assignment2 - Ashley Fitzpatrick MKT 4337 M-W 2:00 class...

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Ashley Fitzpatrick MKT 4337 M-W 2:00 class This article begins with the notion that Relationship Marketing places the highest priority on building long term relationships with customers. It states that the cost of retaining customers is only one fifth of the cost of finding and acquiring new ones. This led to the shift from managing enterprises as a portfolio of products and services to managing its portfolios of segments and customers. It is also very important to think about how aggressively to spend its funds on customer acquisition. They believe that their managerial synthesis of frameworks and practices of relationship marketing can best build customer equity and gain the competitive advantage. The article states that there are three key steps to customer relationship management. The first is to identify high potential customers. This includes calculating customer equity. It is a net present value analysis that estimates future profit stream generated by the customer or market segment. The NPV must
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assignment2 - Ashley Fitzpatrick MKT 4337 M-W 2:00 class...

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