The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.
Relationship marketing is the paradigm under which customers are valued for their lifetime potential, rather than for a single transaction or even a series of transactions.
[Page 16]For the past 20 years relationship marketing has been building towards being the accepted paradigm of marketing. Essentially, relationship marketing states that it is better and cheaper to keep an existing customer than to expend effort on recruiting new ones. Theodore Levitt first outlined the principles of relationship marketing, suggesting that marketers should focus on the lifetime value of the customer rather than on the single transaction (Levitt, 1983).
Customer retention has become increasingly recognised as the key to long-term survival. In the past, most companies have operated on a ‘leaky bucket’ basis, seeking to refill the bucket ...