The essence of customer relationship management strategy - Курсовая работа

Considering the above statements, the Olympic Air need to take into consideration the importance of relationship marketing and how the relationship marketing affect the performance of company by influencing the long-term relationship and customer loyalty. This research paper is aimed to analyze the tactics of relationship marketing in practice and the results are analyzed from the marketing research run for the current research paper. 1. Problem Statement 1.1 Problem Discussion How it was mentioned above the large competition in the global and local market influence companies to refocus their strategies and plans. However, the consumers are bombarded by a large amount of marketing activities like sales tactics, telemarketing, direct mail, TV and radio advertisement, online promotion and loyalty programs (Peng and Wang, 2006). The establishment of relationship marketing strategy could be the competitive advantage and alone way to maintain customers and build customer loyalty. The development of discount airline companies increased more the competition in the airline service industry and Olympic Air has to attract more customers and to award and maintain the loyal customers. Also, the state-owned companies face the ineffective performance due to the government involvement. Also, the company needs to shift from the transactional marketing to relationship marketing which is difficult due to the Balkan insufficiency of customer-related culture. 1.2 Purpose of the research The main goals and objectives of the current research paper is to analyze the relationship marketing tactics for the Olympic Air in order to increase the performance and customer service quality of the company and to develop long-term relationship with customers by increasing also the customer loyalty and satisfaction. The results and discussion section is analyzed and described from the primary and secondary research conducted through the students of the CITY COLLEGE and other respondents. The main hypothesizes mentioned in the primary and secondary research is published below in the Table1. Table 1. 1. High service quality related to customer satisfaction. 2. High service quality perceived by customers is positively related to trust. 3. Positive brand image perceived by customers is related to customer 4. satisfaction 5. Positive brand image perceived by customers is positively related to customer trust. 6. The value offers perceived by customers is positively related to customer’s satisfaction. 7. The value offers perceived by customers is positively related to customer’s trust. 8. Customer trust is positively related to customer loyalty. 9. Customer satisfaction is positively related to customer loyalty. 2. Brief organization background in case of Olympic Air Olympic Air Industry: Transportation & Shipping Headquarters: Athens, Greece Financial results for the 20012 2012 Revenue (Olympic Air): €216.3m 2012 Revenue (Olympic Handling): €44.7m 2012 Revenue (Olympic Engineering): €1.6m MIG Ownership: 100% Date of Investment: March 2009; October 2009 the official launch of New Olympic Air Business processes and operations of Olympic Air MIG acquired certain key assets of Olympic Air through a privatization process in mid-2009, the main areas of business: flight operations, ground handling services and maintenance, repair & overhaul. Olympic Air has one of the youngest fleets in Europe, consisting of 14 new turbo-prop aircrafts: 10 Bombardier Q400 and 4 Bombardier Dash-100. The company serves 37 destinations: 32 domestic and 5 direct international routes as well as 15 international routes via code-share agreements. In October 2012, MIG reached an agreement to sell 100% of Olympic Air to Aegean Airlines for a cash consideration of €72m. The transaction is pending regulatory approval of the European Competition Commission. The financial statements and brief organization background of the company are published in the Appendix B, C, and D. 3. Theoretical Background with practical justification by Olympic Air 3.1 Relationship marketing definition In nowadays the companies identified the importance of relationship marketing; on other hand they follow the usage of transactional marketing or mix of both approaches. According to Hougaard and Bjerre (2002), the relationship marketing is defined as the firms’ behavior with the objectives of establishing, maintaining and developing profitable customer relationship in a long term with benefit for both parties.