Relationship Management Essay Example | Topics and Well Written Essays - 2750 words

Relationship Management - Essay Example The intention of this study is relationship Management. It 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. â€Å"Relationship marketing is a long term orientation, all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges†. In we need to understand how relationship marketing can benefit an organization we need to see how different it is from transactional marketing.