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Descrierea CIP a Biblaotecii Natlonale a Romtniei

Business Excellence. Intemational Confefence on Business Excellence.16-17 October, Brasov, Romania / ed. Constantin Britianu, Dorin Lixendroiu,Nicolae Al. Pop - Bragov : Infomarket, 2009

Bibliogr.tsBN 978-973-1747-1 0-1I SBN 978-973-1 7 47 -1 2-5 (V ol.2l

l. BRATIANU, Constantin (ed.)ll. LIXANDROIU, Dorin (ed.)lll. POP, Nicolae AI. (ed)

oc/ .

INFOMARKET Publishing HouseO.P. 1-C.P.361 - Bragov, RomaniaTel.lFax: +40 268 410 132wwweditura-infomarket. ro

lsBN 978-973-1747-1 0-1ISBN 978-973-1747 -12-5 (Vol.2')

-

International Confererrce on Business 1*cellenceM*ETH.ODOLOGICAL CONTRIBUTION TO ORGAffiREENGINEERINGIon VERBONCU,Eduard CEPTUREANU,Sebastian CEPTUREANU

THE MO_IELING OF CERTAIN TAX ADMINISTRATION OPTIONSAdrian VINTILESCU BELCIUG. .,........'.'....,'.........,...... 292Lacramioam BALAN (CORCFIES)

KEEPING YOUR EyE ON TIIE BA^L.L: A_DISCUSSION OF MARKET ORIENTATTON AND ITSy*Y-l I|f{T "ovArrzA rroN/NArroNrir7riioiv..i;ilffi :Kathleen VOGES

A DOUBLE PERSPECTIVE ON ACADTMIC RESEARCH RESULTS _ WHAT DO ACADEMICSAND PRACTITIONERS THTNK ABOUT?,....-..-.--Adriana ZAIT

l]:l*lfx#iff RKETING - rI{E NE\ry MARKETTNG AppRoAcH..........Florina PNZARU.Cristina GALALAE

304 lnternaltionq I C onference on Bus iness Excellence

RELATIONST{IP MARKETING- THE NEW MARKETING APPROACH

Alexandra zBUCHEA. Florina PiNZARU. Cristina GALALAENational School of Polit ical and Administrative Studies, Romania

alexandra.zbuchea@comunicare.ro

Abstract: The paper int)estigqtes how reldtionship marketing developed in time, dLrc to changes in econorny anddoing business, as well as in mentalities qnd society in general. Eren if applying relqtionship marketing cottld prweto be limited for some orgqnizatiot'ts, the contemporqry trends ask Jtr a reevqlualion oJ marketing approachestowards a business philosophy based on networks of relationships. The main cancentration in relationshipmarketing strategies is on customers and business partners. Still, increasingly fiore impo ance is given to rclationswith other. orgqnizqtions and from this point of view, developing sociql alliqnces is good-bwiness. This paperhighlights that e1)en if some interest has been given to the new developments in marketing, the theoretical

faundations are still weqk but the effotts go towards including the relationship concept in the nett marketingparadigm.Keyrvords: evolution of marketing, tflorketing philosoplly, relationship marketing.

1. INTRODUCTIONMarketing has evolved in time, especially due to economic developments, but also taking into account the changesin mentalities, values, and needs of the society. The evolulion of marketing could be divided in several stages: 1.interest in developing a good product, the best possible, which will ensure competitive advantage and marketsuccess; 2. making the offer more accessible by pushing it in the market; 3. promoting the offer to the customers andmaking them want it; 4, concentration on creating, delivering and communicating a suitable offer; 5. identificationof the needs, wants, and intercsts of target markets and satisfying then more effectively and efficiently thancompetitors, while ensurirg the society's well-being. Kotler (2002, pg.l l-15) sti l l acknowledges these directions asconcepts at the core of marketing today. He also considers relationship marketing among the changes in marketingat the beginning ofthe new millennium (Kotler, 2002, pg.l5).

2. MARKETING AS BUSINESS PHILOSOPHYKotler et al. argue that taking into account the evolutions in the world, malketing is more than a managementfunction; l, is a philosophy that guides the entire orgqnizcttion, The goal of marketing is to creqte customersLttisfqction profitably by building wltted relationships teith customers (1999, pg. XV). They propose a philosophyof enlightened marketing (1999, pg. 61). This is based on five principles: consumer-oriented marketing, imovativemarketing, value marketing, sense-of-mission marketing and societal marketing. It is an ethical approach, based ondelivering value to customers and society.The developments in the society, i.e. the postmodeln orientation, have genemted various philosophical shifts withimpact on the malketing approach, therefore on marketing view on business and its primarily role. Shifts andimplications are discussed in detail by Firat and Dholakia (2006). They identif six main relevant domains with deepimplications on marketing attitude: reality / truth, being hunran, consumption / consumer marketing, consumeriorganization and marketing communication (Firat & Dholakia, 2006, pg. 154-155). All the implications onmarketing identified by the previous authors lead to th€ idea of marketing as facilitator of relationships, asconnector, as experience generator and creator of symbolic values and bonds. As for the direct implications withinan organizatjon, the authors identiry two: ma*eting is a process ofconstructing nefi,orks that enable human beingsto cteate and nqvigate meaninglul experiences ard matketing enqbles human heings to conslruct communicationand provision networks. Thus relationship mar-keting is viewed as a direct result of the philosophical shifts in thepostmodem society. Therefore, marketing has a broad significance, it is more than a business practice, it is a visionon business in the wider context ofthe contemporary society.Still, not all parlies involved in marketing recognize the broad significance of marketing. Especially pmctitionershave a more fmctional view on marketing (Cornelissen, 2002). Practitioners are more interested in understanding aspecific practical situation, a cefiain problem in order to propose the most effective strategies. Academics tend to bemorc system-oriented, to find the meanings behind a phenomenon, to generalize, to find patterns and to proposetheories. Being interested more in understanding the rational behind marketing, academics tend to proposo a specificmarketing attitude, i.e. a philosophy of maketing. Therefore, it is very imporlant that the persons that have to appl)relationship strategies understand their theoretical side, For instarce, we believe that it is not enough lor the KeyAccounts in big coryorations to inform their customers and to solve their protrlems, but they have to create a unita4communication platform that would offer the possibility of a long-term dialog between the organization that the)reDresent and the customgrs thev serve.

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ICBE 2009 - VoL 2

For instance, the philosophy ofso called n€twork marketing (using "friendships" to promote pmdrds) is to dclrelqrelations based on harmony within a network in order to have a favorable image and to push the offer fr*zd(Kong, 2002). Nevertheless real-life rapports among members of the network are more institutional and taslroriented, In this context, each member has its own interests and pressures to face, some members are subordindeswhile others are in lead. Therefore, in real-life marketing activity conflicts of intorests could manifest and themarketing ph'ilosophy could bejust a desire, a utopia.All this inconsistencies, various problems observed in implementing marketing strategies, analysis of variouschanges observed in the last decade determined some professionals to ask for a paradigm shift ir marketing(Gummesson, 1998b; Gronroos, 2006). Christian Gronroos (2006, pg. 407) proposes o new definition for marketing:M(trketing is a customer focus that permeates orgqnizationql functions and processes and is geared towards makingpromises tlvough value proposition, enabling the fulfllment of individual expectations oeated by such promisesandfulJilling such expectatiorc through support to custoners' vqlue-generating processes, thereby supporting valuecreation in the Jira's qs well as its clrstomels' and other stakeholders' processes. He presents this definition as a'lromises management defrnition", considering in ths same time that it is a working definition. In explaining hisapproach, C. Groruoos (2006, pg.408) is very cautious with the concept ofcustomer relationships even ifone ofthekeys of the definition is the focus on customers. He argues that relationships for themselves are not an appropriateaim, but they could be tlle proper strategy in different organizations, according to their context and customers-

3. RELATIONSIIP MARJ<ETING - IS IT JUST CUSTOMER ORIENTED?The ooncept of relationship marketing is not new. It is mentioned since the 1990s in the context of customer-orientation of marketing. Most of the authors, such as Payne (1993), consider that the focus of the relationshipsmarketing activity is the client. Its cenhal goal is to change the customer, not only into a favorable individual for theorganization, but also into its promoter. In order to do this, it is not enough to convince customers on the quality ofthe product offered as well as ofthe company's profile (meaning its social and cultural involvement, its honesty etc.)One of the necessary conditions to achieve this is to offer a product that exceeds expectations and to create asurprising personal bond between the organization and its customers. Thus, rewarding relationships are vital.Therefore, the new approach of marketing - relationship marketing - aimed to better attract cusiomers. This conceptrefened primarily to questioning the current or potential clients so as to better know their expectations, needs, ideasof happiness, life, etc., in order to respond them better. But soon the concept evolved. Evert Gumfieson (1998a,

pg. t 30- 1391 suggested a broader definition, rcfering to the concept of relationship marketing as being not only thewhole ofthe company's relations (with clienls, as well as with any other entities), but also the nets and interactivitiesdeveloped through marketing actions. Still, the concentration on clients is presewed, since customers are consideredthe primary target of the relations development. Gummesson (1998b, pg. 243) sees relationship marketing as a

necessary shift in the marketing paradigm. He considered centwy that marketing was loosing efficiency, its strategicpositioning and trust ofthe management at th€ end ofthe 20h. In this context he proposes relationship marketing as

the chance of marketing to regain realism. He highlights that relationship rnarketing is not referring to commercialrelations, but rather to a win-win strategy, considering partners and customers.Being customer-oriented means primarily to satisry the customers' needs and desires. The increased role to this

marketing function led from mass marketing to segmented marketing. The next stcp undertaken by companies is to

individuaily tulfill the needs and wants of clients (Sheth et al, 2000, pg. 56-57). An interesting approach is

..p.".eot"i by the CRM (Customer Relationship Management). lt seems that mass communication, so well

dweloped in our tirne, will no longer be suJficient to communicate to tbe new consumer. Building customer loyalty

today ;equires serious customer relationship management, ard the rules of CRM are very complex. Although the

terrn CRM generally refers to software-based systems in the context ofrelalionship marketing, its success requires a

complete holistic approach (Newell,200l, pg. 83).The implications df such an approach, as Sheth and others (2000, pg.61-63) present, are the creation ofa customer-

centric organization, customer outsourcing, co-creation marketing etc. All this involve the development ofclose and

functionaicustomer relationships. Others benefits ofrelationship marketing are presented by Hastings (2003, pg' 8):

stability and better long-term planning, lower price sensitivity, and the opportunity to increase sales. Again' the

stress is put on customers, but some other relevant relationships are also discussedThe queitiors Fisk (2006, pg. 305) asks are if companies are sincerely aiming "real" relationships or just busiless

oDDoftunities and if customers are interested in relationships with organizations or brands. He considers that

cuitomers are more concemed in ueating relationships with other customers, rather than with the organization(Fisk, 2006, pg. 307). Therefore, companies should create netwod$ of customers and sustain the development of

connection aming them. ln order to have a strong relationship, Fisk (2006, pg. 308-309) tecommends a sense of

equality and huri'itity, mutual attlaction, a strong commitment, tolerance, something special for each side and

u"hi"ui-ent. He proposes more intelligent and imaginative relationships, concentrating all the efforts into creating

loyal, supporting paitnerships and active communities with customers (Fisk, 2006, pg. 306). But the retationship

*utt"ting it "oiooe"t"d

witi\ the perspective of intemal marketing. In order to give value to the customer, it is

compubJry that all the employees and the parties ofthe organization understand to put together their efforts.

Beciuse oithe p"rmanent ivolutions on the market, of the economy and even ofthe clients (their needs, mentalities

etc.), the relationships are continuously changing. Some of these changes are / should be influenced by the

i06 Inlernationql C oder ence on Bus iness Excel lence

organization, too, though its marketing activity. Relationships refor mainly to the communication proc€ss betweenthe organization and the others, its audience: clients, consumers, busjness partners, public administration, nonprofitsetc. This marketing communication is primarily a process of information transmission, receiving, analyzing andprocessing. [n order to be effective and efficient, the communication should be bilateral and continuous. In this v/ay,parties involved will perceive and evaluate relationships established. Evert Gummeson (1998, pg.134) highlightsthat the relations accepted more or less deliberately are very complex, some of them of economic nature, othersbeing non-economic. Kotler (2002, pg.16) also stresses the increased importance oflong-term relationships, but hehighlights the economic ones - with clients and members oftbe distribution channels.When talking about client relationships, we stress the extensive importance of the employee - customer relations,especially in the case of service orgarizations. In this context, marketing should also aim to increase the front-lineperconnel's abilities ofbeing aware of clients' needs in order to eliminate the disparity between their expectationsand the evaluations und€rgore (from the customers' perspective). One of the main communicators on behalf of acompany is its personnel. The evaluation of services, during and after their "consumption", is tied to the actualprocess and satisfactions induced, as well as by the initial expectations. In general, clients' needs can be betterresponded through building a climate of trust and cooperation between all those involved in the process. Theadvantages of building relationships with clients are various, such as: customer retention, good image andcredibility, increased effectiveness in operations, avoidance oftransaction and quality costs. The direct and inducedbenefits are multiple, both economic and socio-cultural, for the company, and other parties as well (e.g- the localcommunity).The client expectations are not depending only on the company or client-related personal factors, connected tohisnrer own spirit or the social environment, but also they are strongly influenced by the messages the organizationhas sent to him / her. Other factors of influence are the assertions that other organizations involved have launched,or even by third parties' messages and actions. Therefbre the existence of fiiendly third parties, no matter theircharacter, could be usefnl for a company in terms of positiv€ly influencing its customers. The company couldencourage these parties to launch affmative messages to its benefit. This process would be easier and moreconvincing if the company and these third parties are members of a network or at least have good and stimulatingrelationships. The Web 2.0, with its developments such as blogs and social networks allow to organizations this kindof actions, but we think that it shouldn't be considered as rhe only tool appropriate for such an approach.The above observations prove that relationship marketing is not only about the client, i.e- customer relationships.Relationship marketing is about creating a network ofwhich the organization is part (Healy et al, 200i). The numberof participants and parties involved inueases continuously and the context (economic, social and political) variesfrom situation to situation. The network theory considers the market as being formed by dynamic interdependententities, connected on various levels (e.g. resources, airns, activities). This situation has/should have profoundimplications on the compary' s strategic management and marketing activities.Some of the main goals of relationship marketing are: to influence the acquisition of certain products and / orservices; to induce a specifrc behavior regarding the relations between customers; the development of long-temrclations; the enhancement of a favorable network surrounding the company; an increasing positive image; to obtainthe support ofthe local community for vadous activities; etc. ln order to achieve the set goals, each company shoulddesign and implement specific marketing strategies.In the contemporary society, a new relevan! dimension to relationships has been added: the social involvement.Even if there are some skeptics, most of the literature agrees on the importance of societal marketing, corporatesocial responsibility and corporate citizenship. In this context, social alliances are vital. We are not refening just atthe alliances with the local communities and its representatives, in order to increase local support which will alsogenerate increased sales and image. The implications of social alliances are more profound, affecting also thecompany's employees (Berger et al,2006). Berger et al (2006, pg. I28) show how these alliances become sourcesof competitive advantages, by creating positive associations both among customers and partners, and employees.These ones would also identiry themselves more with the company, and such a perspeclive helps them find bridgesand compatibilities between their business identities with their moral and social identities. Thus they would be morededicated to the compary and to their responsibilities. It would not only shape identities, but it will also ffeate bondsbetween the company and its employees, as well as intra-organizational social connections.Nevertheless, despite these evolutions, the main schools in relationship marketing, identified by Palmer et al (2005)concentrate on customers and business relationships, but they aim holistic and integative approaches to business.Practical marketing activity seems to focus at least equally on business relationships. Tadajewski (2008, pg. 10)shows that mostly 1lom the 1970s companies were more interested in reciprocity, meaning ben€ficial trade relations,which developed in time into corporate diplomacy, business relations, diplomatic marriage brokers and intorelationship marketing. Even if it is a wide practice today, relationship marketing could imply costs to someorganizations, since relationships are not always democratic, and some parts are favored compared to others.Negotiations are vital and the relationships are continuously developing

ICBE 2009 - Vol. 2 307

4. CONCLUSIONS AIID IMPLICATIONS

Relationship marketing is the result of an organic development of marketing, in symbiosis with the society'sevolution. In this context, the marketing theory needs to be refreshed and relationships tend to be part of the newmarketing paradigm.ln _the context of contemporary society, relationship development is part of the marketing's value-creating anddelivering strategies. Relationship marketing is not only about customers. It is equally about the company't ow:temployees, its partne$ and all the organizations which are part of its external environment. Relationships are notlimited to business alliances of any kind. They are increasingly more tightly related to communities, nonprofits andsocietal entities, with which the company could create a functional network. All these relationshios have to bemutually beneficial, and it is not necessary to be company initiated. It could just be open to the opportunities offeredby other members ofthe network.Marketers should not only be aware of the instruments that maxketing offers and the marketing theories which helpdevelop effective business skategies inside one or several networks. They should adopt a certain perspective on theirbusiness, on the company's role and status, as well as on the most appropriate attitude they could have regarding themarketing's role in developing the business. They should adopt a marketing perspective in terms of a broader view,which includes a certain philosophy of doing business as active and responsible members of a network comprisingmany diflerent organisms and persons, some quite, with a low profile, while others are active and loud. Still, all thenetwork's affiliates have their specific role and all of them influence directly or indirectly the outcomes of themarketing strategies implemented.

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