One of the first definitions of relationship marketing is attracting, maintaining and enhancing customer relationships (Berry, 1983:25-28). Other definitions of relationship marketing include Porter (1993: 14), relationship marketing is the process whereby both parties - the buyer and the provider - establish an effective, efficient, enjoyable, enthusiasticand ethical relationship: one that is personally, professionally and profitably rewarding to both parties.
O'Malley et al (1997), define relationship marketing as involving the identification, specification, initiation, maintenance and (where appropriate) dissolution of long-term relationships with key customers and other parties, through mutual exchange, fulfilment of promises and adherence to relationship norms in order to satisfy the objectives and enhance the experience of the parties concerned.
Pricewaterhouse Coopers (1999: 12) defines relationship marketing as a business strategy - an attitude to employees and customers - that is supported by certain processes and systems. The goal isto build long-term relationships by understanding individual needs and preferences - and in this way add value to the enterprise and the customer.
According to Etzel, Walker & Stanton (2001), relationship marketing is the process of moving toward long-term, cost effective, mutually beneficial trust with selected customers. McDonald and Christopher, (2001 :291), define relationship marketing as a continuous commitment to meeting the needs of individual customers, with particular stress on service and quality. Relationship marketing embraces the analysis, planning and management of customer relationships, where the goal of the enterprise is to focus on select customers (Eggert and Fassot, 2001 :5).
According to Kotler (2001 :7), relationship marketing aims at bUilding long-term mutually satisfying relations with key parties such as customers, suppliers, distributors - in order to earn and retain their long-term preference and business.
Lucas (2005:4), describes relationship marketing as the ability of knowledgeable, capable and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of- mouth publicity and return business.
However, the most comprehensive definition of relationship marketing was proposed by
Gronroos (2000: 42-3 ) who submits that the objectives ofrelationship marketing are to identify and establish, maintain and enhance, and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties involved are met. This is done by mutual exchange and fulfillment ofpromises.
From the above definitions, it is clear that relationship marketing is influenced by contributions from diverse relational schools. It incorporates the purpose, process, focus and key elements of relationship marketing as explained by Evans, O'Malley and Patterson (2004:210):
• The purpose is to satisfy the objectives and enhance the experience of the parties involved.
• The focus is on key customers and other parties.
• The process involves the identification, specification, initiation, maintenance and dissolution ofrelationships.
• The key elements include m':ltual exchange, fulfillment of promise and adherence to relationship norms.
Based onthe above definitions, Brink & Berndt, (2004: 7) observed the following dimensions.
Relationship marketing seeks to create new value for customers and then share it with them by recognising the key role that individual customers have as purchasers. In defining the value they wish to achieve, relationship marketers design and align processes, communication, technology and people in support of customer value. Hence, relationship marketing represents continuous co- operative effort between buyers and sellers that recognize the value of customers' lifetime
customers want. Further,one of the mainprinciples of relationship marketing isto identify the most profitable customers so that the business can focus on customers appropriate to its strategy.Wood (2000:15) supports this definition and maintains that the main idea behind relationship marketing is to build relationships with customers in order to retain them instead of concentrating efforts on recruiting new ones.
Evans, Q'Malley and Patterson (2004:210), maintain that as a result of participating in a number of different relationships,certain benefits accrue to the organisation:
• Supplier relationships improve value or reduce costs through more efficient ordering systems.
• Relationships with distributors accommodate new product introductions.
• The network of relationships in which the organisation is involved will enhance its competitive position.Therefore, all of these relationships in some way contribute to adding value, reducing costs and increasing innovation.
• This combination of relationships ultimately helps the organisation to enhance its relationships with itsown customers.
For customers in the cellular industry, relationship marketing can be very satisfying:
• They feel an affinity with the service provider beyond mere purchase.
• They feel an acquaintance with the organisation and are not just anonymous customers.
• They often receive special treatment and extra pampering by the service provider.
• They are likely to receive timely and relevant communications of offers that would be of interest to them from their service provider.
The benefits of relationship marketing for the service provider as explained by Lucas (2005:323), are as follows:
• There is less need to obtain new customers through marketing since current customers are aware ofofferings and take advantage ofthem.
• Marketing costs are reduced since direct mail,follow-up and other customer recruitment activities are reduced.
• There is an increased retum on investment (ROI) since marketing can target specific customer needs.
• It enhances customer loyalty due to pricing and product service offerings that meet current customer needs.
• There is elevated profitability due to increased sales, customer referrals and longer customer retention during life cycle.
Thus, relationship marketing builds strong economic, technical and social ties among the parties and cuts down on transaction costs and time. The ultimate outcome of relationshipmarketing is the building of a unique company asset called a marketing network.A marketing network consists of the company and its supporting stakeholders (customers, employees, suppliers,distributors, and others) with whom it has built mutually profitable business relationships.
Hart (2003:144), outlines a number of organisational attributes of service providers that may help foster sustainable customer relationships:
• An organisational culture that focuses on customer service.
• Employees must have good interpersonal communication skills since this influences how service providers interact with customers.
• Employee motivation and training is very important especially in services that involve high employee/customer contact, social benefits are valued and where technology plays a significant role in building and maintaining relationships, for e.g. service providers contacting customers via sms.
• Develop an ability to calculate relationship performance and to assess the impact of marketing strategies on customer satisfaction, trust, commitment and loyalty.
Implicit in the above definitionsisthat relationship marketing involves activities aimed atdeveloping
Organizations can maintain and enhance relationships by treating customers fairly and offering service augmentations. For the service provider, a valued relationship is one that is financially profitable in the long run. According to Lovelock & Wright, (2002:102-103), customers define a valued relationship as one in which the benefits received from service delivery significantly exceed the associated costs of obtaining them.
The following concepts form the basis of Relationship Marketing and will be discussed and expanded upon below: