Contemporary Issue In Marketing Essay Example | Topics and Well Written Essays - 1500 words

Contemporary Issue In Marketing - Essay Example This report mainly focuses on relationship marketing, its importance in the modern business scenario and connection of relationship with technological innovation and discussion regarding the Integrated Marketing Communication (IMC). Lastly, a conclusion and recommendation is made regarding the close connectivity between these three aspects. Relational marketing In the last few decades, the marketing theories have experienced a colossal shift in both theories and practices of marketing. Relationship marketing is a developing network paradigm that recognises that global competition occurs between networks of organizations. In the context of relationship marketing, Morgan and Hunt (1994) have suggested the Commitment and Trust Theory that involves all types of relational exchanges. The researchers have argued that the central concept of relationship marketing rotates around those that distinguish an effective and productive relational exchange from those that are ineffective and unprodu ctive. There are several factors that contribute towards the success or failure of relationship marketing effort. These scholars have stressed on trust and commitment that makes significant contribution. They theorised that relationship trust and commitment is the key to successful relationship marketing. These two aspects help the marketer in preserving relationship by cooperating with the partners, resisting their attraction towards short-term benefits in the hope to reap long-term ones by staying with the existing partners and looking at high-risk actions as prudent. Figure 1 (Source: Morgan and Hunt, 1994) Another research scholar, Reichheld and Sasser (1990), have stressed on the fact that there are very few companies who have succeeded in providing the service commitment made by them to the customers. For service companies, scrap heap signifies customers who are not going to come back. If the companies start measuring this scrap heap, they will realise that this scarp cost the m heavily and ardent steps are needed to be taken in order to reduce the same. This will make them strive for â€Å"zero defects† in their quality movement and guiding light for making the organization gain profitability and achieve it soon. They have suggested that customer defection leads to a powerful impact on the bottom line. The company’s market share, profit, unit cost and many other factors related to competitive advantage are expected to be impacted positively. This strengthening and lengthening of relationship is expected to increase profit by 100 percent, by 5 percent retention of the existing customers. Technology development Computing technology is an omnipresent aspect that encompasses both personal lives of an individual and organizational framework. In order to understand the outcomes, resulting from technology acceptance, several theoretical models has been proposed such as, technology acceptance model (TAM) and innovation diffusion theory. The TAM is hugely recognised as robust but with parsimonious conceptualization. Based on the theory of reasoned action, it has been argued by TAM that the behaviour of IT acceptance can be explained, based on the belief of the individual, regarding the ease of use and usefulness of IT. On the other hand, the innovation diffus