| Introduction | | | | Although relationship marketing involves the |
| Relationship marketing was pioneered by Leonard | | | | establishment of long term relationships with clients, |
| Berry after the realisation that conventional marketing | | | | there is a need to first acquire those customers in the |
| strategies had certain inefficiencies. He realised that | | | | first place. Butterworth Heinemann (1991) asserts that |
| there was a need to cater for the needs of | | | | there is a six stage process that customers need to |
| pre-existing customers and establish a relationship with | | | | go through before they can become long term |
| them. This was because other marketing strategies | | | | partners and instrumental parts of their relationship |
| mostly dealt with single transactions. They | | | | marketing strategy. He claimed that customers need |
| concentrated almost all their efforts in acquisition of | | | | to climb the ladder from the ‘prospective' as listed |
| new customers but once they got them, very little | | | | above to the partner |
| could be done to retain them. Consequently, there was | | | | - partner |
| high customer turnover and low consumer satisfaction. | | | | - advocate |
| Berry (1983) appreciated the fact that something had | | | | - supporter |
| to be done. He therefore came up with a strategy to | | | | - client |
| make customers come back and to establish | | | | - customer |
| customer loyalty through relationship marketing. He | | | | - prospective |
| established three preconditions necessary for | | | | As it can be seen from the list above, first a company |
| relationship marketing to work. The first was; if the | | | | needs to identify who their prospective clients will be. |
| market in which a company operated in had many | | | | Tennyson has embarked on this journey through its |
| services to choose from. The second was if a | | | | customer valuation, where customer valuation is |
| company's customer's decided on one of those | | | | assessment of customers to find out which customers |
| services/products and the third was if the consumer | | | | are instrumental and valuable to the company. Those |
| continuously needed the product/service. If all these | | | | ones who have not been very participatory will need |
| requirements existed, then there would be fertile | | | | more effort so that they can climb up the ladder and |
| ground for implementation of relationship marketing. | | | | achieve partnership status. For Tennyson, this could be |
| (Berry, 1983) | | | | done through tapping the hot holiday customers. The |
| Extent to which Tennyson's product and the customer | | | | customer survey revealed that large percentages of |
| market offer the potential for relationship marketing | | | | the merry weather clients were willing to take up |
| Experts agree that no matter what kind of tool a | | | | activities and services offered by the company. They |
| company decides to take up to implement relationship | | | | could also convince those customers who have not |
| marketing, it must facilitate greater contact with the | | | | made up their minds about the type of company that |
| customer and it must be personalised. In line with this | | | | will manage their resources to sign up with Tennyson. |
| argument, Tennyson has been in the cold season tour | | | | On top of this, the company has also found that some |
| industry for quite a long time. Consequently, they have | | | | clients would prefer certain activities compared to |
| a lot of experience in biking, water sports and snow | | | | others. This could act as a guideline for the company in |
| sports. They have instructors within those spheres and | | | | the next cold season; activities that seem more |
| those instructors have the potential to inform clients | | | | popular than others should be given more attention. |
| about those qualities. This will go a long way in ensuring | | | | This will ascertain that clients are satisfied. |
| that clients have an enriched tour experience. | | | | Tennyson's attempts at relationship building |
| Therefore, if the company uses these instructors, they | | | | Relationship building should start with research. This is |
| can improve their clients' holidays and make it | | | | because a company needs to find out what they are |
| worthwhile for them. . (Buchanan & Gilles, 1990) | | | | missing before they can start improving. The company |
| Tennyson Ski has been operating in various locations. It | | | | has tried to achieve this successfully. First of all, they |
| could start by reducing the number of destinations and | | | | hired a consultancy firm. The firm has expertise in the |
| offering clients just one location. This will increase the | | | | field of research and it is also neutral. This means that |
| levels of contact between the company and its | | | | the information gathered will be more or less accurate |
| customers. When their consumers are scattered all | | | | since a third party is involved. On top of this, they have |
| over, it becomes difficult to deal with each one of | | | | gone out of their way to utilise some of the sources of |
| them and to address their problems. So the first | | | | information that are available for them, out there. Some |
| product that shows great potential for relationship | | | | of these avenues include consumer feedback, |
| marketing is the number of destinations. | | | | management interviews, theoretical research and |
| In relation to this, the Ski Company has not been keen | | | | workshops. |
| on their level of staff representation. This is something | | | | The second thing a company needs to do is that they |
| that needs to improve immediately if the company | | | | should try and evaluate their customer's perceptions |
| plans on embarking on a relationship marketing | | | | towards them. This is because before customers can |
| strategy. They could emulate what the partner - merry | | | | identify and engage with a certain company, they need |
| weather -is doing. The latter company's ratio is 1.8; this | | | | to relate that company to something superior. |
| is something that adversely affects the level of | | | | (Buchanan & Gilles, 1990) The company needed |
| consumer satisfaction. Customers can air out their | | | | to make sure that their name stood out for other |
| grievances or requirements to the tour operators as | | | | players in the industry and that it made them |
| conveniently as possible. Those employees should also | | | | exceptional. Relationship building should be two way. |
| book the customers directly and should ensure that | | | | The company should also evaluate what it stands for |
| this is done prior to commencement of the holiday. | | | | in the industry and whether they accomplished what |
| These changes represent potential for customer care | | | | they had set out to do in the first place. This is |
| improvement. | | | | achieved through brand essence evaluation. This |
| Similarly, Tennyson could improve its relationship | | | | should then be followed by plans for the future. The |
| marketing strategy by sending some of their | | | | business has to identify the ideal positions it would like |
| representatives in the outdoors. They have come up | | | | to take up and this will be instrumental in the process |
| with the idea of ski gurus linked to the company. If the | | | | of brand positioning. After a company has answered |
| company could implement this idea in all of its tour | | | | the latter two questions, they need to merge that with |
| operations, then it will go long way in enhancing the | | | | consumer preferences and then see where to |
| relationship between the company and itself. This is | | | | improve. The consumer is the main determinant of the |
| because customers will interact with the ski experts | | | | next direction a company will take and this should be |
| and share ideas about skiing. They will view those ski | | | | maintained. |
| gurus as the ‘face' representing the ‘Tennyson' | | | | Communication is vital part of any relationship |
| name. Consequently, the company will have to | | | | marketing strategy. Companies need to inform their |
| personalise its services and will encourage consumers | | | | clients about their new products, services or packages. |
| to come back. | | | | They also need to find out when their clients would like |
| The company has potential to make its services | | | | to get one of their products and in what manner. On |
| consistent. This is because in relationship marketing, the | | | | the other hand, clients need to inform the company |
| customer cycle is only complete when both parties | | | | about their preferences. Tennyson has tried to |
| meet their obligation. Consumers have the obligation to | | | | implement these aspects of communication through |
| keep coming back once they have made a | | | | the issuance of brochures to their clients. They |
| commitment while suppliers (Tennyson) have the | | | | achieved this through their travel agnates. |
| obligation to continuously and effectively deliver their | | | | In order to build a relationship with a client, a company |
| goods and services. There is a need for Tennyson to | | | | needs to conduct market valuation and then do a |
| improve their services in such a way that customers | | | | follow up. (Berry, 1983) Tennyson has done this through |
| can count on them every season. This is something | | | | assessment of the customers that have been doing |
| that is not happening currently but could be introduced. | | | | business with the company for the past two years. |
| Tennyson should also take advantage of the fact that | | | | The company then encourages their participation |
| it has a large network of suppliers. Relationship | | | | during the next holiday by emailing them a brochure. |
| marketing also involves the use of supplier ties to | | | | They have even established quarterly brochures that |
| improve customer efficiency. (Levitt, 1983) The | | | | are designed for particular activities of interest. This is |
| company could inform their consumers about the fact | | | | part of what some experts have called the creation of |
| that their sports equipment suppliers are among the | | | | a customer response system. In relationship marketing, |
| best in the industry. Consumers will be more than glad | | | | first a company needs to initiate a response from a |
| to do business with a company that guarantees them | | | | prospective client by sending them a brochure. When |
| quality through their resources. This same aspect could | | | | the customer responds to the brochure by coming for |
| also boost relationship marketing because it will make | | | | a holiday, then the company should create another |
| Tennyson employees glad to work for the company | | | | initiative, they should improve their offer to that client |
| and more enthusiastic about their tasks since they will | | | | next time, if the customer responds then it is an |
| have ample resources/facilities to go about doing their | | | | indication that the company is doing the right thing and |
| work. Employees who perform to customer | | | | should continue doing so. But if the response is |
| expectations or those how exceed these | | | | negative, then the company should try out a different |
| expectations will make the consumers keep coming | | | | tactic. By doing so, the company will be creating a |
| back and this will create a customer cycle that is | | | | customer life cycle and a relationship with the |
| essential in relationship marketing. | | | | customer. Tennyson is well on its way to creating this |
| Tennyson also has the potential to improve its staff | | | | lifecycle through those feedbacks (brochures). |
| development programmes. This can be achieved | | | | Tennyson has also tried its best to build a relationship |
| through training and development. By doing this, the | | | | by suggesting the issue of ski gurus. This is an |
| company will be equipping its staff with the necessary | | | | important trait for the company to take up since most |
| skills and knowledge required to provide the best | | | | of its future and present clients indicted that they |
| services to their clientele. This can directly enhance | | | | would prefer a holiday experience that has a lot of |
| their relationship marketing strategy by satisfying their | | | | room for interaction and socialisation. There is more to |
| client's needs. But it can contribute to the strategy | | | | holidaying these days than before. |
| indirectly in that more employees will be drawn to the | | | | Tennyson has tried turning potential clients to real |
| company and will establish a good name for the | | | | clients through some of its external communications. |
| company within the tour operations industry. | | | | The latter aspect is quite instrumental in the process of |
| Another area that represents potential for relationship | | | | relationship building because this is where the |
| marketing for the company is the issue of creating a | | | | relationship with clients starts. Companies must make |
| homely atmosphere. This can be improved greatly | | | | sure that they select the most appropriate means of |
| since most holiday makers would like to identify with a | | | | communication which will reach their target audience. |
| company that offers services that are not common to | | | | Tennyson uses some specialist press like outdoor |
| all others. Most other commercial operators lack the | | | | pursuit, mountain bike UK and yachts and yachting. This |
| ability to add that personal feel to their services. | | | | ensures that the company reaches some water sport |
| Despite the fact that most of the holiday makers using | | | | experts and draws their attention. However, there may |
| tour operators stay in resorts, it would help if the | | | | also be certain clients who may not be experts but |
| atmosphere was welcoming and warm. This is | | | | would like to become experts or those who would |
| something that the company has not achieved but that | | | | simply like to know more about the sport. For that |
| could be improved in the future. | | | | audience, the company has chosen to advertise its |
| Tennyson also deals with mountain climbing. In the past, | | | | services though national press and online |
| they have not been very keen on this particular | | | | advertisements. For the latter purpose, the company |
| market segment; consequently, there is a need for the | | | | has set up a company website. |
| company to ensure that they pay more attention to | | | | After communication, a company then needs to |
| this group. They could recognise and engage with | | | | engage in what relationship marketers like to call cross |
| guests in that area of their service provision. (Jackson, | | | | promotions. In this type of strategy, companies |
| 1985) | | | | normally sell products that are related under one |
| In relationship marketing, a lot of emphasis is placed on | | | | package at a discount. (Jackson, 1985) This has been |
| the importance of quality. It would really help the Ski | | | | achieved by Tennyson through their early booking |
| Company if their clients were assured that the | | | | brochure. This brochure gives discounts to customers |
| company's employees are certified. This could be seen | | | | who book early through allowing them to pay less and |
| through the endorsed ability system provided by the | | | | through giving them additional information about certain |
| company. This can be backed up by the certificates | | | | activities offered by the company. Such a tactic |
| and grades that the company should issue. | | | | enhances consumer satisfaction and also facilities |
| In line with this argument, consumers will also be greatly | | | | better production. On top of this, clients are |
| assisted if the company decides to set up a ski | | | | encouraged to book early and to come back again |
| schools, some clients might want to take advantage of | | | | since the process is based on last year's holiday. |
| the Ski experience but lack the technical know how to | | | | Tennyson is also well on its way to building very good |
| go about this. It would therefore be very instrumental | | | | relationships with its clientele through the introduction of |
| for the company if they had a ski school that would | | | | its click and call strategy. The company was wise |
| equip customers with this knowledge. Another product | | | | enough to eliminate online booking because this was |
| that could create the same effect is the issue of her | | | | not personal enough and left a lot of room for |
| shops. Some clients may not necessarily have all the | | | | mistakes and misconceptions about which products |
| equipments needed for water sporting or snow | | | | were most suitable for a client. It was therefore |
| sporting activities. It is therefore crucial for the | | | | necessary to come up with a strategy that will allow |
| company to provide those alternatives for its | | | | discussions between clients directly with Tennyson |
| consumers since this will ensure that their clients can | | | | employees. This has been facilitated by their |
| still engage in those sporting activities. Such a service | | | | automated telephone line. The company has improved |
| will contribute towards greater levels of customer | | | | its customer care in this regard by responding to |
| satisfaction and will ensure that they keep coming | | | | customer's enquiries immediately yet at the same time |
| back. | | | | maintaining that personal contact with them. This is |
| How Tennyson could improve their relationship | | | | quite a commendable effort on their part. |
| marketing strategy | | | | Relationship marketing experts assert that when |
| Relationship marketing is founded on the belief that in | | | | companies have obtained their desired clients, they |
| order to satisfy consumers all the negative factors | | | | need to do all it takes to keep them there. They have |
| ought to be eliminated and more positive aspects need | | | | suggested the use of product promotion tactics, |
| to be introduced or emphasised. (Berry, 1983) In order | | | | product bundling among others. Product bundling |
| to emphasise these positive aspects, the company | | | | involves offering a number of related services all under |
| needs to know which ones they are. That is why it | | | | once collective price. Tennyson has achieved this |
| needs to be aware of the consumer trends. Tennyson | | | | through its sponsorship program. Here, the company |
| has achieved this to certain levels since it was able to | | | | gives prizes for any equipment that will receive media |
| find out what their clients are looking for. For example, | | | | coverage and will display their company logo. |
| the company found that most of their consumers had | | | | Relationship marketing should involve constant |
| a preference for an enriching experience. This is a | | | | reminders of what is on offer by a specific company. |
| value that has been echoed in recent societal trends. | | | | (Levitt, 1983) This is the reason why the company has |
| On top of this, the company also found out that most | | | | invested in the payment of journalist's trips. They are |
| people have money to spend on holidays but have | | | | given the opportunity to take fifteen trips very year |
| very little time. This implies that the services offered by | | | | which the company will take care of. The company |
| tour operators could come in handy. This is something | | | | also engages in promotions among resort clients |
| that the company should improve in the future. | | | | themselves. They usually inform them about which |
| The customer survey was an important part of | | | | places they would visit next. This is topped up by |
| Tennyson' relationship building efforts because they | | | | some educational travels given to some of its agents |
| got information that would guide them on what kind of | | | | so that they can have ample knowledge about all the |
| services their customers would prefer through their | | | | available sites. |
| income brackets; this findings should be the basis for | | | | Conclusion |
| change within the company. The company found out | | | | Tennyson initially had a haphazard way of managing |
| that most their clients happen to fall in the same | | | | their customers. But after merging with merry weather, |
| income group as some of the merry weather clients | | | | it realised that there was a need for improvement |
| then they could offer similar services as the alter | | | | which could be facilitated by some of merry weather's |
| company. The information obtained during customer | | | | clients. The company embarked on customer valuation |
| surveys will also be instrumental in helping Tennyson | | | | exercises and should use those findings to improve its |
| determine whether their clients would be in need of | | | | relationship marketing strategy in the future. However, |
| training services. This was affirmed by the low | | | | the current improvements will facilitate future product |
| percentages of experts in the cold weather category. | | | | offerings and will enhance the companies' relationship |
| This also affects the sort of resources made available | | | | with its market.reference: |
| to clients since there is no need for advanced material | | | | Buchanan, R. & Gilles, C. (1990): Value managed |
| if most of the clients do not know much about the | | | | relationship: The key to customer retention and |
| sporting equipment. In the past, the company has | | | | profitability; European Management Journal |
| mistakenly assumed that most of its clients come from | | | | Levitt, T. (1983): After the sale is over; Harvard |
| an advanced sporting background and than was why | | | | Business Review |
| they had really invested in advanced equipment. The | | | | Butterworth-Heinemann (1991): Relationship Marketing, |
| survey should now help the company to rectify this | | | | Oxford University Press |
| and adjust its services to suit their clientele. | | | | Jackson, B. |