We have found it helpful to divide the customer market into two:
existing customers and new customers.
It is possible to make a connection between the three ‘value disci-
plines’ of Treacy and Wiersema and the Six Markets model. In order
to achieve a leadership position through one or other of these
generic strategies it will be necessary to vary the emphasis placed
on each of the six markets in the overall marketing strategy of the
business.
Thus, we would suggest, organizations seeking to follow the dis-
cipline ofoperations excellencewill need to have an internal culture
that is based on ‘lean thinking’.^11 In other words, the focus on the
internal marketing effort should be on continuing improvement,
multi-skilling and all those activities such as quality circles that lead
to greater internal efficiency. Equally, significant emphasis must be
placed upon the supplier market domain since, for many organiza-
tions, the cost of materials and supplies is a major proportion of
total cost. By working more closely with suppliers, many opportu-
nities for cost reduction and quality improvements can usually be
identified. In the same way, it can be argued, the interface with
downstream intermediaries such as distributors and retailers will
need to be managed closely. For example, through the use of
Electronic Data Interchange (EDI) and other forms of electronic
commerce, it will often be possible to significantly enhance the
responsiveness and cost-effectiveness of the supply chain.
On the other hand, companies that seek to place the emphasis in
their strategic focus upon product leadershipwill need to construct a
six market strategy that will place different weights upon each
domain. It might be appropriate, for example, for such companies to
invest in creating an internal culture that encourages innovation,
risk taking and entrepreneurship. Hence these companies will be
concerned to recruit people who will be able to contribute to the
innovation process – perhaps with a skills profile and experience
that indicates their creativity or their in-depth knowledge of tech-
nologies or markets. It is interesting to reflect that Microsoft, an
acknowledged world leader in its field, has declared that its sole cri-
terion in recruitment is ‘intelligence’.
Another key focal point for businesses that seek product leader-
ships is their relationship with suppliers. In many industries today
a significant proportion of innovation is supplier driven. Bringing
suppliers into the product development process can often lead to
breakthroughs in design and functionality. Most of the innovative
Creating and implementing relationship marketing strategies 417