and track the progress of individual orders. The process engenders a feel-
ing of belonging – a social benefit.
■ Summary
Increasingly, businesses need to recognise the importance of alliances and
joint ventures. A collaborative approach has much to commend it, and is
being driven by factors such as globalisation, risk reduction and the need
to share learning and generate innovation.
Alliances can range from acquisition and merger, through to networks
based on informal co-operation. To be successful, organisations need to
seek partnerships where strategic fit exists. Strategic fit relates to factors
like: (i) economy-of-scale, (ii) synergy benefits resulting from complemen-
tary assets/competencies and on occasion (iii) legal necessity. Cultural fit
is also important as it sustains relationships.
Relationship marketing is a vital component of business success. To be
truly effective, organisations must recognise that they serve a range of
‘markets’. They need to consider a broader definition of marketing, one
that embraces ‘markets’ such as employees, suppliers, internal function,
referral sources and influences. However, relationship marketing is not
applicable in all cases. When applicable, organisation must strive to iden-
tify the key relationship drivers, build customer value and do everything
reasonable to retain customers.
■ References
Christopher, M., Payne, A. and Ballantyne, D., Relationship Marketing,Butterworth-
Heinnemann, London, 1994.
Johnson, G. and Scholes, K., Exploring Corporate Strategy, 5th edn, Prentice Hall,
London, 1999.
Kotler, P., Armstrong, A., Saunder, J. and Wong, V., Principles of Marketing, 2nd edn,
Prentice Hall, London, 1999.
Morrison, M. and Mezentseff, L., Learning alliances: a new dimension in strategic
alliances, Management Decision, 35 (5/6), May/June, 1997, 351–357.
Reichheld, F. and Sasser, W., Zero defections: quality comes to services, Harvard
Business Review, September/October, 1990, 115–111.
■ Further reading
Hooley, J., Saunder, J. and Piercy, N., Marketing Strategy and Competitive Positioning,
2nd edn, Prentice Hall, London, 1998.
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