The International Journal Of Business & Management (ISSN 2321–8916) www.theijbm.

com

THE INTERNATIONAL JOURNAL OF

BUSINESS & MANAGEMENT

Relationship Marketing Perspective[s]

Milton Gwakwa
Lecturer, Business Management, BA ISAGO University, Botswana

Abstract:
Relationship marketing is pivotal to relationship creation and managing customer relations. This paper provides a
recipe for enhanced debate on existing marketing management discourse from a relationship building platform. Various
issues have been discussed from a critical perspective, focusing mainly on what relationship marketing is, and how it
benefits industry and specific terms. The fundamental purpose of the paper is to provide key linkages and key drivers
that make the relationship marketing discipline a key functionality in its own right.

Keywords: Relationship marketing, customer relationship marketing, competitive advantage, customer satisfaction,
customer retention

1. Introduction
In order to advance the knowledge and understanding of this study, this paper is literally devoted to a review of
related literature pertaining to relationship marketing both from a general and specific perspective. A literature review
fundamentally allows fact-finding about the research topic (in this case: Relationship marketing and establishes background
knowledge about different theoretical concepts (O’Leary, 2004). For this paper, a variety of different sources were used to get
a broad picture and insights on the relationship marketing phenomenon. The paper explores on a number of discussive areas
on relationship marketing as propounded by different authors and scholars.

1.1. Definition of Key Terms

In order to get clarity and understand the conceptual and theoretical underpinnings pivoting this study, it would be
naïve to proceed without providing clarification on meanings on key recurring terms that provides meaning and direction to
the total research purpose. Against this background, I therefore set the tone for this paper, by giving that clarity through
definitions as understood by other scholars.

1.2. Relationship Marketing

Many authors have propounded a number of meanings of relationship marketing and vary their understanding based
on their personal experiences. Relationship Marketing refers to exchanges that occur overtime, in contrast to short term
transactional exchanges. Another dimension put forward by Strydom et al,(2004) is that relationship marketing is a
philosophy of strategically managing relationships with stakeholders, with a strong focus on retention of current customers.
The strategic area of relationship marketing was first defined by Berry (1983, p. 25) as “attracting, maintaining and [...]
enhancing customer relationships”. Thus, relationship marketing refers to activities directed toward establishing, developing,
maintaining, and retaining successful relations (Berry and Parasuraman 1991; Morgan and Hunt 1994; Gordon,1998). Hunt
(2002) also made it clear that a company’s efficiency and effectiveness are always enhanced by establishing relationships with
all potential stakeholders. Nevertheless, Gummess on (1995) observes that “not all relationships are important to all
companies all the time”. For this reason, a fundamental thesis of relationship marketing strategy is to identify, develop and
nurture a suitable relationship portfolio (Hunt, 2002).Callaghan et al. (1995) defines it as follows: “relationship marketing
centres on the creation and maintenance of the relationship between two parties of exchange, the supplier as an individual
and the consumer as an individual through the possession of the desire to be mutually empathic, reciprocal, trusting and to
form bonds .Bonding is defined as the dimension of a business relationship that results in two parties (the customer and the
supplier) acting in a unified manner toward a desired goal (Callaghan et al., 1995). In the dyadic relationship of a buyer and a
seller, bonding can be described as a dynamic process that is progressive over time (Dwyer et al., 1987).”
Lovelock (1996) asserts that relationship marketing recognizes the value of current customers and the need to provide
continuing survives to existing so that they will remain loyal.
An analysis of a number of all the above definitions, including those excluded here because of space and time, results
in this lowest common denominator: that the metamorphic aspect of relationship marketing rests on creating long lasting
relations divorced from the traditional transactional view, which is embedded in the ‘kill the hen that lays the egg’ view. Given

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these definitions from the dedicated authors, I summarily assert that while I do not have conflictwith any of the views,I believe
that relationship marketing is a loyalty building process uncontaminated by greediness and the need to maintain long term
relationships for enhanced profitability, obtainable through managing the total customer lifetime value discounted to the
present net value (total customer contribution throughout his/her lifetime cycle with the firm). Relationship marketing in
support of other author views is a strategy where the management of interactions, relationships and networks is fundamental.

1.3. Customer Satisfaction

Gerson(1994) defines customer satisfaction as the customer’s perception that his or her expectations have been met
or surpassed. Kotler (1985) defines customer satisfaction as person’s feelings of pleasure or disappointment resulting from
company’s product’s perceived performance in relation to his or her expectations. For the purposes of this review, customer
satisfaction is viewed as the ability to exceed customer expectations in a way that pulls a customer to do repeat purchases over
time.

1.4. Customer Retention

This is defined as the final process in the relationship development between a customer and a company (Gummerson,
1993). Dick and Basn (1994) explain that customer retention is customer detention. Analysis of the detention aspect shows
that when a person is detained-he or she cannot go anyway –thus being retained Grover (1999) and Gummerson (1987),
defines customer retention as that process of creating an enabling environment upon which the customer is trapped in love
with one company. In this paper, retention shall mean keeping the customer with the company for a long period of time. It is a
result of customer loyalty.

1.5. Customer Loyalty

Customer loyalty is defined as the willingness of the customer to continue patronizing a company over a long term
purchasing and using its goods and services on a repeated and exclusive basis and recommending the firm’s good friends and
associates (Never and Slater, 1990). Lovelock et al., (1999) describe customer loyalty as a customer’s willingness to continue
patronizing a firm over the long term, purchasing and using its products to friends and associates. Christopher et al., (1991)
propose that the objective of relationship marketing is to turn new customers into regularly purchasing clients and then to
progressively move to being strong supporters of the company and its products and finally to being active and vocal advocates
for the company. According to Christopher et al.,(1991) the traditional marketing mix elements of product, price, promotion
and place are the principal elements used to turn prospects into customers, while the focus of relationship marketing is to
move customers into clients, supporters and ultimately advocates for a company’s products and services. In the context of this
study loyalty shall mean ,in addition to Christopher’s definition, being patriotic, being partisan to a company’s products, having
a strong belief and attachment to the extent of owning mistakes made by the company and willing to advise the company to
correct the mistake and advocate further positive aspects. For example if a batch of x product is contaminated, a client will,
instead of attacking and lay blame on the company that produced the product, will quickly take corrective action through
informing the affected company.

1.6. Customer Relationship Marketing (CRM)

According to Kotler (2002), CRM is a management strategy that enables companies to provide excellent real time
customer service by developing a relationship with each valued customer through the effective use of individual account
information. www.reveries.com also defines CRM as a key strategic process and a customer centric culture/value system
which considers the literature with the life time value of a customer and puts relationships with the customer at the heart of
the business. Customer relationship marketing is viewed as part of customer relationship marketing –in the context of this
study. In some cases this term is used interchangeably with relationship marketing though there is an argument that CRM is
borne out of relationship marketing. For purposes of this paper, the assumption is that CRM is part of relationship marketing, a
microcosm of the macrocosm.

1.7. Relationship Marketing Explored

However, it has not been until relatively recent that business has begun to understand that it is not solely the reliance
upon attraction of customers that is important to success. Equally, if not more important, is the need to retain the customer
and their future loyalty to the product offering or brand, as this is the only way in which the corporation can sustain their
competitive advantage over other market players (Ang and Buttle,2006; David and Associates,1998). I strongly believe that
maximizing the lifetime value of a customer is a fundamental goal of relationship marketing. Effectively speaking, in this
context the lifetime value of a customer is the future flow of net profit, discounted back to the present that can be attributed to
a specific customer. Thus, adopting the principle of maximizing customer life time value forces the organization to recognize
that not all customers are equally profitable and that it must devise strategies to enhance the profitability of those customers it
seeks to target Kotler,1999;Yonjae and Sung,2004; Aggarwal,2004). Relationship creation with those customers becomes
fundamental requirement.

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Relationship marketing calls for the need to focus attention on multiple markets rather than the customer alone. In
order to compete for profitable customers relationship marketing looks beyond the conventional marketing strategy of
focusing on the customer alone as the key. The multiple market domains alluded to here include-suppliers, employees,
influencers, distributors and alliance partners. This is akin to the six market model developed by Christopher. There is
however nothing sacrosanct about the number six-as the domains can be more or less depending on the nature of your
business.
The first meaningful attempt to discuss relationship marketing came from (Gronroos, 1982) who talked about
‘interactive marketing’. This was of course followed by Berry (1982) who coined the term relationship marketing in a
conference presentation and thereafter Levitt (1983) attempted to broaden the scope of marketing beyond individual
transactions. Fornell and Wernerfet (1987), used the term’ defensive marketing to describe attempts to reduce customer
turnover and increase customer loyalty. This customer retention approach was contrasted with ‘offensive’ marketing ‘which
involved obtaining customers and increasing customers’ purchase frequently.
Acquiring and building relationship with new customers takes slightly a longer time period. Relationships with clients have
been used from time immemorial to cope with the complexity of everyday life. Relationship marketing is one of the oldest
approaches to marketing, yet one of the least understood. It is a broad topic and many scholars and researchers have
approached it from different perspectives. Globally, the adoption of relationship management, is a key driver in the sustenance
and growth of customer base. According to Zeithaml and Bitner (2000) relationship marketing is a philosophy of doing
business, a strategic orientation that focuses on keeping and improving current customers, rather than acquiring new
customers. This philosophy assumes that consumers prefer to have an ongoing relationship with one organization than to
switch continually among providers in their search for value. Berry and Parasuraman (1991) identified relationship marketing
as a marketing approach that concerns attracting, developing, and retaining customer relationships. I take this opportunity to
express the overall objective of relationship marketing is to facilitate and maintain long term customer relationships, which
leads to changed focal points and modifications of the marketing management process.
Relationship marketing aims at creating a client relationship from the start to satisfy and retain existing customers,
while transactional marketing tries to make the sale and find new customer (Vence, 2002). A considerable number of
academic scholars have devoted quite a considerable amount of time and effort to criticize and attack the traditional
marketing mix theory. Success does not come solely from the manipulation of marketing mix elements but by building a long-
term relationship between buyer and seller (Ford et al. 2004). The marketing mix approach is considered too limited
(Gro¨nroos, 1990, 2000). The marketing mix approach is not adequate in meeting the requirements of the marketing concept
(Gummesson, 2000). Zineldin (2005) says that the marketing mix theory is not transferable to the services sector. Rafiq and
Ahmed (2000) argue that this criticism of the 4Ps can be extended to include industrial marketing. Their argument is that the
4Ps do not take sufficient account of building a long-term relationship between an industrial buyer and seller. Therefore,
relationship marketing has taken a paradigm shift, moving away from the marketing mix. Kotler argues that transaction
marketing is more useful than relationship marketing when the customer has a short time horizon and can easily switch from
one supplier to another without spending more. Buyers of milk products can still be divided into these basic paradigms of
whether to go for transactional approach or a relational approach. The concept of Relationship marketing attempts to
implement the marketing concept by strict adherence to market orientation principles that are activity rather than outcome
oriented (Paliwoda,1998). Further interrogation of this view reveals that such principles include, among other constructs the
following crucial elements: a focus on on-going relationships; al long term business perspective and staff involvement in
sustaining relationships.
In contrast to the use of marketing mix processes, relationship marketing is cross functional marketing and is
organized around processes that involve all aspects of the organization. In fact some authors and commentators prefer to call
relationship marketing -relationship management’ in recognition of the fact that it involves much more that which is normally
included in marketing. Christopher et al. (1991) claimed that relationship marketing had the potential to forge a new synthesis
between quality management and marketing.
Relationship marketing has been used to describe those strategies intended to bring about and create an extended
relationship with customers. Research by Coviello et al,(1995) suggests that there are four distinct types of marketing
relationships and these are: transactional marketing, data base marketing, interactive marketing and network marketing. It
should be borne in mind that these are not necessarily mutually exclusive. A firm may have transactions with some customers
who have neither the desire nor the need to make future purchases, while working hard to serve others whom it is
encouraging to climb the loyalty ladder. Gummeron(1999) advocates for total relationship marketing, which he described as
marketing based on relationships, networks and interaction, recognizing that marketing is embedded in the total management
of the networks of the selling organization, the market and society.

1.8. Difference between Transactional Marketing and Relationship Marketing

Relationship marketing and traditional (or transactional) marketing are not mutually exclusive and there is no need
for a conflict between them. In practice, a relationship-oriented marketer still has choices, depending on the situation. Most
firms blend the two approaches to match their portfolio of products and services. In the 20th century, transactional marketing
was the predominant trend. The main focus is more on the transaction and making a sale and brings in more buyers. It is

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typically a short -termist in outlook with very little emphasis on customer service. Firms, over years have realized that this
approach is a burden to the organization as one has to continue to spend money on promotional issues and attracting new
customers. According to Buttle(1996) and Ang and Buttle (2006), marketing is no longer just about developing, selling and
delivering products and services but is increasingly focusing on the development and maintenance of mutually satisfying long
term relationship with customers.

Transactional Marketing Relationship Marketing

Orientation to single sales Orientation to customer retention
Discontinuous customer contact Continuous customer contact
Focus on product features Focus on customer value
Short time scale Long time scale
Little emphasis on customer service High customer service emphasizes
Limited commitment to meeting customer High commitment to meeting customer
expectations expectations
Quality is the concern of production staff Quality is the concern of all staff.

Table 1: Key Differences between Transactional Marketing and Relationship Marketing

Source: Adapted from Payne (1998)

1.9. Three Levels of Relationship Marketing

Berry conceptualizes relationship marketing into three levels which are: Tactical level where marketing is used as a
promotional tool. It does not matter whether service industry or not. However, implementation of such schemes often is
opportunistic leading to expensive loyalty schemes which create loyalty to the incentive rather than the supplier (Barnes,
1994; Anderson, 1995;). At the strategic level, relationship marketing is in itself regarded as a process by which suppliers seek
to ‘tie in’ customers through legal, economic, technological, geographical and time bounds (Liljander and Strandvick, 1995).
Such bond s may lead to customer detention rather than customer retention (Dick and Basn, 1994) and that a company which
has not achieved a more deep-seated affective relationship with its customers may be unable to sustain those relationships. I
suppose in my opinion that what often passes as relationship therefore is an asymmetric association based on inequalities of
knowledge, power and resources rather than empathy and mutual trust. A judicious analysis of the trust measurement models
usually adopted in channel relationship studies reveals at least two problems. Firstly, in many studies, the operational
definition does not match the conceptual definition: while trust is defined in terms of expectations or beliefs about the
prospective trustee's behavior, the measurement is grounded in beliefs about the trustee's characteristics. Secondly, in other
studies, in order to overcome the previous contradiction somehow, the definition of trust is based on expectations about the
characteristics of the prospective trustee, which is not trust in itself (Mayer et al., 1995).
At the philosophical level, relationship marketing goes to the heart of marketing philosophy. General definitions of
marketing focuses on the primacy of customers’ needs and relationships marketing as a philosophy re-focusing marketing
strategy away from products and their lifestyles towards customer relationships lifecycle. Never and Slater (1990) stress the
key feature of a relationship marketing philosophy, using all employees of an organization to profitably meet lifetime needs of
targeted customers better than competitors. However, some writers in the relationship marketing field still seek to limit the
scope of the concept to the customer-supplier dyad, however there is evidence that this broadened perspective is gradually
gaining wider acceptance among scholars of relationship marketing (Payne et al.,2005; Moraise et al.,2004; Yonjae and
Suna,2004).Schlesigner(1995) declared that achieving the full profit potential of each customer relationship should be the
fundamental goal of every business. This is of paramount importance to an organization given the level of competition it is
facing as a result of other competitors coming in.
An interesting debate was raised by Fourber(1998), who propounded that ‘the field of relationship marketing has
leapt ahead to application of relationship marketing ideas and assumed benefits without proper developments of the core
constructs involved. It is notable that most explanations provided by most writers were concluded in terms of desired outputs
and do not indicate the required inputs which would enable the observer to determine whether relationship marketing is
being pursued (Blois, 1996).Kotler’s explanation of relationship marketing, though it fails to escape Blois criticism, does well
to point out the need for value creation in order for a relationship to exist.
Evans and Laskin(1994), proposed that relationship marketing is the process whereby a firm builds long-term alliances with
both prospective and current customers so that both seller and buyer work towards a common set of specific goals. These
goals according to Evans and Laskin are met by :understanding customer needs, treating customers as service partners,
ensuring that employees satisfy customer needs, this might call for further employee creativity beyond company norms,
provide customers with possible quality, relative to individual needs, having constant communication with customers and
finally integrate relationship marketing process into its strategic planning, enabling the firm to better manage its resources
and meet future client needs.

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Christopher et al (1991) and Gronroos(1990) proposed two often cited conceptualization of relationship marketing
activities. The following were put forward as some of the key dimensions of relationship marketing;
 Long term scale
 Orientation on product benefits
 High customer contact commitment
 High customer contact
 Focus on customer retention
 High service quality
In the same scenario, Gronroos suggest that relationship activities include:
 A long term customer focus
 Making and keeping promises to customers
 Acquiring and using customer information
 Involving organization wide personal in marketing activities
 Interactive process to marketing and developing a customer level service culture.
Notably, these authors focused more on long term relations, commitment and a favourable service culture, which to
them, are the main components of relationship marketing. Any industry, therefore in line with this needs requires a concrete
culture on relationship building for its sustainable growth.

2. Customer Loyalty
There is general consensus in the literature concerning what loyalty can do to businesses. It is agreed that loyalty is an
important determinant of firm performance (Anderson et al., 1994; Hallowell, 1996; Silvestro& Cross, 2000; Leverin &
Liljander, 2006). Customer loyalty is designed as a marketing process for selecting customers, maintaining them and
developing their value. Benavent & Meyer-Waarden(2004) classified loyalty strategies into two classes namely-‘customer
heterogeneity management’ and ‘Customer relationship management’.
The first one is based on the establishment of ‘discrimination between customers to manage their diversity needs.
This strategy is useful if the firm has very heterogeneous clients base and the discrimination is achieved through the
application of the marketing mix. The second one is established to manage and improve customer service. The purpose is to
increase customer value. In real practice, to retain customers and develop loyalty hearts, a firm must combine these two types
of loyalty strategy (Customer heterogeneity management and Customer relationship management. In a nutshell, I strongly
attest to the school of thought which assumes that loyalty strategies seek to build stronger and more durable relationships
with customers. Durable relations do encourage customers not to easily divert to other firms if there is a problem but patiently
waits for its resolvence. Thus relationship satisfaction is critical and can be achieved through loyalty packages created
specifically for that purpose.
Lastly but not exhaustive, is the relationship marketers "relationship ladder of customer loyalty’. It groups types of
customers according to their level of loyalty. The ladder's first rung consists of "prospects", that is, people that have not
purchased yet but are likely to in the future. This is followed by the successive rungs of "customer", "client", "supporter",
"advocate", and "partner". The relationship marketer's objective is to "help" customers get as high up the ladder as possible.
This usually involves providing more personalized service and providing service quality that exceeds expectations at each
step.

2.1. Effect of Relationship Marketing Strategies on Customer Retention

The long term success of organizations (Slater, 1997;Kandamully and Duddy, 1999) is determinant a company’s
ability to maintain customer loyalty. Successful relationship marketing has important outcomes for organizations and service
providers due to increase in loyalty and satisfaction such as : willingness to spend more time in the organization or buy other
brands and products (Reichheld,1996;Christy et al.,1996; Reynods and Beatty,1999; Gwinner et al.,1998;Wong and
Sohal,2003,Georgina Whyattand Ralph Koschek,2010). The table below provides an in-depth presentation on various
approaches and strategies necessary for an effective relationship marketing system.

Strategic Meta-Explanation of The Icon Contributing

Determinant Icon Authors/References
Communication -Has a vital role for connecting sellers and buyers Ring and Van de Ven,
-is a conscious and unconscious process of transferring (1994), Mohammad Arabi
feelings and opinions in the form of a message and Davoodlzadi,2005),
-concerns teaching customers about a product, brand, Mcintosh et al.,1992,
policy, rules and regulations Singh and
-making aware, publicity and public relations Sirdeshmukh,2000).
-having an effective sales force in communication
-bringing both old and new customers into the lime light
-advertisement ,packaging face to face connections with
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clients are essential aspects to communication

Preferential -this concept concentrate on selected customers and Lacey et al.,2007, Smith
treatment gives them higher social recognition and offers products and Taylor,2004, Parviz
above the standard value and services beyond regular Dargi,2007
practices
-concerns customer perception on the level of service
provision to loyal customers
-It is clear from a marketing perspective to know that
customers are not equal at all
-Cost of maintaining customers can be higher than their
profitability
Service -Personalization refers to adjustment and modification Jari Vesanen,(2007);
personalization on products and services based on additional Dwayne Ball(2009);
information from customers CHIA-Yu Lin and E.Y
-Strategy enhances relationships between customers Huang,(2005); Ansalri
and sellers and Mela(2003)
-personalization in this study goes beyond adjusting and
modification by involving the customer even before
product or service is produced through to consumption
and post consumption period(my contribution to
existing knowledge)
Rewarding Rewarding is an action oriented approach of recognizing Belch(2001); Changchien
efforts of one party through an existing or intended et al.,(2004)
relationship
-it is a promotional tool in sales process and
relationship building based on mutual trust
-Promotion is an acceleration tool to maximize sales to
customers who are not persuaded by advertisements
-improves relationship between buyer and seller
Trust -corner stone of long term relationships Jus’ cius and
-Willingness to rely on exchange partner in whom one Grigaite,2011,
has confidence Ndubisi and Wah,2005;
-willingness to accept vulnerability from behaviours of Leung et
others al,2005;Chattananon and
-Stable quality of product, service ,sufficiency and Trimetsoontorn,2009;
benevolence are the elements that increase trust levels Gronroos, 1990;Versel
-plays a role in repurchasing and loyalty levels and Zabkar,2010);Sanzo
-means taking mutually agreed words as fact and et al.,(2003)
reducing one’s perceptions of the likelihood that either -Rousseau et al.,(1998);
party will act opportunistically (Anderson & Weitz, 1989;
-trust is a belief or conviction about the other party’s Pavlou, 2002); (Morgan &
intentions within the relationship Hunt, 1994); (Anderson &
-In relationship marketing trust is defined as the Narus, 1990); (Ganesan,
dimensions of a business relationship that determines 1994); (Morgan & Hunt,
the level to which each party feels they can rely on the 1994),
integrity of the promise offered by the other
-fulfilling promises is a trust building process
-trust comes from customers positive experiences that
induce them to ccontinue to do business with an
organization.
-is multi-dimensional concept with different
behavioural,emotional and conceptual aspects--Trust in
Buyer-seller Relationships
-Several studies in the marketing relationship literature
demonstrate that trust is indeed a core construct in
buyer-seller relationships
-For instance, it has been found that trust leads to longer
and more stable relationships reduces the incidence of

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conflict -boosts satisfaction with the relationship,

minimizes uncertainty increases purchase intention
-increases commitment and encourages long-term
relationship orientation.

Commitment -an important determinant of the strength of a Moorman et

marketing relationship al.,1992;Hocutt,1998;
-useful for measuring customer loyalty and predicting Berry et al.,2008; Versel
future purchase frequency and Zabkar,2010
-it is an intention to continue a course of action or
activity or the willingness to maintain a relationship
-Buyers calculated commitment is based on switching
risks and sentiments of allegiance
Conflict management -conflict refer to tension and frustration between two or Dwyer et
strategy more social and economic entities that arise from their al.,1987;Meunier-
incompatibility of actual and desired responses FitzHugh and Piercy,2010
-handling it amicably is an opportunity to show the
company’s ability to engage its important customers
-ability to avoid conflict through proactive identification
of looming conflict is critical

Bonding -dimension of a business relationship that results in two Shani and

-financial bonding parties acting in a unified manner toward a desired goal Chalasani,1992;
-structural bonding -is a dynamic process in dyadic relations between the Chattananon&
-social bonding buyer and the seller Trimetsoontorn,2009;
-enhancing customer loyalty is key to the bonding Levitt,2003; (Pelton,
process 1997); (Sally, Perry;
-results in feelings of affection, a sense of belonging to 2002); (Wilson and
the relationship and a sense of belonging to the Mummalaneni, 1986
organization Henrik Calonius (1988).
Promising -An integral element of the relationship marketing Henrik Calonius (1988)
approach is the promise concept that has been strongly
emphasized by a number of scholars and researchers
who according to them marketers should not only give
promises and then persuade the consumers for a certain
desired outcome
- Apart from making only promises they should attract
new customers and initially build relationships.
-if promises are not kept, the evolving relationship
cannot be maintained and enhanced -Fulfilling promises
is equally important as means of achieving customer
satisfaction, retention of the customer base, and long-
term profitability.

Table2: Key Determinants, Approaches and Strategies of Relationship Marketing

Source: Researched Data

2.2. Theories of Relationship Marketing

Dairy Industry has its own complex structures and dynamics. Understanding these complicated networks calls for
delving deep into some critical theories of substance. Relational variables have been drawn from a wide variety of theoretical
domains.Relationship marketing-establishing, developing, and maintaining successful relational exchanges-constitutes a major
shift in marketing theory and practice.
Ahmed et al. (2001) identify six main sources of business partnerships: transaction cost analysis (Williamson, 1985),
relational exchange theory, resource-dependence theory, network theory (Ford, 1990), political economy paradigm (Stern and
Reve, 1980), and crosscultural management. Each theory has provided a particular lens through which relationships, their
dimensions and appropriate research methodologies, are viewed. Although marketing academics and practitioners have been
examining relationship marketing for more than a decade (Gronroos, 1990, O’Malley and Tynan, 2000), most of the studies on
relationship marketing have been criticized as overly simplistic because of their uni-dimensional perspective (Yau, 1995)
unlike the model of Callaghan et al. (1995). A theory used in relationship marketing since the 1970s is social exchange theory

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(SET), based on works of Homans (1958, 1961, 1974), Blau (1960, 1964) and Thibaut and Kelley (1959). SET is widely viewed
as one of the most influential conceptual paradigms in organizational behaviour (Cropanzano and Mitchell 2005; Friman et al.
2002). As exchange ideology is also said to influence individuals’ sensitivity to organizational politics, job satisfaction and
commitment, SET is used to evaluate buyer-seller relationships (Witzel, 2006; Aggarwal, 2004).SET suggests that there are as
many as six different resources influencing interpersonal attachments: love, status, information, money, goods and services.
This theory is based on certain rules of exchange, although it remains unclear which exchange rules apply to each resource.
Reciprocity or repayment in kind is one of these exchange rules (Blau 1964). Major objections to or problems with SET are
quoted as follows (Miller 2001):
 SET reduces human interaction to a rational process that arises from economic theory.
 The theory assumes that the ultimate goals of a relationship are intimacy and reciprocity. These are not the “ultimate”
relationship goals.
 SET proposes that relationships have a linear structure. In reality, relationships do not develop this way.
 SET is based on an individualist mindset, which may limit its application in and description of collectivist cultures.
The author supports Gummesson’s observation that SET does not take into consideration that not all relationships are
important to a buyer or seller all the time. This also impacts on the relationship portfolio investments and might influence the
development of relationship commitment of suppliers and customers in equal measure.From a philosophical perspective,SET
explains social change and stability as a process of negotiated exchanges between parties.This theory explains the formation of
long-term relationships through the key mediating variables of commitment and trust. SET is mainly applied in the field of
marital satisfaction and the quality of family life. This theory posits that relationship marketing requires commitment and
trust and has its roots in economics, psychology and sociology. The functionality of the dairy industry can be progressive if
some if not all of these elements are adopted as part of the service culture. It is not surprising to see dairy business suffocating
because of lack of appreciation by leadership and weaknesses in their marketing framelogy and design to accommodate such
noble aspects of relationship building. Relationship marketing can pay off if customers have a long-term perspective and there
will be high costs for switching supplier. In order to acquire and maintain a competitive edge, organizations should develop
long-term relationships with their customers. As a result, relationship marketing theory became globally accepted in the
1990s (Gummeson, 1994; Morgan and Hunt, 1994), covering a range of marketing activities (Palmer, 2000), and thus it is
described as a “new-old” concept (Berry, 1995). Since then, relationship marketing has become a topic of interest in special
issues of international journals such as the Journal of the Academy of Marketing Science (Bejou, 1997). Relationship marketing
has been described as a new marketing paradigm based not on transactional exchanges but on relational exchanges (Gronroos,
1994). A consensus also exist amongst various authors that this new paradigm emphasizes a shift in marketing from short-
term transactions (traditional marketing or marketing mix) to long-term relations (Kotler, 1992; Morgan and Hunt, 2004;
Palmer, 2002; Lin et al, 2003).
Literature reveals that relationship marketing is handled in different ways by different authors (Gummesson, 1996).
Four different schools of thought have since emerged which have mainly been influenced by a diversity of disciplinary and
research traditions. They include: Nordic, Industrial Marketing and Purchasing (IMP), North American, and Anglo-Australian.
It is however not the purpose of this study to explore on these aforementioned schools of thought in detail but serve to say
understanding their background and technical details may be a useful starting point for those interested in pursuing serious
relational policies such as the dairy industry case in Zimbabwe under the Dairibord thrust.
The evolution of relationship marketing has been one of the most significant developments in marketing over the
decades, particularly in relation to industrial marketing (Dwyer et al., 1987; Palmatier et al., 2006; Sheth and Parvatiyar,
1995). Yau et al. (2000) compared a relationship marketing orientation (RMO) with a traditional market orientation in terms
of its relative impact on the business performance of firms in retail, wholesale and manufacturing industries from the
perspective of Chinese managers in Hong Kong. The literature on market orientation has provided evidence of the positive
relationship between RMO and the business performance and brands of firms (Heffernan et al., 2008; Palmatier et al., 2006).
As the business environment changes and customers become more demanding, firms must practice relationship marketing to
compete effectively (O’Malley and Tynan, 2000).

2.3. The Six Market Model

Christopher, Payne and Ballantyne (1991) identify six markets which they claim are central to relationship marketing.
They are: internal markets, supplier markets, recruitment markets, referral markets, influence markets, and customer
markets. The six market model helps firms to study about the stakeholders and key market domain that may be important to
them. If an organization wants to grow and sustain, it has to maintain its relation with internal as well as external
environment. Through the analysis of all 6 markets, managers can kind the critical markets and the opportunity in each
market. In order to visualize and understand each market’s importance the profounder developed the model below:

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Figure 1: 6 Markets Model

Source: Adapted From Payne and Holt (2001)

The above figure depicts that: Customer market directly influences an organization. If customers are not satisfied with
our product, firms cannot retain them. In case of Service Marketing customers’ satisfaction is more crucial. This market
contains buyer, intermediates, final customers and retailers. Influence market includes stakeholders as well as third parties
and involves a wide range of sub-markets including: government regulators, standards bodies, lobbyists, stockholders,
bankers, venture capitalists, financial analysts, stockbrokers. Customers who have bought a firm’s product must give feedback
to their friends, relatives and neighbors. For any organization these customers are their influencers and when third party like
supply partners and retailers influence their customers to buy the company’s product, they are called value added influencers.
Referral marketing is when a customer buys something after being referred by another customer’s friends and
relatives. In general we this can be understood as a common practice in marketing.Although it may take months before a firm
sees the effect of referral marketing, this is often the most effective part of an overall marketing plan and the best use of
resources. Referrals in this study include all consumers –industrial and individual consumers (hotels, retailers, and individual
persons). Suppliers are like partners, to an organization. They do supply the crucial raw materials and parts. The need to
develop a strategic alliance with them cannot be overemphasized. In this study these include smallholder farmers, sugar
suppliers, water suppliers, packaging material suppliers’ etcetera. In terms of employee/recruitment Market, it is thismarket
which aids a firm to keep the best people who can add values to the organization. Internal Market applies to the customers and
employees within the organization. Actually there should be proper harmony among the employee and suppliers and
customers so that organization can work together and achieve its mission. Live-in marketing is a variant of marketing and
advertising in which the target consumer is allowed to sample or use a brands product in a relaxed atmosphere over a longer
period of time. Much like product placement in film and television was developed as a means to reach select target
demographics in a non-invasive and much less garish manner than traditional advertising.

2.4. Commitment-Trust Theory

The Morgan and Hunt (1994) Model of Relationship Marketing focuses on antecedents and consequences with trust
and commitment at the Centre of the relationship. Trust can lead to the commitment to a relationship that results from an
exchange partner exerting all his/her efforts to preserve an important relationship (Morgan and Hunt, 1994). “The resources
of the seller – personnel, technology and systems – have to be used in such a manner that the customer’s trust in the resources
involved and, thus, in the firm itself is maintained and strengthened” (Gronroos, 1994). In a study of relationships on the
market for one industrial service, Moorman defined trust as “a willingness to rely on an exchange partner in whom one has
confidence”.
Christopher et al (19910 and Gronross(1990) bring forth the major elements of relationship marketing: mainly high
customer commitment, high customer contact and high customer service emphasis.For us on customer retention and duration
as well as the building of more stable relationships with other parties, increase security and help to establish trust and
commitment over a long period of time.
The other major element,as propounded by Gronross (1980) in relationship activities include long term customer
focus,making and keeping promises to customers.It involves organization that is a need for wide personnel in marketing and
developing a customer led service culture and acquiring and using customer information. In a relationship, it is not just one
party that takes initiatives; it is an interaction on equal and respectful terms. Literature from Kotler (2002) is precisely clear
and informs that keeping promises is the corner stone of any effective future relationship marketing building processes. In the
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same endeavor ,realistic advertising in this case is very crucial, overpromising and under delivering needs to be avoided at all
costs and tactical management of customer perceptions and expectations comes as an integral tool for building relations with
customers.

2.5. Relationship Marketing Strategies and Tools

As opposed to transactional marketing’s focus on one-off sales, a good relationship marketing strategy is rooted
in building customer loyalty and lasting, long-term engagement with your customer base. According to a study by Robin
Buchanan and Crawford Gillies, the increased profitability associated with relationship marketing is the result of several
factors: There is less dating around. Loyal customers do not go around shopping around and they are far less to switch, are less
price sensitive and are more focused on the value than the price (Kotler,1999;Webster,1992). It is the foundation of word of
mouth. Returning customers buy more and more often and are less expensive to serve because they already know your
business culture, and they are part of that culture themselves. Long standing customers are much more inclined to purchase
ancillary products through up selling and cross selling. Lastly happy customers reduce the cost of acquisition-reducing the
need to pay advertising and marketing campaigns.

Program. Approach Explanation References/Author

Customer reward program -used widely among supermarkets and the clothing Dowling and Uncles
industry (1997);Buttle
-issuing discounts or personalized offerings according (1996);
to previous purchases
-loyalty cards
-Vouchers, couponsfor future or immediate purchase
Customer involvement -involve customers in the development of the product Dowling and Uncles
or service(usually in the design and taste of the (1997);Buttle
product) (1996);
Live-in-Marketing -involves use of products for free for a period of time Dowling and Uncles
-customers get used to the product in a relaxed (1997);Buttle
environment at home nor work (1996);
-likely results in positive word of mouth
Internal marketing -focuses on the staff of the company Dowling and Uncles
-every employee is seen as a customer and supplier (1997);Buttle
simultaneously (1996);
-carry staff climate surveys to determine staff interests
-internal communication and collaboration is key
-goal of internal marketing is that all staff work attuned
to the company’s mission, strategy and goals
-final output of internal marketing is highly satisfied
external customers
-a happy employee will likely satisfy the external client
Dowling and Uncles
(1997);Buttle
(1996);
Networking -Networking, online and off, can be a powerful
relationship marketing technique
- This not only helps brand awareness, but also expands
afirm’s potential customer base. It is a win-win
situation
Cherish Each Customer -every interaction a firm have with its customers shows Dowling and Uncles
them that they are valued (1997);Buttle
-Spontaneous recognition of your current customers (1996);
can go a long way
- Delight your customers with the unexpected (in a
good way) and be there for them no matter what.
Listen to Your Customers - Every business says they do, but not all follow through Dowling and Uncles
or apply what they have heard (1997);Buttle
- Even listening and responding to compliments can be (1996);
beneficial
- Customers love knowing they have been heard
-By listening to these concerns, you ensure that your
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customers feel valued

-Plus, if you learn what people love and dislike about
you, you can leverage the feedback to improve your
business.
Build a Brand Identity -Customers will gravitate toward what they find that is Dowling and Uncles
memorable (1997);Buttle
-If your brand resonates, they will likely remember you (1996);
and you can develop the relationship further =-Once
you have a strong brand identity, those that wish to
become a raving fan will know what you stand for and
why they should care.
Free Information to - customers are seeking information about your Dowling and Uncles
customers product(s) (1997);Buttle
-They have questions and they need answers. (1996);
Communicate Often Relationships are based on communication Dowling and Uncles
- Your customers and users want to communicate with (1997);Buttle
you, the firm should communicate with them often (1996);
-Relationship marketing works well when a firm strive
to be there for its customers
- Social media, email, advertising, and content are all
ways to communicate to your customers that want to
receive messages that way
Special Events - Holding a special event for your existing or Dowling and Uncles
prospective customers is a great way to build (1997);Buttle
relationships (1996);
-leverage exclusivity here by holding an event for your
top customers
- It is a way to add incentive, but it is also a way to
simply thank your customers.
Face-To-Face Time -While electronic communication is great, and often Dowling and Uncles
preferred, having a face-to-face meeting can help the (1997);Buttle
customer feel valued (1996);
-Consider stopping by your customer’s place of
business, or work in some face-to-face time by holding
a special event
The network economy -In focusing the input – the structure and organization Castells (1996);
of the resources necessary to produce value – research (Gummesson,2002b);
in services and relationship marketing point to the (Jackson, 1985).
network as the basis
- From a sociological angle, Castells has established at
length the network properties of a new economy,
reinforced by the networks of the Internet and mobile
telecommunications
- From a marketing angle, relationship marketing can
be defined as “marketing based on interaction within
networks of relationships”
- A network approach emerged in B-to-B marketing and
in Jackson’s research the terms transaction marketing
and relationship marketing were defined as two
complementary ways of doing business
Customer centricity and -The marketing concept, holding that companies should
production centricity focus on customer needs and not become navel
watchers of their own products and manufacturing, is
the foundation of today’s interest in the customer
-However,\both perspectives are needed -Customer-
centricity and production-centricity need one another
-They must shake hands and make friends in a balanced
production-consumption centricity

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Program. Approach Explanation References/Author

Partnerships and Research by many scholars have discussed issues of Sodequist(1996);
networks networks and partnership without giving conclusive Payne and Holt
solutions as to how this will help progressive (2001)
relationships
-Previous work by identified the development of
networks and partnerships as part of critical success
factors for improving performance
-Relationship marketing is based on cooperation rather
than adversarial situation where parties are best off as
partners ----For the successful management of the dairy
industry, it is important that these points raised here be
taken aboard and coopted into their supply chain
management systems
- Successful networks and partnerships calls for
maintaining and enhancing values such as commitment,
trust, keeping promises, cooperation and shared values
in an integrated way
-Establishing and maintaining important stakeholders
in the operating environment cannot be
overemphasized
-The six Market model provide further analysis of this
phenomenon
asserts that the Six Market model is arguably the most
comprehensive one recognizing stakeholder
importance
-The market domains identified by Christopher are the
internal markets, recruitment markets, supplier
markets, influence markets, customer markets and
referral markets.
Customer engagement -The Customer Engagement cycle plays a central role in
cycle operationalization many brand marketing strategies, but it is not always
defined in the same way
- It is vital not to settle for platitudes when discussing
brand marketing strategies
- the most commonly described stages of Customer
Engagement cycle are Awareness, Consideration,
Inquiry, Purchase and Retention
-Brands that become ‘customer-centric’ understand
that their business is no longer about the product or
service that they once provided; it is now about the
customer that uses the product or service provided by
the brand --Customers do not buy products or services;
they buy results
-The attitudes and quality of the service provided to
customers is an important consideration
- In either case, there are a couple of missing links or
key stages that do not receive enough consideration
given their critical ability to drive the cycle to propel a
visible customer focused marketing -The Customer
Engagement cycle plays a central role in many brand
marketing strategies,
-
Table 3: Programs/Approaches and Related Strategies on Relationship Marketing
Source: Self-Created (2018)

2.6. Benefits of Relationship Marketing To the Firm

Researchers argue that a customer’s satisfaction with a particular service is primarily outcome of the interactive
relationship between the service provider and the customer (Berry and Parasuraman, 1993;Gronroos, 1990). The findings of

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several studies on services have suggested that in order to acquire and maintain competitive advantage; organizations should
develop long term relationships with their customers (Gronroos, 1991; Berry, 1993;Gummesson, 1987; Jackson,1985; Buggel
and Forbes,2006).A business that emphasis on relationship marketing improve its business performance(Sin et
al.,2002).Relational approaches do encourage firms to compete better (Hunt and Arnett, 2006) especially in market based
economies. In specific terms, the fundamental imperative of relational marketing is to achieve, of course competitive
advantage and superior financial performance comparatively. Thus firms are expected to identify and develop and nurture a
relationship policy and create a portfolio (Gummesson, 2002;Hunt and Derozier, 2004).

2.7. Creating a Relationship Marketing Policy and Its Implementation

Effective relationship marketing requires that a company defines its business accurately and understand how to
create and manage a total service offering, which is managing service competition (Gronroos, 1996; Christopher et al.1991).
Creating a customer –oriented policy implies that an organization should be stake-holder driven or customer driven. Appiah-
Adu (1998;Yuki,1998) view customer orientation as an organization wide emphasis on the evaluation of customer needs.
It is argued that a lot of companies that claim they are relationship marketing oriented, not all of them are actually.
Implementation failure is the main challenge. The main goal of a proper relationship strategy is to increase customer’s desire
for the unique characteristics found in the relationship-based exchange (Palmatier, 2008). According to Christopher, Payne
and Ballantyne(1991),the implementation of a relationship marketing strategy consists of five different steps which are:
provision of a mission statement, a strategic review and internal analysis of the industry focusing on relationships of
customers,formulating the strategy-using the value delivering strategy, use of both internal and external marketing aspects in
implementation and lastly the service quality management issues.

3. Conclusion
The literature explored in this paper shows that the field of relationship marketing is a sub-area of “market focused
management.” In this issue, I presented some cutting edge work on relationship marketing where at the most simple level,
Relationship Marketing strategy prescribes that it is more effective to invest in long-term customer interactions than to rely on
a series of potentially unrelated, one-time exchanges.The basic aim of relationship marketing is to build a ladder of customer
loyalty alluded to prior on (Kerber,1996; Arnould et al.2002). The implementation of a relationship marketing strategy is not
only about inventing a strategy and putting it into practice but to measure the assets of the implemented strategy on a
continuous basis from both the customer’s perspective (perceived quality) and the internal perspective (quality of the
strategy, leadership).
In practice, however, relationship marketing is not that simple to implement. There are multiple stakeholders to
consider, and organizations must make certain that value is shown and provided to all key stakeholders in a way that satisfies
both parties. Based on this view, the paper argues for the need to create a further distinction between relationship marketing
and customer relationship management in any given industry.

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