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
Preface Publisher's acknowledgements List of figures List of abbreviations XIII xv xix xxi Part I Relationships 1 100 years of marketing The early days Modern marketing 3 3 4 7 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 : 18 22 26 28 32 39 39 40 41 45
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 72 72 72 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 95 99 Appendix. 101 Notes : :. : i 1.. ' 102 5 Strategy continuum 103 103, 1 0 3 RM in context 103 RM/TM continuum. 105 Marketing implications 107 Continuum drivers ' ' 108
Contents IX Summary 111 Discussion questions - 111 Case study: Understanding and addressing your client's needs 112. 114 Note ': :, 115 6 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 138 139 Notes - :?.: 142 Part II The core firm and its relationships 7 Customer partnerships 147. :.. 147. 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
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 1723 1731 1741 176] 177 177 I 178 180 ' 182 183 183 184 186 188 9 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 189 189 189 190 191 192 194 195 196 197 198 199 199 200 203 205 10 External partnerships Horizontal partnerships Relationship research Networks and collaborations Networks ' Collaboration types Developing collaborative relationships Downsides Other relationships Conclusion 208 208 209 211 215 2 217 219
Contents xi Summary 219 Discussion questions 219 Case study: Mumsnet's the word 220 223 Notes 224 Part III Managing and controlling the relationship 11 Relationship management 227 227 227 Relationship management 229 The marketing plan 230 Managing relationships 234 Criticisms of RM 238 Summary 242 Discussion questions 242 Case study: A decisive edge 243 246 Notes 249 12 Relationship technology 250. 250 250 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? 261 262 Notes 263 13 Conceptual developments 264 264 264 RM research 264 Customer relationship management 266 Social marketing 269 Service-dominant logic 270 Conclusions 275
xii Contents Summary' Discussion questions Case study: Feature: The perfect touch Notes 276 276 276. 280 282 Glossary Index 283 292 Supporting resources Visit www.pearsoned.co.uk/egan 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 www.pearsoned.co.uk/egan