This report mainly focuses on relationship marketing, its importance in the modern business scenario and connection of relationship with technological innovation and discussion regarding the Integrated Marketing Communication (IMC). Lastly, a conclusion and recommendation is made regarding the close connectivity between these three aspects. Relational marketing In the last few decades, the marketing theories have experienced a colossal shift in both theories and practices of marketing. Relationship marketing is a developing network paradigm that recognises that global competition occurs between networks of organizations. In the context of relationship marketing, Morgan and Hunt (1994) have suggested the Commitment and Trust Theory that involves all types of relational exchanges. The researchers have argued that the central concept of relationship marketing rotates around those that distinguish an effective and productive relational exchange from those that are ineffective and unproductive. There are several factors that contribute towards the success or failure of relationship marketing effort. These scholars have stressed on trust and commitment that makes significant contribution. They theorised that relationship trust and commitment is the key to successful relationship marketing. These two aspects help the marketer in preserving relationship by cooperating with the partners, resisting their attraction towards short-term benefits in the hope to reap long-term ones by staying with the existing partners and looking at high-risk actions as prudent. Figure 1 (Source: Morgan and Hunt, 1994) Another research scholar, Reichheld and Sasser (1990), have stressed on the fact that there are very few companies who have succeeded in providing the service commitment made by them to the customers. For service companies, scrap heap signifies customers who are not going to come back. If the companies start measuring this scrap heap, they will realise that this scarp cost them heavily and ardent steps are needed to be taken in order to reduce the same. This will make them strive for “zero defects” in their quality movement and guiding light for making the organization gain profitability and achieve it soon. They have suggested that customer defection leads to a powerful impact on the bottom line. The company’s market share, profit, unit cost and many other factors related to competitive advantage are expected to be impacted positively. This strengthening and lengthening of relationship is expected to increase profit by 100 percent, by 5 percent retention of the existing customers. Technology development Computing technology is an omnipresent aspect that encompasses both personal lives of an individual and organizational framework. In order to understand the outcomes, resulting from technology acceptance, several theoretical models has been proposed such as, technology acceptance model (TAM) and innovation diffusion theory. The TAM is hugely recognised as robust but with parsimonious conceptualization. Based on the theory of reasoned action, it has been argued by TAM that the behaviour of IT acceptance can be explained, based on the belief of the individual, regarding the ease of use and usefulness of IT. On the other hand, the innovation diffus
Contemporary Issue in Marketing Introduction In this competitive environment, organizations are seen to give huge importance to maintaining relationship with the customers, dealers, distributors, suppliers and employees. The modern organizations have understood how the maintenance of relationship can be profitable and beneficial to them in long run…
Recommendation 24 References 25 Bibliography 32 Introduction Airline industry is one of the top developing industries in the world. Airline industry assists in the financial development of a country, helps in foreign business, supports the growth of tourism industry and thus, increases the international investment.
It is believed by the contemporary economists that without the essence of ethics and moral values in business dealings, the firms can never deliver complete satisfaction to the individuals. Each and every business concern should realize that the net social marginal cost of their business dealings must be lower than that of the social marginal benefits.
It is totally based upon the set of belief regarding what is correct and what is not. Thus, it is very closely related to the concept of morality. Morality includes what is good or bad, right or wrong and is associated with justice and values. In other words, it involves the systematic process of determining correct or incorrect conduct.
Morality deals with customs, ideals and values ingrained in societal processes that explain the issues which are right or wrong. Ethics is more to moral ideals and the appliance of reason to expound specific rules and principles that establish right and wrong for a given situation.
With the availability of technology and information, consumers have become more knowledgeable and smarter than ever. As a result, purchasing decisions have become much more concise, calculative as well as complex, where consumers go through a lot of information and data before making any final purchasing decisions.
It can be said that the only real responsibility a company has is to the shareholders is profit, therefore profit is the only motivation for a company. However, that assumption can no longer be taken as granted. Government pressure, regulatory
100000 people working for the success of Olympics which is another strength of this event. This huge manpower can make enough facilities for the successful execution of the event.
The major weakness of LOCOG is its smaller size. LOCOG is small