M.Comm. / The animal health industry in South Africa is static and products are of a generic nature. Most of the international players are represented in South Africa. The fact that there are so many players in the market leads to severe competition. In this study the possible application of relationship marketing in the animal health industry was investigated. Sanvet, one of the leading companies in the industry was used for the study. The company was established in September 1994 through an amalgamation of the animal health divisions of Agrihold and Premier Pharmaceuticals. In relationship marketing the focus moves from a short-term transactional approach to long-term relationship marketing. Relationship marketing is the integration of marketing, quality and customer service. The provision of quality customer service involves an understanding of what the customer buys and determines how additional value can be added to the product or service being offered. Quality is the link between what a customer expects and the customers perception of what is being offered. The four P's model is very limited and in relationship marketing three additional elements are being used. The elements are people, processes and the provision of customer service. Customer service creates a clearly differentiated and superior value proposition, and is the central focus of all the other elements. Through the acknowledgement of the contribution of people to getting and keeping customers, within the overall marketing mix, the company's competitive performance will be substantially enhanced. People can be categorised into the following groups based on their role in the company: contractors, modifiers, influencers and isolators. Although the human element is very important in customer service, no amount of energy from personnel can counter poor performance due to unsatisfactory processes. In relationship marketing not only the relationship with the target markets is being addressed but also the relationship with the intemal markets, referral markets, supplier markets, employee markets and influence markets. The employees of the company are the core of an internal marketing plan. Employees are seen as internal customers and jobs as internal products. The ideal form of marketing is to get customers to do the marketing on your behalf. Referral markets within the industry must be identified and marketing activities directed at them. The traditional adversarial relationship between suppliers and their customer must change to a new form of relationship based on co-operation. The competition between companies in their effort to attract suitably motivated and trained employees is increasing. Suitable employees are becoming very scarce resources. Companies must focus their marketing activities to ensure that they and the company are first choice for a potential employee. Financial markets, regulatory markets, the government and shareholders form the influence markets and marketing activities should be addressed to these markets to ensure a long-term relationship. This study was limited to investigating the relationship with the internal markets, referral markets and supplier markets. It was found that relationship marketing can be applied in the animal health industry. The recommendations in this study can be used to draw up a complete relationship marketing strategy for Sanvet.