Consultative Marketing

Marketing Terms
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synonym Relationship Marketing (Relationship marketing) general consulting marketing
Consultative marketing, also known as relationship marketing, refers to enterprise stay profit On the basis of, identify, establish, maintain and consolidate the relationship with customers and other partners to achieve the goals of all parties involved, so as to form a long-term relationship that takes into account the interests of all parties. Relationship marketing regards marketing activities as a process of interaction between enterprises and consumers, suppliers, distributors, competitors, government agencies and other public. Properly handling the relationship between enterprises and these organizations and individuals is the core of enterprise marketing and the key to success or failure of enterprise operations.
Chinese name
Consultative Marketing
Foreign name
Marketing consultant
Alias
Relationship Marketing

Basic Introduction

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It changed fundamentally Traditional marketing A narrow view of transactions as the key and end of marketing activities. Enterprises should actively communicate mutual benefit , committed to trust Relationship Marketing Under the guidance of the principle geographical relation Karmic relationship Establish, maintain and strengthen relations with customers, distributors and other organizations and individuals, and enable all parties concerned to achieve their own goals through mutually beneficial exchanges and joint fulfillment of promises. Faced with increasingly cruel competition challenges, many enterprises have gradually realized that: it is more profitable to keep old customers than to attract new customers; With the increasing scale and decreasing number of customers, each customer becomes more and more important; yes Cross selling Opportunities are increasing; More and more large companies are forming strategic partnerships to cope with global competition, and skilled relationship management technology is essential; The number of customers who buy large and complex products is increasing, and sales is just the beginning of this relationship. Any enterprise that "is good at establishing and maintaining strong relationships with major customers will gain a lot of future benefits from these customers Opportunity "(Kotler).

Three levels

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Relationship marketing is based on three levels: customers, affiliated enterprises, government and the public.
Strengthen the relationship with customers
Customers are the basis for the survival and development of enterprises. When an enterprise leaves its customers, its marketing activities become water without a source and trees without roots. The essence of market competition is to compete for customers, Customer loyalty The premise of customer satisfaction is customer satisfaction, and the key condition of customer satisfaction is the satisfaction of customer needs. In order to establish and maintain a good relationship with customers, first of all, we must really establish the concept of taking consumers as the center, and run this concept through the whole process of enterprise production and operation. The development of products should pay attention to the needs of consumers, the pricing of products should meet the psychological expectations of consumers, and the sales of products should take into account the convenience and preferences of consumers. Secondly, we should really care about the interests of consumers, improve their satisfaction, and provide customers with high added value Products and services. Create the biggest brand, quality and service for customers delivery value And make them feel that they are worth more. Third, pay attention to the influence of emotion on customers' shopping decisions. Technology has reduced the opportunities for communication between people, but people want to communicate and pursue the balance between high technology and high emotion. Enterprises should pay attention to this emotional factor of customers in their operation,.
Cooperation with affiliated enterprises
In traditional marketing, there is a competitive relationship between enterprises. If any enterprise wants to win in the competition, it must resort to all means. This way is not conducive to social and economic development, but also easy to make both competitors lose. Relationship Marketing Theory It is believed that there is a possibility of cooperation between enterprises, and sometimes through the cooperation of affiliated enterprises, it will be more conducive to achieving the expected goals of enterprises. first, Enterprise cooperation It is conducive to consolidating the existing market position. In today's market, the trend of subdivision is becoming more and more obvious. The strong players are on one side, and the competition is becoming increasingly fierce. It is increasingly difficult for any enterprise to maintain a large market share in the long term. Through cooperation, enterprises can enhance their adaptability to market changes. Secondly, enterprise cooperation helps enterprises to open up new markets. If an enterprise wants to develop and grow, it must constantly expand its market capacity. However, if an enterprise wants to enter a new market, it will often be restricted by many conditions. However, if we find a partner in the new market, many problems will be solved. Third, Enterprise cooperation advantageous to Diversified operation In order to expand business scale, enterprises often have to move into new fields, but they cannot be very familiar with business activities in all fields. If they encounter a very unfamiliar field, they will bear a lot of risks. If they cooperate with related enterprises, this risk may be reduced. Fourth, enterprise cooperation is also conducive to reducing unprofitable competition. Competition in the same industry is likely to lead to many negative consequences, such as the increase of enterprise losses and the decline of industry benefits, which will have a negative impact on the development of the whole social economy, and cooperation between enterprises can reduce such adverse competition to a minimum. Each enterprise has its own strengths and weaknesses. Finding and utilizing the external favorable conditions of the enterprise is an important factor related to the success or failure of enterprise marketing.
Coordinate with the government
Enterprises are an integral part of society, and their activities will inevitably be affected and restricted by the relevant regulations of the government. When dealing with the relationship with the government, enterprises should take a positive attitude, consciously abide by national laws and regulations, and assist in studying solutions and ways to various problems faced by the country. Relationship Marketing Theory It is believed that if enterprises can actively cooperate with the government and establish the idea of coexistence and common prosperity, the country will formulate policies to rationalize the regulation of marketing activities, avoid conflicts, and help marketing personnel create and distribute value. Modern Marketing The content of is very extensive, and related groups and internal employees are also an important aspect of relationship marketing. Coordinating the relationship with these organizations and establishing a good relationship with enterprise employees can guarantee the realization of enterprise goals.
Relationship marketing is a systematic project, which organically integrates many factors faced by enterprises, and provides a healthy and stable long-term development environment for enterprises by establishing good relations with all aspects.

Key processes

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Interaction process

Successful marketing needs to provide customers or users with good enough answers. Consumer goods Transaction Marketing The answer is physical product. In relationship marketing, the answer includes the relationship itself, its operation mode and the process of customer demand satisfaction. Relationships include the exchange or transfer of physical products or service outputs, as well as a series of service elements. Without these services, physical product service outputs may have limited value or no value to customers. Once established, the relationship will continue in the interaction process. Different types of contacts between suppliers or service enterprises and customers may be different, depending on the specific marketing situation. Some contacts are between people, and some are between customers and machines or systems. In this case, the nature of the contact in the interaction depends on the specific object of study.

Dialogue process

In relationship marketing Marketing communication It is characterized by an attempt to create a two-way and sometimes multi-dimensional communication process. Not all activities are directly two-way communication, but all communication efforts should lead to some form of reaction that can maintain and promote relations, that is, the dialogue process. The dialogue communication process must support the creation and transfer of this value. This process includes a series of factors, such as sales activities Public communication Activities Direct communication And public relations. Public communication includes traditional advertising, brochures, sales letters and other activities that do not seek a direct response. Direct communication includes personalized letters containing special supplies, information and confirmation that interaction has occurred, which require specific information from customers. Here, to seek some form of feedback from past interactions, more information, customer related data and pure Social response

Value process

Relationship marketing ratio Transaction Marketing More efforts are needed. Therefore, relationship marketing should create greater value for customers and other parties than a simple transaction in a single scenario. Customers must perceive and appreciate the value created in the ongoing relationship. Since relationship is a long-term process Customer value In a long time, we call it value process. If relationship marketing is to succeed and be regarded as meaningful by customers, there must be a value process of customer appreciation in parallel with the process of dialogue and interaction.
The method of evaluating customer value is to distinguish the core value of the offering from the additional elements in the relationship added value Therefore, the Customer perceived value It can be expressed as the following two formulas:
Customer perceived value (CPV)=(core products+additional services)/(price+relationship costs) (1)
Customer perceived value (CPV)=core value ± added value (2)
In relationships, customer perceived value develops and perceives over time. In formula (1), price is a short-term concept, and in principle, it is delivered when the core product is delivered. However, relationship costs occur with the development of relationships. The effectiveness of core products and additional services is experienced in a series of actions, plots and fragments. Formula (2) also includes a long-term concept. added value It is also experienced with the development of the relationship. Usually, added value is regarded as something attached to the core value. In the interaction process, the core value should not be offset by the negative added value generated by poor and untimely services.
In short, a successful relationship marketing strategy requires that the three processes we analyze be considered simultaneously in the process of relationship marketing planning. The interaction process is the core of relationship marketing, the dialogue process is the communication side of relationship marketing, and the value process is the result of relationship marketing. If Customer value Without careful analysis of the process, it is easy to make mistakes and improper actions in the interaction process. If the dialogue process conflicts with the interaction process, the value process is easy to produce negative results, because customers may get conflicting signals and promises that cannot be fulfilled. Interaction, dialogue and value constitute the three poles of relationship marketing. The implementation effect of relationship marketing depends on the organic integration of the above three processes.

market model

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The market model of relationship marketing summarizes the scope of marketing activities of relationship marketing. In the concept of "relationship marketing", an enterprise must deal well with the following six sub markets: customer market Supplier market Internal market Competitor market, distributor market and stakeholder market.
Customer market
Customers are the basis for the existence and development of enterprises. The essence of market competition is to compete for customers. The latest research shows that enterprises must attach importance to retaining customers, cultivating and developing while striving for new customers Customer loyalty It usually costs six times more to win a new customer than to keep an old customer. Enterprises can Database marketing , develop membership and other forms to better meet customer needs and increase Customer trust And close the relationship between the two sides.
Supplier market
It is impossible for any enterprise to solve all the resources needed for its own production alone. In the real process of resource exchange Medium resources The composition of is multifaceted, at least including human, financial, material, technology, information and other aspects. The relationship with suppliers determines the quantity, quality and speed of resources that an enterprise can obtain. Enterprises and suppliers must form a close cooperation network to exchange necessary resources. In addition, the company's reputation in the market is partly derived from the relationship with suppliers.
Internal market
Internal marketing Originated from the idea that employees are regarded as enterprises Internal market If any enterprise wants to satisfy external customers, it must first satisfy internal employees. Only employees who are satisfied with their work can provide better service to external customers with higher efficiency and efficiency, and finally make external customers satisfied. The internal market is not only the marketing personnel of the enterprise's marketing department and other service personnel who directly provide services to external customers, it includes all enterprise employees. In the production process of creating value for customers, low efficiency or low quality of any link will affect the final Customer value
Competitor market
In the competitor market, the main purpose of enterprise marketing activities is to strive for cooperation with competitors who have complementary resources with themselves, so as to realize knowledge transfer, resource sharing and more effective utilization. Enterprises and competitors form various forms of strategic alliances. Through cooperation with competitors in R&D, raw material procurement, production, sales channels and other aspects, they can share with each other, reduce costs and risks, and enhance business capabilities. All kinds of signs show that modern competition has developed into "cooperative competition", and the most ideal strategic choice is to achieve "win-win" results in competition.
Reseller Marketplace
In the distributor market, the support of retailers and wholesalers is crucial to the success of products. Sales channels are no different from lifelines for modern enterprises. With the intensification of marketing competition, mastering the sales channels is equivalent to occupying the market. Excellent distributors are an important part of an enterprise's competitive advantage. By cooperating with distributors and using their human, material and financial resources, enterprises can achieve market acquisition at the lowest cost, complete the circulation of products, and inhibit the entry of competitors' products.
Stakeholder market
Financial institutions, news media, governments, communities, and various social pressure groups such as consumer protection organizations and environmental protection organizations are inextricably linked with enterprises, which will have an important impact on the survival and development of enterprises. Therefore, it is necessary for enterprises to treat them as a market and formulate marketing strategies with public relations as the main means.

Specific strategies

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Relationship marketing is an activity to establish long-term satisfactory business relations with key customers. The most important thing to apply relationship marketing is to master various strategies to establish long-term good business relations with customers.
Customer relationship management organization
Establish a customer relationship management organization, appoint a person with strong business ability as the general manager of the department, and set up several relationship managers. The General Manager is responsible for determining the responsibilities, work contents, codes of conduct and evaluation standards of the Relationship Manager, and assessing the work performance. The relationship manager is responsible for one or several major customers, is the focal point of all customer information, and is the communicator to coordinate all departments of the company to do a good job in customer service. The relationship manager should be professionally trained, have professional standards, be responsible for customers, and be responsible for formulating long-term and annual Customer relationship Marketing plan, develop communication strategy, submit reports regularly, implement various benefits provided by the company to customers, deal with possible problems, and maintain good business relations with customers. Establishing an efficient management organization is the organizational guarantee for the success of relationship marketing.
Personal contact
Personal contact That is, close communication between marketing personnel and customers can enhance friendship and strengthen relations. If the customer's manager in charge is often invited to participate in various recreational activities, the relationship between the two parties will gradually become closer; Remember the birthdays of the main customers and their wives and children, and give flowers or gifts on their birthdays as congratulations; Try to get good flower seeds and fertilizer for customers who love to grow flowers; Use your own social relations Help customers solve problems such as children entering kindergarten, entering a higher school, and employment. The defect of relationship marketing through personal contact is that it is easy to cause enterprises to rely too much on marketing personnel who have long-term contact with customers, increasing the difficulty of management. Therefore, the application of this strategy is to pay attention to the timely establishment of business contacts on personal contacts, to enhance the intimacy of enterprises through long-term personal contacts, and finally to establish strategic partnerships between enterprises.
Frequent planning
Frequent marketing Planning, also known as regular customer marketing planning, refers to the design planning that provides rewards to customers who often buy or buy in large quantities. The forms of rewards include discount, free goods, prizes, etc. Determine, maintain and increase the output from the best customers through long-term, interactive and value-added relationships. For example, airlines, hotels and credit card companies often use cumulative consumption incentives. The defects of frequent marketing planning are: first, competitors are easy to imitate. Frequent marketing planning only has First mover advantage Especially when competitors are slow to respond, if most competitors follow suit, it will become a burden for all implementers. Second, customers are easy to transfer. Because it's just pure Price discount Customers are vulnerable to the influence of competitors' similar promotion methods to transfer purchase. Third, the service level may be reduced. Pure price competition tends to ignore other customer needs.
Club planning
Club Marketing Planning It refers to the establishment of a customer club to attract customers who buy a certain amount of products or pay membership fees to become members. In China, due to the relatively rare form of customer clubs, invited customers often feel satisfied with their reputation and status, so they are very attractive. Enterprises can not only gain market share and Customer loyalty It can also improve the reputation of the enterprise. For example, Haier Club provides members with a variety of kinship Personalized service It is widely welcomed. By the end of 2000, it has reached 70000 members and 8 million associate members, and has established a huge customer network for enterprises.
Customized marketing
Customized marketing also known as Custom marketing Is to manufacture products and carry out corresponding marketing activities according to the different needs of each customer. Its advantage is to provide special products, excellent quality and Value added service Meet customer needs and improve Customer loyalty Based on the latest modern science and technology Flexible production The system can produce non-standard or incompletely standardized customized products on a large scale and efficiently, with little cost increase, enabling enterprises to accept different orders from a large number of customers at the same time, and provide different products and services, so as to achieve "production and marketing meet" and“ Fixed production based on sales ”。 Enterprises implementing customer-oriented marketing should attach great importance to scientific research, technological development Device update And product development; It is necessary to establish a complete customer shopping file, strengthen contact with customers, reasonably set up after-sales service outlets, and improve service quality.
Database marketing
Customer database refers to various data related to customers. Database marketing It refers to the process of establishing, maintaining and using customer database for communication and transaction. Database marketing is highly targeted. It is a "one-to-one" marketing realized with advanced technology, which can be seen as Customized marketing Special form of. The data in the database includes the following aspects: real customers and Leads General information of, such as name, address, telephone, fax, e-mail, personality characteristics and general behavior; Transaction information, such as orders, returns, complaints, service consultation, etc; Promotion information, that is, what activities have been carried out, what things have been done, what questions have been answered, and how the final results are; Product Information What kind of products customers buy Purchase frequency And purchase volume, etc. Database maintenance is a key element of database marketing, and enterprises must often check the validity of data and update it in a timely manner. On the one hand, enterprises should design effective ways to obtain such information, on the other hand, they must also understand the value of such information and the methods of processing such information.
Exit management
"Withdrawal" means that the customer no longer purchases the products or services of the enterprise and terminates the business relationship with the enterprise. Exit management refers to analyzing the reasons for customer exit and improving products and services accordingly to reduce customer exit. Exit management can be carried out according to the following steps:
(1) Determination Customer churn rate
(2) Find out Customer churn Reason for. The quitters can be divided into the following categories according to the reasons for quitting: price quitters refer to customers who transfer to buy for lower prices; Product quitters refer to customers who find better products and transfer to purchase; Service quitters refer to customers who transfer purchase because they are not satisfied with the service provided by the enterprise; Market quitter refers to the customer who quits the purchase due to leaving the region; Technology quitters refer to customers who turn to buy more advanced alternative products; Political quitters refer to clients who withdraw from the purchase because they are dissatisfied with the social behavior of the enterprise or think that the enterprise does not assume social responsibility, such as resisting enterprises that do not care about public welfare undertakings and enterprises that pollute the environment. Enterprise can draw Customer churn rate Distribution diagram, showing the exit proportion of different reasons.
(3) Calculate the company's profit loss caused by customer loss. The loss of profits caused by the loss of a single customer is equal to the lifetime value of the customer, that is, the profits brought to the company by lifelong continuous purchase. The loss of profits caused by the loss of a group of customers should be calculated carefully.
(4) Determine the cost of reducing the churn rate. If this expense is lower than the lost profit, it is worth spending.
Develop measures to retain customers. Some reasons for customers' withdrawal may have nothing to do with the company, such as customers leaving the region, but if customers' withdrawal is caused by the company or competitors, they should be alert and take corresponding measures to reverse the situation.
The enterprise should regularly test the effect of various relationship marketing strategies, the strengths and weaknesses of marketing planning, achievements and problems in the implementation process, and constantly improve the planning to establish and strengthen in the highly competitive market Customer loyalty
The implementation of relationship marketing is a systematic project. It is necessary to fully and correctly understand the content of relationship marketing. To achieve the ultimate goal of establishing a long-term stable relationship between enterprises and customers, it is inseparable from the support of establishing good relations with affiliated enterprises and employees. The relationship between enterprises and customers is the core of relationship marketing. The foundation of establishing this relationship is to meet the real needs of customers and achieve customer satisfaction. Without this, relationship marketing will become a water without a source and a tree without roots. To establish long-term cooperative relationship with affiliated enterprises mutual benefit And agree with the affiliated enterprises on the goal they pursue. High welfare does not necessarily achieve a good relationship between the enterprise and its employees. Caring for each employee can effectively stimulate their work enthusiasm and sense of responsibility, so as to ensure the realization of the enterprise's external goals.