Effective Relationship Marketing Methods

For centuries, the customer relationship techniques were in existence, and it was practiced by merchants and traders but this practice was prevalent only in traditional and small markets. In order to achieve economies of scale, the businesses adopted mass production and mass communication. The manufactures were only focusing on production and efficient ways to cut costs but they never thought of having direct contact with their customers. Also, the intermediaries between the manufacturer and the customers such as distributors, wholesalers and retailers have a driven a huge wedge between them. All these things together, cause a negative impact on the relationship between the customer and the manufacturer.

Re-emergence of Relationship Marketing

Later in the post-industrial era or information era, the concept of relationship marketing re-emerged due to the following reasons:

• Rapid technological advancements
• Intense competition in the global markets
• Increase in service sector units
• Take over of Total Quality Management (TQM) programs

With the advent of new technologies and growing population, the demand for new products in the global market has increased to a large extent. The competitors in the market are also growing, due to which there are many challenges faced by companies so that their products survive. For that, they need to get new customers as well as retain the existing customers. Now, let us take an example of apparel market. These big apparels need customers to visit their shops every now and then, for which they use a strategy called EOSS (End Of Season Sales) for bringing back the old, loyal customers as well as to attract new customers.