RELATIONSHIP MARKETING

Course code

MNG153

Course title

Relationship marketing

Type of course

Main

Year of study

Semester

Fall

ECTS

6 credits: 48 hrs. class work hours, 112 individual work

hours, 2 hours consultation

Coordinating lecturer

Prof. dr. Vida Skudiene, e-mail: vidsku@ism.lt

Study form

Full-time classes

Course prerequisites

Principles of Economics, Business and Management

Language of instruction

English

rd

Annotation

Students will acquire, apply and, on reflection, critically evaluate the usefulness of relationship marketing
theory to organizations. As a result of this they may contribute to the development of such theory.
Participants will be encouraged to understand relationship marketing theories and, in discussion with their
peers, consider the application of such theories to organization through case analysis. They will be required
to prepare an article PP presentation, a case analysis paper and PP presentation to demonstrate their ability
to apply theory to that organization and critically review the relevance and validity of such theory to the
situation. They will be encouraged to contribute to the development of such theories.
Aim

This module is concerned with the understanding of marketing strategies aimed at delivering quality,
securing repeat business and generating customer loyalty. All these elements form the foundations for
successful customer relationship marketing.
Teaching and learning methods

The module, based on an interactive approach to lecture and seminar sessions, will draw upon the directed
learning undertaken and participants own experiences. Throughout, the emphasis will be on high levels of
participant participation, both individually and within small groups or teams. Participants can therefore expect
the reflective-practitioner approach to learning to be embedded in all seminar sessions through undertaking
activities which facilitate them to apply theory to real-life situations, critically analyzing and making
recommendations for appropriate ways. Directed learning will center upon a range of activities including prereading, preparation for interactive presentations, case analyses, extended reading, reflection and research.
Learning outcomes
Subject learning outcomes (DSS)
SLO1. To be able to evaluate and select
appropriate decision making tools to solve
managerial problems
SLO2. To be able to perform the companys
internal and external analysis and conduct
research of internal and external environment
SLO3. To identify and use a cognitive
theoretical framework for addressing the
relationship marketing
SLO4. To know and be able to analyze reallife relationship marketing management
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Study methods
Lecture, article analysis, case
analysis, independent studies
Case
analysis,
independent studies

seminar,

Lecture, article analysis, case

analysis, independent studies
Seminar, case analysis

Assessment methods
Case paper and presentation,
article presentation, midterm,
examination
Case
analysis
paper
and
presentation,
midterm,
examination
Case analysis paper and
presentation, article presentation,
examination
Case analysis paper and
presentation, midterm,
1

problems;

examination

SLO5. To develop professional competence in

the subject area
SLO6. To participate in group
applying social competence skills

projects

SLO7. To understand how to work better in a

team

Lecture, seminar, article analysis,

case
analysis,
independent
studies
Seminar, article analysis, case
analysis

Case analysis paper and

presentation, article presentation,
midterm, examination
Case
analysis
paper
and
presentation, article presentation

Seminar, article analysis, case

analysis

Case
analysis
paper
and
presentation, article presentation

Students academic integrity

In the study process each student must:

participate actively in both preparation, discussion, and presentation;

avoid to provide a free-ride for your team/group members and to cover up their negligence and/or to seek a
free-ride for yourself;

study all assigned chapters in the textbook before the workshops and case analyses;

know all the material discussed during classes, even if it is not in the texts;

work cooperatively and effectively within a group investigating an issue and presenting the result to the class
during the workshops;

present the results of the group work and reflections cogently with others;

discuss openly and deeply in workshops and case analyses;

stimulate class participants to be involved in the case analyses and workshop discussions;

participate in all the workshops and case analyses;

prepare the assignments on time.

Quality assurance
Interactive teaching methods, interim knowledge assessment and self-evaluation, case study and workshop discussions,
individual and group work assignment will be employed to enhance the quality of studies.
Cheating prevention
Providing students with individual tasks/questions to inhibit any acts of dishonesty during exams prevents cheating
possibilities.

Course content:
No

Topic

Class hours
Theory
Practice

Topic 1: Introduction to RM. Definition & context.

Lesson 1. Introduction. Course requirements. Live Learning
Case Paparazzi.
Lesson 2. Mind-mapping project. Group work.
Lesson 3. The nature of marketing knowledge. Definition &
context of RM.

Topic 2: The history and development of relationship

marketing.
Lesson 1. The history and development of relationship
marketing.
Lesson 2. Case 1.Starbucks: Delivering Customer Service
Lesson 3. Case 2. Avon.com

Topic 3: Relationships
Lesson 1. Identifying customer relationship needs.
Lesson 2. Case 3. Kansai Digital Phone: Zutto gaining
Japanese loyalty
Lesson 3. Case 4.Customer Profitability & CRM at RBC

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Class hours
Theory
Practice

No

Topic

Topic 4: Relationship economics

Lesson 1. Costs and benefits of adopting the relationship
marketing concept.
Lesson 2. Case 5. Building Brand Community Harley Davidson
Lesson 3. Case 6. Xerox Corporation: the Customer
Satisfaction

Midterm

6
Topic 5. Building lasting relationships
Lesson 1. Customer retention and loyalty.
Lesson 2. Case 7. Nectar: Making Loyalty Pay
Lesson 3. Case 8. BizRate.com

Topic 6. The core firm and its partnerships

Lesson 1. Customer, internal, supplier, & external partnerships.
Lesson 2. Case 9. CRM enterprises
Lesson 3. Case 10. Town gas: Achieving Competitive
Advantage through CRM

Topic 7. Integrating relationship marketing strategies.

Lesson 1. Managing the relationship.
Lesson 2. Case 9. CRM enterprises
Lesson 3. Case 10. Town gas: Achieving Competitive
Advantage through CRM

Total

16

32

Self-study and assessment

Number of self-study
hours

Percentage of the total

grade,%

Case analysis paper ( 2 papers)

20

20 (10 + 10)

Case analysis presentation (2 PP presentations)

20

20 (10 + 10)

Presentation of an article

10

10

Live learning case Paparazzi (paper +presentation)

10

20 (10 + 10)

Final exam

20

30

Consultations

Assignment

Total

102

100

Assignments
o Case study analysis. In case study analysis you seek to explain why certain behaviors happened, using
appropriate theory, and supplement it with your common sense and scientific articles. The case study analysis
counts 40% of the final grade: two written analyses (papers) 10% each, and two PP presentations 10% each.
Students work in groups to prepare an assigned two case analyses written and two Power Point presentations.
o

PP presentation. The PP presentation of a case analysis should be prepared and delivered on the assigned
day. Both teams (presenters and experts) should prepare 10min. Power Point presentation of the assigned
cases. Two teams will analyze each case: presenting team and experts team. After the presentation of the
presenting team, the experts will have to cross examine (at least 4 questions) the presenting group and then
present their case analysis of the same case. After the teams presentation the whole class discussion is
welcome.

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Paper. The teams should prepare 6-10 pages written case analysis. The written work should be presented to
the instructor (send by email) no later than 2 days before the assigned date of the presentation by email or
printed. The paper must be designed in accordance with APA (American Psychological Association,
www.apastyle.org) and ISM University of Management and Economics requirements for the written works.
Papers presented later than the appointed time are worth automatically 50% less.

The case analysis (paper and presentation) should include these main parts:
1.

2.

3.
4.

5.

6.
7.

8.

Introduction. The introduction should include a brief discussion of the relevance and the significance of the
case main discussion topic from relationship marketing aspect. The analysis problem, aim and tasks should be
clearly defined. The introductory part may also include the description of the sequence in which the intended
case analysis has been carried out and provide an overview of the key structural parts of the analysis.
Situation analysis. It helps to list the facts chronologically or in some systematic way. By listing the facts, you
get a sense of the whole case. The recommended structure of the situation analysis is: organization, policies of
the organization, key players. The mind-mapping technique is optional.
Problem identification. What is the problem(s), try to analyze why they exist. This may lead to an even more
critical (or basic) problem. Decide on ONE main problem.
Theoretical survey relevant to the situation. Provide possible theoretical framework which will lead to
appropriate solutions. Present appropriate scientific articles you read, experiences of the companies related to
the analyzed situation.
Evaluation of the alternatives. Provide 2-3 alternative recommendations based on the theoretical survey. For
each alternative, list positive and negative consequences. By evaluating costs and benefits, you can possibly
modify a potential solution to overcome the negative consequences. It is helpful to look for several
consequences. You can employ 4-6 assessment criteria (time, money, human resources, technology and
material resources, etc.).
Suggested solution. Make a decision and provide rationale for it. Making a decision is an important part of the
analysis. Tell what your decision is, the possible consequences, and why you selected the decision.
Conclusion. What are your lessons learned from the case? What did you learn by analyzing the case? What
theoretical concepts were supported or refuted, and why? Are there any new concepts that are suggested by
your analysis?
References. All books and scientific articles cited in the case analysis should also be provided in the references
list. List of references should be provided in the alphabetical order and in compliance with the APA (American
Psychological Association) written works rules. Students are highly encouraged to pay special attention to APA
guidelines for documenting the online resources (www.apastyle.org)

Live learning case Paparazzi. The case analysis counts 20% (10% paper + 10% presentation) of the final
grade. The PP presentation of the case should be prepared and delivered on the assigned day (Oct 05).
Students in groups (5/6) should prepare the implementation concept: value proposition and 7Ps and present it
in the class. Presentation time: 10-15 minutes. The paper report should include the all parts provided in the
case student assignment: situation analysis, competitor analysis, cocktail bar and night club customer
analysis, and implementation of the solution value proposition and 7P. All group members should
participate in the presentation. The students who will not participate in the presentation will not be evaluated.

Presentation of articles. The article analysis counts 10% of the final grade. The PP presentation of the
assigned article should be prepared and delivered on the assigned day. Students in groups (5/6) should prepare
the summary of the article (about 7-10 slides) and present it in the class. Presentation time: 10-15 minutes. The
report should include the following parts: Introduction, Purpose, Design/ methodology/approach, Sample,
Findings, Research limitations/implications, Originality/value, Conclusion. All group members should participate
in the presentation. The students who will not participate in the presentation will not be evaluated.

Exam. The final examination counts 20% of the final grade. The exam is based the required readings. The
exam will cover all theoretical issues presented in the syllabus, issues discussed in the workshops, articles and
case analyses discussed in the classes.

Re-take of the exam. Students who receive a failing final grade shall have the right to re-take the exam during
the re-sit week, which will comprise 30 per cent of the final grade. Case analysis and article presentations
cannot be retaken at a later time, unless a student has been granted a special permission from the study
department.

Textbook
Egan, John (2008). Relationship Marketing. Exploring relational strategies in marketing. 3nd ed. Financial Times/Prentice
Hall Stone
Additional books

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1.
2.
3.
4.

Gamble, P. R., Stone, M., Woodcock, N., & Foss, B. (2006). Up close & personal? Customer Relationship
marketing at work. Kogan Page. London & Philadelphia
Shajahan, S. (2004). Relationship Marketing. McGraw-Hill Offices
Little, E. & Marandi, E.E. (2003). Relationship Marketing Management. Thomson
Hougaard, S. & Bjerre, M. (2003). Strategic Relationship Marketing. Springer

Articles
1.

Gummesson, E. (2002). Relationship Marketing in the New Economy. Journal of Relationship Marketing, Vol.
1(1)
2. Rao, S. & Perry, Ch. (2002). Thinking about relationship marketing: where are we now? Journal of Business &
Industrial Marketing, Vol. 17, No. 7, pp. 598-614.
3. Anderson, J.C., Narus, J.A., and Van Rossum, W. (2006). Customer value propositions in business markets.
Harward Business Review
4. Gounaris , S.P., Tzempelikos , N.A., Chatzipanagiotou , K. (2007). The Relationships of Customer-Perceived
Value, Satisfaction, Loyalty and Behavioral Intentions Journal of Relationship Marketing, Vol. 6(1)
5. Kumar, V. & Rajan, B. (2009). Profitable customer management: measuring and maximizing customer lifetime
value. Management Accounting Quarterly, Vol. 10, No. 3.
6. Leverin, A. & Liljander, V. (2006). Does relationship marketing improve customer relationship satisfaction and
loyalty? International Journal of Bank Marketing. Vol. 24, No. 4, pp. 232-251.
7. Payne, A., Ballantyne, D., Christopher, M. (2005). A stakeholder approach to relationship marketing strategy.
The development and use of the six markets model. European Journal of Marketing. Vol. 39, No.7/8, pp. 855871.
8. Palmatier, R.W., Scheer, L.K., and Steenkamp, Jan-Benedict, E.M. (2007). Customer Loyalty to Whom?
Managing the Benefits and Risks of Salesperson-Owned Loyalty. Journal of Marketing Research 185 Vol. XLIV
(May 2007), 185199
9. Morgan, R.M. & Hunt, S.D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of
Marketing, Vol. 58, No. 3, pp. 20-38.
10. Pedron, C.D., Saccol, A.Z. (2009). What Lies behind the Concept of Customer Relationship Management?
Discussing the Essence of CRM through a Phenomenological Approach. Brazilian Administration Review.
11. Rust, R.T., Moorman, Ch., and Bhalla G. (2010). Rethinking Marketing. Harward Business Review, JanuaryFebruary
12. Bush, Robert, P., Underwood III, James H., Sherrell, Daniel L. (2007). Examining the Relationship Marketing,
Marketing Productivity Paradigm: Establishing an Agenda for Current and Future Research. Journal of

Relationship Marketing, Vol. 6(2)

Role of the subject in reaching learning outcomes of International Business and Communication
programme
Special learning outcomes
S1. To describe the main economic theories and theoretical models, to adapt them to the theoretical and
practical issues (for example, demand and supply elasticity theory, economic cycles, classical economic
theory, Keynesianism, monetarism, rational expectations theory, cost-benefit analysis);
S2. To describe and to analyse economic, legal, political and social environment of companies and
other organizations; to identify and to evaluate internal and external changes and to make necessary
decisions to keep the firms or organizations economic and financial stability;
S3. To forecast the influence of economic and financial decisions not only in a financial context, but also
in the wider context of business or organization management, to estimate the effect of economic and
financial decisions on the processes of a company or an organization, the motivation of companys
human resources, product and service quality, customer satisfaction, brand strength, corporate social
responsibility;
S4. To be able to analyse a company or an organization as an integral unit, which strives for certain
goals in a market or social environment by effectively distributing their finite resources among objects
and business activities and obtains synergies from coordinated function planning, organization and
management;
S5. To be able to plan and to organize manufacturing, service provision and other companys business
processes in short and long term, in national and international markets;

SLO1,
SLO2,SLO3,SLO5

S6. To select and to apply in practice theories and models of companys or organizations business
organization, planning, management, motivation and control;
S7. To be able to identify new possibilities in national and international markets, to foresee, to analyse
and to assess target markets, their potential, to adapt the old products and services and to develop the
new ones for these markets, to communicate effectively ones proposals to the market;

SLO1,
SLO3,
SLO5

SLO2,
SLO4,

S8. To explain the corporate social responsibility and to be able to apply its principles in practice for a
company operating in a local as well as international markets.
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S9. To select adequate research methods for the companys internal and external analysis and to
conduct individually simple research of internal and external environment (to collect, to organize and to
interpret data, based on them to make managerial decisions).
S10. To describe and to be able to analyze the policy and strategy of international business, the global
economy, global business trends, international law, international finance, international communication;
S11. To explain the impact of culture on international business;
S12. To describe and to analyze the risks and benefits of international business;
S 13. To prepare, to analyze and to evaluate the information of international business relationships and
global business, to evaluate the vitality of new and existing companies in the global context;

SLO1,
SLO3,
SLO5

SLO2,
SLO4,

S 14. To be able to adapt communication of various types to the international markets, to analyze and to
evaluate the effectiveness of international business communication, to choose and to implement
international marketing communication programme, based on the barriers of international business
communication;
S15. To name the main principles of international business law, to analyze simple cases of international
business law
S 16. To name the main principles of strategic planning and management, to be able to analyze in
practice strategic alternatives based on the international companys or organizations competitive
environment and its resources, to create an outline of a strategic plan and to foresee tactical actions to
implement the strategy.
General learning outcomes
G1. To apply modern information technologies in the data gathering, analysis and communication;
G2. To apply a systematic, critical and constructive thinking in problem identification and solving;

SLO6, SLO5,

G3. To be able to communicate well and express thoughts in writing and orally, both in English and
native language; to communicate with specialists and non-professional audiences;
G4. To prepare research papers according to proper language, writing style and general bibliographic
citation requirements;

SLO7

G5. To develop independent learning skills necessary to continue studies on a higher level;

SLO8

G6. To communicate and to work effectively in an intercultural and interdisciplinary group or team.

SLO9

G7. In addition to native language and English, to master the foundations of the third language,
necessary to maintain international cooperation relationships
G8. To know and to apply in practice certain aspects of various social sciences (history, geography,
sociology, logics, philosophy, arts, etc.) to supplement effectively the education of business or
economics by general knowledge

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