Relationship Marketing
Relationship marketing, refers to the notion of marketing to a customer with the expectation of a long-term relationship. This removes the need to focus on each individual transaction needing to be profitable, but rather the relationship, over its lifetime, be profitable. Marketers are now able to segment their target markets to the individual consumer (one-to-one marketing) and understand the value each consumer can bring to the relationship (life time value of the customer). Relationship marketing also focuses on customer share, versus market share. The share of the customer dollar, rather than the number of customers within the market. Relationships between the buyer and the seller are also likely to incur lower transaction costs.
