The Impact Of Relationship Marketing On Consumer Marketing Essay

TATA MOTORS LIMITED once known as TELCO ( TATA Engineering and Locomotive Company ) is a transnational company and is a portion of the TATA Group with its central offices located in Mumbai, India. It was set up in 1945 and is India ‘s largest car company ; besides, it is a leader in Commercial Vehicles and the 2nd largest in rider vehicles. It is the universe ‘s 2nd largest heavy coach maker and fifth largest medium and heavy truck maker. It is besides, the interior decorator and maker of the iconic TATA Nano auto, which is the universe ‘s cheapest auto, bing around INR 1, 00,000 or USD 2250.

Tata Motors was the first company to be listed in the New York Stock Exchange ( September 2004 ) from India ‘s Engineering Sector. It has plans to go a planetary company by agencies of acquisitions, amalgamations, confederations, and a strict Research and Development to run into the demands of the international market. The company operates in the UK, South Korea, Thailand, and Spain through its subordinate and associate companies. In 2008, the company acquired the British Jaguar Land Rover ( JLR ) concern, which besides includes Daimler, Lanchester and Rover trade name names. In 2004, it had acquired, South Korea ‘s Daewoo Commercial Vehicle Company. Besides, it had acquired Hispano Carrocera, a reputed Spanish coach and Coach Manufacturer in 2009.

It is continuously confronting competition from planetary companies such as Toyota and other Indian trade names such as Maruti Suzuki, Mahindra, etc. to run in India and overseas. In order to get by up with the uninterrupted competition Tata is bit by bit coming up with revised theoretical accounts of its old autos such as Indica, Indigo Vista, Xenon, Tata World Truck, etc. Besides, it is conveying up new theoretical accounts of autos on lines of economic system, power, and designs to be a market leader.

( www.tatamotors.com )

BACKGROUND OF RESEARCH

Relationship Marketing refers to the construct of utilizing methods and tactics to develop long term relationship by supplying the clients maximum possible satisfaction in order to retain them. It is different from the traditional Transactional Selling that involves the administration concentrating on one off gross revenues to clients.

The demands and wants of clients change overtime, so it ‘s the duty of the administration to run into the client ‘s demands. In order to make that the administration must supervise the alterations in the client environment. Some utile methods to supervise client satisfaction can be:

Focus groups

Personal interviews

Mystery shoppers

Customer Ailments

Suggestion Boxs

Online Surveys

General Remarks

Courtesy Calls

The administration must maintain itself up to day of the month with the client needs overtime as the demands ne’er remain inactive and alteration overtime. In order to construct a long-run relationship with the client, the administration needs to accommodate and alter at the same time harmonizing to demands of clients ; which would bit by bit profit the administration in footings of net income, market portion, and trade name trueness.

( www.learnmarketing.net )

REASONS FOR THE STUDY

The reappraisal of Relationship Marketing in respects to consumer behaviour suggests that there is an intense competition among organisations in order to retain their clients. So, in order to stay competitory and gaining control a greater market portion the organisation must detect the alterations in client demands from clip to clip and must accommodate itself consequently.

Extent OF RELEVANCE OF RESEARCH

The research shows several deductions for the design of the relationship selling schemes for the organisations. This would in exact signifiers, would uncover the ways and agencies which could profit the organisation in keeping long-run relationships with its clients. In today ‘s competitory universe, an organisation can non afford to lose its clients if it wants to last in the market. From an academic position, this research seeks to add to the bing cognition and service as a guiding papers for organisations to reexamine their Relationship Marketing schemes. It would besides, organize a footing for farther survey.

RESEARCH QUESTIONS

Pulling upon the above, the research seeks to reply the undermentioned inquiries:

To what extent does Relationship Marketing affect Consumer Buying Behaviour?

Is there any nexus between Relationship Marketing and Consumer Buying Behaviour?

How can Tata Motors build up better relationships with their client base?

LITERATURE REVIEW

Relationship Selling is considered to be a important alteration in the traditional selling constructs and different facets of it are needed to be considered in order to avoid an semblance of its constructs as assorted facets seem to overlap over each other.

Harmonizing to Gronross ( 1984 ) , ‘Relationship Marketing is a procedure by which the aims of the parties involved are met through fulfilment of committednesss and bilateral exchange. Whereas, Stone and Woodcock ( 1996 ) focal point on the techniques of selling, client service techniques and keeping relationship. Harmonizing to them, ‘Relationship Marketing includes the use of selling and client service techniques by a company to bring forth clients and keep relationship with them, so that it benefits both the parties ‘ .

Buttle ( 1996 ) provides better mentality on the topic as harmonizing to him ‘Relationship Management is symbolized by the concern of the company in run intoing client ‘s expectancies by supplying high criterions of service and develop values of trust and committedness to clients, thereby, keeping the relationship ‘ .

Relationship selling is a major development and a suggested new paradigm in the field of selling, from the anterior attack to traditional selling which is now referred to as ‘Transactional Marketing ‘ . It is all about Numberss and nil else. They are more precisely transactional relationships and merely concentrate on forcing gross revenues or services through its distribution channels. The nucleus of every action and determination is ‘Money ‘ or to be more precise a one -off exchange of money and trade good.

Whereas ‘Relationship Marketing ‘ or ‘One-to-One Marketing ‘ is a wholly different attack to marketing concentrating on client ‘s wants, demands and outlooks. In this instance, the precedence for every determination and action is to keep a long and a fruitful relationship with the client which would bring forth net incomes for the company. ( Schneider. M, 2003 ) .

Lancaster ( 1993 ) besides supports the above fact that, and gives the thought, that relationship selling accentuates on a comparatively extending term and a alone set of relationships between the selling organisation and its clients but, fiscal considerations and absolute satisfaction of both involved parties is still of import and should profit both the parties through bilateral willingness.

( Lancaster et al, 2002 )

In order to keep a satisfying and long-run relationship, the seller must analyse the purchasing behavior of bing and possible clients. This can be achieved by understanding the factors related consumer purchasing behavior that gives an penetration of what makes them purchase a merchandise or what makes them reject a merchandise.

CONCEPTUAL CLARIFICATION

The car industry has an progressively complex and contentious environment where the challenges are in respects to take down net income borders and after gross revenues services among the large participants in the car industry. New engineerings allow one car company to derive competitory advantages over the others. But, this should be considered as an of import fact that, developing a new engineering entirely can non develop the trust of the client in its vehicles. Trust is the result of sense of security and assurance, a client has in a company. This can be achieved by a company by keeping effectual relationships with the clients. Today ‘s automotive clients are rather intelligent about the market alterations.

( www.gtm.sap.com )

Harmonizing to Liam Alvey ( 1983 ) , the ultimate application of relationship selling shows immediate effects when there are equaling merchandise options or clients have the chance to take from many options ; and besides, there is a uninterrupted and increasing passion for the peculiar merchandise or service. ( B. Leonard, 1983 )

The function of relationship selling in the car industry is increasing at an huge rate. Therefore, they follow a common scheme of ‘Developing new clients and retaining the old clients ‘ . The companies are concentrating on the assorted techniques to run into the client needs chiefly through increasing trade name trueness, cut downing costs, deriving competitory advantage by technological promotions and effectual selling and client service schemes. Inability to run into the standards of understanding client demands may take to higher costs, and take downing trade name image.

Nowadays, there are assorted tools to analyze the purchasing behavior of clients that enables an automotive company to understand the client penchants. Besides, there are assorted package available in the market which enable a company to analyse every client ‘s penchants, gustatory sensations, likes and disfavors, etc. by agencies of keeping a database of merchandises purchased, and type of options for finance and ascents taken up by the client. This helps the company in developing gross revenues schemes for a market.

( www.gtm.sap.com )

Advantages of Relationship Marketing

In the planetary competitory times, the purpose of the company is to keep life-time clients that can supply long-run benefits to the company. Some of the positive deductions of Relationship Marketing can be-

Relationship selling enables a bipartisan communicating between the company and its clients.

Relationship Marketing enables a company to react and better understand the client ‘s changing demands with clip and do effectual schemes.

It besides enables a company to keep client trueness, which is one of the chief concerns of the company.

Loyal clients may convey in more concern by word of oral cavity.

A higher per centum of keeping would connote that fewer clients need be attracted further and the cost for pulling them would be a significant cost, i.e. more cheaper.

Existing and Loyal clients would be willing to pay more because of inculcated trust in them for the company ‘s services if there are any benefits given to them for their trueness.

Finally, the ensuing benefit out of relationship selling would be an addition in gross revenues, net incomes and market portion ; besides, there would be lesser opportunities for the company ‘s market portion to be invaded or overtaken by others.

Disadvantages of Relationship Marketing

Introduction of relationship selling involves an investing by the company, but its return can non be guaranteed. As, it depends on the pick of the client to accept the company or non.

It would besides necessitate investing into new engineerings to keep databases of client penchants, etc.

The companies which used to concentrate on traditional methods of concern would hold to convey about a alteration in their civilization before taking a newer mentality towards relationship selling.

( www.goliath.ecnext.com )

Inspite of all the above listed disadvantages, the research still supports relationship selling due to the ground that, relationship selling is the demand of clip. The company which changes with clip flourishes, while the others perish.

CONCEPTUAL MODEL FOR RESEARCH ON RELATIONSHIP Selling

THE SIX MARKETS MODEL- This theoretical account of relationship selling was given by Christopher et Al in 1991 and analyzes stakeholders in the market as six markets runing near the cardinal nucleus of relationship selling followed by the administration.

( Adopted from – www.auhy69.dsl.pipex.com )

The success of a relationship selling programme in a company or administration depends on how best a company manages the above shown six markets, which are all inter-related with each other. If these cardinal markets runing around the nucleus of the administration are managed decently, it can keep its value proposition in the market along with diminishing the hazards of being attacked by a rival company.

The cardinal factors that need to be analysed about Tata Motors in the research by the application of this theoretical account are shown below by agencies of a table-

Market Type

Critical Issues related to the Market

Customer Markets

What attack can be adopted by Tata Motors to follow to develop new client base and every bit good retain the old 1s?

Internal Markets

Are the internal employees capable and willing to leave quality services to the clients which are in conformity to the attack taken by the company?

Recruitment Markets

Has the company carefully selected, motivated and trained the employees to present quality service in respects to the attack for deriving and retaining clients?

Supplier Markets

How can the relationships of the company with its providers and distributers be efficaciously maintained so that quality service can be maintained?

Influence Markets

Does the company possess a reputed trade name name? What sort of scheme are followed to keep effectual dealingss with the Media, analysts, etc. that promotes word of oral cavity promotion?

Referral Markets

Is the company holding good communicating links with professionals in populace who make recommendations on buying determinations of clients? How can the company heighten the client ‘s trueness towards it s merchandises?

( www.openlearn.open.ac.uk )

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOUR

Cultural facets followed by a client

Social features of clients by which they form a group related to instruction, business, involvements, etc.

Influences by household and friends

Situational influences which promotes or demotes company gross revenues depending upon client ‘s state of affairs. This besides includes his economic state of affairs.

Influence of selling attempts to buy the company brands.

Influence of Psychological factors that include the client ‘s perceptual experience, motive, attitude, etc. towards a company ‘s trade name.

Influence of demographic variables which divide persons harmonizing to age, sex, monthly income, makings, business, etc.

( Parsons. E and Maclaran. P, 2009 )

RESEARCH METHODOLOGY AND DESIGN

In the exploratory research, Positivism will be adopted as a research methodological analysis. It has been assumed that relationship selling influences the consumer purchasing behaviour. The instance survey research scheme would be followed in the research that will supply the penetrations of the impact of relationship selling on the car industry.

Tata motors had been concentrating on Six Sigma selling scheme antecedently, but it failed due to some grounds. Soon, they are concentrating on Siebel CRM techniques to keep their relationships with the clients and convey in more clients but the competition by Multi-national car giants such as Toyota, General motors, etc. is really intense. Previously, the company was far behind other auto makers because its autos were based on 3rd and 4th coevals theoretical accounts, but now after the take-over of land-rover and panther trade names, it has entered the luxury section of cars. To derive the market-share, Tata would now hold to develop a more competitory scheme which would pitch up the attractive force of clients towards Tata. As, it now possesses autos to run into the demands of clients from all sections and fiscal backgrounds ; Thus, a differential relationship selling scheme needs to be developed to capture possible clients from all sections which would turn out to be fruitful to the company.

RESEARCH APPROACH

The methodological analysis employed to understand the relationship selling ‘s impact on consumer behaviour would be the Case-Study Research which is an empirical enquiry that investigates a existing happening in the status of its natural province ; and in the instance, where the lineations of the happening and its conditions are non clearly distinguishable ; and in such a instance, several beginnings of indexs for grounds are employed. ( Yin, 1984 ) .

Therefore, this research would include a elaborate contextual analysis of the old researches and transporting on an in-depth analysis of the factors which affect every bit good as promote the relation between a client and a service-provider, through interviews, questionnaires, informal treatments with consumers and direction of Tata Motors, India.

( Bryman. A and Bell. E, 2007 )

RESEARCH METHOD

There are chiefly two types of informations generated from a research, viz. , primary and secondary. Primary research is a signifier of research which involves aggregation of informations through questionnaires, interviews, focal point groups, etc. whereas, Secondary information is the literary informations collected from the plants done by other research workers antecedently and involves the information being collected from beginnings such as, books, diaries, articles, newspapers, etc. ( Walliman, 2001 )

The primary informations in the research would be collected by agencies of questionnaires and telephonic interviews with the employees of Tata Motors in India, by using societal networking sites such as Facebook and Orkut to cognize the tactics applied by the company to advance relationship selling. And besides, in order to cognize the factors which promote consumer purchasing behaviour through relationship selling, separate informations would be collected by agencies of questionnaires and telephonic interviews. This would uncover what are the consumer demands and outlooks ; besides, how far is Tata Motors able to present them. Apart from this, the secondary informations would be collected from beginnings such as books, diaries, articles, web logs, company reappraisals, etc. which would organize the footing of research by agencies of deriving in-depth cognition about relationship selling and its deductions in the existent universe, by analyzing antecedently researched cognition.

Sampling THE COLLECTED DATA

Sampling is an statistical procedure affecting the choice of persons from a selected section of population and so doing general illations on the topic of research from these selected persons by analyzing them ( Stuart.A, 1962 ) . In this research the targeted theoretical population for primary research would be from the cardinal portion of India ( Madhya Pradesh ) and Delhi. Samples of 25 Tata Motors Marketing employees that includes Middle-level and lower degree employees would be studied for acquiring informations related to the company and so, 50 samples of clients would be studied from the targeted parts of India. The samples would be drawn made by the simple random trying method so that all the elements of relationship selling acquire an equal chance of choice. This would minimise prejudice and besides do it easy to analyse the assortment of consequences. For this a sample of selected persons would be considered that would genuinely stand for the whole population which would give accurate consequences for the whole population.

DATA ANALYSIS Plan

In order to back up the above stated hypothesis, the informations collected through interviews and questionnaires would be studied through descriptive methods of analysis. Besides, statistics of the samples would be analyzed by descriptive statistics such as graphs and per centums.

ANTICIPATED ANALYSIS AND FINDINGS

The proposed methodological analysis is supposed to integrate the reappraisal of literature on relationship selling with the analysis of derived informations through secondary research. The information hence obtained from the secondary research would be analyzed on following lines: conceptual theoretical accounts of relationship selling, services provided by the company to clients, client service, extent of keeping dealingss with the clients for the company, analysing clients to keep relationship with, analysing the behaviour of staff with clients and activities involved in keeping of disgruntled clients, etc.

The degree of client satisfaction along with the figure of long-time clients achieved by a company would be a step of relationship selling in a company. This applies to every company including Tata motors in India. As relationship selling is assumed to give benefits to a company, so it has to be evaluated where and how will it give desired net incomes to Tata Motors

CONCLUSION AND RECOMMENDATIONS

Relationship Marketing and Mass Marketing or transactional relationships are wholly different that has already been established. But it depends on concern to concern when and how to follow an attack to relationship selling. For illustration, many little concerns such as newsagent stores do non necessitate any attack of relationship selling. But it develops over a period of clip with regular clients. In instance of large concerns in Automobile Industry, Aviation Industry, Telecommunications, etc. relationship selling plays a really of import function and this would supported by the research along with its deductions. As per the research findings, judgements would be presented to take up a more strategic attack for disposal of client hopes. From the present literature reappraisal it can be suggested that, relationship selling is influential on client purchasing determinations and it can be good beginning of net incomes in a common selling scheme of Multi-National Companies, where ‘they want to retain old clients and derive new clients ‘ . But the attack adopted to pull off client outlooks successfully is still non really clear and can destroy a company or can take to its overall success.

SCHEDULE FOR RESEARCH ACTIVITIES

TIME FRAME

Activity

Dec 2009 – Jan 2010

Identifying a research subject

Feb 2010

Analyze instance survey for research and derive stairss to be taken for roll uping primary informations

Feb 2010 – March 2010

Submission of Research proposal

March 2010

Critical analyzing of related literature

April 2010

Reasoning a research methodological analysis

May 2010

Distribution of related questionnaire, digest of gathered informations.

June 2010

Writing the study of the carried-out research

July 2010

Reasoning the research and subjecting the concluding study.