value of relationship marketing for their organisation

Value of Relationship Marketing for Their Organisation

2005

Value of Relationship Marketing for Their Organisation

Introduction

Hospitality industry is characterized by constant change . The management of hotels needs to be constantly aware of changes in the customers preferences and tastes , popularity of destinations , innovations of competitors , income level of consumers , global catastrophes and many other factors . In many industries companies are not subject to so many changes , and therefore its management does not need to be too sophisticated in the application of change management tools . However , in hospitality industry

managers need to track all of the small and large changes which occur in the industry in to make strategic decisions . In the previous years , hotels were able to obtain large profits because global economy reached the stage of prosperity and thus many business and individual travellers were willing to use the services of companies functioning in the hospitality industry . Current situation in the global economy has caused a loss of profits by many companies functioning in the hotel business

Application of principles of relationship marketing is currently one of the most important trends in the marketing strategy of hotels Relationship marketing tools are being applied by many companies in the industry for many reasons . Bargaining power of customers is an important force in the development of innovations in hospitality industry because all of the new products are customer-oriented and developed according to the consumers ' needs . By applying principles of relationship marketing companies are able to retain their existing customers and acquire new ones

The provides an overview of relationship marketing tools and discusses the ways they were applied by the management of Hilton Hotel Corporation . It seeks to determine the main reasons of the success of the company 's marketing strategy

1 . A critical review of the current state of thinking in the academic literature on relationship marketing for your sector

emphasized by Berry (1980 1983 1995 , Kotler ,

et al (2005 Grtznroos , C (2002 , De Mooij M (1997 2004 , Schlegelmilch , B . B (1997 , Solomon et al (2002 , Levinger and Snoek (1972 ) and other authors . Kotler ,

et al (2003 , Leadley ,

. J (1992 , Middleton , V T . C , and Clarke , J (2001 ) and other experts have investigated the most important aspects of relationship marketing in hospitality industry . The works of Greco , Ragins (2003 , Wise (1999 ) and others are particularly important for understanding of the communication with customers through websites and of CRM tools which are widely applied by hotels in the new era of technologies

Berry (1980 ) suggested using the term of relationship marketing ' in to describe a peculiar relationship between companies and their consumers and later defined it as "attracting , maintaining , and - in multi-service organizations - enhancing customer relationships (1983 br

. 25 cf . Berry and Thompson 1982 . In further investigations , the author expressed an opinion that customers prefer to form relationships with people working in companies much better than with products or services which they get from them . Therefore , relationship marketing could be described as a relationship...