CHAPTER ONE

INTRODUCTION

1.1       Background of the Study Relationship marketing is one of the aspects of newly developed philosophy in marketing, which is Holistic marketing. It holds the fact that “everything matters with marketing and that a broad, integrated perspective is often necessary, Increasing a key goal of marketing is to develop deep, enduring relationship with all people or organization that could directly attract the success of the firms marketing activities. Relationship marketing has the aim of building mutually satisfying long Item relationship with key parties, customers, suppliers, distributors and other marketing partners in order to earn and retain their business. It builds strong economic, technical and social ties among the partners.         However, relationship marketing is a term which  is generally agreed, first appeared in the management literature in 1980s, it describes, however, a concept that is as old as  commerce  itself and that tends  to often practices albeit  unknowingly, within small to medium sized business. The concept of relationship marketing illustrated with the example of a small shopkeeper, who would know most customers by name, through regular contact. He or she would therefore talk to customers frequently, know about their likes and dislikes, and aware of special requirements particular customers may have such as for cream on Friday, for example. This direct knowledge enables shopkeeper to order stock, plan services and value on the basis of know customers’ requirements.

Moreover, customers are important they have the ultimate choice when it comes to buying products  and services and their requirements must be satisfied. Customers are “Kings”, they determine the existence of the marketers. When this is forgotten, one will lose his or her customers base. Customers’ needs are prime importance both to themselves and to the prospective suppliers if they have a training problem they will seek help from the providers of the financial services concerned. They will look for a speedy and effective response. If they do not  get the kind quality and services, they  are  entitled  to, they will  vote with their feet and will not return and do not expect any recommendations. But when customers receive a courteous, efficient and effective financial service, they come back for more and recommend your products and services to contact.         In the financial sector especially banks,  the concept  of customers relations arises from indirect financing with intermediaries accumulating  surplus funds from surplus spending units and intending  to  lend them out to deficit  spending units. This legally creates “banker customer relations” as that of a debtor and creator.         In essence, relationship marketing involves knowing about your customers, encouraging two-way communication with them, and seeking to create a mutually beneficial relationship with them where appropriate. The aim of relationship marketing is to convert an individual or organization with initial interest purchasing goods and services into a loyal customers and the focus is as much on relating existing customers as on bringing in new ones.         However, when customers are satisfied, they become unpaid agents and in return there will be profit maximization. Relationship marketing includes all marketing and efforts designed by the banks to satisfy the needs of the customers profitable.

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