In manufacturing contexts too, companies sometimes create
formal and informal referral agreements between themselves and
suppliers of complementary products. Furthermore, in these
markets, closer relationships with referral sources can provide early
access to specifications and a better understanding of non-product
related buying criteria. In some instances though, there may be no
direct benefit to the organization making the referral, other than
maintaining the goodwill of customers whose requirements fall
beyond its scope or capabilities. The fact that an organization is
willing and able to provide referrals can itself be seen by the cus-
tomer as a benefit of the relationship.
Internal markets
In 1987 Judd observed that substantive attempts to conceptualize
the employee of an organization as an element of the organization’s
marketing strategy were noticeably absent from the academic mar-
keting literature.^31 There is now an abundance of ‘internal market-
ing’ literature addressing the matter, providing insights into how
and why employees in all parts of an organization can contribute
towards marketing effectiveness.12, 32In addition, Schlesinger and
Heskett build on earlier research, emanating initially from organi-
zational behaviour specialists, which clearly linked the constructs of
employee satisfaction and retention to customer satisfaction and
retention in service businesses.33–35Evidence that the links between
employee retention (particularly front-line employee retention) and
customer or business retention also exist in product-centred, busi-
ness to business marketing situations can be found in an internal
study into the cost of employee defection undertaken by the Digital
Equipment Corporation in the UK (see Case 5.3).
Recruitment markets
The move away from traditional employment practices towards
contract working, outsourcing and partnering allows organizations
to access a wider range of specialist skills on a temporary basis.
Nevertheless, there are certain categories of employees whose skills
and experience create and sustain the organization’s core compe-
tencies. Christopher, Payne and Ballantyne’s recruitment market
8 Relationship Marketing