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Although it is nothing new for companies to build relationships with custom ers, it has generally been done on a one-to-one basis. In recent years, however, technological developments have made it possible to build up individual relati onships with clients on a much larger scale, and this more sophisticated kind o f operation is known as relationship marketing. Relationship marketing aims to increase sales through deliberate efforts to retain customers and promote two-w ay communication with them – and new technology has make communication possibl e with a for larger customer base than before. The information gathered forms t he basis of highly technical analyses of customer purchasing and profitability, which can be used to increase sales.

The building of good personal relationships with customers is usually integ ral to the management of small businesses, and owners of small corner shops cle arly illustrate the essence of relationship marketing, although the technology available to them is far less advanced than that available to, say, a supermark et chain. Small shopkeepers have direct knowledge of regular customers and beco me familiar with their needs, likes and dislikes. The shopkeepers can then prov ide services tailored to individual needs. Over time, a bond of loyalty is like ly to develop between shopkeepers and regular customers.

The benefits of relationship marketing enjoyed by small businesses are now available to big businesses, thanks to a number of developments. First and fore most is the increasing recognition of the importance of profitability of retain ing existing customers. Secondly, technologies have been developed which enable the collection, manipulation and analysis of huge banks of customer informatio n. Large retailers can use store cards to obtain detailed background informatio n about customer’s ages, salaries and lifestyles, and point-of-sale technology can be sued to track purchases made by every customer. Electronic storage enabl es all of this information to be retained, manipulated and integrated, while de tailed analyses can be carried out on ever more powerful computers. Companies a re thus able to target individuals amongst their thousands of customers with un ique promotions or information matched to their back grounds and to their purch asing tendencies. Thirdly, companies feel a need to use relationship marketing

because of increased competition: amassing knowledge about customers and buildi ng up customer relationships through interactive contact can enable organizatio ns to differentiate their products or services more easily form those of compet itors.

However, relationship marketing is not always the right route for organizat ions to take, and is not appropriate for all customers. Some bank customers, fo r example, cost more to serve than the bank actually makes form their custom, w hile a supermarket customer who spends very little and does not shop regularly does not justify the expenditure of several pounds per annum on relationship ma rketing. In addition, customers may not always be interested in a relationship, even where there are demonstrable benefits to be had.

Overall, successful relationship marketing depends upon selecting and targe ting the customers you wish to retain, and identifying sales areas where the in vestment and effort will be worthwhile. Many organizations have found the appro ach to be very rewarding in terms of customer retention and related profitabili ty, but relationship marketing is still a developing field and is neither cheap nor easy to operate. It involves an integrative approach which draws marketing, quality and customer service together; it also depends upon developing the cap acity of every employee – particularly front-line staff – to market the goods or services of the organization in a customer-focused way; and finally, it can require heavy investment in appropriate information technology.

15. In the first paragraph, the writer describes relationship marketing as

a. an idea that has passed in and out of fashion over the last few years.

b. a term used for an activity that used to exist in a more basic form.

c. a way for a company to advertise to its customers.

d. a way for a company to analyze its profitability.

16. Why are small shopkeepers used to illustrate relationship marketing?

a. Their success depends on their relationships with their customers.

b. They keep information about their customers on computer.

c. They were the first to use the term relationship marketing.

c. Their relationship with customers has started to change recently.

17. One reason why large companies didn’t use relationship marketing in th

e past is that

a. they underestimated the true value of customer loyalty.

b. heir customers didn’t want them to collect information.

c. they didn’t need to find out about individual customers.

d. they didn’t think they could justify the expenses.

18. One advantage of relationship marketing for large retailer is that

a. they can become more widely known.

b. they can respond to suggestions form customers.

c. they can increase their customer base.

d. they can identify the shopping habits of customers.

19. According to the writer, what kind of customers are unsuitable for relationship marketing?

a. people who only make cash purchases.

b. people who don’t shop very often.

c. people who have had bad experiences with shops.

d. people who want to shop as quickly as possibl

20. The writer concludes that relationship marketing is most likely to work if

a. the customer co-operate.

b. it is applied in small sales areas.

c. the right customers are chosen.

d. front-line staff learn to use computers.

Useful Words and Expressions:

Deliberate; profitability; foremost; manipulation; amass; differentiate; justify; demonstrable; integrative;

Have you ever noticed the following sentences in your reading? If not, read them through and pay attention to the bold parts.

15. The information gathered forms the basis of highly technical analyses of customer purchasing and profitability, which can be used to increase sales.

16. Small shopkeepers have direct knowledge of regular customers and become familiar with their needs, likes and dislikes. The shopkeepers can then provide services tailored to individual needs. Over time, a bond of loyalty is likely to develop between shopkeepers and regular customers.

17. First and foremost is the increasing recognition of the importance of profitability of retaining existing customers.

18. Large retailers can use store cards to obtain detailed background information about customer’s ages, salaries and lifestyles, and point-of-sale technology can be sued to track purchases made by every customer.

19. a supermarket customer who spends very little and does not shop regularly does not justify the expenditure of several pounds per annum on relationship marketing.

20. successful relationship marketing depends upon selecting and targeting the customers you wish to retain

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