ASSESSING THE EFFECT OF RELATIONSHIP MARKETING ON CORPORATE PERFORMANCE IN SMALL BUSINESS ENTERPRISES
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ASSESSING THE EFFECT OF RELATIONSHIP MARKETING ON CORPORATE PERFORMANCE IN SMALL BUSINESS ENTERPRISES
Chapter one
INTRODUCTION
1.1 Background of the Study
According to Oyedijo, Idris, and Aliu (2012), governments around the world have recognised that Small Business Enterprises (SBEs) play a significant role in the growth and development of a country’s economy.
Small Business Enterprises (SBEs) play an important part in the global economy, and their contribution to economic and employment growth is well recognised.
Small Business Enterprises (SBEs) play an important role in the global economy and are seen as one of the primary contributors to economic, development, and job creation.
Small and medium-sized businesses together employ more than 60% of Nigeria’s workers (World Bank, 1995, cited in Adelaja, 2004).
According to Ojo (2004 as cited in Oyedijo, 2012), in the case of Nigeria, we have witnessed an upsurge in Small Business Enterprise developmentefforts by successive governments for a variety of reasons, such as the failure of past industrial policies hitherto anchored on large and capital intensive industries,
the discovery that vibrant small business enterprises and medium enterprises can contribute to achieving many of the objectives of Nigeria’s development plans, a
Small-scale businesses are the true foundation of a country’s economic development. Globalisation has caused significant changes in the commercial system in recent years. These changes are accompanied by increases in both size and magnitude.
To cope with these developments, modern marketing tactics are applied in today’s business climate. One such strategy is relationship marketing.
Relationship Marketing is a marketing approach aimed at building and maintaining a lucrative, long-term relationship with a consumer that extends beyond the initial encounter (Dauda et al, 2010).
Relationship marketing is a type of marketing that originated from direct response marketing; it focuses on developing long-term connections with customers rather than single transactions.
Relationship marketing entails knowing clients’ needs and aspirations throughout their lives and offering a variety of products or services in response (Adewunmi, 2007).
According to Ogunleye (2004), relationship marketing has grown in popularity as the number of competitors and purchasing options available to consumers have increased.
Relationship marketing entails developing strong and deep relationships with customers (whether they are individuals or organisations) so that the consumer does not switch brands and has a long-term and rewarding relationship with the brand.
Relationship marketing can be employed with more than just your final consumers. Your stakeholders are equally vital. That is why one of the primary goals of today’s marketing operations is to establish strong relationships with customers and stakeholders. Overall, the entities involved in relationship marketing are
1. Customers.
2. Employees.
3. Channel partners (suppliers, distributors, etc.)
4. Financial Partners (Shareholders, Investors, etc.)
To be at the forefront, a company must establish strong relationships with all of these organisations. Consider having a high desertion rate or high attrition in your organisation. The defection rate is the rate at which a customer departs a brand,
whereas the attrition rate is the rate at which an employee leaves the organisation that employed him. You don’t want a high defection or attrition rate. Hence the usage of relationship marketing (Oyedijo et al., 2012).
These four institutions can alternatively be referred to as the “Marketing Network” for relationship marketing. One of the more effective techniques for a firm to earn profits is simple:
take good care of your marketing network, and your revenues will follow. Consider a highly motivated employee working alongside a similarly motivated channel partner.
This boosts customer confidence in the company, resulting in increased sales and profits. This draws the financial community, and they begin to invest in the company. In essence, relationship marketing has the potential to propel the organisation to a new level of business and profitability.
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