Relationship Marketing - Theoretical Consideration: Annales Universitatis Apulensis Series Oeconomica, 14 (2), 2012
Relationship Marketing - Theoretical Consideration: Annales Universitatis Apulensis Series Oeconomica, 14 (2), 2012
Relationship Marketing - Theoretical Consideration: Annales Universitatis Apulensis Series Oeconomica, 14 (2), 2012
Iacob Cătoiu1
Mihai Ţichindelean2
ABSTRACT: The purpose of the paper is to propose a set of research perspectives for the
relationship marketing theory. A comprehensive literature review is undertaken which entails three
different understandings of relationship marketing. First, relationship marketing is considered as a
marketing strategy within the unifying theory of the service dominant logic. Second, relationship
marketing is presented as the new understanding or paradigm of marketing. Third, relationship
marketing theory is correlated and described in the context of postmodernism thought. For each of
the three mentioned approaches, the authors propose several research issues that should articulate
the structure of relationship marketing theory.
Introduction
The general paradigmatic framework for the existence of marketing theory is represented by
market functionality. Central to market functionality and essential for marketing theory is the
concept of exchange. There are two main literature streams that define the exchange concept and
the understanding of the market mechanisms. The first one considers that markets can be
understood through the economic behavior of its actors; thus, underlying transactions are regarded
as independent and temporal discrete exchanges. The people engaged in such exchanges do not
retain any information from other similar exchanges (Hedaa and Ritter, 2005). In opposition with
this consideration, the second stream states that exchanges result from the individual history of the
market actors, from their commercial or market relation. This second interpretation, the relational
aspect of exchanges, is considered to be a new paradigm in understanding marketing (Sheth and
Parvatiyar, 1995).
The change of the paradigmatic framework that has determined the rise of the relationship
marketing paradigm took the forms of market fragmentation and the growing importance of
services within the developed economies in the ’80. Until that moment, the marketing-mix was
unanimously accepted as the paradigm of marketing theory (McCarthy, 1960). The mentioned
changes imposed the companies a more relational approach of their clients. Thus, their efforts
weren’t only oriented towards gaining discrete and spontaneous transactions, but also for creating
profitable, long-term relationships with their clients. This change of the paradigmatic framework
has created favorable conditions for the emergence of a new theory that can be considered a new
marketing paradigm, namely relationship marketing. Its theoretical validation is achieved through
the vast researches conducted in conceptualizing it.
A first set of researches was based on the service marketing literature and used relationship
marketing as a critic for the marketing-mix which followed only client attraction and not their
retention (Berry, 1983). A second research stream, which was based on the B2B Marketing,
1
Academy of Economic Studies of Bucharest, Romania, e-mail: [email protected]
2
“Lucian Blaga” University of Sibiu, Romania, e-mail: [email protected]
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concluded that the purpose of marketing is to create, maintain and develop the company’s
relationships with its clients (Hakanson, 1982). Other researches that aimed the relationship
marketing theory were the studies of the IMP Group (Industrial Marketing Purchasing Group)
which conceptualized relationship marketing through the network theory. This theory presumes that
markets are heterogeneous and not homogeneous from the perspectives of its elements; and that
organizations are not independent entities, but are part of a network. The members of this network
can be both sellers and buyers; therefore there is the possibility of initiating commercial
relationships with other network members in any desired moment of business activity.
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operant resources of the company that are possible sources of competitive advantage (Madhavaram
and Hunt, 2008). Alongside with organizational and informational resources, relational resources
(e.g. relationships with the competition, suppliers and clients) are considered operant resources that
form the heart of a competitive advantage and a company’s performance (Lusch and Vargo, 2006b).
Considered as an individual construct, the relational resources are at the bottom of the pyramid
which ranks the company’s resources according to the following criteria: company’s engagement
towards the resources, time needed for the acquisition and/or development of the resources, cost of
the acquisition and/or development of the resources and the sustainability of the competitive
advantage obtained after exploiting the resources.
Interconnected,
Operant Resources
(IORs)
Composite,
Operant Resources
(CORs)
Figure no. 1 contains categories of operant resources that are, in fact, a mix of inferior
and/or superior resources used by the company to develop an effective and efficient value
proposition for the market. This ranking of the company’s resources can be used as a starting point
in researching the operant resources relevant for the company’s marketing strategy. It must be
mentioned that the service dominant logic sets marketing as a central piece for the company’s
strategy. Relationship marketing is considered one of the four normative theories concerning the
marketing strategies, along with: market orientation, brand value and market segmentation (Hunt
and Madhavaram, 2006b). If marketing is understood through the service dominant logic, then
relationship marketing represents a strategic level of marketing which guides the company to the
identification, development and maintenance of a relationship portfolio (Madhavaram and Hunt,
2008). Through the managed relationship portfolio, the relationship marketing strategy can be
source of competitive advantage for the company. A good management of this relationship portfolio
implies the development of the market-related capability of the company. This capability is an
interconnecting operant resource aiming for building up and maintaining a company’s relationships
with its customers, through the following (Day, 1999):
1. Relational orientation of the company by including the company’s values and
norms
2. A deep knowledge of its clients and usage of this know-how within the company
3. Integration of the company’s internal processes and alignment of the external
processes with the corresponding processes of the company’s clients.
In this respect, researches can aim the improvement of the company’s strategy by studying:
the measurement alternatives of the company’s relational performance, the causes and
consequences for the company of the market-related capability.
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By synthetizing this first alternative, for the development of the relationship marketing
theory, it can be stated that relational marketing is considered a strategic process for the companies
that embrace the marketing vision. The purpose of the relationship marketing strategy is to initiate,
develop and maintain a profitable relationship portfolio for the company.
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settles that only a company’s clients should be subject of a relationship that a company develops
(Kotler and Armstrong, 2004; Henning et al, 2003; Rust, 2000; Parvatiyar and Sheth, 2001). Both
presented perspectives describe the relationships a company should manage in profitable manner
with its clients/stakeholders. The object of a relationship in terms of relationship profitability should
awake research interest. Gronroos (2006) defines the purpose of a relationship managed by a
company as a win-win situation resulted through the development of the supplier-client dyad
(Gummeson, 2002; Morgan and Hunt, 1994). Other definitions consider the relationship’s purpose
as: nurturing a rebuying behavior of the clients (Liljander and Strandvik, 1995); managing
relationship marketing instruments such as: loyalty and direct mail programs (Verhoef, 2003), and
as another marketing-mix element (Fournier, 1998). Relevant information could be obtained
through researches that aim not the company’s relationship purpose, but the client’s motivations
and desires to be a relational partner for the company. The strictly transactional exchange can be
considered by the company a form of relationship with its client, a perspective not granted by the
last. Thus, studying the clients’ motivations and desires to be active partners and their impact on the
relationship quality and stability (Henning-Thurau and Hansen, 2000), along with identifying the
benefits a client expects form the relationship with the company, could represent interesting
research purposes.
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a forward integration of the company’s functions by reducing the spatial and temporal differences
between production and consumption. Relationship marketing theory has as theoretical antecedents
marketing networks and their dynamic. The focused perspective considers the relationships a
company manages with its stakeholders as central to relationship marketing (Egan, 2003). Thus, the
decentralization of the management functions could attract researches that study the efficiency of
communicational systems between different network partners and that improve the existent
relational control systems (Bruhn, 2010). The closeness of production-consume and the emergence
of production-consume distribution networks (Achrol and Kotler, 2012) are relevant for all the
components of a value-proposition: products, services and ideas. Services and ideas are highly
important for relationship marketing because of their characteristics proper for value co-creation.
(3) Sustainable marketing is tied with market capacity and resource capacity (Achrol and
Kotler, 2012). Both indicators describe how the present consumption of the society will directly
affect the environment and indirectly the future consumption of society. High levels of market
capacity (market saturation) and the increasing trend of depletion of non-regenerable resources
impose an ecological approach to marketing. Regardless of the business model adopted, sustainable
marketing is initiated at the beginning of the product life-cycle and ends with the disposal of the
negative effects resulted from selling and consumption (Achrol and Kotler, 2012). Sustainable
marketing practices attract higher costs for the company (environmental costs are added to the
company’s costs) that produce a smoothing of the company’s selling curve and, in some cases, a
market shrinkage. In such a setting, the profitable demand could be the poorer side of the society or,
as Prahalad (2005) described it – the fortune from the bottom of the pyramid, which represent
almost half of the world’s population (in relative terms).
In describing the perspectives of relationship marketing, the characteristics of modernism
and postmodernism schools of thought should not be omitted. The phases of marketing evolution
(Pop, 2006), including relationship marketing, absorb traits of the modern thought. The project of
modernism entails the idea of progress, revivals the power of reason, praises scientific discoveries
and technological innovation, sustains human progress, predicts the freedom from oppression and
believes that the known physical and social world can be analyzed, planed and controlled (Smart,
1992). Marketing science has deep roots in modernism thinking. Marketing researchers advocate
for the existence of an external reality, that can be understood, modeled and controlled (Brown,
1992). Postmodernism conditions are opposed as significance to those of modernism, containing
ideas like: celebration of skepticism, irony, anarchy, style, paradox, and spectacle and, above all,
hostility from generalization (Brown, 1992). By analyzing the traits if the two general thoughts, it
can be asserted that modernism is characterized by scientific virtues of objectivity, rigor,
detachment, precision, logic and reason; while postmodernism is built around the artistic attributes
of intuition, creativity, spontaneity, emotion and engagement (Brown, 1992). The postmodernism
character represents a challenge for the modern understanding of marketing centered on prediction
and generalization. Uniqueness, diversity, plurality and idiosyncrasies of each individual can
influence the company’s marketing approach. Such influences are validated by the ideas contained
in P.Kotler’s book (2010), which considers marketing 3.0. as the new understanding of marketing.
Thus, marketing 3.0. is considered a sophisticated form of client orientation dominated by the
client’s demands towards more collaborative, cultural and spiritual marketing approaches from the
company (Kotler, 2010). The clients’ desire for individualized experiences felt after consuming an
offer which was created by their co-creation processes are clear signs of postmodernism. The ways
companies react to this reality will, eventually, determine the success of applying the marketing
concept. Based on its fundamental concept – relationships with clients – relationship marketing may
be the way of understanding the marketing concept in this postmodernist setting.
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Conclusions
The purpose of this paper is to offer some development perspectives regarding the
relationship marketing theory. Relationship marketing is considered by some authors a new
paradigm for marketing (Hedaa and Ritter, 2005). According to this paradigm, the companies’
efforts are not oriented towards gaining discrete and spontaneous transactions, but for creating
profitable, long-term relationships with their clients. The marketing literatures, in general, and the
relationship marketing literature, in particular, contain different understandings and association of
the relationship marketing theory.
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