Dial Herco

Archive for June, 2009

Relationship marketing does not apply just to individual consumers and employees, however. It also affects a wide range of other markets, including business-to-business relationships with the company’s suppliers and distributors as well as other types of corporate partnerships. In the past, companies have often viewed their suppliers as adversaries against whom they must fiercely negotiate prices, playing one off against the other. This attitude is much less prevalent today, however, as companies find benefits from collaborative relationships.
The formation of strategic alliances—partnerships that create competitive advantages—is also on the rise. These take many forms, from product development partnerships that involve shared costs for research and development and marketing to vertical alliances where one company provides a product or component to another firm who then distributes or sells it under its own brand.
One of the most popular forms of strategic alliance is the affinity credit-card program. Airline industry leaders like American, United, and Delta build brand loyalty among air travelers by offering awards for frequent travel. They have also established cooperative relationships with hotel chains, automobile-rental companies, long-distance telephone firms, and credit-card companies to jointly market their services.
Co-marketing and licensing arrangements are also popular. Hamilton and Touchstone Pictures teamed up to jointly promote their products in their ad. Hamilton’s watches were worn by the actors in the World War II blockbuster, Pearl Harbor Clearly, relationship building begins early in the marketing process and applies to many areas. It begins with the development of quality products that meet customer needs and continues with the provision of excellent customer
service during and after the purchase process. Relationship building also includes programs that encourage repeat purchases and foster customer loyalty. Chapter 5 explores the many facets of this important topic in greater depth.