On the basis of increased complexity of the exchange mechanism, at the beginning of the third millennium the contemporary marketing suffers some physiognomic changes. Holistic orientation of the contemporary marketing is imposed by the new dimensions therelationship marketing, holistic marketing, luxury marketing, residential complex, research on perception of luxury

Fotea Ioan S.

Mihoc Florin

Pop Liviu N.

Pop Nicolae Al.

English

Research Papers in Economics

808 
A HOLISTIC APPROACH OF RELATIONSHIP MARKETING IN LAUNCHING LUXURY NEW 
PRODUCTS CASE STUDY: RESEARCH OF THE DEMAND FOR HOUSING IN RESIDENTIAL 
COMPLEXES IN ORADEA  
 
Pop Al.Nicolae  
Academia de Studii Economice Bucureşti Facultatea de Administrarea Afacerilor (cu predare în limbi străine) Str. 
Mihail Moxa, nr. 5-7, sector 1, Bucureşti nicolae_al_pop@yahoo.com 0744-388199 
Fotea Ş. Ioan  
Universitatea  Emanuel  din  Oradea  Facultatea  de  Management  Str.  Nufărului  nr.  87,  Oradea 
ioan.fotea@emanuel.ro 0745-238181 
Mihoc Florin  
Universitatea  Emanuel  din  Oradea  Facultatea  de  Management  Str.  Nufărului  nr.  87,  Oradea 
florin.mihoc@emanuel.ro 0740-420335 
Pop N.Liviu  
Doctorand Academia de Studii Economice Bucureşti liviu.pop@farmanet.ro 0744-388066 
 
On the basis of increased complexity of the exchange mechanism, at the beginning of the third millennium the contemporary 
marketing suffers some physiognomic changes. Holistic orientation of the contemporary marketing is imposed by the new 
dimensions the organization ought to take into account in its attempt to meet the costumer’s needs. Marketing of luxury 
products constitutes a favorable environment for applying relationship marketing in particular, and requires, in general, a 
holistic approach. 
 
Keywords:  relationship  marketing,  holistic  marketing,  luxury  marketing,  residential  complex,  research  on  perception  of 
luxury. 
 
Cod JEL article: M31 
 
Introduction 
Marketing of the 21
st century is marked by its relationship orientation. Without altering its essence, marketing is 
refocusing its efforts of increasing organizational performance through the development of long-term relationships 
with all its partners (suppliers, customers, other stakeholders). Such a mutation, takes place on the basis of shift 
from  transactional  marketing  to  relational  marketing
495,  the  latter  requiring  a  new  approach  to  business 
relationships  among  all  the  partners  mentioned  above.  Customer  orientation
496,  emphasized  by  relationship 
marketing,  directs  the  entire  controlling  activity  towards  monitoring  the  profitability  generated  by  company’s 
relationship with its demand holders. The meaning this approach has for the organization, takes a new qualitative 
dimension,  through  two  concepts,  more  commonly  found  in  the  theory  and  practice  of  developed  countries: 
customer lifetime value and customer profitability
497. Both concepts are common to interactive marketing
498 and 
seek to ensure ability to identify and capitalize difference between customers.  
Holistic orientation of marketing 
On the background of increasingly complex exchange at the beginning of the third millennium contemporary 
marketing presents new physiognomy changes. Satisfying demands expressed on the market by consumers employs 
organization in a more diversified set of connections, not only with its beneficiaries but with its employees also, 
with the surrounding environment, raising ethical responsibilities, towards legislation and community to  more 
higher levels. Thus, the holistic orientation of contemporary marketing
499 is shaped. Figure 1 depicts the structure 
of this orientation: 
   
                                                       
495 Pop, N. Al., Petrescu, E-C, Marketing et gestion de la relation client, Editura Uranus, Bucureşti, 2008, pp. 21-24. 
496 Bruhn, M., Kundenorientierung Bausteine eines excellentes Customer Relationship Management, 3. Aufl., Beck- Wirtschaftberates im 
dtv, Muenchen, 007, pp. 24 and following. 
497 Rust, R.T., Lemon, K. N., Narazandas D., Customer Equity Management, Pearson Education Inc., Upper Saddle River, New Jersey, 
2005, pp. 22; 511-514. 
498 Chirouze,, Y., Le marketing. Etudes et strategies, 2e edition, Ellipes, Paris, 2007, p. 335. 
499 Kotler, Ph., Keller, K.L., Marketing Management, 13th Edition, Pearson Education Internatinal, Upper Saddle River, New Jersey, 2009, 
pp. 59-60. 809 
 
Holistic 
marketing 
 
Customer
s 
Distribution 
network  
Partners 
Relationship 
marketing 
 
Communi
cation 
Products, service, 
ideas, rights  Distribution 
network 
 
Integrated Marketing 
 
Inside omnipresent 
marketing  
 
Marketing 
department 
Top 
manag. 
Other 
department
s 
Social responsible 
marketing 
 
 
Ethics 
Enviro
nment 
Communi
ty 
Regulated  
Issues 
 
Figure 1. Dimensions of Holistic Marketing 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source: adapted after Kotler, Ph., Koller, K.L., Marketing Management, 12th Edition, Pearson Education, Upper Saddle River, 
New Jersey, 2008, p.61. 
 
Based on holism theory (Gk. Holas = whole), which says that the whole always has priority, more than the total 
sum of individual parts, holistic marketing requires development and  implementation of marketing programs, 
processes and measures with a wide spectrum and correlated with each other. Stressing that the whole is important, 
an  integrated  marketing  concept  which  is  at  the  same  time  relational,  integrated,  omnipresent  within  the 
organization  and  socially  responsible
500.  This  way,  on  the  same  level  of  importance  are  placed  relationship 
marketing (which develops a strategic and long term vision for the organization with all its partners), marketing in 
action (integration of all components of marketing mix), implementation of marketing – as business perspective – 
in  all  departments  of the organization  and  marketing  responsibility  towards the  surrounding  environment,  the 
community where enterprises operate in accordance with business ethics requirements and of the law in force. 
Holistic marketing is exhibited as a complex model in Figure 2.  
Focused around explorating the demand and delivering value to the customer, holistic marketing addresses these 
themes in a matrix approach, at the confluence with the focused efforts towards customers, competencies and 
partnering relationships. Economic environment has the ability to think in a strategic manner the architecture of a 
business and to model supply offered to the market in a more nuanced, fashion in relation to the motivational 
complex of demand, the medium and long term solvency of demand holder and the capacity to employ an efficient 
system of marketing activities. It is required, a rethinking of the criteria for ranking customers both in respect of 
their relational capacity, and the company’s long-term performance in satisfying a very exacting high-demand
501. 
Under the current economic situation of Romania, affected by the outcomes of the global financial-economic 
crises, marketing efforts have to be reanalyzed, especially in the area of luxury supply. 
   
                                                       
500 Kotler, Ph., Jian, D.C. Measinca, S., Marketing Moves Harvard Business Press, Boston, 2002, pp. 26-30. 
501 Homburg, Ch., Droll, M, Totzec, D., Customer Prioritization: Does It Pay Off, and How Should It Be 
   Implemented, în ``Journal of Marketing,``vol 72, (September 2008), pp. 110-130. 810 
Value  
Creation 
Providing 
/delivering 
Value 
Value 
exploration 
Cognitive 
Environment 
of customers 
Customers 
Advantages 
 
 
C.R.M. 
Competences 
Environment 
Business 
Context 
 
Internal 
Resources 
Management 
Resources 
Environment 
Business 
Partners 
Partnerships 
Management 
Offer to 
the 
Market 
Mar 
keting 
Activities  
Business 
architect
ure 
Operati
onal 
System 
Focus on 
customers 
 
Focus on 
competences 
Partners 
network 
 
 
 
Figure 2. A Complex Marketing Model 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source: adapted by Kotler, Ph., Jian, D. C., Measince S., op. cit., 2002, p.29. 
 
Marketing of luxury products  
Within present economical context the perception of luxury is very different among potential buyers. The variety of 
expressions  invented  by  the  communication  specialists  have  filled  business  vocabulary.  "New  luxury",  "real 
luxury", "hyperlux", "trading up", "ultra-premium", "accessible luxury", etc. are just a few of them. Rather than 
clarifying luxury concept this semantic explosion creates more confusion. Luxury is not simply a word that defines 
a certain degree of wealth but also a sociological and psychological complex concept. Creation, proliferation and 
marketing of the luxury is not just a job, or know-how (savoire-faire) specific to selling jewelry, collection cars, 
unique clothing, or residential housing. It represents a distinct manner, with an emphasized empathic nature of 
understanding the customer and of service management which is called to satisfy the demands
502. Luxury in the 
contemporary society has undergone a democratization process under the influence of certain major factors that act 
on demand, such as: general increase of the average purchasing power, globalization of needs, communications at 
worldwide level available even in real time, communications etc. 
Contrasting mass  marketing,  marketing of luxury items  increasingly captures the attention of business people. 
Luxury is not merely targeted to small market niches, but rather gains more ground in the areas where persuasion is 
combined with medium and long term rationality. Situated at the confluence of high solvency, fashion, art and 
consumer’s personality luxury attempts to position itself, from an economical standpoint, on a vector system, 
although such a process can be often considered ambiguous. Such a positioning test is exhibited in Figure 3, in the 
form of a positioning triangle. 
 
   
                                                       
502 Pop, N. Al., Vlădoi, A.D., Marketerul - specialist complex, om de decizie si actiune, în revista 
   Amfiteatru economic, Vol. XI, Nr. 25, February 2009, pp. 9-20. 811 
Luxury 
Premium  Fashion 
Social evaluation 
Atemporal 
For free 
Gift 
Social imitation 
Ephemerality 
Price/performance 
ratio 
Investments 
Performance 
Frivolousness  Seriousness 
 
Figure 3. The Distinction Between Luxury, Fashion, Premium: triangle of the positioning vectors  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source: adapted after Bastien, V., Kapferer, J-N.,Luxe oblige, Groupe EYROLLES, Paris, 2009, p. 49. 
 
Marketing of luxury products constitute a favorable field for applying relationship marketing concept in particular, 
and  requires  in  general,  a  holistic  approach.  Customer  satisfaction  is  central  to  the  marketing  approach  and 
represents the starting point for customer attachment strategies vis a vis a product/a brand considered to be a luxury 
one. Being a complex psychological process of comparability between experience as beneficiary of a service and 
the representations of the manner and level to which the respective product/service satisfies a need, satisfaction is 
the main premise in increasing loyalty, being a real key for modeling customer buying behavior. These processes 
turn to three groups of variables: cognitive (based on superior quality of the goods, considering performance), 
emotional (based on emotions caused to the buyer) and relational (based on the interaction between provider and 
customer in the purchase)
503. 
 
Research of the demand for housing in residential complexes 
The applied part of the empirical survey undertook by the authors has focused on a market area that is situated at 
the confluence of luxury and rationality: residential housing facilities. In this current economical situation real 
estate market in general and residential complexes, in particular, have registered in last three quarters a major 
downturn. In order to support boost of this market it is essential that, the systematical and analytical survey of the 
demand to monitor the evolution of perception and willingness of the buyers to acquire luxury items. The demand 
for these products, perceived by the average customer as being luxury ones has a certain potential, which still has to 
be identified and developed using specific marketing instruments.  
During the 5th to 12th of April, 2008 authors conducted a study on the local market of Oradea regarding public’s 
attitude -potential customers- towards new houses located in residential complexes. Survey has been performed 
through  an  individual  questionnaire  containing  scale  questions,  multiple  choice  questions  and  open  ended 
questions. The questionnaire has been administered to a representative sample of 852 citizens of Oradea (of a total 
of  206.080  officially  registered  inhabitants),  representing  a  random  and  stratified  sample.  Sample  size  was 
determined considering a confidence interval of 95% and a sampling error of 3,5%. Approximately 15% of the 
approached subjects refused to provide any answer.  
Inhabitants of Oradea perceive luxury having a stronger emphasis on proximity than on the type of facilities 
provided by the residential complexes. Such facilities as TV and internet connections, warehousing space or fitness 
halls are perceived rather standard than luxury. Chart no. 1 gives an overview of the perceptions of luxury on 
residential facilities.  
 
   
                                                       
503 Meyer-Waarden, L., La fidelisation client. Strategies, pratiques et eficacite des outils de marketing  
   relationnel, Vuibert, Paris, 2004, pg. 68-70. 812 
 
Chart 1. Perception of Oradea’s Inhabitants Regarding Luxury in a Residential Complex  
 
Source: survey of public’s attitude towards new housing within residential complexes in Oradea 
 
Considering their own housing, luxury as it is perceived by inhabitants of Oradea is related to the nature of comfort 
and space provided. Environment control in respect of temperature control in each room, along with the large living 
space and high-quality of finishing are the main items considered luxury. Endowments in terms of household 
appliances  -more  readily  available  in  recent  years-  are  perceived  as  normal.  Chart  no.  2  below  provides  an 
overview of perception of luxury within the house.    
 
Chart 2. Perception of Oradea Inhabitants Regarding Luxury Within The House  
 
Source: survey of public’s attitude towards new housing within residential complexes  in Oradea 
 
Conclusions 
Perception of luxury is in continuous change and evolution in the sense that some of the elements that were hitherto 
perceived as luxury entered into normality by becoming increasingly available, while other new and extravagant 
elements replace them. In order to understand continual study and research on customers’ wants and aspirations in 
the different stages a developing market goes through, as is the case of Romanian market in general, and real estate 
market  in  particular.  Increase  in  average  purchasing  power  and  the  globalization  of  customer  wants  impose 
providers a special attention as regards tailoring the offer through a holistic marketing approach so that via an 
integrated approach to capitalize on competitive advantages that are granted by the application of this concept.  
 
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A HOLISTIC APPROACH OF RELATIONSHIP MARKETING IN LAUNCHING LUXURY NEW PRODUCTS

http://steconomice.uoradea.ro/anale/volume/2009/v4-management-and-marketing/163.pdf

A HOLISTIC APPROACH OF RELATIONSHIP MARKETING IN LAUNCHING LUXURY NEW PRODUCTS

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