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Fundamentals_of_Marketing

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MARKETING: DEVELOPMENT AND SCOPE<br />

Grönroos suggests that these contradictions can be resolved by means <strong>of</strong> a dynamic and<br />

fluid relationship marketing approach which alone can counter the straitjacket <strong>of</strong> the clinical<br />

transaction-based, mass-market approach <strong>of</strong> the ‘4 Ps’. The aim <strong>of</strong> relationship marketing<br />

is to establish, maintain and enhance relation with customers and other partners, at a pr<strong>of</strong>it,<br />

so that the objectives <strong>of</strong> all the parties are met. This is achieved by the mutual exchange<br />

and fulfilment <strong>of</strong> promises. Such promises are usually, but not exclusively, long-term. The<br />

establishment <strong>of</strong> a relationship can be divided into two parts: to attract the customer and to<br />

build the relationship with that customer so that the economic goals <strong>of</strong> that relationship can<br />

be achieved. This shifts the ground towards the ‘part-time’ marketer; the recognition that,<br />

within organizations, many non-marketing specialists actually are practising marketing<br />

functions. Internal marketing is needed to gain the support <strong>of</strong> these people. Both internally<br />

and externally, relationships have to be regulated by means <strong>of</strong> the exchange <strong>of</strong> promises to<br />

establish trust through the formation <strong>of</strong> relationships and dialogue with both internal and<br />

external customers. While the ultimate objective is to build a loyal customer base, there is<br />

no doubt that this refocusing <strong>of</strong> marketing to emphasize qualities <strong>of</strong> connectedness, dialogue<br />

and trust represents an attempt to uplift the process <strong>of</strong> marketing.<br />

Grönroos’s aspiration that marketing in the twenty-first century would be the era <strong>of</strong> a<br />

new relationship marketing based on the mutual exchange and fulfilment <strong>of</strong> promises has<br />

not so far come to fruition, nor, one might suggest is it likely to. Why? One reason is that,<br />

as it has evolved in practice, the umbrella term ‘relationship marketing’ subsumes a number<br />

<strong>of</strong> disparate, even contradictory discourses associated with areas such as services marketing<br />

and one-to-one marketing. In services marketing it is quite conceivable to envisage a service<br />

provider who seeks to develop more meaningful relations with customers. However, the<br />

rhetoric <strong>of</strong> direct marketing and database marketing has a quite different focus (Peppers et<br />

al., 1999). Through customer databases and mass customization the marketer plans the <strong>of</strong>fers<br />

and communications on the basis <strong>of</strong> customer pr<strong>of</strong>ile and feedback and can focus on the<br />

development <strong>of</strong> an individual ‘relationship’ with each <strong>of</strong> a large number <strong>of</strong> customers. The<br />

term ‘relationship’ is used advisedly and in a technical sense to point to two features which<br />

are required <strong>of</strong> the technology: its ability to address an individual and the ability to gather<br />

and ‘remember’ the response <strong>of</strong> that individual by means <strong>of</strong> a cookie. It is then possible to<br />

address the individual once more in a way that takes into account his or her unique response.<br />

In retrospect there seems little to suggest that this is any less formulaic and subject to the<br />

supervision <strong>of</strong> specialists than the ‘4 Ps’ approach that Grönroos attacked a decade earlier.<br />

The reality <strong>of</strong> database marketing in the real world to date is that it fails to live up to the<br />

ideal mentioned above (cf. Fournier et al., 1998). Rather it summons to mind the myopia<br />

that Levitt (1960) mentioned all those years ago. The technologies may be new, e.g. the<br />

crude use <strong>of</strong> databases, contact techniques such as the use <strong>of</strong> remote diallers, sPAM emails,<br />

coupled with the development <strong>of</strong> remote ‘customer service’ centres. But the underlying<br />

motive seems to be depressingly similar to that which Levitt warned against all those years<br />

ago: the pursuit <strong>of</strong> efficiency over effectiveness.<br />

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