"Relationship marketing is the ongoing procedure for engaging in co-operative and collaborative activities and programs with immediate and person customer to produce or enhance common value at a reduced cost. "
Relationship marketing, regarding to Gronroos (1994, p 10) methods to "Establish, maintain enhance and commercialize customer relationship, so the targets of the gatherings involved are satisfied. " And this can be done by fulfilment of claims made and common understanding.
From a few of the meanings it is seen that the understanding of Relationship Marketing differs for some of the degree. However, for the success of your mutually beneficial marriage using its consumers, the co-operative management must understand other marriage (organisational) as well, i. e. rivals, suppliers or inside external department.
Relationship Marketing, this is a dynamic of the organisation such as Communication. It is really because it entails various associates and all of them a direct or an indirect impact in playing with the success or lifetime of organisation. So, it could be said that it is important to maintain relationship in the best possible way with these partners as it will involve profitability. It is very important to keep check if each companions are satisfied over the line of romance, most significant the consumers who consume straight or by resell. In a very sound relationship, focusing on romantic relationship marketing not only on transactional marketing are successful in maintain relationship healthy relationship using its customer in an extended run and is able to keep its customer and other practical partners for long term relationship.
Relationship marketing is thus an indispensible for the ongoing running in the long run of an organization such as BSNL. The associates in this relationship are the following:-
Internal Partnerships (Employees)
Below given is the style of partnership of Romance Marketing
Four wide-ranging partnerships of Romantic relationship Marketing for BSNL are reviewed in detail as follows.
With the time, the wants, objectives and would like of the client also changes from time to time. To keep rate with the increasing needs of the clients and to take care of competition, companies have to work harder and also have to seek opportunities on how they can meet up with the expectations and demands up to the ideal level. This can help business to keep their customers dedicated, retained and satisfied, guaranteeing profitability running a business over the long term, in exchange.
As mentioned previously, it is important for BSNL to practise the management ideas of Customer Romance, also called Customer Romance Management, in order to cope up with changing business environment and their requirements.
"Customer Marriage Management is an enterprise vast business strategy that maximizes success, income and customers satisfaction by managing around customer sections and fostering behaviour that satisfies customer centric process" - expresses Godson.
Customer Romance Marketing, however is not limited to marketing office, it also pulls whole organization together to be customer centric. It plays a vital role by creating win-win situation for customer and BSNL, both, by getting nearer to the customers who have great potential of profitability and by enhancing customer's overall connection with the organization.
In India, the telecommunication industry has a good probable which is one of the rapid growing sector, it is due to upsurge in demand of the customers every once in awhile. So, it is very important to acquire customer knowledge to build up several specific strategies from time to time.
There are two different levels of Customer Relationship Marketing which helps firm in making strategies related to development and preserving relationships. The different degrees of Customer Romantic relationship Management are the following:-
Operational Customer Relationship Management: involves something and the process where customer's enquiries, purchases, invoicing and shipment are been able on daily basis.
Analytical Customer Relationship Management: includes strategic use of consumer data for permanent planning and decision making by the most notable degree of the organisation.
Recently, it's been pointed out that Customer Romantic relationship Management way for marketing has earned a lot of importance as it looks for in establishing relationship with business organization and its customers(Antioco and Lindgreen, 2005). As explained above, CRM levels are used and taking advantage of the IT based mostly interactivity. Frequently, IT technology is employed by CRM as an instrument to be able to entice, gain, and wthhold the customers in an extended run (Ryals and Payne, 2001). The IT technology enables IT established interactivity to make if possible for consumers to have an access to the product or services offering of the company.
The shape below states the IT based Network of romance.
Source: (Antioco and Lindgreen, 2004, p 139)
Moving ahead from IT, below given is a "turn a profit string model" of the CRM saying various variables, aiding in enhancing the business performance of a business.
THE PROFIT String MODEL
> Understanding customer Need >Behavioral Devotion > Income Growth
>Achieving customer Goals >Attitudinal Commitment > Show of Customer
>Delivering customer Value > Customer Tenure
Source :-(Buttle F, 2009, p 43)
According to Kotler (2007) states "Customers satisfaction is the state of hawaii to which a product's recognized performance fits the buyer's expectation".
If the merchandise is sufficient what buyer expected then he or she is said to be satisfied, and if it doesn't complements the objectives of buyer, she or he are reported to be dissatisfied.
Customers are also one of the biggest assets of the organization as because of them organisation gets money which is very needed for an efficient running of a business. If we have look at the competition level in telecommunication industry in India, it is important for BSNL to bear in mind that just by acquiring customers is not very sufficient as there is a direct link between success and progress and customer retention over the time.
As Tom Peters (1988) said, "It requires typically 5 times as enough time, money and effort to gain clients as it can to retain a preexisting one. " (Goddon, 2007, p 72). Hence, the value of customer retention should be studied into consideration. Reichheld and Sasser (1990) proclaimed a company can raise its gains by nearly 100% by retaining 5% of its existing customers.
However, for a business additionally it is important to understand life value of the client. Kumar (2008, p 5) claims that "Customer LIFE value is the full total financial contribution from the existing period into the future". For example if a person pays off BSNL, say, 1000 every month for the broadband connection and stays on with the business for 25 years, his / her average life value would be 1000*12*25= Rs. 3, 00, 000
The above situation can only just be possible if the client is happy or content with the services provided by BSNL. It thus becomes very important to BSNL to provide something which is more than what the customer expected and enhance the overall connection with the customer for the organisation, alternatively than providing just good services and interacting with the anticipations of customer.
Oliver(1999, p 34) says that "Customer devotion is a deeply placed commitment to re buy or re patronize a preferred service or product consistently in the foreseeable future, thereby causing recurring same brand or same brand-set purchasing, despite situational affects and marketing attempts getting the potential to cause switching behaviour".
According to this is of customer commitment there are two sizes from it, "Attitudinal" and "Behavioural" respectively.
Attitudinal Loyalty: which means that there is an assumption that the customer has a favourable frame of mind towards the firm in comparison to its rivals. ( Leverin and Liljander, 2006, p 234)
Behavioural Devotion: this means that it is not necessary it reflects attitudinal loyalty, as there should be several others factors stopping the customers from defecting. . ( Leverin and Liljander, 2006, p 234)
As there are so many telecommunication companies in India, having competition between them in terms of services provided by them and grabbing and sustaining the clients, it becomes very very important to BSNL to comprehend the major components of customer loyalty and how much commitment to be likely from the customers.
Thus, the ladder of loyalty can be utilized as to know with whom BSNL can conduct business and about the several stakeholders engaged in the business.
Prospects: prospective customers who may be persuaded to work with you
Purchaser: has done business only once to you.
Client: does indeed business together with you regularly, but may be neutral or even negative towards you.
Supporter: likes your organization but only facilitates you passively.
Advocate: actively suggests you to others. Does your marketing for you.
Partner: gets the relationship of partner with you.
Source: (Godson M, 2009, p 106)
The relationship between your suppliers of the company and the firm has significantly emerged from previous few decades and now, it is just a matter of concern for the marketers (Godson, 2009).
Now, it is very important to provide proper desire to strategic relationship with the suppliers, because they are assumed to be a key to preserve the competition on the market, which is very much indeed possible due to supply chain management of the company, channels of distribution and previous but most significant the clients.
Buttle F (2009) areas that "Distributor Romance Management is the back office function, handled through supply string management of the firm or the supplier marriage management".
Suppliers, on the other side, also takes on a essential role in firm's connection with its customer as the clients are in charge of the accurate product or services, at the right time, at the right place and also to the right person. Thus, it's important to give proper briefing to the suppliers and keep maintaining good bonding with them to provide best product or services to the finish consumers.
BSNL is also considers its suppliers and other providers as an important and integral part of their business or opportunity or even more as a lovers, who puts combine effort to provide best quality of services to the clients. In addition, it conducts several ceremonies like award wedding ceremony, a step to maintain healthy relation with is suppliers. The Chairmain of BSNL 'Goyal' once made a very good assertion that, "The telecom equipment manufacturers have enjoyed an important role in facilitating the development of the industry and thus adding astonishingly for attaining the vision of the business".
Employee romantic relationship can be well thought as "Relationship that exist between the company and its employees and that this relationship is of marketing interest". (Herington, Scot and Johnson, 2005, p 257).
Gummesson (2008, p 225) expresses that the word internal marketing is thought as the "Application of marketing knowledge -which was originally developed for exterior marketing-one of the 'inside market', that is the employees".
The definition of Internal Marketing stated above explains a lot more about the internal relations of the business which can be being designed for the development of organization on an overall basis in the external market. That is mainly based on the human tool management of the organisation, on how the employees are encouraged to achieve the orientation of customer to the optimum levels. If the worker is well content with the inner management of company, they show more interest, dedication, commitment towards their work, which results in advancement of the business performance and profitability.
As BSNL is a administration owned organisation therefore the employees get less motivational plans in comparison with the private organisation. But the value of motivation can't be denied even by the government owned or operated companies. So, keeping that in mind BSNL too, offers some motivational deals to the employees, inorder to improve their morale. The motivational benefits provided to them are the following:
Free health check-up facility
Time to time modification facility
Central authorities facility
Good working environment
Free telephone facility
The purpose of providing such facilities to employees is to treat them as an internal customers of the company and the first main concern of an organisation are its employees. They need to develop healthy relation using its employees in that manner that they effectively and willingly look after the external customers in best manner.
For case the Columnist of the 'Financial Times', 'Lucy Kellaway' in his writings represents the songs of 'Shell Company' as: (Godson M, 2009, p 274)
''We will be the best'
We are all the winners
We are the ones who've made a change
We have become the business''
The morale of the track is employed in an organization as a team with feeling of devotion within the employees and the very best management.
External relationship carries a set of exterior factors, having an have an impact on on the functioning of an organisation, which are also called stakeholders.
"Stakeholders will be the those who make a difference, or be damaged by the actions of the organization"(Godson, 2009).
The figure stated below depicts the many normative teams, which forms an integral part of External romantic relationship.
Power of Authority-can withhold resources and back actions
As, BSNL is a authorities owned organisation, this particular area of relationship doesn't take much effect on the working of the business. It doesn't means that things can be studied for granted and group can take good thing about being government managed, as the organisation has to operate within the parameters laid by the federal government.
After going right through all the major aspects of the partnership Marketing with various stakeholders mixed up in effective running of any organisation, it is essential to make a sound online marketing strategy, in order for the gap between the organisation and customer.
From BSNL viewpoint, it is very important to own proper communication with existing and prospective clients. Development of goods and offering good services at attractive prices are their extra job. Thus, effective communication is a basic and essential component in order to create and maintain long-term customer relationship. Now, the marketing communication blend comes into action.
According to 'Kotler' (2007, pp; 719) "The Marketing Communication mixture consists of a set of tools which may be used in several degrees of power to be able to communicate with the targeted audience''.
The given below model shows the normal communication tools that are used with a company to go after its marketing objectives.
Advertising A METHOD Communication
Personal Selling Two Way Communication
Source: Lecture Slide from Symbol Godson
The communication tools are being discussed below in detail:
Advertising is thought as "Any paid form of non- personal demonstration and campaign of ideas, good or services by an identified sponsor''. Kotler(2007, p 719).
Advertising is employed to provide contact with the mass market segments, geographically dispersed. It's the mass media mode of communication. The function of advertising can be radio, tv set, and online advertising. Traditional varieties of advertisements includes magazines, magazines, yellow internet pages, bill boards, sign boards and posters etc.
BSNL, uses superstars broadly for advertising in order to produce strong impact and brand image in the minds of its customers and attract most youth market section.
Recently, it offers tied up with four advertising companies
So concerning carry out its advertising campaign for the entire year 2010
Kotler (2007, p 719) says that PR is the "Building good relations with companies publics by obtaining favourable publicity".
Public connection includes sponsorship, special incidents, press holds and web pages. BSNL being a government owned organisation, profits a competitive edge in building strong romantic relationship with news media, customers and other lovers involved in jogging of its business.
"Sales Advertising is the short-term incentives used by an organization to encourage sales and purchase of the product or service". Kotler(2007, p 719). Includes presentations of products, special discounts, coupons etc.
BSNL, too, practices the sales advertising by offering discounts on installing broad group, free web conferencing, doubling the internet rate for existing customers etc.
Sales campaign can be said one of the main method of communication process, which is also most satisfying approach to communication process as given opportunity it strengthens the relations of stakeholders with organisation.
Direct Marketing Relationship defines Direct Marketing as "An interactive marketing system that uses a number of advertisement multimedia to have an impact on a measurable response or purchase at any location''. Hollenson (2004, p 278). Includes telemarketing, catalogue and internet plus much more.
BSNL being truly a communication organisation gains an edge again to do immediate marketing of its large range of products through mails, message or calls etc. However, as Hollenson(2004) also mentioned that dirct marketing is not really much of the promotion tool, it is also a distribution channel which grows out of immediate mails. Method of ad.
In the words of Kotler(2007) personal selling is the " Personal presentation by the firm's sales force for the aim of achieving sales and building customer relationship". Includes trade fairs, motivation programs, sales display etc.
Personal advertising is one of the better way in order to build relations with the stakeholders, as organisation gets an chance to talk to its stakeholders and to get their thoughts and opinions too about what they feel and to get to know where they lack to be able to provide their consumers. In case there is BSNL it generally does not offers much importance to personal advertising, to be a government had organisation there's no need to apply so. Therefore may take part of suggestion.
The mixture of all above explained communication tools of communication tools helps a business to prepare sound marketing strategy so as to reach the goal to depict positive image in heads of its customers, helping in building romance over enough time.
Build and/ or Protect Sales.
Reinforce Relationship and Develop Goodwill.
Source:- Lecture Slide by Mark GodsonBelow given model shows advantages or items of Marketing Communication
After going right through the various areas of relationship marketing and its role within an organisation, following will be the recommendations I recommend to BSNL which is useful for the organisation in order to develop a sound and healthy marriage with various stakeholders in operating business.
Identification of customers
Up gradation of the services from the perfect time to time
A good complaint management system
Making a sound marketing communication strategy
Practicing marketing theories