‘Total Relationship Marketing’

This presentation contains some of the key concepts formularised by Evert Gummesson in

his book: Total Relationship Marketing: Rethinking

Marketing Management: From 4Ps to 30Rs(Butterworth & Heinemann 1999)

Who is Evert Gummesson?

Evert Gummesson is Emeritus Professor of the Stockholm University School of Business and a leading management consultant. He was one of the international pioneers of services marketing and the CIM regard him as one of the 50 most important contributors to the development of marketing.

Gummesson defines ‘Relationship Marketing’ as:

“Relationship marketing is marketing seen as relationships, networks and interactions.”

There are three types of connection which form Business-to-business relationships.

1. Activity links- Of technical, administrative and marketing functions

2. Resource ties- Exchanging and sharing tangible (goods) and intangible (services and knowledge) resources

3. Actor bonds- Created by the interaction of people, exertion of influence and forming of opinions

Interactions are hierarchical:

Relationships

Sequences

Episodes

Activities

The total number of an organisation’s relationships constitute the

partner base

Organisation

Partner organisation

Supplier Partner

Supplier Partner

Distribution partner

Services partner

Customer

Retailer

Relationships have properties and dimensions, for example

• Collaboration / Competition

• Commitment, dependency and importance

• Trust, risk and uncertainty

• Power• Longevity

• Frequency, regularity and intensity

• Closeness and remoteness

• Formality, informality and openness

• Routinization• Content• Personal and social

properties

Each relationship should be analysed and assessed and incorporated into the company’s

marketing planning

Gummesson has defined thirty types of relationship s – the 30Rs

The 30Rs can be grouped in four types

Market relationships:• Classic market relationships

– eg: supplier-customer; customer-supplier-competitor• Special market relationships

– eg: marketing & sales departments; service encounter; ‘electronic relationships’

Non-market relationships:• Mega relationships

– ‘Super-market’ platforms, eg: EU organisations, social networks, mass media

• Nano relationships– ‘Infra-market’ relations, internal markets

These four types of relationship operate within one another:

Nano relationships

Classic market relationships

Special market relationships

Mega relationships

Total relationship marketing:

• is marketing based on relationships, networks and interaction, • recognises that marketing is embedded in the total

management of the networks of the selling organisation, the market and society.

• Is directed to long-term win-win relationships with individual customers,

• value is jointly created between the parties involved.• It transcends the boundaries between specialist functions and

disciplines.• It is made tangible through the thirty market, mega and nano

relationships - the 30Rs.