Relationship marketing and networks in entrepreneurship

Abstract

Relationships and networks are vital to entrepreneurship and marketing. New businesses need to be entrepreneurial in their marketing as well as in their business ideas. Research indicates that greater profits lie in the direction of developing on-going relationships with customers, despite the necessary costs of investing in both product and service quality, and in relation building competences. Relationship Marketing, historically, links three other concepts: services marketing, network/interactive industrial goods marketing and Total Quality Management. Commitment in a mutually beneficial relationship is needed for profitability and for high levels of word-of-mouth recommendations; this is built upon ‘trust as response’ to behaviours on the service provider’s part to create commitment to marketing relationships. Relationship Marketing is perhaps no longer new; however, it is great relevance to the entrepreneur as it can be seen as that which links a business, its customers and the other stakeholders in the firm.