Relationship management as a means of developing competitive edge Assignment

Relationship management as a means of developing competitive edge - Assignment Example This research will begin with the concept of relationship management and an overview of the organization which is used as an example for the implementation of this marketing concept. The area of research for this paper is the concept of relationship marketing and its application in the business scenario. Relationship marketing (RM) is defined as â€Å"the process of identifying and establishing, maintaining, enhancing, and when necessary terminating relationships with customers and another stakeholder, at a profit, so that the objective of all parties involved are met, where this is done by a mutual giving and fulfillment of promises†. The company being considered is called New Star Company and it was a pop music club before it merged with another company after which it became a fan club. After the merger, New Star Company still kept the members of its pop-music club with the intention that they would bring in new members into the fans club. They need to gain a foothold in the Chinese market and are looking into business strategies which will enable them to attract new members to their fans club, yet at the same time be able to retain their existing base of members. Relationship Management is about attracting, maintaining and enhancing the relationships between an organization and its customers. This marketing strategy came about as a result of the effects of low growth rate and deregulation which made it necessary for an organization to determine how they could maintain their existing customer base instead of developing new ones.... d are looking into business strategies which will enable them to attract new members to their fans club, yet at the same time be able to retain their existing base of members. In this research we will examine how relationship management can work as an effective business stra0tegy for the company to gain new members. Review of Relationship Management Relationship Management is about attracting, maintaining and enhancing the relationships between an organization and its customers. This marketing strategy came about as a result of the effects of low growth rate and deregulation which made it necessary for organization to determine how they could maintain their existing customer base instead of developing new ones. Relationship marketing involves using satisfied customers as a way for attracting n0ew customers. This means using the element of customer loyalty to gain strength in a new market, which calls for interaction between an organization and its customers, wherein it is necessary for both parties to share the same philosophy to successfully interact. The power of relationship marketing is seen in its unique feature of trying to establish a long-term and mutually beneficial relationship between an organization and its customer. In order to do this, relationship marketing focuses on gaining as much knowledge as possible on customer preferences and implementing these preferences into product and service design. "Relationship marketing is a long term orientation, all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges". Kolter (2000) Difference between relationship marketing and transactional marketing In we need to understand how relationship marketing can benefit an organization we need to see how