ABSTRACT
In this chapter, we will explore the concept of relationship marketing to understand the mutual benefits which it brings to organisations and their stakeholders, and the marketing of services. To do this, we examine the constituents and characteristics of relationships and services and consider how customers derive value from each. Internal marketing – the marketing of an organisation to its workforce – may be considered relationship marketing to internal stakeholders. As we shall see, the world has largely moved on from the days of transactional marketing, in which organisations only interacted with customers at the point of purchase or when reacting to incoming enquiries.
Relationship marketing seeks to “identify and establish, maintain and enhance and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties are met, and this is done by mutual exchange and fulfilment of promises” (Grönroos, 1997, p. 322). It entails an organisation regularly providing value to its stakeholders. It builds networks, manages services, establishes strategic alliances, builds customer intelligence, and creates market-oriented communications.
