MKT 723 Chapter Notes - Chapter 7: Customer Retention, Human Resource Management, Employee Retention

• School: Ryerson University
• Department: Marketing
• Course: MKT 723
• Professor: Jane Saber

Document Summary

Represents a paradigm shift in marketing: away from acquisitions/transaction focus toward retention/relationship focus. Bucket theory: marketing can be thought of as a big bucket: what sales, advertising, and promotion programs do that pours business sinto the top of the bucket. This theory illustrates how relationship marketing aims to plug the holes and change the mindset of marketing: focusing less on acquisition and more on retention. Customers as strangers: attract and acquire business. Customers as friends: acquire knowledge of specific needs, differentiate value, requires trust, customer retention is key. Customers as partners: more customized offerings, commitment, must enhance relationships and the company must invest in the relationship. Firm"s relationship with its customer might be enhanced as customers move further along this relationship continuum. Thus, the primary goal of relationship marketing is: to build and maintain a base of committed customers who are profitable for the organization.