The Evolution of Relationship Marketing Orientations

The Evolution of Relationship Marketing Orientations

Copyright: © 2015 |Pages: 13
DOI: 10.4018/978-1-4666-8231-3.ch002

Abstract

There has been a shift in the business focus from transactional to relationship marketing. Companies have been increasingly implementing relationship-marketing practices in order to survive in highly competitive markets. The main objective of this chapter is to understand the emergence of the relationship-marketing orientations. This chapter starts with examining the marketing practices of the pre-industrial, industrial, and post-industrial periods with the purpose of demonstrating that relationship orientation in the post-industrial era is rebirth of marketing practices of the pre-industrial age. After outlining the factors that cause re-emergence of relationship orientation in the post-industrial era, the emergence of the relationship-marketing school of thought is briefly discussed. This chapter ends with comparing the transactional marketing practices with relationship marketing practices.
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The Emergence Of The Relationship Marketing Practices

Although relationship marketing has been becoming popular and has been considered as an emerging new phenomenon in the last decades; pioneers of the relationship marketing literature argue that the antecedents of relationship marketing practices go back to the pre-industrial era (Sheth & Parvatiyar, 1995; Parvatiyar & Sheth, 2000; Sheth and Parvatiyar, 2000; Parvatiyar & Sheth, 2001; Palmer, 2002). Sheth and Parvatiyar (1995) tried to trace the evolution of relationship marketing and identified its antecedents in order to demonstrate that relationship marketing practices date back to the pre-industrial era. They reviewed the history of marketing practices and they concluded that relationship orientation in the post-industrial era, which was a clear paradigm shift from the transactional orientation of the industrial era, was really a rebirth of marketing practices of the pre-industrial age.

Sheth and Parvatiyar (1995) demonstrated the existence of relational marketing practices between the traders and customers and also among traders by explaining the characteristics of business practices of pre-industrial era. Pre-industrial society was largely based on agricultural economy and the trade of art and artifacts. Farmers sold their products directly in bazaars, artisans produced customized products according to the needs of their customers so there was a direct interaction between traders and their customers. During the trade of products, consumers and producers met together face to face. This direct interaction led to relational bonding between the producer and consumers and the producer functioned as both manufacturer and retailer (seller) of its own products (Sheth & Parvatiyar, 1995).

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