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Companies can classify customers into 4 groups according to their potential profitability and manage their relationships with them accordingly: strangers, butterflies, barnacles and true friends. Each group requires a different relationship management strategy. "Strangers"   show low potential profitability and little projected loyalty.  There is little fit between the company's offerings and their needs.  The relationship management for these customers is simple: Do not invest anything in them. Butterflies:  Are potentially profitable but not loyal. There is a good fit between the company's offerings and their needs. However, like real butterflies, we can enjoy them for only a short while and then they are gone. An example is stock market investors who trade shares often and in large amounts but who enjoy hunting out the best deals without building a regular relationship with any single brokerage company. The strategy to deal with butterflies is to &qu

At all points of the modern marketing system people have formed associations and eliminated various middlemen in order to achieve more efficient marketing. Manufacturers often maintain their own wholesale departments and deal directly with retailers. Independent stores may operate their own wholesale agencies to supply them with goods. Wholesale houses operate outlets for their wares, and farmers sell their products through their own wholesale cooperatives. Recent years have seen the development of wholesale clubs, which sell retail items to consumers who purchase memberships that give them the privilege of shopping at wholesale prices. Commodity exchanges, such as those of grain and cotton, enable businesses to buy and sell commodities for both immediate and future delivery. Methods of merchandising have also been changed to attract customers. The one-price system, probably introduced (1841) by A. T. Stewart in New York, saves sales clerks from haggling and promotes faith in the i

Market : Customer are the market: The set of all actual & potential buyers of a product or service. Actual Buyer: Someone who is commited to buying a product. Potential Buyer: Some one who is interested in buying, but may not. We, Students, are the actual buyers. Different Types of Market : Consumer Markets: Products and services bought by individuals for their own or family use. Industrial Market: It involves the sale of goods between businesses.

Understand the marketplace and customer needs and wants Design a customer-driven marketing strategy Construct an integrated program that delivers superior value Build profitable relationships and create customer delight Capture value from customers to create profit and customer equity.

The Process by which companies create value for customers and build strong relationships in order to capture value from customers in return.