Market and Customer Management Customer Loyalty and Relationship

Market and Customer Management - Customer Loyalty and Relationship Marketing The new focus in marketing is to create longterm relationships with customers n The shift from mass marketing to customized marketing will have an impact on the marketing approach tomorrow: Marketing today. . . • Objective: to make a sale. • Sale is the end of a customer relationship. • Buyer and seller are independent. • Focus on products (mass production). • Anonymous customer. • Customer buys values. • Costs + profit = price. • One way communication. • Products and resources determine the activities. Marketing tomorrow. . . • Objective: To create a Customer. • Sale is the beginning of a customer relationship. • Buyer and seller are dependent from each other. • Focus on overall value creation and customer service (mass customization). • Known customer. • Customer creates values. • Price - Profit = Costs (Target Pricing) • Two way communication. • Relationships determine the activities. Source: Wehrli 1994 Loyalty marketing focuses on long-term relationships with a lot of customers (mass customization) n The relationship marketing is not a completely new concept. Especially the marketing concepts of key account management helped the loyalty approach to become what it is today (see below). Time focus long-term Key Account Marketing short-term Transactional Marketing Loyalty Marketing Mass Marketing Customer focus Individual 02 Marketing. ppt Mass 11