Uppsala universitet

3.4 Relationship Marketing - A Paradigm Shift?
The concept of relationship marketing is sometimes questioned: is it a fad or really a change in
the business strategies of companies? According to Gummesson (1997), there is a paradigm
shift going on, although this takes place more in the real world of marketing than in the world
of theories. In this regard Gummesson differentiates his theories from Payne et al. (1995),
Grönroos (1996), and Sheth & Parvatiyar (1995), who all realised that relationship marketing
was here to stay, but considered it a revived paradigm and a refocusing of traditional
marketing.
An American research article by Eugene M. Johnson (1997) agrees that relationship
marketing is more than a passing fad, and maintains that it is a sound business strategy, which
puts the focus of companies in general on customer satisfaction and retention rather than on
creating transactions. The customer becomes a partner who will help the supplier to achieve its
goals. Quoting Regis McKenna, one of the major proponents of the relationship marketing
approach, Johnson noted that “marketing is everything”— the company must adapt its goods
or services to the unique needs of its customers. Customer targeting and individualisation are
key variables of marketing strategy. In business-to-business marketing, salespeople are often
the ones responsible for developing and maintaining relationships with customers and are
frequently called key account managers or relationship managers.
Johnson pointed out the major requirement for implementing a relationship marketing
strategy, namely, that the company must build and maintain a customer database appropriate
for marketing purposes. The gathered information can be used to keep customers informed

---

13
about a product, stimulate repeat sales, and thus build customer loyalty. It is also a good tool
for planning advertising and targeting the right audiences, and to develop new products and
make sure that the appropriate buyers know about them. Obviously, a small company may
have an advantage over a larger firm because of its smaller customer base and more personal
knowledge of its customers, but the key is to remember that the challenge is to build
relationships, not just to try to make a one-time sale. (Johnson, 1997)