Importance of Relationship Marketing Essay

Introduction

According to Christopher, Payne, and Ballantyne (2013), relationship marketing can be defined as any form of marketing that has been introduced from the sector of direct response in marketing that fosters the retention of customers and ensuring they are satisfied without necessarily directing the focus on the transactions from the sales. Hollensen (2015) defines relationship marketing as the ability of a brand to induce a connection of emotions with the consumers of their products.

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Relationship marketing involves a detailed study of the customers, hence in setting up an event, it is easy to determine which customers will be present, either those who are profitable or those who are not (Hollensen 2015). Thus, the event will fit the appropriate customers. Well-integrated relationship marketing helps in attracting new customers in the event and turning them into winning deals. Since relationship marketing groups customers according to different aspects, the functions help in having a concentration on every customer separate (Ballantyne 2013).

How British Fashion Council Meets Stakeholder’s Needs

Some of the stakeholders involved with the Fashion Council include the organizations involved in the marketing and the promotion of fashion such as the advertising companies. Since the Fashion Council is a mega event that is normally anticipated in the United Kingdom, many people are eager to attend and have a glimpse of the fashion industry. The advertisement companies thus partner with this event to promote the event as well as earning and building a name for them in the market. The second stakeholder associated with the Fashion Council is the designer industry that comes up with the fashion collections that are being advertised in the event. These stakeholders come up with unique and captivating styles and brands that are exclusive aiming at capitalizing on this event to maximize their earnings (Kim 2015). Thus, this event, due to the reputation that it has built in the UK, serves as a channel for selling the collections brought up by the designers.

The advertisement companies make use of their platforms to ensure that they maintain good relationships with the market sector. These companies for advertising are useful as they help in keeping the market informed on the available products and services as well spreading awareness to the market. According to Kim (2015), apart from only aiming at getting more sales, these companies help to strengthen the name of a brand and help in creating a top position for the brand in the market. The designer industry, on the other hand, maps out the interests of the people in the UK and ensures that they have know-how of what the people need. By so doing, they can come up with correct collections and products that suit the needs of the market sector. They are also able to improve on the quality and the designs by improved innovation and enhancement of creativity. For the designers to be outstanding and different, they survey the market sector and identify the gaps present that can be turned to opportunities. They, therefore, utilize the opportunity to enhance a competitive advantage in the view of satisfying the customers. By so doing, these stakeholders help to keep a positive relationship with the customers.

Purpose of the Ladder of Loyalty Model

According to Mascarenhas, Kesavan, and Bernacchi (2006), loyalty can be defined as the process of business transactions between a customer and the seller for a particular product on an ongoing basis. The loyalty ladder, also known as a branding ladder is a tool that is used to market communicators. The idea behind is that customers, utilizing some marketing communications techniques that are integrated, are moved along a continuum of loyalty. Research shows that organizations that strive to earn loyalty of customers pose a competitive advantage.

The ladder consists of loyalty relationships between customers and businesses. Five steps are representing the customers. The first is a suspect, who is a customer coming to the company. The second is a prospect who is a person showing interest in the promotions. The third is the customer, who is somebody that purchases a product or service. The fourth is the client, referring to the people who have gotten a deep like about the business products and come back for more purchases. The final step is the advocate, referring to people who have found happiness with the products or services and thus promote the business. In the practical use of this framework, the enterprises use the prospects who first come as suspects, welcome and serve them well. They then maintaining good relations with them until they get to a point of satisfaction and help in the marketing of the business and may even end up being business partners (Mascarenhas, Kesavan and Bernacchi 2006).

References

Christopher, M., Payne, A., and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education Limited.

Kim, H.E., 2015. A study on the characteristics and trends of sustainable fashion through Esthetica at London Fashion Week. pISSN, 17(2), p.2015.

Mascarenhas, O.A., Kesavan, R. and Bernacchi, M., 2006. Lasting customer loyalty: a total customer experience approach. Journal of consumer marketing, 23(7), pp.397-405.