Relationship Marketing

Relationship marketing in our book is defined as "a strategy that focuses on keeping and improving relationships with current customers."

This term is introduced in Chapter One of our book, as it refers to Customer Satisfaction. It assumes that many consumers and business customers would rather have an on-going relationship with one company than to continuously switching between companies. I found that All-State Insurance is a prime example of a company that thrives on relationship marketing. They have developed a plan in which states that if you go a year without getting into a car accident then they will give you $100 for that year and the ones that follows.

Unconventional to other companies, this plan seemed to be directly relating to Relationship Marketing because it is a way of rewarding their customers if they have been accident free for an entire year. By providing a reward system of some sorts to their customers, they are more likely to keep said customers.

Should a company rely heavily on relationship marketing, or should the company focus more on other aspects?

In Response to Joe Maturo

Do you like variety and options when buying something?

I most definitely like when there is a variety or options when buying products. Of course it depends on what I am buying. For instance: if I were shopping for a new pair of soccer cleats I would go to a store that was specialized in making such product. Although I could find soccer cleats in various places, like that of Target or Walmart, I would not go there. This is because I would be looking for quality in the product, one that will last for a relatively long time. Companies like Target or Walmart specialize in providing consumers with anything they need all in one store; not worried so much on the quality of the product. In certain situations Target and Walmart stores are good to go to when you need something, however in other cases I would have to choose a company that was more specialized in certain products.