships that connects two or more than two groups of employees (Lusch and Vargo 2014). The last characteristic is Satisfaction. It refers to the marketing dimensions by the3 customers or the clients express their positive feeling towards the product or services of the companies. Satisfaction is considered as an essential variable for measuring the success of RM in the companies. It can be seen that the organizational managers develop different kinds of strategies as a part of RM to boost the performance of the organizations. Development of dependability along with the club promoting programs are considered as major strategy for RM. Some of the loyalty programs help the organizational managers in keeling the long-term relationships with the clients (Murdy and Pike 2012). It is the requirement of the business organizations to develop separate approaches to make an impact on the customers for retaining positive relationship with them. For this reason, the introduction of loyalty cars can make positive impact on the clients to purchase the products and services of the company. It needs to be mentioned that the presence of strong and positive relationship with the customers can increase the quality of marketing strategy of the companies. A renowned brand always tries to make it easier for their customers to discover their products and services and the customers w ill buy the products that will be noteworthy for them. In this particular manner, business organizations become able to make strong relationship with their new as well as existing customers (Armstrong et al. 2015). Thus, with the help of RM, the marketing managers of the companies try to show the solid brand characteristics of their products and services with the help of various effective strategies. It needs to be mentioned that the strategies of RM have a large role to play in providing necessary competitive advantage to the organizations. RM helps the companies in providing great quality of products and services along with great loyalty to the customers. Great quality makes inner connection between the organizations and customers. On the other hand, great loyalty makes the organizations in better serving their customers (Jumaev and Hanaysha 2012). In the combination of great quality of the products and great satisfaction of the customers, business organizations become able to increase the profitability of them. In order to stay in the market competition, it is required for the business organizations to maximize their revenue and profitability along with customers satisfaction. Thus, in the presence of RM, companies can stay into the market competition in an effective manner. Apart from this, RM plays an integral part in gaining the satisfaction of the customers as it is consid ered as a long term approach for maintaining effective relation with the customers (Al-Alak 2014). The satisfaction of the customers can be obtained by providing them quality products and services; and for this reason, the satisfaction of the clients is regarded as the last parameter of the success of marketing. RM also plays an integral part in earning the brand reputation of the business organizations and it is considered as a critical part for gaining profit of the companies. The reputation of the brands can be increased by providing the customers with high quality of products and services. Most importantly, it is essential for the business organizations to maintain a long-term positive relation with the customers for increasing the reputation of their brands (Chen and Chen 2014). Thus, from the above discussion, it can be seen that the implementation of RM in the organizations makes the organizational managers able in providing quality products to the customers and to maintain a long-term positive relationship with the new as well as existing customers. Thus, large number of customer base helps the business organizations in fetching high amount of profit as it helps in the increase of profitability. In addition, it also helps in minting the reputation of the brands that leads to the high performance of the companies (Amine, Chakor and Alaoui 2012). Research Questions Primary Question What are the major impacts of Relationship Marketing on the performance of the business organizations? Secondary Questions In what ways relationship marketing helps the business organizations in getting necessary competitive advantages? What are the major impacts of relationship marketing on the performance of various business associates? What advantages does relationship marketing provide to the business organizations in acquiring new clients along with retaining the existing clients? Research Design and Methodology As a part of research methodology, it needs to be mentioned that the researcher will adopt the strategies of both quantitative as well as qualitative research method for this research project in order to collect primary data. Details are discussed below: Quantitative Research Method Quantitative research refers to a systematic approach for investigation of observable phenomena with the help of statistical, mathematical or computational techniques (Neuman 2013). As a part of quantitative research process, the researcher will collect data with the help of a survey questionnaire. The questionnaire will contain various question related to RM and they will be sent to the respondents via email. Qualitative Research Method Qualitative research refers to the systematic method to enquire many different academic disciplines (Maxwell 2012). As a part of qualitative research process, the researcher will collect primary data from conducting in views to the marketing managers of the selected companies. Sample Size and Sampling In case of the survey questionnaire, the researcher will select 50 employees from some of the selected Australian companies. It needs to be mentioned that the employees will be from the marketing department of the companies so that they can provide the correct answers of the questions. In case of personal interviews, they will be conducted with 10 marketing managers of the selected organizations (Oriani et al. 2014). Data Analysis After the collection of primary data from both the survey questionnaire and interviews, they will be analyzed with the assistance of various statistical tools in order to get the desired answers. For this research project, the researcher will use Microsoft Excel for analyzing the data (Thomson and Emery 2014). Reliability and Validity of Data In order to maintain the reliability and validity of data, the researcher will collect them from authentic sources and human responses. For reliability, the researcher will use appropriate statistical tool for the interpretation of data in order to get the correct answers of the research questions. Research Limitations It needs to be mentioned that there are certain limitation of the research process. Genuineness of collected primary information via survey questionnaire is a major limitation of the research. The survey will be conducted on the employees of marketing department. Thus, there is not any way to verify the truthfulness of collected data from them. For this reason, the researcher will not be able to get the clear image of the problem and thus, he/she will be facing difficulties in making appropriate recommendations. Thus, this particular aspect will affect the quality of research. Time Schedule Figure 1: Gantt chart (Source: ) Conclusion From the above discussion, it can be seen that the main aim of this report is to analyze and evaluate the impact of relationship marketing on the firms performance and customer retention. The above discussion shows that there are four major components of RM in the business organizations; they bare trust, communication, satisfaction, responsibility and bonding. According to the above discussion, the implementation of RM in the organizations increases the value of the brands and helps the organizations in getting necessary competitive advantage. From the above discussion, it can be seen that the researcher will use the strategy of both qualitative and quantitative research program for this research project. As a part of qualitative method, the researcher will conduct an interviews with the marketing managers of selected companies; and for the part of the quantitative research, the researcher will conduct a survey with the help of questionnaire among the employees of the selected compan ies. References Al-Alak, B.A., 2014. Impact of marketing activities on relationship quality in the Malaysian banking sector.Journal of Retailing and Consumer Services,21(3), pp.347-356. 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