Analysis of Relationship Marketing in the Global Context Report

This report provides a comprehensive analysis of relationship marketing within a global context. It begins by defining marketing and differentiating between transactional and relationship marketing, highlighting the shift towards long-term customer engagement. The report then explores the importance of relationship marketing in a global setting, examining how businesses can build technical, economic, and social ties with consumers. It delves into the development of marketing, including the influence of postmodernism and customer relationship management (CRM), as well as the customer value proposition and the dimensions of consumer relationships, such as expectations, trust, commitment, and loyalty. The report also examines international marketing strategies and the factors that influence relationship marketing success in different countries, including cultural differences, language barriers, and technological advancements. Through examples and theoretical frameworks, the report illustrates how organizations can adapt their marketing strategies to foster strong customer relationships and achieve global success.

RELATIONSHIP
MARKETING IN GLOBAL
CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Definition of Marketing..........................................................................................................1
Transactional and relationship marketing..............................................................................1
Relationship marketing in global context...............................................................................4
Development of marketing.....................................................................................................6
Postmodernism.......................................................................................................................7
Customer relationship management.......................................................................................7
Customer value proposition....................................................................................................8
Dimension of consumer relationship......................................................................................8
International marketing........................................................................................................10
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Relationship marketing refers to a facet of consumer relationship management that foster
their customer loyalty and long term customer engagement as well as with the other parties
rather than focus on sale transaction. In global context, relationship marketing builds technical,
economic and social ties among the parties due to rapid changing consumers' needs and their
dependence of the market. The organisation that focuses on relationship marketing in
international context they are able to maintain the engagement with their potential consumers
and value of the company globally.
The study identifies the extant literature in international relationship marketing including
a depth study with relevant theories and models by Armstrong (2015). The review evaluates
critical differences between concepts and philosophies of relationship marketing and traditional
marketing and how these theories contribute to the success in current business environment.
TASK 1
Definition of Marketing
Steinhoff, (2018) Marketing is a set of management function that is responsible for
developing, communicating, promoting and delivering value to consumers and they are also
responsible for create benefits for the company and its stakeholders.
Relationship marketing
According to Armstrong, (2015) Relationship marketing is a component of the customer
relationship management that focuses on the creation of long-term customer loyalty and
consumer relationship. It is a strategy that designed to develop strong connection with global
consumers with providing them open communication. The author stated that the aim of
relationship marketing is to generate a strong connection and commitment with a specific brand
with clients. On the other hand according to Sheth, (2017) relationship marketing provides the
organisation with direction to improve, commercialise and set relation with consumer to
established value for its client.
Transactional and relationship marketing
Verma, (2016) claims that the process of relationship marketing based on long term
period whereas transactional marketing is based on short-term period. This approach is
complicated and become more obsolete. The major difference between them is that transactional
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marketing is based on getting new consumers and relationship marketing is based on retention of
customers.
Morgan, (2015) analysed that there are five levels of RM; Basic, Reactive, Accountable,
Proactive and Partnership marketing and ten critical major roles that plays in Relationship
marketing; supplier, distributors, end users, employees, financial firms, government, media,
allies, competitors and public. It is influenced by various area of marketing comprises sale
marketing, traditional marketing and marketing mix that includes price, products, place and
promotion, service marketing, etc.
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Illustration 1: Transactional Vs Relationship Marketing
(Source: Relationship Marketing Vs Transactional Marketing, 2019)
Illustration 2: Five levels of RM
(Source: Levels of Relationship Marketing, 2018)

Examples
The successful examples of relationship marketing is given by Baker, (2016) such as
Zara; Zara is an accessories and clothing retailer that was established in 1975. In the strategy of
relationship marketing which Zara adapts marketing mix adaption and standardization in order to
gain the most effective outcomes and achieve. The company always try to deliver a consistent
message in its organisational strategy that where it believes that customer is its focal point. The
company has created long lasting and mutually beneficial relationship with potential customers
in all around the world. They adopt many techniques to gather customer preferences and
feedbacks that made the loyal more attached and loyal to the brand. Zara utilize RM strategy to
create stable relation between customers and company.
The another example is of Starbucks who are killing in this field. Their loyalty program
allow users to load money onto the card of Starbucks to purchase drinks. They reward consumer
loyalty and their incentives give coffee drinkers a reason to keep coming back for more.
Customer Service and Relationship Marketing
Customer service is an important aspect while providing the customers with products of
value and ensuring better services. It is important that organisations play important role on
3
Illustration 3: Customer Service
and Relationship Marketing
(Source: Relationship marketing,
2018)

themselves and their customers in order to maintain a strong competitive advantage and ensuring
proper growth. It is important the customer service is maintained at is best to achieve
profitability as well. Other important aspect is relationship marketing. Relational-ship marketing
in general can ensure and foster customer loyalty, interaction and long-term engagement. It is
important for any organisation to ensure that customer loyalty and interaction is taking place
together in order to ensure strong customer engagement and growth.
Relationship Marketing Stages
Identifying your customer: The first step is to identify your customer market.
Differentiating your customer: The second step is to differentiate the customer market as
per their age, sex, gender, etc.
Interacting your customer: In order to build a successful relationship it is important to
interact with your customers and make a strong bond with them.
Customizing your companies: In this step the companies are customized as per the
products they sell and the markets in which they offer their products.
Relationship marketing in global context
Armstrong, (2015) defined “Relationship marketing is the Marketing activities that aimed
at developing and managing trusting and long-term relationship with larger customers”. On the
other hand Sarmento, (2015) RM is an approach for marketing that acknowledge the of both
buyers and the seller's importance in the process of marketing and it mainly involves the
improvement of internal operations of the company.
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The importance of RM in global context is that it allow organisations to gain new
consumers that is an expensive task for any enterprise and it is helpful in increasing consumer
retention and brand loyalty as well as it helps them to avoid abrupt customers' acquisition costs.
On the other hand Zhang, (2016) stated that relationship marketing is a concept which is
difficult to implement. While pursuing such a close relation with a client is possible every time,
for the company and desirable for the consumers. The strategy is difficult to measure the effect
on sales by individual customer/marketing service initiatives. Furthermore, Gummesson, (2017).
stated that such relationship can be costly to build in both terms; time and resources. Following
the economic theory, the more sellers that are there the more likely it is that the buyer will be
able to obtain a favourable price.
The author Verma, (2016) said that In this new era, organisational relationship have
become internationalised increasingly. In the global context, business faces increased
competition with barriers of trade being low as ever. Sheth, (2017) expressed that within the
context that is globalised, there are various factors have large influence on practices of
5
Illustration 4: Relationship Marketing
(Source: Relationship Marketing, 2019)

Relationship Management that needs to adapt by the organisations which are dependent on the
country such as; cultural differences, language barriers, technological advances.
Development of marketing
It is been powerfully influenced by re engineering. According to the theory of re-
engineering, business should be structured according to complete the processes and tasks rather
than functions. Marketing treats sales as the beginning and relationship marketing with the
consumer looks at creating an approach that will generate consumer retention.
As per the view of Gummesson, (2017) it is clear that relationship marketing overlaps
with other strategies of marketing like; marketing, branding and channel marketing etc.
Furthermore, it can be understand by comparing different marketing, where service marketing
concentrated on channel marketing, intangible services, looks at the interaction between different
channel partners and marketing focus at enhancing organisation performance by improving
various relationship with the partners.
6
Illustration 5: Development of Marketing Plan
(Source: Development of Marketing Mix theory, 2017)

Relationship marketing seems different because it is much efficient. Set up a long term
relationship with a consumer to pursue individual (Sheth, 2017). The Relationship Marketing
takes the marketing concept one step further, by adding the time dimension to the notion that the
“consumer is king”.
Postmodernism
The world is converting from modernism to postmodernism that originated in late 20th
century. It is a revolution against the modern period. There is five factors Hyperreality,
postmodernism, reversal of production and consumption, fragmentation, de-centred subject,
Juxtaposition of opposite.
Customer relationship management
CRM can be defined as the process of business where a client's loyalty, consumer
relationship and brand value of brand are built from activities and strategies of marketing. It
enable the organisation to develop relationships which are long-term with new and existing
customers that streamline the organisational performance.
7
Illustration 6: Factors of postmodernism
(Source: What is Postmodernism, 2019)

Customer value proposition
Consumer value proposition is defined by Verma, (2016) as a business or marketing
statement that describe why a customer should buy a product or use a service. On the other hand
Morgan, (2015) it encompasses the entire consumer experience rather being limited at the point
of sale.
Dimension of consumer relationship
As per the view of Zhang (2016) dimension of any marketing relationship include four
basic elements i.e. trust, loyalty, commitment and expectations. These elements are interlinked to
provide effective relationship.
1. Expectations and satisfaction
8
Illustration 7: Customer relation management
(Source: Customer Relationship Management, 2019)

Flambard-Ruaud, (2015) stated that customer satisfaction reflects the expectations and
experience that the consumer has with a product or service. The consumer's satisfaction is
depends on quality of products and services. On the other hand Payne, (2017) argues that
expectations are a forecast. Satisfied consumer use word of mouth to promote the brand to their
relatives.
2. Trust Commitment
Trust between consumer and organisation developed and established through
interpersonal exchange and interaction. The commitment of the consumer can be achieved by the
loyalty. On the other hand commitment trust theory of relationship marketing mentioned two
fundamental factors; trust and commitment that is essential for every parties that exists for a
relationship to be successful. Trust is defined as the confidence of both parties in the relationship
that the other party do not harm in any case and commitment involves a desire which is long
term to maintain a valued partnership as per Zhang (2016).
9
Illustration 8: Consumer satisfaction
(Source: Customer Satisfaction, 2019)

3. Commitment: Good commitment allows maintaining and foster strong relationships in
the form of pledge and sacrifices made in the long term. It is crucial towards customer
satisfaction and is interrelated to Relationship management because they create effective
alliances.
4. Customer loyalty
Sheth, (2017) mentioned that loyalty reefers to the way of sustaining an effective
relationship between buyer and seller. The loyalty is depends on how and on what level
organisations meet the satisfaction level of customers that can be indicated by maintaining long-
term relation from both side is a sign of strength of the loyalty.
Below showcased is the customer loyalty chart:
International marketing Definition
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Illustration 9: Customer Loyalty Chart
(Source : THE RELATIONSHIP BETWEEN
SELECTED VARIABLES AND CUSTOMER
LOYALTY WITHIN AN OPTOMETRIC
PRACTICE ENVIRONMENT, 2016)

Zhang (2016) defines Global marketing to recognising wants and needs of consumers in
diverse culture and market. International marketing is a method of marketing activities that
accelerate and ease create and exchanges relationship overseas market consumers. Global
marketing needs to analyse their macro environment to understand the factors that can affect the
organisation at international level. They can use Porters 5 forces or PEST analysis to analyse
external environment. Sheth, (2017) stated that there are various factors that can influence the
success of relationship marketing in which trust and commitment are the most essential aspects.
 Role
In the global context, the factors regarding any country can influence the practise of
relationship marketing that needs to adapt by the relationship marketers depending on the region.
The organisation need to modify their marketing strategy and expectations that is required by
cultural differences. The language barrier can also constitute an obstacle where relationship
marketing is concerned. Furthermore, advancement in technologies are also predicted by
Armstrong, (2015) as a great influence in the utilisation of RM.
In the planning of going global, organisation need to control their global brand and
international marketing mix that includes; price, product, promotion and distribution. It is
beneficial to aim the focus on consumers and their controllable environment and create value for
the customers and stakeholders.
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Morgan, (2015) Relationship marketing is implemented at four stage, the procurement
and management of customers that allow management to build customer transaction is done on at
the first level the database marketing facilitates in effective way that called as customer
relationship management. The next stage emphasise is on customer retention. The third stage
include the collaboration between consumers and retailers through partnership. Fourth and final
stage is focuses on integration of RM from database to personalised services such as internal
marketing, social relationship, etc.
12
Illustration 11: Relationship marketing
stages
(Source: Stages to Effective Relationship
Illustration 10: International marketing mix
(Source: The International Marketing Mix, 2019)

 International Marketing Strategies
Relationship Marketing
Payne, (2017) developed the six market framework that help the organisation to monitor
the elements that monitor to keep the consumer satisfied and relationship marketing's major
focus is on these six elements;
Internal market element stated that organisation should meet first its employees' demand
before meeting consumer's demand because employees are the one who build the relationship
with the consumers.
Influence market is important in global context such as; government body, lobbyists,
regulators, capital ventures that influence the environment in which company is operating.
Recruitment market involves many essential aspects like recruiting right employee for the
right position is an important factor in the overall performance of the company. So company
need to pay attention to this market to build most professional staff that are able to create
sustainable relationship with clients and other business partners.
13
Illustration 12: Customer Market
(Source: Customer Market Model Chart, 2019)

Supplier market involve different supplier and vendor across the globe that on which
company is dependent to create its final product and a stable supply chain is expected to benefit
forms in the long run.
Referral market includes, connectors, existing customers, intermediaries, etc. The person
are responsible for increasing company's profitability. It also involves satisfied customers that
are beneficial for the organisation as they promote the brand through word of mouth.
Customer market is the most important market for firm to monitor. RM emphasizes the
quality of the relationship. They are in the large amount that is responsible for enhancing the sale
and profit of any organisation.
Socio cultural aspects in International Marketing
According to the view of Sheth, (2017) In International Marketing, the socio cultural
aspects refers to the age, language, habits, dress, traditions and customers of a particular country.
These aspects need to be considered by planning for international marketing purposes. It allows
the marketing team of an organisation to understand the important things clearly. It maintains a
strong sense of understanding within the international companies and their customers as well.
Payne (2017) developed the 'Iceberg cultural mode' where a minor part of culture is
perceptible (behaviour, habits, traditions, customs, appearance, dress, language) over the water
and the rest (Values, beliefs, norms) is underneath the water. The perceptible factors can differ
that is because of the globalisation and that may affect the beliefs, trend and taste of the people.
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Illustration 13: Iceberg Model
(Source: Iceberg Model of culture, 2019)

Consideration of socio cultural aspects allow the marketing of the organisation to achieve
proper growth and development because it ensures better customer service and customer
relations.
The international marketing communication
International marketing communication involves a set of communication tools such as
one-way communication that includes, advertising, sales promotion, public relations, direct
marketing and personal selling.
These tools allow the organisation to achieve their set of goals properly and maintains as
strong market value of the organisation. This is one of the best marketing tools designed for
companies to achieve desired growth and objectives. Also, it allows the organisation to achieve
set of goals and objectives properly within their marketing environment.
Below mentioned are the process of international marketing:
International marketing communication process
15
Illustration 14: Different aspects in International Marketing
(Source: Cultural and Social Forces in International Marketing, 2018)

(Source: International marketing communication practices, 2017)
In international marketing process, the required techniques are used within the
organisational environment to achieve set of goals and objectives. This allows the marketing
team of the organisation to ensure that proper and strong communication is going on. Also, it
maintains a better maintenance within the system and maintains strong organisational efficiency.
The marketing also become easier when practices such as promotion, advertising are
communicated better within the organisational environment.
CONCLUSION
It has been concluded that it is important for organisations to exist by keeping and getting
customers. Also, they need to maintain and build an effective relationship with the consumers in
order to maintain a strong global environment. The firms which are facing issue with ambitions
to become global oriented seems to turn prevalent in their international existence with having a
global competitive advantage. In order to do that, organisations needs to offer value added to
their international customers. They need to develop their services and products accordingly and
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Illustration 15: International Marketing
Communication Process

maintain the market strategy along. It is important that firms to develop such tactics which are
precise to their case and reaches an equilibrium in between adaptation and standardization in
their international marketing process.
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REFERENCES
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Morgan, R. M., Parish, J. T., & Deitz, G. (Eds.). (2015). Handbook on research in relationship
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Shaw, S., 2016. Airline marketing and management. Routledge.
Sheth, J. (2017). Revitalizing relationship marketing. Journal of services marketing, 31(1), 6-10.
Sheth, J., 2017. Revitalizing relationship marketing. Journal of services marketing. 31(1). pp.6-
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Steinhoff, L. & et. al., (2018). Online relationship marketing. Journal of the Academy of
Marketing Science. 1-25.
Verma, V. & et. al., (2016). Does relationship marketing matter in online retailing? A meta-
analytic approach. Journal of the Academy of Marketing Science. 44(2). 206-217.
Zhang, J. Z. & et. al., (2016). Dynamic relationship marketing. Journal of Marketing. 80(5). 53-
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