Developing relationships with the customer market
domain
The discussion in this chapter has suggested three key groups in the
customer market domain with whom we need to build relation-
ships: direct buyers, intermediaries and final consumers. Some of
the key steps which need to be considered in addressing this
domain include the following.
●Review the current distribution framework.
●Determine what represents a superior value delivery network,
including the role of new distribution opportunities such as the
internet and electronic commerce.
●Undertake a market segmentation of buyers, intermediaries and
consumers.
●Extend broad-based market segmentation into micro-segmenta-
tion and, where relevant, one-to-one marketing strategies.
●Create a market map to define distribution activities and identify
volumes and sales values of products and services sold.
●Determine the appropriate level of marketing emphasis at each
level of the value delivery network.
●Identify the decision-making unit. Where there is a distribution
chain, this should be undertaken for buyers, intermediaries and
consumers.
●Undertake an analysis of lifetime value of customer segments and
develop a detailed understanding of customer acquisition and
customer retention economics for each major segment and micro-
segment.
●Conduct market research to understand reasons for customer
defection and drivers of customer loyalty.
●Determine appropriate retention and acquisition marketing strate-
gies, including a consideration of whether loyalty schemes have a
role to play.
●Develop a marketing plan for the customer market domain. This
should take account of relationships within each of the other six
market domains considered in the following chapters as part of
the overall relationship marketing plan.
50 Relationship Marketing