Relationship Marketing Strategy and implementation

A detailed review of market segmentation is beyond the scope of
this book. Those readers wishing to explore this area in further
detail should see McDonald and Dunbar,^5 Bonoma and Shapiro^6
and Weinstein.^7

Reviewing marketing emphasis within the customer

market domain

A key issue for a company considering a relationship marketing
programme is to undertake a detailed market analysis at each level
in its value delivery network and identify the type of marketing
activity that needs to be directed at each of the various channel
members, including direct buyers, intermediaries and final con-
sumers. Then further analysis, in terms of the segmentation and
understanding the decision-making units of different levels, needs
to be completed before determining the appropriate amount of mar-
keting expenditure and effort that is relevant at each level. The
analysis of the value delivery network can be assisted by the con-
struction of a market map that defines the distribution activities and
identifies the volumes of product and services sold and the sales
values associated with them. An example of a market map is pro-
vided in Figure 2.3.
The relative amount of marketing effort aimed at different
channel members needs to be regularly evaluated and changed
when appropriate. Whilst in some industries intermediaries may be
a valuable channel member, in others the value of intermediaries is

The customer market domain: Managing relationships with buyers 39

Supplier

Exports

Domestic

Sales

Distributors

Retailers

Superstores

Contractor Commercial

Users

Local

Government

Users

Domestic

Users

vol/val%

vol/val%

vol/val%

vol/val%

vol/val% vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

vol/val%

Figure 2.3 Market map with volumes and/or values at each stage.

Source: Based on McDonald and Dunbar.^5