An examination of how Arlafoods practices Relationship marketing in Essay

An examination of how Arlafoods practices Relationship marketing in the dairy industry. Why relationship marketing has become important in dairy service bas - Essay Example lysis, will be able to relate to the increased threat of new entrants or competitors, the availability of substitute products, decreased bargaining power of suppliers, increased bargaining power of buyers, and increased intensity of rivalry within the industry. Government deregulation, globalization, and technological advances have changed the â€Å"minimum requirements† for organizations to remain competitive. Dairy industry producers and farmers have been hard hit by these changes. Increasing production levels, rising production costs, and softening market prices have resulted in the commoditization of dairy products. Companies such as ARLA Foods have had to re-examine its way of doing business in order to adapt to this new environment; in particular, ARLA Foods has redefined its business with its focus on customer relationship marketing. This proposal will examine ARLA Foods’ implementation of new strategies of relationship marketing and its corresponding self-realignment activities. The proponent of the study is currently employed with ARLA Foods. Kotler (2000) defines marketing as: â€Å"the process of planning, and executing the conception, pricing, promotion, and distribution of goods, ideas, and services, to create exchanges that satisfy individual and organizational goals.† Through manipulation of the â€Å"4 Ps† (Product, Price, Place, Promotion or the marketing mix), marketers seek to meet and satisfy customer’s needs and wants through a process of exchange that may culminate in a transaction. What forms the bases of the â€Å"4Ps† framework? Christopher, Clark, Peck, and Payne (1999) trace the framework’s origins to Borden’s work in 1960s. Borden identified 12 factors that comprised the â€Å"marketing mix† that influenced demand. These 12 factors would later be simplified in the popular â€Å"4Ps† framework. The prevailing mass manufacturing – mass marketing conditions of the 1950s and 1960s, with its emphasis on customer acquisition rather