Starbucks
CASE STUDY
The strategy of coffee-shop chain
Starbucks exemplifies effective
relationship marketing. Centered on
core customer and internal markets,
it also involves suppliers, referrals,
and recruitment (employee) markets.
Marketing to customers
Social media
Business crowdsourcing
Familiarity with customers
Loyalty program
Reward card app
Mobile payments
Marketing internally
Barista training
Tech development opportunities
Marketing via referrals
Word of mouth
Social media shares
Marketing to employees
Stock options
Medical insurance
Partnership
Marketing to suppliers
Fairtrade programs
Quality control
How it works
Relationship marketing aims to
replicate the type of interaction
that village stores once had with
their customers, offering a high
level of personalized service
to win them over for a lifetime.
While small, local businesses
naturally work this way, large
Relationship
marketing
corporations have now changed
their focus from making the
sale to relationships, and from
short-term reward to long-term
gain. The marketer can extend
the network beyond the engaged
customer to include employees,
suppliers, and others.
Supplier markets
Building a relationship
of collaboration with
suppliers makes good
commercial sense.
Influence markets
To maintain good public
relations, the company works
with regulators and consumer
or environmental groups.
Six markets model
Relationship marketing has established a strategy for communicating with the
customer. This strategy defines six markets—not just traditional customer
markets—where companies should direct their marketing efforts.
The strategy of relationship marketing is to develop and
manage a trusting, long-term association with customers
and other markets that have links with the company.
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how sales and marketing works
Marketing approaches
Customer markets
The main marketing focus is on
customers, but activities are based
more on building long-term
customer relationships than
on acquiring new customers.
Internal markets
A company’s employees are its
internal customers, working
together to represent its goals,
mission, and strategy.
Referral markets
Customers can be word-of-
mouth advocates for a company.
Related businesses may also
refer trade.
Recruitment markets
To attract the best
employees, a company may
market itself by offering
incentives to staff.
“Ignore the human
element of marketing
at your own peril.”
Bob Garfield
Key account management (KAM) System
that coordinates departments in a business-
to-business (B2B) company to serve big clients
Frequency marketing Promotion aimed
at increasing repeat sales by rewarding
customers for repeat purchases
Direct response (DR) Marketing that
invites consumers to respond directly to
the advertiser, by mail, telephone, or email
Transaction marketing Strategy that aims
to persuade customers to make additional
one-time purchases at the point of sale
NEED TO KNOW
CV
CV
CV
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