Posted at 10.26.2018
Most academics and marketing practioners consider that there are two basic methods to marketing which are generally categorised as being traditional or marriage based. The traditional approach to marketing has the acquisition of new customers as its central tenet. Indeed, Peter Drucker (1964, p. 91) recommended a business only existed 'to produce a customer'. However, organisations have significantly begun to recognise that customer retention is as important, or even more so, than customer acquisition. The traveling make behind this change in thinking has been the ever increasing cost of acquiring clients (Holmlund and Koch, 1996). Therefore, as opposed to traditional marketing, the basic premise of romance marketing is the introduction of customer associations with a view to cost lowering within the company and increased shareholder value through the creation of high degrees of customer satisfaction (Perrien and Ricard, 1995). Indeed, many romantic relationship marketing theorists summarise the difference between relationship marketing and traditional marketing as the creation of 'customer satisfaction' as opposed to the 'creation of the customer' (Perrien and Ricard, 1995). In terms of the competitive edge aspect of Doyle's explanation, Porter's 'General Strategies' model (1980, p. 39 - see Appendix I) suggests that the traditional approach to marketing relies closely on a strategy of cost command and price competiveness. In contrast, relationship marketing focuses on differentiation, in terms of product and/or brand features, as a way to obtain sustainable competitive advantage.
It can be seen, therefore, that Doyle's definition of marketing is closely allied to the partnership marketing school of thinking. However, Doyle's meaning will not take account of the fact that the implementation of an relationship based method of marketing alone will not necessarily guarantee an company will achieve a ecological competitive advantage, or, therefore, a following maximisation of shareholder earnings. To have the prospect of this, a romance marketing programme must include attractive and relevant value propositions for customers, which should distinguish an organisation's brand and/or products from those of its rivals. In addition, these differentiated value propositions should not be easy for opponents to imitate (Barney, 1991). It is important, therefore, that an organisation establishes precisely what value its customers would like in order for it to be able to design and deliver the appropriate value-enhancing benefits that will assist in the building of important long-term, and mutually beneficial, customer human relationships (Christopher et al, 2002, p. 22).
Doyle's definition relates and then "valued customers" suggesting that they are a homogenous group. However, not absolutely all customers are as well and Newell (2003, p. 17) articulates this when he suggests that "Customers don't desire to be treated equally. They would like to be treated individually". Therefore, not only does indeed successful relationship marketing rely on the creation of customer value propositions but also on the procedure of segmenting and concentrating on the most likely customers and then tailoring and setting value propositions to appeal to the many, identified consumer sections. Furthermore, the segmentation of consumers by psychographic and behavioural characteristics enables an company to understand different motivational factors that effect those consumers in their purchasing behaviour towards specific brands or products, thus facilitating a more individual approach to customers. In addition, segmentation by this method provides an organisation with an information into the specific value benefits that its customers, and potential prospects, are seeking when they make a purchase. This, in turn, helps in the creation of desired and differentiated brands and/or products, and enables their effective setting for the identified segments (Dibb et al. , 1997). The segmentation, targeting, and positioning process is summarised in Appendix II.
Doyle's meaning of marketing specifically identifies "developing associations with respected customers" as a means of fabricating a competitive advantage. However, this is makes no reference to some other stakeholder groups an company may have, and will certainly need to interact with, if it's to make and preserve a competitive gain. The 'six market segments' stakeholder model indentifies the main element stakeholder groups that require attention from any organisation that adopts a comprehensive relationship marketing method of the success of its business development and profitability targets (Christopher et al. , 2002, p. 76 - see Appendix III) Whilst this model is certainly customer centric, it recognises different stakeholder groupings as having the potential to engage in active human relationships with the organisation and. , therefore, be considered for addition within its marketing strategy. It is necessary for organisations to effectively deal with relationships with all of these groupings especially as they have an interrelationship with each other. For instance, shareholders in an organisation are customers of the Influencer Marketplaces, but can also be area of the Referral Markets and the client Markets. Finally, and perhaps most importantly, in terms of support for Doyle's classification, research has shown that there surely is a direct hyperlink between your adoption of an effective relationship marketing strategy and revenue (Bhote, 1996).
None of the is to say, however, that traditional marketing doesn't have a role that can be played in the modern-day commercial environment. There is absolutely no doubt that many consumers have a short-term perspective, in terms of these purchasing behavior, and are not necessarily devoted to particular brands. Indeed, such consumers may buy particular brands out of behavior or they could actively seek out brands regardless of whether or not they are really being targeted by marriage marketing programmes (Kotler and Armstrong, 2011, p. 150). Within this sense, Doyle's description will not recognise the idea or value of traditional marketing. However, the countless exponents of the traditional approach to marketing regard it as a definite and dedicated management function in a organisation that is in charge of creating deals with certain sets of customers that fulfill their immediate needs and wishes whilst, at the same time, interacting with the marketing aims set by the organisation (Gr¶nroos, 2006).
Organisations that deploy traditional marketing methods have a tendency to view the marketing function as being accountable for the so-called four Ps, namely Product, Place (distribution), Price, and Promotion, rather than the management of customer associations. Research in addition has shown that, in reality, very few organisations deploy specifically either traditional marketing or marriage marketing. Generally you will see a blending of both marketing disciplines and, in conditions of responsibility within an company, traditional marketing may be the website of the marketing section with customer marriage management being a standalone function. Regardless, the decision between using one of the two methods, and using both, should always be based on the industry involved and the needs of the client. (Zinedlin and Philipson, 2007).
However, there remains without doubt that many consumers are happy, and able, to form psychological, as well as useful, transaction-based connections with organisations. This is particularly the circumstance where an organisation has a recognisable brand as individuals are more likely to identify with a brandname, and remain faithful to that brand, than they are to an company. Commitment by customers to a brand may be a prime factor in the creation of ecological competitive advantage and, therefore, business progress and profitability (Aggarwal, 2004). It really is therefore that, matching to Kotler and Armstrong (2011, p. 259), of all the assets held by an organisation, the brand is the possibly the most long lasting and valuable in conditions of its potential to generate shareholder wealth. Therefore, although Doyle's description of marketing has been seen to exclude the still relevant dimension of traditional marketing, it can be effectively applied to the creation and management of the online marketing strategy of an company. Even so, Doyle's definition does not go very good enough in its tries to encompass the practice and value of relationship marketing as it generally does not specifically refer to the strategically significant role of brands in building lasting competitive advantages.
Consequently, to apply Doyle's definition in a functional sense to the creation and management associated with an organisation's marketing strategy, it is first essential to discuss and evaluate the role that branding and brand reputation has. As has already been shown, true relationship marketing needs that brands, and their natural value propositions, are positioned in a differentiated and competitive sense against the many identified consumer segments. This is only the first rung on the ladder in the branding process which is critical to the building of the sustainable competitive benefit that, as time passes, an organisation can build and preserve its brand reputation. Brand reputation is to do with how customers think and experience a brand and, in order to develop brand reputation organisations have to have certain 'building blocks' in location to enable customers to feel self-confident in developing meaningful human relationships with the brand (Keller, 2003). These blocks include brand salience, performance, imagery, and resonance, which all effect on the judgements consumers make in regards to a brand and, inevitably, how they will behave towards it. This technique of brand reputation building is summarised in Appendix IV.
If the process is adopted effectively, then customers will in the end progress from understanding, and empathising with, the brand's value propositions to presenting a resonance with the brand and being ready to form an mental romance with it. To maximise the value of this potential emotional relationship, organisations have to take benefit of every available opportunity to ensure that engagement between their brand and their customers is positive. These engagements can comprise lots of so called customer 'touchpoints', such as direct marketing, helplines, advertising, and sociable media. Each and every time that a customer engages with a brand via a touchpoint that customer's views and opinions about the brand are produced and, inevitably, this will effect attitudes and behavior towards brand. Indeed, Doyle himself (1998) advised that, by maximising the positive and integrated dynamics of customer engagements using their brands, organisations could improve their overall brand reputations. Consumers who form mental connections with brands can in fact become so enthusiastic about these associations that they develop a loyalty to the brand and may even progress so far as becoming so called 'brand advocates', recommending the brand to friends, family, and participants with their peer and reference teams (Aggarwal, 2004). When the company carefully nurtures these faithful customers and brand advocates, then they can become greatly valuable, in terms of future shareholder results, and sets of them could even form themselves into brand areas on communal networking sites, such as Facebook, where their affect over some other clients and potential clients will be even greater.
In summation and conclusion, it can be seen that the successful management of any organisation's customer interactions can lead to customer devotion and advocacy and it is a key element in an organisation's capacity to establish and keep maintaining its competitive advantage, which, alone, is a prerequisite for progress and profitability in the current globalised and highly competitive software industry. Although Doyle's explanation recognises the progressively more significant role of customer romance management within the marketing self-discipline, it fails to take profile of the other key stakeholder groups that interact in a organisation, and with each other. Similarly, certain strategically important aspects of a comprehensive romantic relationship marketing strategy that will maximise competitive benefit and, subsequently, shareholder returns, aren't described in Doyle's description. These shortcomings include a lack of reputation of the value and role of brands in the marketing process as well as the significance of segmentation, concentrating on, and positioning. Furthermore, Doyle's classification totally excludes any mention of the top role that traditional marketing continues to be in a position to play within an effective marketing strategy
Even so, although Doyle's description does flunk in certain areas, it is still a solid groundwork for the framing of organisation's marketing strategy. This is because modern-day organisations have to comprehend that, in order to provide the returns that their shareholders demand, a substantial factor of marketing practice must be focussed on the building of long-term, mutually beneficial relationships with customers rather than on new customer acquisition. This is also true as consumers not just have an extremely heightened awareness of brands but also take more accounts of an brand's reputation when making a purchasing decision. Similarly, consumers are more willing to express their brand consciousness by either defection from, or loyalty to, particular brands. Organisations can encourage customer loyalty to their brands by developing and interacting, at every available opportunity, dependable, relevant, and powerful brand propositions that are customised with their identified market segments. In this way, brands can build competitive gain through differentiation somewhat than through the adoption of low prices regulations which impact negatively on profitability and, in doing so on shareholder comes back.