Page 53 - Strategic Marketing Complete

MARKETING ISSUES
changing needs. It is key to as they need to be alert to philosophies. On the other hand,
avoid complacency and not to redress any mistakes and avoid clients may stay because of a
compromise on excellent quality negative customer-driven word- high termination cost associated
and performance. of-mouth campaigns that can with ending the relationship.
seriously damage them. Here, the motivation of the
2. Collaboration and coordination: captured clients stems from
Clients want to participate 3. Trust: Trust is earned, and only contractual commitment or a lack
in seeking solutions for their established once clients have of alternatives. Given another
problems. This requires confidence that the company viable option, it is unlikely this
sharing of information, joint will act with goodwill. Companies relationship would continue.
development of solutions thus need to establish credibility
and coordinated actions. when it comes to honouring Today, customers expect nothing but
Some may argue that this warranties, product exchanges the best when it comes to service
consideration is more relevant and keeping brand promises. quality excellence and relationships
to the services industry, but Trust also extends to the way with businesses. The best is no
we found that companies such the company safeguards clients’ longer expressed through features
as Nike have employed very information and provides secure and benefits of products, or even
successful strategies to allow transaction platforms. through the lowest price. Instead,
for collaboration (i.e. consumers customers demand customisation
are able to design their own An aspect that is often not on the and good relationships with all their
signature shoes). radar, is the effect of business business partners.
linkages on trust. An example
The key to this is good here is the collapse of British Indeed, customers no longer
communication, which includes PR firm Bell Pottinger following consider service providers as mere
considerations about the their business relationship with suppliers of goods and services, but

essentially, relationship marketing follows

a matchmaking process where customers will enter

a relationship with a business only if they discover
value in what a company offers.

frequency of communication the Gupta family – a business rather as ideal lifelong partners. As
and the mediums used to share linkage that proved to be highly such, relationship marketing is the
information. Important here, is toxic. key to sustainability. Establishing
to create a platform for two-way and maintaining relationships
communication to be realised. 4. Commitment: Commitment requires good matching, consistent
Using technology and social is an essential element of any effort and, ultimately commitment
media can bring customers relationship and only exists to ensuring customer retention and
closer to a company and allow when both parties consider loyalty.
them to interact with other the relationship as being
customers. important enough to warrant
maximum effort. People stay in rofessor Dr Mari Jansen
Today’s customers are well relationships either because they van Rensburg is the
aware of their relative stronger want to or because they have to. Campus Director at
position and the influence they Clients wanting to stay will do so the University of Middlesex,
can exert on the Internet. When because they like doing business Mauritius. She is a Chartered
used properly, the Internet offers with the company. Marketer (SA) and very
huge positives for relationship passionate about marketing
marketing. It is, however, a Effective commitment is the and related aspects. Professor
double-edged sword, given that result of a good working Dr Angelo Nicolaides serves
information dissemination and relationship where both parties at the University of South
interaction happens on a live are sincere and concerned about Africa’s Graduate School of
platform. Given that a customer’s the other’s welfare. In these Business Leadership (SBL) and
reaction can be spontaneous cases, clients and companies teaches Business Ethics and
and instantaneous, this may treat each other with respect Stakeholder Engagement.
pose problems for a company, and often share the same

Strategic Marketing - p51