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Relationship Marketing at Morissons Plc for Better Supplier Relations
Under marketing management practices, customers are considered as the core of the marketing functioning. The effect of marketing practices is determined on the basis of the customer loyalty. The better customer relationship is the root for effective functioning of marketing management (Peck, Christopher, Clark and Payne, 2013). In order to have effective customer relationship management, integrating the relationship marketing concept in the marketing practices is a vital practice for business organisations. Relationship marketing is a key marketing strategy for winning customer loyalty towards the business with the help of good interaction with the customers and keeping them engaged with the business in the longer run (Smith, 2011). In relation to the implication of the relationship marketing, the following report is focused to examine the concept of relationship marketing. The role of relationship marketing is evaluated in this report in terms of understanding the way it can support the firm to understand the suppler relationship. For such purpose the case study of Morrisons has been undertaken in this report. The report will contribute to determine the way it can render the marketing managers of Morrisons to understand the current level of the suppliers relationship.
Concept of Relationship Marketing
Relationship marketing is a concept under marketing management which directly focuses on the maintenance of the strong customer relationship. The relationship marketing focuses on having open communication with the customers and understanding their needs, preferences and interests (Smith, 2011). With the help of relationship marketing, a strong connection can be fostered with the customers in the longer run. Relationship marketing is effective not only for the customer relationship but it also helps in maintaining supplier relationship. Relationship marketing is considered as a facet to which integrates winning customer loyalty to the first level. The relationship marketing has long term orientation has it tends to maintain long term relationship with customers and suppliers. Relationship marketing focuses on customer retention and satisfaction. The relationship marketing considers giving good value to the customers and suppliers through effective advertisement and promotion activities. Relationship marketing governs a proper arrangement for the business to have a satisfying exchange between the firms and their buyers and suppliers. The marketers use relationship marketing concept consciously and institutively for offering competitive products to the customers in order to win their loyalty and trust in a good way over other competitors (Peck, Christopher, Clark and Payne, 2013). The relationship marketing practices considers the preferences of the customers and suppliers while dealing with them in order to ensure a good relationship with them in the longer run. The relationship marketing is a powerful strategy that fosters the businesses to have good relationship with the suppliers with the help of having regular purchase from them and giving them good value. The Six Market Model of relationship marketing was proposed by Christopher, Payne and Ballantyne in the year 1991. As per this model, the relationship marketing centres over six markets including internal markets, suppliers markets, recruitment markets, referral markets, influence markets and customer markets. Relationship marketing in the case of suppliers is focused to ensure a conflict free relationship with suppliers in the long term through having a good understanding of each other’s needs. With the help of relationship marketing, the relationship with the suppliers can be maintained and cost and quality effective manner.
Role of Relationship Marketing for Morrison to Understand Supplier Relationship
In order to have a good understanding of the suppliers’ relationship of the firms, the understanding of the customer relationship is the basis. In relation to Morrisons, as a part of its relationship marketing practices, the company renders the best services to its customers through acknowledging the actual customer needs and expectations and hence develop the products and services to meet those expectations. The company has a philosophy that keeping the customer happy and loyal with it, this is vital to focus on the customer satisfaction. The cost effective products are the core of the relationship marketing practices of Morrisons (MORRISONS CASE STUDY). The company maintain good customer relationship and retain them in the long run through offering good products and services with the help of its Market Street. The products and services of Morrisons are unique and differentiated that are not offered by its competitors (MORRISONS CASE STUDY). For rendering customer service with highly quality Morrisons have huge investment on the training and development practices of the staff people of the marketing department. In order to make the customer more satisfied, Morrisons has keen focus on some crucial aspects such as personalised services, reliability, product quality, freshness and efficiency in services. These aspects of relationship marketing can also be integrated by Morrisons in maintaining its supplier’s relationship. The current suppliers’ relationship of the company is quite good as the company values its innovative suppliers. The company has good commitments to improve the relationship with the suppliers (IGD Retail Analysis, 2016). The company has an open communication with the customers as a part of its relationship marketing practices. The company in order to make a good relationship with the suppliers can also maintain a transparent relationship with the suppliers. At the current level of supplier relationship, the company can make the online portal. As a part of its consideration to supplier relationship, Morrisons has developed to use online portal through which the suppliers can have a direct and effective communication with the company in order to make the business of the company progressive. The suppliers of the company will be able to use this portal to have same kind of agreement that the company has made with its customers (Morrisons Boosts Supplier Relationship, 2018). There are several components of the customer relationship that Morrisons has maintained for good customer relationship. The company gives direct information to the customers with the help of its websites and it renders the customers to facilitate to have navigation of the stores in a more effective manner. The same aspect of the relationship marketing can be used by Morrisons in order enable it to have improvement in the current relationship of the suppliers to have effective and transparent communication with the suppliers.
Morrisons maintains specialist attention with the customers in order to maintain good relationship with them. For such purpose, the company renders adequate and effective relationship with the customers. This aspect of the relationship marketing is significant for the company as it would enable the company to have good relationship with the suppliers. The company can understand its current supplier relationship through having adequate and effective knowledge about the suppliers and their needs in order to have a good understanding so that the company can maintain good relationship with the suppliers. Convenience is also an important aspect of relationship marketing that fosters the company to have effective relationship with the customers. The company can use this aspect of customer relationship management to have a good understanding of the current level of supplier relationship. The company can also facilitate the suppliers to have easy and convenient mode of accessing its supply process and hence it would be enabled to maintain good relationsip with the suppliers in the longer run (MORRISONS CASE STUDY).
In order to make the suppliers relationship good, the company need to make changes in the internal process and reduction in the cost. The company has made significant transformation in its relationship process. The process of the company has become easier, simpler and cheaper to make good relationship with the suppliers. The company as it has good relationship with the customers tend to maintain same level of relationship with the suppliers on the right time (Pendrous, 2018). With the help of relationship marketing, the company will also understand that it should avoid any kind of dispute with the suppliers as it avoids with the customers in order to maintain a good relationship with them in the longer run.
On the basis of the overall evaluation of the concept of relationship marketing and its implication for the companies to maintain good customer relationship, it has been examined that relationship marketing has dual benefits for the business. On one hand it facilitates the companies to maintain good customer relationship, and on the other hand its helps the business to maintain good relationship with the suppliers. The evaluation of the Morrisons’ current level of customer service, it has been determined that Morrisons maintain a good relationship with the customers with the help of varied elements of relationship marketing, and these same aspects can be used by Morrisons to have a good understanding of its relationship with the suppliers. Morrisons follows effective customer service level that has facilitated the company to win competitive advantage in its industry. The transparent and effective service level of the company enables it to win customer loyalty and trust and in the same context, the company can use this knowledge and understanding of the customer relationship for maintaining the good relationship with suppliers. This report will be highly significant and beneficial for Morrisons to have a good understanding of the suppliers’ relationship with the help of relationship marketing strategy and practices.