(A STUDY OF SELECTED MARKETING FIRMS IN PORT HARCOURT)
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ABSTRACT
The study examines the impact of relationship marketing on organizational performance. The main objective of the study is to examine the impact of relationship marketing on organizational performance. The specific objectives are to know if the concept of relationship marketing is clearly understood and adopted by marketing organizations in rivers state, to find out how far this technique helps in securing a competitive edge, to examine whether the practice of relationship marketing influences the performance of marketing organizations in rivers state, to study the benefits of relationship marketing which accrue to both the customers and the organizations. The researcher determined the sample size to use from the population of both the senior and junior staffs of Bontis limited and unique services, which is unknown. The sample size of this study is judgmental sample of 75 respondents which comprise of both the senior and junior staffs of Bontis Limited and Unique Services. Findings revealed that Relationship marketing has significance influence on marketing organizations in Rivers State. Based on the findings of the study, the researcher recommends that organizational marketing managers should train sales persons on how to create a good and lasting relationship with their customers in the office to enhance sale as well as profitability in the organization, the concept of relationship marketing as well as the importance should be clearly defined to organizational force, since the findings review that relationship marketing enhances profitability also greater market share more relationship marketing strategies should be adopted by marketing organization in Rivers State as it will help them scare a competitive edge other competitors, marketing managers should adopt some problem solving techniques such as motivating the sales force so that they can face out the challenges of relationship marketing.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
As our economy becomes more service and technology oriented, the dynamics of the sales process will changes. The ongoing nature of services and the growing complexity of technology will increasingly necessitate lengthy and involved relationships between buyers and sellers. Thus, the seller‘s focus will need to shift from simply landing sales to ensuring buyer satisfaction after the purchase. To keep buyers happy, vendors must maintain constructive interaction with purchasers which includes keeping up on their complaints and future needs. Repeat orders will go to those sellers who have done the best job or nurturing these relationships. Information gathered through communication with customers can enable organizations to develop a marketing mix that is more likely to create customer satisfaction. With the increase in the competition organizations realize that what customer‘s value, is not always just lower prices, but also expects such as delivery, image and brand associations, the link with customers becomes increasingly important. When the market growth slows down or as the markets become more competitive, firms are more likely to attempt to maintain their market share by focusing on retaining the current customers. (Lee et al., 2001).
Customer Relationship Management (CRM) Service is a marketing strategy that ensures the acquisition and retention of most profitable customers using the most effective method. Thus, tremendous growth of services sector implies the role of marketing in terms of vast opportunities and implications, marketing opportunities arising from new technology, in franchising from fewer regulations and professional restrictions, in servicing physical goods and international markets (Lovelock, 1999). The rapid growth of services industry has changed the conditions of business. Customer retention has been advocated as an easier and more reliable source of superior performance (Reichheld and Sasser, 1990). It has now become common knowledge that the value of all customers is not same, the 80/20 rule prevails whereby we have learned that 20 percent of customers generate more than 80 percent of revenues for most companies, and it is not uncommon to find that an even lower percentage of customers can generate more than 80 to 90 percent of the revenues. Under such circumstances, it is not prudent for a company to allocate equal resources to all customers. Customer segmentation and program differentiation is needed in order to match revenue potential with service offerings. Those with higher revenue potential deserve a greater allocation of costs and service. Otherwise, competitors will seize the opportunity by offering better service and a greater allocation of resources for the high-end customers. At the lower-end, attempts should be made to achieve cost savings through the reallocation of efforts based on less-expensive resources. This can be done with the help of RM strategy. It is based on the idea that the happier a customer is with a relationship, the greater the likelihood that they will stay with an organization.
The ultimate aim of a Relationship marketing approach is for the customer to become a partner‘ of the organization, by contributing to marketing decisions through a one-to-one relationship.
Shani and Chalasani (1992) view Relationship marketing as an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously improve the network for the benefits of all stakeholders, through interactive, personalised, and value-added contacts over a long period of time.
1.2 STATEMENT OF THE PROBLEM
The problem definition of this study is to examine whether the practice of relationship marketing influences the performance of marketing organizations.
In this competitive and globalize age, customer of each organization is of crucial assets which the organization needs to preserve and expand for its profitability (Hanley, 2008). Many market researchers highlighted that loyal customers have an important contribution in market share and organizational profitability. It is undoubted the fact that loyal customers can be seen as the most vital factor of an organization to achieve the it’s financial performance in the long-term. In addition, transforming indifferent customers into loyal ones and establishing a long-term relationship with customers is crucial for business success. It is therefore, necessary to establish and maintain customer loyalty as a key to promote competitive advantage in the market place. Consequently, the maintenance of significant customers is a vital target which organizational management needs to understand to strengthen customer loyalty for the market.
1.3 PURPOSE AND OBJECTIVES OF THE STUDY
The main objective of this study is to find out the impact of relationship marketing on the performance organizational.
- To know if the concept of relationship marketing is clearly understood and adopted by marketing organizations in Rivers State.
1 To find out how far this technique helps in securing a competitive edge.
2 To examine whether the practice of relationship marketing influences the performance of marketing organizations in rivers state.
3 To study the benefits of relationship marketing which accrue to both the customers and the organizations.
1.4 RESEARCH QUESTIONS
This study is cause and effects in nature and seeks to answer the following research questions:
- What is the extent to which the concept of relationship marketing is clearly understood and adopted by marketing organizations in Rivers State?
- To what extent does the relationship marketing technique helps in securing a competitive edge?
- Does the practice of relationship marketing influence the performance of marketing organizations in Rivers State?
- What are the benefits of relationship marketing which accrue to both the customers and the organizations?
1.5 HYPOTHESES
The following hypotheses will be uses to guide the study:
HO: Relationship marketing does not have any significance influence on marketing organizations in Rivers State.
HI: Relationship marketing has significance influence on marketing organizations in Rivers State.
1.6 SIGNIFICANCE OF THE STUDY
The study is expected to make recommendations to marketing organization managers on the critical role of relationship marketing in doing their business, particularly in highly competitive market as Rivers State market, which is considered a profitable market.
Arguably, it is used to acknowledge that a study of this nature is not basically carries out for it purpose but as a result of some associated benefits it can help to offer generally, it will help employers to ascertain the need for carrying out effective relationship marketing planning in the respective organization.
The opinions of this study will also open up future vents for young practicing marketers to enhance see relationship marketing as a strategic marketing tool for organizational performance and continue process for business survival most importantly, this study will also provide useful information to other scholars in the academic field in topical area under investigation and finally, this study will also be a useful guide and information to other students that will carry out their studies in the future.
1.7 SCOPE OR DELIMITATION OF THE STUDY
The study Limit scope to some selected marketing organizations in Rivers State.
1.8 LIMITATION OF THE STUDY
In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.
Time: The time frame provision for this study was too short.
Financial constraints: Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.
Poor response: The poor response from the respondent and inability to access the entire population also was another constrain to the study.
1.9 DEFINITION OF TERMS
Relationship marketing: Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales.
Marketing: The action or business of promoting and selling products or services, including market research and advertising.
Organizational performance: The action or business of promoting and selling products or services, including market research and advertising.
Market share: The portion of a market controlled by a particular company or product.
Profitability: It is the ability of a business to earn a profit. A profit is what is left of the revenue a business generates after it pays all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to the conduct of the business activities.
Organization: An organized body of people with a particular purpose, especially a business, society, association, etc.
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