Relationship marketing

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1 Relationship marketing WBIbliothek Exploring relational strategies in marketing FOURTH EDITION JOHN EGAN London South Bank University Financial Times Prentice Hall is an imprint of Harlow, England London New York Boston Sari Francisco Toronto Sydney Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Madrid Mexico City Amsterdam 'Munich Paris -Milan

2 Preface Publisher's acknowledgements List of figures List of abbreviations XIII xv xix xxi Part I Relationships years of marketing The early days Modern marketing n 2 Relationships in marketing '. Relationship marketing Influences on relational strategy development RM development Antecedents of RM The development of RM - : Towards a definition of RM ' Summary Discussion questions \ \ Case study: What the Willy Wonka of BSkyB knows about customers Notes :

3 viii Contents 3 Relationships 47, 47 ', 47 Relationships 47 Relationship loyalty ' 56 Constrained relational development. 62 Relationships in context 65 Summary 67 Discussion questions 67 Case study: The art of the soft sell. 67 x ' 68 Notes 71 4 Relationship economics Relationship economics 72 Customer acquisition 73 Customer retention ' 74 Acquisition and retention costs 75 Economics of retention strategies, 78 Relationship stages *., 80 Marketing reality, 5 ', > - : 83 Lifetime value :".- '! : _ j 86 Switching costs ' : \. i "^86 Relationship longevity /.. ' > j 90 Knowing your customer, ' *. -, :,, "I ' * 9^ The validity of relationship economics, l -.'-. "I94 Summary -. \ '. J' 95 Discussion questions 95 Case study: Get fat on chat Appendix. 101 Notes : :. : i 1.. ' Strategy continuum , RM in context 103 RM/TM continuum. 105 Marketing implications 107 Continuum drivers ' ' 108

4 Contents IX Summary 111 Discussion questions Case study: Understanding and addressing your client's needs Note ': :, Relationship drivers lie 1 v 1 Risk, salience and emotion 117 Trust and commitment 119 Perceived need for closeness 126 Customer satisfaction 127 Summary 137 Discussion questions 138 Case study: Find a way into the hearts of customers Notes - :?.: 142 Part II The core firm and its relationships 7 Customer partnerships 147. : Customer focus,! 147 Services 149 Service industries... '! 150 Customer service s 153 Building customer relationships 156 Profit chains - 2 Summary ' 4 Discussion questions, 4 Case study: Where customers go to praise (or bash) you 5. ' 6 Notes. 8 8 Internal partnerships 9 : > 9 9, ' ' ' ' [ ' Customer-employee interface 170 Theory development, 170

5 Contents The internal market The functional interface Human resources Climate and culture Employee retention and loyalty Empowerment Operationalising empowerment Internal marketing implementation Conclusion Summary Discussion questions Case study: Resetting the sun Notes ] I ' Supplier partnerships : Supplier partnerships Business-to-business relationship research Business relationships Partnering, Culture gap Partnership costs and benefits Power The downside of B2B partnerships Summary Discussion questions Case study: How to... choose the perfect partner Note External partnerships Horizontal partnerships Relationship research Networks and collaborations Networks ' Collaboration types Developing collaborative relationships Downsides Other relationships Conclusion

6 Contents xi Summary 219 Discussion questions 219 Case study: Mumsnet's the word Notes 224 Part III Managing and controlling the relationship 11 Relationship management Relationship management 229 The marketing plan 230 Managing relationships 234 Criticisms of RM 238 Summary 242 Discussion questions 242 Case study: A decisive edge Notes Relationship technology Manufacturing/Service delivery technology 252 Information technology 255 Technology and marketplace relationships 258 Summary 260 Discussion questions 260 Case study: Social networks cash cow or corporate headache? Notes Conceptual developments RM research 264 Customer relationship management 266 Social marketing 269 Service-dominant logic 270 Conclusions 275

7 xii Contents Summary' Discussion questions Case study: Feature: The perfect touch Notes Glossary Index Supporting resources Visit to find valuable online resources Companion Website for students An online glossary to explain key terms Annotated links to relevant sites on the web For instructors Complete, downloadable Instructor's Manual PowerPoint slides that can be downloaded and used for presentations For more information please contact your local Pearson Education sales representative or visit

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