Prof. Rajat Pundeer talks about Relationship Marketing

Industrialization at the inception of 21^st century was production based, fully producer centric, from there it progressed into product centric, where the products were pitched and not the exact needs of the customers. Slowly, with the passage of time and changing economic conditions, this strategy transformed into sales oriented system, but this method still did not address the customer needs completely, but to some extent satisfied the needs.

 

With the phasing time and onset on liberalization, the marketing strategy assumed the shape of relationship marketing. As per this strategy, marketing campaign was emphasized, which stressed upon the need of customer retention and satisfaction, rather than keeping dominant focus on sales transaction. This differed form other forms of marketing strategies as this focused on the long term value of customer relationship and extended communication beyond advertising and sales promotion messages.

 

In the past decade, ever since India liberalized its economy and allowed foreign investments; lots of foreign players moved in and as a result of which quality of services increased. With large number of players the competition also stiffened. Relationship marketing for the first time demonstrated results, which no other marketing strategy could. The reason behind this was, on one side there were large number of players producing similar products and on the other increased education level of the masses made the selling tougher for each. Through this strategy, sectors like insurance, automobile, telecom and real estate continued to prosper even in the times of intense competition. Growth story would not have been the same, had each one of them relied on some other means or methods of marketing.   

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