MARKETING CONCEPTS

Application of Relationship Marketing, Consumer Behavior and Market Segmentation on Business

Abstract

In order to increase my understanding on marketing concepts, I have chosen the concepts of relationship marketing, consumer behavior and market segmentation. In my analysis, I have used scholarly literature to elaborate these concepts. Relationship marketing is the best approach to retain customers especially for companies, which are facing intense completion. On the other hand, market segmentation is the approach through which companies design their products, process and strategies to meet the needs of one particular target market, while consumer behavior helps them to analyze the purchasing patterns of the customers by studding various demographic and cross-cultural elements, so that they can design their marketing strategies and marketing mix accordingly.

Table of Contents

Abstracti

Introduction1

A.Relationship Marketing1

1.Relationship Marketing In the New Economy (Gummesson, 2002)2

2.Relationship Marketing of Services - Perspectives from 1983 and 2000 (Berry, 2002)2

3.The Evolution of an Idea: An Environmental Explanation of Relationship Marketing (Palmer, 2002)3

Application of the Concept4

B.Consumer Behavior4

1.An Integrative Framework for Cross-Cultural Consumer Behavior (Luna, 2001)5

2.Pricing in the Presence of Strategic Consumer Behavior (Feldman, 2010)5

3.Brand Placement and Consumer Choice: An In-Store Experiment (Sigurdsson, 2008)6

Application of the Concept7

C.Market Segmentation8

Application of the Concept10

Conclusion11

References12

Appendix13

Relationship Marketing13

Consumer Behavior16

Market segmentation19

Application of Relationship Marketing, Consumer Behavior and Market Segmentation on Business

Introduction

Marketing is a diverse field which deals with identification of the needs, wants and desires of customers and providing them the solution of their needs in a way that the customer is satisfied and delighted. In order to accomplish this purpose, different strategies, models and theories that aim to meet the needs of the target market have been developed. In this assignment, I am going to discuss three marketing concepts which are; relationship marketing, consumer behavior and market segmentation. I am going to discuss these concepts from the perspectives of different authors who have conducted detailed research on these concepts. Then, I will apply these concepts by discussing examples of companies who have incorporated these concepts. Finally, I will conclude my essay by explaining the importance of these concepts in the field of marketing.

A.Relationship Marketing

Relation marketing is the concept of attracting, satisfying and retaining customers in order to generate future sales. The concept revolves around the idea that the cost of attracting a new customer is much higher than the cost of retaining the existing customers. Therefore, companies prefer to deliver excellent value to their customers so that they are not only satisfied, but delighted, as well. In order to elaborate the concept, I am going to discuss the concept of relationship marketing from the following the following scholarly literature:

1.Relationship Marketing In the New Economy (Gummesson, 2002)

In this article, the author has focused on the importance of total relationship marketing. The author says that relationship marketing is not just an addition to the traditional marketing concepts. In practical, relation marketing focuses on the importance of interaction, networking and the values that affect the concept. He has further said that, service marketing is only a theory that has no link with customer relationship ...