Market Orientation And Relationship Marketing

On the other hand, S K Das in the year 2012 contradicts this study and observes that relationship marketing is a progressing trend in today’s time but due certain reasons and hesitations like financial problems, danger of failure, marketing inertia, etc., many banks in today’s world are still following and implementing

7) The significance of the shift from transaction-based marketing to relationship marketing is that firms realize that just attracting customers to buy their products is not quite as important as establishing and maintaining relationships with them so that they will turn into loyal repeat customers. Relationship building begins early in marketing. It starts with what customers want and need, and then developing high-quality products to meet those needs.

Sorce, P. (2002). Relationship marketing: A research monograph of the printing industry center at RIT. New York, USA: Rochester Institute of Technology

Market orientation has three behavioral components( Narver and Slater (1990) customer and competitor orientation and interfunctional co-ordination. And also on two decision criteria;s long term profitability and focus. Deshpande´ et al. (1993) define customer orientation as set of belief that puts customer interest first . George Day (1994) also define market orientation as it represent superior skills in understanding and satisfying customers. The concept of market oriented culture is important to all level of the organizations (Day, 1990; Deshpande´ and Webster, 1989; Narver and Slater, 1990; Shapiro, 1988). Narver and Slater (1990) finding is that there is positive relationship between market orientation and profitability . and also they conclude that the business in which there are highest degree of market orientation is the business that associated with highest profitability . Slater and Narver (1994) says that market oriented business are understand revenues and cost dynamics of not only current but also future target customers. This is achieved by spending considearable time on meeting and talking with customers formally and informally. Market driven business

Relationship marketing is about forming long-term relationships with customers rather than trying to persuade a one-time sale. Relationship marketing tries to encourage customer loyalty by providing excellent products and services. Relationship marketing is different than most normal advertising practices that solely focus on a single transaction. Relationship marketing is usually not linked to a single product or offer. It involves a company refining the way they do business in order to maximise the value of that relationship for the customer.

In the present day, relationship marketing is a popular concept in marketing research and practice (Wang and Head, 2005).

Author Title Year Language Pages Name of Supervisor Maarit Karppinen Strategic Marketing Plan for a Hotel 2011 English 59 + 2 Appendices Peter Smeds

Market orientation is an approach by a business or firm that focus on identifying and meeting customers wants and demands. There are many market orientation used by a firm or business such as production, product and sales orientations to make sure their business going in the right direction and to gain high profits. However, nowadays market orientation has evolved and change from the production, product and sales orientation to a marketing orientation which is their focus change to the customer. Customers are a main subject or actor in buying and selling process. They will be determined factor in the direction of the firm. This is because the main reason firm produce or make a product is to fulfil customer wants. The firm will not gain any revenue or profit if they fails to attract any customers to use their product. In the end they will make a loss and needs to close their business. Consumer-centric model is about to create customers love and keep the customers close to the firm. This essay will explain the meaning of consumer-centric model and the importance of consumer-centric approach in marketing. Besides, this essay also will include reasons of evolution of market orientation and lastly, how consumer-centric model works.

Retailers face a dynamic and competitive retail environment. With increased globalization, market saturation and increased competitiveness through mergers and acquisitions, retailers are seeking competitive advantages by better managing customer relations. In today’s high tech age, where the marketing concepts and tools have undergone major changes with the introduction of e-commerce, online selling, network marketing, direct marketing, relationship marketing has become the base on which the business strategies as well as marketing strategies are built. Business organizations today have begun to recognize and consider the

The marketing concept is a relatively recent one (Blythe, 2008), and while there are several definitions of marketing, it is agreed that marketing involves the process of exchange between firms and customers, where both parties benefit (Adcock et al, 2001), and that the customer and his needs are placed in the centre of the organization’s activities (Blythe, 2008). Due to this, it is the goal of many organizations to establish a strong brand and significant equity based on their customers.

Since the beginning of mass production and the globalization of economic activity, marketing has continued to develop to an extent that it has gained a predominant role in the modern business environment. This is mainly because marketing helps the organization to establish a link with its customers since it's geared towards satisfying the needs and wants of both parties through the exchange process. In addition to being human activity, marketing basically involves various initiatives like product development, communication, research, promotion, and pricing. As a result of its predominant role in the modern business environment, the manager needs to gain thorough knowledge of marketing in order to conduct their functions in effective ways.

Challenge to the assumption – It is not important that a hotel has to invest alot in brand affiliation for the smooth running of the business. I have seen that the branded hotels did not satisfy their guests. There are some factors like decoration, place of the hotel, employees friendliness, price, quality, etc. where the success of hotel operations focus on as well. Therefore, I am not agree with the assumption made by the authors in the article.

Assumption 1. In the given article the authors have discussed about the effects of branding of a hotel on its existing and potential guests as well as the owners or management. In this assumption the authors strongly believe that the customer satisfaction is strongly being affected by the franchising strategy of the brand adopted by the franchisees.

in the accommodation industry, such as the telecommunication sector, such kind of strategies play an essential part in order to enhance the retention. In marketing, customer relations should be translated into availaing and loyal customers. Relationship marketing has aced to become the topmost strategic element of concern in the recent few years. it distributes basically a direct impact over the firm’s objective performance and also, it indicates that the vigour of the relationship marketing rides high when the relationships are inclined towards customers.

“There is a direct company-customer contact-based relationship.”(Moores, 1986) This experience helps hotels achieve distinction against competitors. But at the same time “the communicated value proposition of the brand has to be clear-cut so that potential guests are able to identify the advantage of a hotel in comparison to its competitors” (Daun and Klinger, Delivering the message, 2006).Apart from communication through words, pictures and logos should also be redesigned in order to make an everlasting connection with the guest.