Relationship Marketing Strategy and implementation

(Nora) #1

further away from the end customer interface, perhaps through
bringing together unique technologies developed by the suppliers
of subassemblies, or in instances where downstream intermediaries
manage the customer interface, managers would be unwise to
assume such a limited focus. Likewise in business environments
fraught with uncertainty (e.g. high technology industries), relation-
ships with suppliers, alliances and network partnerships are critical
concerns. Without them an organization may be unable to create
and sustain an attractive and appropriate value proposition for the
customer – no value, no future. In such circumstances, the customer
retention framework, with its emphasis on front-line execution, may
only deliver tiny improvements to the overall value proposition.
These improvements would become an irrelevance if a competitor
makes a significant advance in a core value creating process or activ-
ity, or, for that matter, if the business environment or industry struc-
ture were to change suddenly.46, 47


The Six Markets model revised


In the light of the changes that have occurred in the business envi-
ronment in recent years, a revised version of the original Six
Markets model is used as the structural backbone for this book (see
Figure 1.8). The market categorizations outlined in the original
model did not make explicit provision for collaborative relation-
ships between the core firm and strategic alliance, joint venture or
network partners, other than those with its immediate suppliers. We
have therefore added an ‘Alliance’ category to the framework,
alongside the Supplier category, for all of those suppliers whose
relationships with the focal firm continue to be conducted in a more
traditional manner. Furthermore, we address in a more explicit
manner the division of each market domain into different groupings
or segments. For example, the ‘Customer Market’ domain is divided
to acknowledge explicitly buyers, consumers, and channel interme-
diaries. In a consumer goods or services scenario, this market
domain represents end customers, users and consumers. In a
business-to-business marketing situation, it also embraces
channel intermediaries – including all those parties, agents,
retailers and distributors who are customers of the organization,
but operate between them and the ultimate end users. In both


22 Relationship Marketing

Free download pdf