Relationship Marketing - Not a New Concept

Relationship Marketing - Not a New Concept


Industrialization changed the marketing structure but in a small form marketing based on relationship survived and re-emerged in late eighties and early nineties of last century. To be very precise symptoms of the change in marketing structure were witnessed in late 1970s. Berry1, however, was the first one to use and thereby establish the phrase Relationship Marketing. He defined Relationship Marketing as attracting, maintaining and - in multiservice organizations - enhancing customer relationships.

There are many small stories, which describe the importance of relationship in marketing. We here have discussed a few cases in the book but to start with we shall narrate one of the incidents that took place in Ranchi, India. Ranchi is a small industrial town in India where there was a small grocery shop; small by the standards of the new mega retail formats. Shop owner knows every one in the neighborhood by name, their birthday, and anniversary. Till late eighties he was doing good business but he started losing customers in early nineties, as first generation employees of Heavy Engineering Corporation Ltd. (HEC) , started moving to suburbs on retirement.

Rabindranath Choubey, an employee of HEC and a good friend of the shop owner, discussed the latter's problems with him once. He was losing his customers and finding it difficult to win new customers. Choubey suggested him to take the trouble of making home deliveries. The gesture though small, made a difference to all his customers - old and new, who also enjoyed a regular discount from him. His establishment today has flourished and expanded but his relationship with all the customers is still cordial. Even today he knows the needs of each individual and his/her family. This form of relationship marketing existed since ages in all part of world. It is not a new concept and has existed since the beginning of business. Everything from shopping at grocery store to enjoying a British Airways services involves a certain element of relationship.

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