Monday, January 27, 2020

Definition And Scope Of Relationship Marketing Marketing Essay

Definition And Scope Of Relationship Marketing Marketing Essay This chapter aims to evaluate the theoretical opinions of different theorist towards relationship marketing (RM) based on the objectives of determining the definition and scope of RM as well as understanding the different determinants and strategies used in RM and understanding current academic and industrial views and opinions on the values and effectiveness of RM. 2.1 Definition and scope of Relationship Marketing Relationship Marketing (RM) has been defined by various theorists and each has given their respective viewpoints about RM. In order to simplify and understand RM, an analysis by Palmatier (2008) of some well-known definitions by various theorists is illustrated to narrow down and obtain the essence of what is RM. The analysis is based on two key aspects found in RM (e.g. Gronroos 1997; Sheth and Parvatiyar 2000). The first aspect deals with strategies across stages of the relationship lifecycle and thereby suggests that a relationship is a process that develops over time through typical strategies (Dwyer and Oh 1987; Wilson 1995). The second aspect is the scope of RM activities; as some definitions only include customer relationships, and others include relationships with different stakeholders such as internal departments, competitors, customers and suppliers. The table below illustrates the common RM definitions by different theorists and identifies the stages the respective defini tions cover as well as the scope of the definition. Definition Stages/ Strategies Scope Attract/ Create/ Establish Enhance/ Develop Maintain Customers only Stakeholders Attracting, maintaining, and enhancing customer relationships. Berry (1983, p. 25) RM refers to all marketing activities directed toward establishing, developing, and maintaining successful relational connections. Morgan and Hunt (1994, p. 22) To establish, maintain, enhance relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved are met, where this is done by mutual exchange and fulfillment of promises. Gronroos (1997, p. 407) Based on synthesis of 26 definitions of RM: organization engaged in proactively creating, developing and maintaining committed, interactive and profitable exchanges with selected customers [partners] over time. Harker (1999,p. 16) RM is the ongoing process of engaging in cooperative and collaborative activities and programs with immediate and end-user customers to create and enhance mutual economic value at reduced cost. Sheth and Parvatiyar (2000,p. 9) RM is a philosophy of doing business, a strategic orientation that focuses on keeping and improving current customers, rather than acquiring new customers. Zeithaml and Bitner (2000) As illustrated above in the table all definitions excluding Sheths and Parvatiyars have covered all the relationship lifecycle stages in their respective definitions of RM which are:- Establishing, is the stage of RM or marketing process of advertising and attracting new customers towards a brand or product, Little Marandi (2003). Enhancing is the process differentiating from competitors offerings where more attractive offers and benefits are offered to customers (e.g. sales and price drops), Coyles Gokey (2002). Maintaining is the extra effort taken by sellers to retain and ensure that their existing customers obtain continuous benefits from the product or service they have to offer (e.g. loyalty scemes), Morgan Hunt (1994). Morgan, Hunt and Gronroos have explained RM to cover the scope of not only customers but other stakeholders as well; however the scope of RM in this research study will only consider customers. Therefore the analysis of RM definition suggested for this research study is RM is a continuous marketing activity which involves establishing, enhancing and maintaining customers loyalty towards a certain product or service that is being offered by the seller involved. 2.1.1 Relationship Lifecycle The relationship lifecycle consists of the different stages (establishing, enhancing and maintaining) as aforementioned in the definitions of RM. Various RM theorists such as (Kotler, 2000; Jap Ganesan, 2000; White, 2000; Zineldin, 1996) illustrated the relationship lifecycle according to the respective stages and definitions of RM. Therefore the relationship lifecycle differs with additional stages in certain RM lifecycles by different theorists of RM (Little and Marandi, (2003: 69)). A suitable relationship lifecycle according to the agreeable definition of RM for this research study is illustrated below:- Figure 1 Relationship Lifecycle Source: Adapted from Little Marandi (2003) Relationship Marketing Management. The cycle above illustrates up to the stage of maintaining a customer relationship. However several definitions for example White (2000) Jap; Ganesan (2000) suggest that relationship lifecycle declines after the maintaining stage. Morgan Hunt (1994) argued that, due to carelessness in handling the relationship it may decline but there is also a possibility of the relationship between the buyer and seller remaining constant, in cases where customers are continuously rewarded for their loyalty towards a certain company or continue to perceive value, (Morgan and Hunt (1994:22); Little Marandi (2003:70)). 2.1.2 Understanding Perceived Value Baines, Fill and Page (2008) explains value is the customers estimate of the extent to which a product or service can satisfy their need. Customers determine a products value by considering alternative solutions and the costs associated with satisfying their need. For example if a customer is to purchase a shower gel, there will be many alternatives of purchase, however a customer will chose from a seller that provides additional value to its product, for example a 20% extra amount of the shower gel for the same price. Added value to a product such as, a good price, special offers, and good customer service will lead to high customer satisfaction, (Baines, Fill and Page (2008:672)). History of Relationship Marketing Research on the history of marketing suggest that marketing emerged in the beginning of the twentieth century, however there is no evidence as to when the theory of marketing actually emerged. During the industrial age, exchange occurred in the local markets, where farmers and craftspeople (producers) sold their products directly to end users. Producers represented both manufacturers and retailers, and embedded relationships between producers and consumers provided the trust and business norms necessary to conduct the transaction because few institutionalized protections existed, (Palmatier (2008:8)). Gronroos (1994) argues that RM is a paradigm shift in marketing from the previous concept of the marketing mix and the Four Ps of marketing (product, price, place place) which was introduced to the academic world in the 1950s by Neil Bordan. Groonroos also states that the marketing mix is a list of marketing variables that has become obsolete therefore the marketing academic occasionally offers additional Ps to the list, thus this proves that the marketing mix is very limited. Type of Model Theorist (Year) Scope 4Ps McCarthy (1960) Product, Price, Promotion, Place 5Ps Judd (1987) Product, Price, Promotion, Place, People 6Ps Kotler (1984) Product, Price, Promotion, Place, Political power, Public perspective 7Ps Booms Bitner (1981) Product, Price, Promotion, Place, Participants, Physical evidence, Process Source: Gummesson, E. (1994) Making Relationship Marketing Operational, International Journal of Service Industry Management. The changes in the marketing environment and the various factors that contributed to customer sophistication are; globalisation internationalisation of markets; continuous development of technology; increasing brand competitiveness among customers and fragmentation of media, Little Marandi, (2003). These factors have contributed a gap in the market which became a need for a new approach to retain customers, to gain their loyalty and to establish competitive approach. Therefore Gronroos (1994) states that RM can be said to be an evolved strategy to the marketing mix approach, which assists in obtaining sustainable competitive advantage and retain customers in the long run. However there is no evidence to when it was actually implemented but research by Palmatier (2008) suggest that RM emerged as a separate academic domain of marketing in the 1980s and it became more comprehensible in the 1990s from a historical perspective. Among those who were contributory in developing the concept of RM were Evert Gummesson at Stockholm University and Christian Gronroos at the Swedish School of Economics in the early 1980s (Gronroos (1994;4); Little Marandi (2003;11); Palmatier (2008;9). Effectiveness of Relationship Marketing Many theorists have researched on the subject and made different judgments on the effectiveness of RM, some of whom are Reichheld (1996) who argues that the smallest efforts in customer maintenance can increase company profit because it costs less to serve long-term customers; loyal customers will pay price premium as well as generate word-of-mouth recommendations to other potential customers. A study by Reinartz and Kumar (2000) claims that loyal customers cost less to serve and are usually willing to pay more for product varieties than non-loyal customers, as well as acted as word-of-mouth marketers for the company. While McKenna (1993) claims that long-term customer relationships helps gaining competitive advantage which leads to higher lifetime profit for firms. Correspondence of RM with other marketing concepts RM shares some similarities with other marketing concepts such as, customer relationship management (CRM) and brand equity. Williams (2006) defined CRM as an information industry term for software, and Internet capabilities that help an  enterprise  manage customer relationships in an organized way. While Payne Frow (2005) stated that CRM is a management approach that seeks to create, develop and enhance relationships with carefully targeted customers using the potential of information technology. Kotler Armstrong (2009) maintains that CRM involves building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping and growing customers. From the various definitions of CRM above Palmatier (2008) concludes that if RM is the skill of relationships, then CRM represents its application. Keller (1993) argues that brand equity represents different effects of brand knowledge on customer action, for example customers behave more favorably towards a product when they can identify the brand. While Rust, Lemon and Zeithaml (2004) maintain that brand equity is a product-centered concept that does not capture drivers of customer behavior completely. Although RM and branding activities similarly focus on building intangible customer assets that positively influence customer loyalty, purchase behaviors, or financial performance while reducing marketing costs, they differ fundamentally where branding focuses on products with extensions to firms whereas RM focusses on relationships and their extensions to firms. However the effect of brands and relationships on a customers attitude towards the firm is difficult to distinguish, Palmatier (2008). Strategies of Relationship Marketing A strategy is a senior managements plan of action with which the effort of the staff is coordinated, Waterman et al (1980). Little and Marandi (2003) argues that RM strategies assist to manage the assortment of the customer to ensure an even flow of profits in the long term, and to determine when relationships should be established, enhanced and maintained. As Groonroos (1996) points out, however, the essence of RM is in the organisations processes, rather than its planning. Little and Marandi (2003) illustrates the key strategies as follows; establishing relationships involves target marketing techniques and advertisement programmes that are able to communicate relevant value. It is also established by simplifying the service offer by giving clarity regarding the benefits and terms and conditions of payment and use as well as encouraging trial. Relationships with customers can be enhanced by differentiating among competitors offerings. Relationships are maintained by not neglecting existing and safeguarding the customers satisfaction with and trust in supplier. It is also done by communicating with customers for building successful long-term relationships, by fostering trust and creating customer satisfaction as well as rewarding loyalty as customers remain loyal for as long as the perceived benefits outweigh the perceived sacrifice. Determinants of RM Outcomes Several theorist have mentioned different determinants of lengthening the lifetime value of an existing customer, such as Olivers (1981) model of customer satisfaction suggests that quality of the product or service offered by the seller is one of the most essential to obtain customer satisfaction which will later attract the buyer to return and buy the same product again. Whereas Hennig-Thurau et al. (2002) proposes that loyalty benefits are essential to obtain customer long term relationship, as every giving expects a return, even customers expect their share of return after shopping from a particular seller. An example of a loyalty scheme is the loyalty card which helps hooking up customers to buy from a particular seller to obtain benefits such as discounts from that particular seller. Hennig-Thurau et al. also stated price, customer service and convenience as other factors that drive relationship marketing outcomes. The relationship between price and quality are parallel to each other. Customers are willing to pay extra to obtain better quality products, however customers naturally get attracted to lowest prices that offer a reasonable quality and quantity for the amount paid for. Another essential part of retaining an existing customer is during and after sale service. This gains customer trust and satisfaction as they are given the liberty and ease to exchange, return and obtain additional information about the product or service they purchased. Convenience created for customers such as a strategic location (nearby their housing arrears) and is accessible at any time makes customers to frequently return. Dibb et al. (2006) argues that CRM systems which uses technology that allows marketers to practice effective customer maintenance strategies by monitoring, rewarding and reminding them about goods and services, is a major factor for developing RM outcomes. Technology is also used to ease the process of buying for customers, for example, having an online site that allows customers to purchase, refund, review and complaint at anytime and anywhere and having self-service cashier machines at stores and etc. Humby et al. (2007) also recognize product range as a determinant because it influences daily and frequent business transactions, which also influences the convenience factor aforementioned. Outcomes of Relationship Marketing RM determinants that are applied in a certain company to eventually obtain outcomes that bring an overall increase in the profit margin of a company, Little and Marandi (2003). These outcomes are classified into two key main RM outcomes that lead to customer loyalty which are trust and commitment, Morgan Hunt (1994). Trust is defined as willingness to rely on an exchange partner in whom one has confidence, Rotter (1967). The literature on trust argues on the confidence of the buyer towards the seller which results from the firm believed to be reliable and has high integrity and is responsible for their actions, Morgan Hunt (1994). Commitment is the variable believed to be central in distinguishing social from economic exchange, Cook Emerson (1978). For a company to achieve commitment from a customer is the most challenging task, as customers are vulnerable towards better quality and price offered elsewhere. To be able to maintain a committed relationship with a customer a firm has to keep updated with attractive return benefits for customers to continuously shop from them, Little and Marandi (2003). The commitment and trust theory (Morgan Hunt, 1994) suggests that RM can be achieved if customer satisfaction is exceptionally high. Customer satisfaction is achieved when all the determinants of RM are applied and practiced well by the firm. Highly satisfied customers will increase customer loyalty as well as spread the word of mouth to their circle of communication which gives a high possibility of attracting new customers. Demographic factors influencing Relationship Marketing Demographic factors such as age, gender, income, location, occupation and education are used to target consumers for marketing purposes, Schmidt Spreng (1996). Consumer behavior differs by demographic factors as Gaurav (2008) argues that significant gender difference in the trust loyalty relationship shows that women are significantly more loyal than men at higher levels of trust. Klein and Ford, (2003) maintained that the age of consumers is positively linked with knowledge and experience, such that older consumers could be more committed than younger consumers. According to Kotler et al. (2009) place or location of a business entity influences the type of target customers it attracts as well as the convenience it delivers to the consumers. Aforementioned demographic factors, such as gender, age and place are clearly linked to RM and therefore are used for this study. Criticism of Relationship Marketing Although there are many marketing theorist supporting the RM concept, however the subject is not without its critics. Blois (1998) has criticized RM by stating that developing a relationship inevitably results in some loss of control over matters such as resources, activities and intentions. Blois continues his argument by stating that a relationship is subject to continuous change, with an uncertain future which is determined by its history, current events and the parties expectations of future events. Other than that effort is required to build and maintain a relationship. This can be viewed as an investment and a maintenance cost. Moreover there is always a need to prioritize the use of limited resources and, hence, it may not be possible to pursue all of the individually attractive opportunities. Additionally, some relationships may be irreconcilable with an existing relationship. Reinartz Kumar (2005) adds that although some companies are happy with the results of their RM prog rams, yet they are unable to identify precisely the factors that explain such success, Summary The literature review enclosed different definitions of RM by various theorists which all proposed three different stages of RM which are establishing, enhancing and maintaining relationships; and the scope of RM which focuses upon stakeholders or customers only, however this analysis will only take customers into consideration. It then continued to discuss on the strategies used by RM which explains tactics to manage the relationship across the different stages of RM aforementioned, which are establishing, enhancing and maintaining relationships. It also includes view and opinions of different theorists regarding the effectiveness of RM. Followed by the views of theorists about the determinants of RM which lead to a discussion on several theorists views and opinions on how a seller-customer relationship is build. In order to test the opinions of the theorists between the relationship of RM determinants, customer satisfaction and word or mouth marketers four hypotheses are drawn out which are illustrated in Figure 2. An overview of the literature review is summarized in Figure 3. Figure 2 Hypotheses drawn from RM statements by theorists Figure 3 Process of Relationship Marketing The effectiveness and values of RM were further elaborated by discussing the relationship lifecycle and customers perceived value which explained the criteria of RM as well as the importance of having it and how do customers perceive it. Although some theorists claimed it as effective others such as Blois condemned the effectiveness of RM.

Sunday, January 19, 2020

Cosmic Creation Myths Across Cultures Paper Essay

For years, there have been some inquiries about how the world came to be. Included in those inquiries are who create the world and how human kind came to exist. To answer the unanswered, different cultures have their own version of how it was created. The creation myths explain the destruction that has or is going to happen. Different creation myths can also explain natural accident or the cosmic conditions. The different creation myths from different cultures all have similarities and difference in their level of creation, creators, cosmic elements, and creations. When it comes to the Navajo Legend, each song is a prayer to the Holy People who takes care of them. Ceremonies are taken place to help cure the sick and to help protect their herds, crops, families, and/or homes. During the ceremonies they sing songs which include a Blessingway Song. The song brings a blessing for a happy and long life. It I also used to bless new marriages. However, the Inca culture was directed by a great coordinated priesthood and engaged on honoring royal ancestors as well as gods. The priests relied on fortune-telling to answer all types of phenomenon’s, from analyzing sickness to deciding who’s innocence or guilty to figuring out what type of offering to give to which god. The Navajo legend includes three underworlds where crucial events happened to shape the fourth world which is the present. Their creators gave them the name Ni’hookaa Diyan Dinà © which means Holy Earth People. Today, the Navajo people just refer to themselves as Dinà © which means The People. The first world (black), which was called Nihodilhil, had four corners and above these appeared four clouds. The four clouds were also the elements of the first world and the colors were black, blue, white, and yellow. The second world (blue), Nihodootlizh, was created due to the battle in the Nihodilhil, the First Man (Atse Hastin), First Woman (Atse Estsan), and the Coyote called the First Angry crawled up from the World of Darkness and Dampness to Nihodootlizh. The third world (yellow), which was called Nihaltsoh, was founded by Blue Bird as he was the first to come through. After the Blue Bird, First Man, First Woman, and Coyote also came to Nihaltsoh. The fourth world (white), Nihalgai, founded by The Locust. The Locust saw that the world was covered with water that glittered and everything looked white. The others followed the Locust to the Nihalgai. The Navajo creator god, Dinà © BahaneÊ ¼, created First Man and First Woman and the twins got to this world, it was all covered with water. But winds came and blew the water off of some of the land, so people could live on it. Then First Man got help from the diyin dine (spirit people) to make all the things on earth. He had a sacred medicine bundle and he took out the things in the bundle one by one and sang to it, and so he turned it into a mountain, or a tree, or an animal, or a time of day, or something else. The Inca creator god, Viracocha, was believed to have had a special bond with the Inca king Pachacuti, who dreamed that the god helped his people gain victory in a war they were fighting. After winning the war, Pachacuti built a great temple to Viracocha at Cuzco. The temple contained a large solid gold statue of the god as a bearded man. According to Inca tradition, Viracocha had white skin, which explains why some of the Indians at first thought that the bearded, pale-skinned Spanish soldiers were representatives of their creator god. When it comes to the Navajo legend, there was the Great Flood. Coyote named took two Water Monster babies and brought on the flood by stealing from the Water Monster mother. First Man and First Woman brought them back through the passage and on to the bank. Coyote had also wrapped them in his skin coat with white fur lining. The Inca also had a Great Flood. In their legend, the great flood was used to wiped away the wicked and unruly people. During ancient time people were cruel and greedy and failed to pay proper attention to the gods. Then one day, two respectable brothers observed that their llamas were sad and acting abnormal. The llamas spoke to the brother and said, â€Å"A great flood is coming†. The brothers took their herds and families to the high caves. It rained for months, drowning the world below. Then one day the sun god Inti arose and with the warmth of his smile dried the earth. Reference http://bigmyth.com/myths/english/2_navajo_full.htm http://bigmyth.com/myths/english/2_inca_full.htm

Saturday, January 11, 2020

Deadly Unna Essay

Within the pages of the novel Deadly Unna by Phillip Gwynne we are taken on a journey to a highly racist and bigoted town. Through the eyes of a young teenage boy, we see the world how he does and we experience the division and racism in this corrupt town. In the book, the two races are strongly divided and we can see this clearly in the local bar. The front bar is for the goonyas and the back bar is for the nungas. Nungas are not allowed to be in the front bar with the goonyas, they are not allowed to drink with them. Although the division in the bar is not direct racism, it still leaves a large impression on the reader. In the back bar, there is a serving window for the nungas to buy their drinks, there are no seats at the bar like in the front. â€Å"Back bar or black bar as everybody called it,† (page 156). The back bar is called black bar because that is where all the nungas are permitted to be, not up the front like normal people, like animals at the back. Although the nungas play for the football team, the racial division is even spread in the change rooms. The may not have been a rule in place that the nungas got changed at one end of the rooms and the goonyas at the other, it still came out that way. â€Å"Nungas got changed at one end and us Goonyas at the other. There was no rule or anything; it was just the way it was.† (Page 21) Even though the town allows nungas to play on their football team, they are still classed as unwelcome in the Port. â€Å"boongs piss off  Ã¢â‚¬  is written on the jetty shed. The word â€Å"boong† is a derogatory term that the aboriginals are referred to. â€Å"Everywhere you look boongs piss off, boongs piss off, boongs piss off. Everywhere,† (page 257) the crude saying is written everywhere in The Port making it clear that nungas are not welcome in this part of town. The goonyas part of the town. At the end of the novel, Blacky and his siblings, paint over the sign â€Å"boongs piss off  Ã¢â‚¬  that is on the jetty shed, showing that they are not as racist and narrow minded as the rest of the town, their decision may not be agreed with, but they are standing up for what they think is right, proving that nungas should be accepted, not discriminated against. Not only is this town racist, but it is also filled with sexism, majority of the men and teenage boys do not believe that women are their equals. Mr Robertson will not take advice from Gwen Black (Blacky’s mother) because she is a woman, even if she was a â€Å"tactical genius†. â€Å"Everybody thought that to be a great coach you had to be a great player. And a bloke, of course,† (page 32). Pickles is also sexist, he dislikes Cathy (a camper) squidding with Blacky and himself, he believes that it is a man’s job. â€Å"Girls and squid, according to him didn’t go together,† (page 181). Blacky’s father is also sexist, he is always down at the pub drinking or going out fishing while his wife Gwen is at home cooking and cleaning for her family.

Friday, January 3, 2020

Financial Crisis And The Failure Of Corporate Governance

1. Introduction The financial crisis of 2007-08 was also known as subprime crisis or credit crisis. Since the bubbles of real estate market in America came into surface on August 9, 2007 investors were losing their confidence on subprime mortgage assets and the liquidity risk followed behind. Even though the central banks of many countries tried to turn around the situation by injecting huge amount of capital to the financial market, the financial crisis still broke out and spread to Europe and other parts all over the world especially on the backing sector. The purpose of the essay is to identify the causes of the global financial crisis on the angle of the failure of corporate governance in UK banks such as Northern Rock and RBS which will be discussed in Section two. The reforms of UK governance post crisis will also be discussed especially on the aspect of banking risk management in section three. In the fourth section conclusion will be given. 2. 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