Relationship marketing in the public sector

relationship marketing in the public sector

sector and connect it to the public sector. The goal Public services, citizen government relationship, new . Marketing (Godin ) had an impact on the CRM. Request PDF on ResearchGate | A Comparison of Relationship Marketing in Public and Private Sector Banks in India | Relationship Marketing is a new. Relationship marketing may help to remove a short‐term tactical focus that tends to exist in public sector organisations generally and publicly.

Institutions such as government, religion, and employing organisation are actively involved in systematically influencing choice reduction for individual customers. Relationship termination costs and relationship benefits directly affect commitment 2.

Shared values directly influence both commitment and trust, and 3. Communication and opportunistic behaviour directly influence trust and, through trust, indirectly influence commitment. The Key Mediating Variables [ 17 ].

Discussion To what extent can public sector organisations design their activities based on needs and wants of consumers while satisfying their ethos of social justice and equity? Public sector organisations can be said to have society-friendly values. While this may not guarantee that all their consumers would share those values due to the protection of individual selfish interests and the inability to see beyond short term goals and desires it can be argued that effective honest communication would instil integrity in the public service; and in turn earn the trust, patronage, and loyalty of consumers.

American Journal of Business and Management

Fountain [ 18 ] noted that identification and clarification of individual preferences and trade-offs point to difficulties. Individual preferences must be aggregated if customer expectations are to inform government service design and operations meaningfully.

relationship marketing in the public sector

Political bureaucrats have an obligation to do more than satisfy customers. Surveys of consumer needs and wants can only be gotten from consumers who are accessible in possession of the technological gadgets which facilitate that and willing to answer.

Potentials for Relationship Marketing Practice in the Public Sector: A Literature Analysis

The inability of public sector organisations to achieve a representative sampling of the general population could lead to an amplification of social inequities, which would in turn increase consumer apathy, and propensity to terminate the relational market behaviour. Consumer behaviour theories indicate that consumers have a natural tendency to reduce choices and actually like to reduce their choices to a manageable set.

The role of public sector organisations is the building of an image which represents the consumers adequately, and the maintenance of their ethos of social justice and equality.

So generalizing marketing throughout the public sector, without deeper analysis of the notions of exchange and relationship, is not easy. In order to delimit situations in which marketing principles and approaches can be applied from those in which the basic conditions are not met, it is worth crossing types of exchange absence of exchange, subject to constraint or free with the nature subject to constraint, partially free or free of the relationships that can emerge between the parties.

A police officer who makes an arrest, a judge who issues a summons, etc. Furthermore, in order to protect people from the arbitrary use of constraint, these situations are clearly codified in democratic systems and the rules governing constraint e.

This is not to imply that administrations and public officials are exempted from complying with a number of by now basic principles of modern society, such as showing respect for individuals e.

relationship marketing in the public sector

Even though some of these elements can also be discerned in the principles of relationship marketing, they do not provide a sufficient basis for discussing these public service activities in terms of a marketing approach. It is a fact that many public organization activities do not consist in the provisioning of services for citizens but instead in the development, implementation and monitoring of policies. Although all such activities do not culminate in an exchange, they can, however, involve individuals or groups of individuals, owing to the need to gather and analyze data, hold discussions with the representatives of these people, etc.

When, for example, a municipality decides to review its public transportation grid in response to expanding demand or out of a need to establish a competitive tendering process regarding any related concession, it can send citizens a questionnaire for the purpose of learning more about their transportation habits, hold a public briefing, or foster dialogue with citizens e.

  • Potentials for Relationship Marketing Practice in the Public Sector: A Literature Analysis
  • Public Sector Marketing

Depending on the activity and the institutional context, these organizations can apply the principles of relationship marketing with a view to establishing a lasting relationship of trust. This is the case, for example, of mandatory periodic vehicle inspections that are, at the same time, the occasion of a concrete service transaction i. Owing to the absence of freedom in the relationship that is established between the administration and the service user, it is not possible to apply all marketing principles — regarding, for example, the segmentation of needs, expectations or behaviours, or the positioning of the service offering due to little or no competitive environment, the absence of any possible differentiation in terms of service fee, etc.

Nevertheless, organizations can apply a certain number of marketing tools by trying to adapt elements of the service offering in relation to recipients for example, garage owners as opposed to individual citizens. One such way is to step up the use of communication tools to improve and simplify transactions between the organization and the recipient e. Another way is to establish ways of systematically improving the transaction and the relationship with service users e.

This situation also applies in the case of compulsory education, tax collection, etc. The simplest case involves the situation in which both the exchange and the relationship are totally free.

Then, the public organization can, subject to existing laws and regulations, act like a private business to a very great extent. Such criteria are fully satisfied in the case of the continuing education programs offered by public universities, which enjoy considerable latitude in terms of accepting or refusing program participants and which are also free to determine the form and content of their program offering.

relationship marketing in the public sector

In the public sector, however, the freedom characterizing the relationship is often limited — where users are concerned — to accepting or refusing the corresponding service. That being said, limitations can apply to the choice of operator or supplier and both the offer and the terms and conditions of the exchange are subject to restrictions. As regards the organization, the ability and interest in using marketing tools stems directly from the possibility of incorporating differentiation criteria into the service offering and of obtaining input from users as part of this exchange.

Bibliography[ edit ] Pasquier, M. Une histoire du marketing: Comportement du consommateur, Paris, Dunod.

relationship marketing in the public sector

The market driven organization, New York, Free Press. Journal of Services Research, 15 1 Le marketing public, Paris, Economica.