Topic > Marketing - 1724

This essay is a critical review of the relationship marketing literature as it relates to customer satisfaction, customer loyalty, and technology. In this review I will provide a brief orientation on relationship marketing; identify the benefits of relationship marketing for companies and customers and critically analyze the concept of RM with regards to customer satisfaction and loyalty and analyze the role of technology in relationship marketing. Leahy (2011:651) defined relationship marketing as “attracting and retaining customers for a long period of time”. RM is used by companies to change consumer attitudes and increase the frequency of purchasing from a company using marketing techniques such as promotions and advertising. According to Ndubisi and Chan (2005), relationship marketing offers an organization the opportunity to access the right information about its customers, meet customer needs effectively and efficiently and achieve a competitive advantage. Furthermore, Gronroos (1994:9) suggests that relationship marketing is a new marketing model and is about the organization “establishing, maintaining and improving relationships with customers profitably so that the objectives of the parties involved are achieved. This is achieved through mutual exchange and fulfillment of promises.” The company can make promises to its customers; however, what remains to be seen is whether the promises will be kept or ultimately not kept. Szmigin et al. (2005) argue that, due to the vast presence of relationship marketing in different sectors, it can be difficult to define relationship marketing that takes into account all relationships. Ravald and Gronroos (1996) argue that relationship marketing is not limited to the company maintaining a close relationship... at the heart of the paper... it is very important to the success of an organisation, as reflected in multiple definitions above. It is beneficial to both the company and its customers and, when used responsibly, a great symbiotic relationship is established. Analysis of customer satisfaction resulting in increased customer loyalty was carried out and the contribution of increased customer loyalty resulting in high profitability for the organization was highlighted. The role of technology in relationship marketing was analyzed leading to the above research question, i.e. to what extent does technology foster a close relationship between an organization and its customers. For further research, it would be advisable to explore this area in more depth so that organizations can achieve maximum results when using technology as a means of relationship marketing..