 Okay so in this video we're going to be talking about the basics of relationship marketing. I'm looking to do intermediate one and advanced version of what is relationship marketing but we're just going to really go over some really basic issues. So what is it? It's debated actually. Relationship marketing is actually a relatively new term. You think of a lot of other approaches. You've got transactional marketing and many others which have been around for actually quite some time. However relationship marketing is actually relatively new, probably within the last like 20 years or so. There's three schools of thought. Anglo-Australian model which actually focuses on internal staff and services by producing good internal staff services to provide good customer service to enhance a relationship with a customer. And then you've got the Nordic approach. Again customer is an integral part of this and you have the North American approach. So they all really focused around relationship marketing and the end goal really is to build a relationship with your customer. But there's just three different sort of perspectives. So it's sort of a triangulation approach really. Different perspectives on it. So some definitions of it is marketing activities that are aimed at developing and managing trust and long-term relationships with larger customers. So it's about building that customer attention and trust so then it will affect positively upon your business. You know it's less about profit. It's more about customer attention. But so by actually making sure you keep your customers you are benefit in your company with profit. But your profit isn't necessarily your fundamental aim. You're not there to just take money off people. You're there to provide something that's going to keep them as customers. As opposed to a transactional approach where it's basically like by this product they make the money. That's it. You know it's just about which is more for FMCGs which is fast-moving consumer goods. Another definition is a type of marketing intended to foster a long-term business relationship with a customer. Especially by offering a personalized service. Again so this is about personalization as well. So it is linked with some forms of marketing as well. It's also linked with CRM customer relationship management. This is also linked with database marketing. So these things are like creating a database so that you're able to know the person's name, the rage, maybe some interests, what products have previously bought. All these types of things and this information can be used to help develop a relationship marketing approach, a more personalized approach to ensure again that customer retention and customer satisfaction. It's also linked with internal marketing. Like I mentioned the training of staff and it's also linked with the extended marketing mix. It's about the people, the physical evidence and all the other aspects of the marketing mix. It plays into the relationship marketing approach. I mean especially the people element. I mean I think that's probably one of the main factors with relationship marketing. It is the people, the people within the company who are providing that service because those are on the front line. These are the people representing the company to give that service to the customer and build that relationship. So I think the people is a key element within the extended marketing mix that applies to relationship marketing. Now so what is RM and what is its benefit? So again it's focusing on building a relationship with a customer and then what that allows it to do is it has an effect on customer retention and there's actually a lot of figures out there. I haven't pinpointed anything directly but I will maybe put something in the description. It's cheaper to retain customers than gain new ones. So if you think about that if you are a say even a small company or a medium-sized company probably a relationship marketing approach is very very important. You know the importance of retaining your customers because it's cheaper than gaining new ones. That's going to save you money in the long run. Now that's not to say that you shouldn't try and achieve new customers and grow your business. Of course you need to do that but it's about having a dynamic approach and making sure that the customers you do have you are building a relationship with them in terms of relationship marketing so that you retain those customers. What does relationship marketing do and what are its benefits? So it's a focus on building internal relationships with staff. That then improves customer service and then that then affects customer satisfaction and retention. So where can it be really implemented? It's sort of anywhere in the service sector really. You've got to be careful with fast moving consumer goods. You know those sort of things you know your supermarket goods that don't necessarily need a relationship marketing approach but you know companies can still implement it but it's more for like sort of service sector maybe hotels, flights, trains, taxi firms, holiday companies maybe the business that you run maybe you could implement this approach as well.