2. Introduction
 According to American marketing association,”
relationship marketing is marketing with the
conscious aim to develop and manage long term
relationship with customers, distributors or other
parties in the marketing environment”.

3. 5 E’s of Relationship marketing
 Effective
 Efficient
 Enjoyable
 Enthusiastic
 Ethical

4. Comparison of buyer and seller
when sale is first made
Seller Buyer
Objective achieved Judgment postponed; applies test of time
Selling stops Shopping continues
Focus goes elsewhere Focus on purchase; wants affirmation that
expectations have been met
Tension released Tension increased
Relationship reduced Commitment made

5. Contrasting transactional and
relationship marketing
Transactional marketing Relationship marketing
Do the deal and disappear Negotiate a win-win sale situation
Push price Promote value
Short term thinking and acting Long term thinking and acting
Build the business on deals On relationship
Getting new customers Keeping old customers and clients
No structure for ongoing business Structure created to support relationship
Selling focused Relationship focused
Short term empathy Long term empathy
Incentive for doing deal Incentive for long term relationship
Foundation of sale telling and selling Foundation of revenue trust
Race for a sale result Swift, strong and safe enduring in results
through relationship building

6. Transactional marketing Relationship marketing
Product- service focused People expectation and perception focused
Reward incentives for doing deal Rewards for maintaining relationship
The deal is end. The sale just the beginning
After sale service poor-seen as cost After sale service seen as investment

7. Application of relationship
marketing
 The three types of customers identified are:
(I) The lost-for-good customers
(II) The always-a-share customer
(III) The intermediate type

8. THE LOST FOR GOOD CUSTOMER
 The lost for good customer makes a series of purchases
over time, faces high costs in switching to a new
supplier, and views the commitment to a particular
supplier as relatively permanent. The buyer adopts this
position because switching cost is very high. For
example airlines are unlikely to change lightly the type
of aircraft which they purchase.

9. The always a share customer
 At the other end of the customer behavior spectrum,
lies the always a share customer who purchases
regularly, has loyalty to a particular supplier, and can
switch easily from one vendor to another.

10. The intermediate type
 Most of the customer belong to this category. Wide
range of factors like: the characteristics of the product,
category , the customers pattern of product usage and
the actions of the customer and the supplier affect the
relationship. Such relationship are more applicable for
organisational buyers than consumer products, where
regular buying is a norm.