Marketing Performance

Marketing Performance

Marketing Performance

Market Analysis-STP

Relationship Marketing is a separate branch of marketing thought and it is indispensable to the successful performance of a firm. Marketing and business development professionals are confronting a rapidly different and changing business landscape, and the traditional business model that was once the norm is now being transformed due to technology drivers that make advanced marketing and sales capabilities possible. This essay will discuss relationship marketing and its contribution to the successful performance of a firm. Firstly, it will discuss the definition of this type of marketing and, secondly, the issues and their importance in terms of success for a firm (Foss and Stone 2001 79-87).

There are many definitions for Relationship Marketing (RM). Forsyth (2004 34-37) stated that ?at a micro level, RM is concerned with the nature of the relationships between the firm and customer that emphasises a long-term relationship that takes account of the customer?s needs and values. Tinsley (2002 70-76) says ?Relationship Marketing is to identify and establish, maintain and enhance and when necessary also to terminate relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by mutual exchange and fulfilment of promises? The promise concept is an integral element of RM - giving promises and persuading customers to participate in the marketplace in order to attract new customers and build relationships. Valentine & Gordon (2000 185-224) cited that fulfilling promises is an important means of achieving customer satisfaction, retention of the customer base, and long-term profitability the globalisation of the business and the evolving recognition of the importance of customer retention and market economic and customer relationship economics, among other trends, reinforce the change in mainstream marketing?

Segmentation

Segmentation is "Organizations that sell to consumer and business markets recognize that they cannot appeal to all buyers in those markets, or at least not to all buyers in the same way (Pressey and Mathews 2000 272-285)."

Market segmentation has thus become the core concept of target marketing and communication campaigns. Products are positioned to help satisfy consumer needs and to take account of how products fit into consumers' lifestyles. Lifestyle is defined most simply as how people live and spend their time and money. Lifestyle segmentation begins with people and categorizes them into different lifestyles, each characterized by a unique style of living consisting of a wide range of activities, interest, and opinions.

We can segment the market by nation, regions, population density, census districts, suburbs, age, income, occupation; or lifestyle, personality, marital states... customers belongs to different group, make different purchase. "Targeting is the process of selecting one or more market segments and then developing a product and offer which is aimed specifically at those segments (Kotler et.al. 2004 48-336)." It's a key element in marketing strategy.

Marketing segmentation has been found for as long as people have been selling products and consumers have been choosing one over another. Marketing segmentation is defined as "the process of dividing a market into distinct ...