Day Two

Chapter Four
Customer Relationship Management Strategies for Business Markets
Developed by Cool Pictures and MultiMedia Presentations
Copyright 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Relationship Marketing
Centers On:
Establishing, Developing, and Maintaining Successful exchanges with customers.
Transactional Exchange
Centers on timely exchange of basic products for highly competitive market prices.
Collaborative Exchange
Features close information, social, and operational linkages, as well as mutual commitments.
Types of Relationships
Buyer-seller relationships positioned on a continuum with transactional exchange and collaborative exchange serving as end points.
The Relationship Spectrum
Buyers and sellers craft different types of relationships in response to: a) market conditions and b) characteristics of the purchase situation.
Spectrum of Buyer-Seller Relationships
Strategy Guidelines
1. Determine which type of relationship matches purchasing situation and supply-market conditions for particular customer.
2. Develop appropriate strategy for each type of purchasing situation
Managing Relationship Portfolio

Mix of relationships based on customers. Collaborative Customers build relationships with trust and commitment. Transactional Customers focus efforts on purchasing staff and offer attractive benefits.
The Characteristics of High- versus Low-Cost-to-Serve Customers

High-Cost-to-Serve Customers
Order custom products Order small quantities Unpredictable order arrivals Customized delivery
Low-Cost-to-Serve Customers
Order standard products Order large quantities Predictable order arrivals Standard delivery
Frequent changes in delivery requirements

Manual processing Large amounts of presales support (i.e., marketing, technical, and sales resources) Large amounts of postsales support (i.e., installation, training, warranty, field service) Require company to hold inventory Pay slowly (i.e., high accounts receivable)
No changes in delivery requirements

Electronic processing (EDI) (i.e., zero defects) Little to no presales support (i.e., standard pricing and ordering) No postsales support
Replenish as produced Pay on time
Source: Robert S. Kaplan and V.G. Narayanan, Measuring and Managing Customer Profitability, Journal of Cost Management 15, No. Cool(September/October 2001): p. 8. 5 Pictures and MultiMedia Presentations Developed by
Customer Profitability
High
Passive Product is Crucial Good Supplier Match Costly to Service, but Pay Top Dollar
Net Margin Realized
Price Sensitive but Few Special Demands
Aggressive Leverage Their Buying Power Low Price and Lots of Customized Features
Low Low Cost-to-Serve

SOURCE: From Manage Customers for Profits (Not Just Sales) by B.P. Shapiro et al., September-October 1987, p. 104, Harvard Business Review.
High
Customer Relationship Management

A Continuing Dialogue with Customers, Across all their Contact and Access Points, with Personalized Treatment of the Most Valuable Customers, To Ensure Customer Retention and Effectiveness of Marketing Initiatives.
Transactional and Collaborative Working Relationships
Pure Transactional Exchange
(a) Industry Relationship Bandwidths
Pure Collaborative Exchange
Hospital Supplies (e.g. surgical gloves, syringes)
Medical Equipment (e.g. imaging systems)
(b) Flaring Out from the Industry Bandwidth

Pure Transactional Exchange Pure Collaborative Exchange
Hospital Supplies
SOURCE: Adapted from James C. Anderson and James A. Narus, Partnering as a Focused Marketing Strategy, California Management Review 33 (spring 1991) p. 97. Copyright by the Regents of the University of California. Reprinted by permission of the Regents.
Learning to Retain Customers

Provide superior value to ensure high satisfaction. Nurture trust and mutual commitment.
Chapter Five Segmenting the Business Market
High-Growth Companies Succeed By:
Selecting welldefined groups of potentially profitable customers.
Developing distinctive value propositions.
Focusing marketing resources on acquiring, developing, and retaining profitable customers.
Five Criteria for Evaluating Potential Market Segments

Measurability
Accessibility Substantiality Compatibility Responsiveness
Technological Environment Assessment

1. Product technologyset of ideas embodied in product or service. 2. Process technologyset of ideas or steps involved in production of product or service.
3. Management technologymanagement procedures associated with selling product.
Segmentation Benefits
Attunes marketer to unique needs of customer segments Focuses product development efforts, develops profitable pricing strategies, selects appropriate distribution channels Provides valuable guidelines to allocate marketing resources.
Bases for Segmenting Business Markets

Macrosegmentation
Microsegmentation
Selected Macrolevel Bases of Segmentation
Macrolevel segmentation bases concerned with general characteristics of buying organization, nature of product application, and characteristics of buying situation.
Selected Microlevel Bases of Segmentation
Marketers often find it useful to divide each macrosegment into smaller microsegments based on similarities and differences among decisionmaking units.
Purchasing Strategy Classifications

1. Satisficers approach given purchasing requirement by contacting familiar suppliers and placing order with first supplier to satisfy product and delivery requirements. 2. Optimizers consider numerous suppliers, familiar and unfamiliar, solicit bids, and examine all alternative proposals carefully before selecting supplier.
Meaningful Microsegments
Importance of Purchase -- appropriate when product is applied in various ways by various customers
Attitudes toward Vendors analysis of how various clusters of buyers view alternative sources of supply often uncovers opportunities
Organizational Innovativeness some organizations innovate more and are willing to purchase new industrial products than others Personal Characteristics although some interesting studies have shown viability of segmentation based on individual characteristics, further research needed to explore potential as valid base for microsegmentation.
An Approach to Segmentation of Business Markets
Figure combines these macrosegment bases and outlines steps required for effective segmentation.
Source: Adapted by permission of the publisher from Yoram Wind and Richard Cardozo, Industrial Market Segmentation, Industrial Marketing Management 3 (March 1971): p. 156. Copyright 1974 by Elsevier Science Publishing Co., Inc.
Chapter Six
Organizational Demand Analysis
Organizational Demand Analysis
Composed of: Sales forecasting

Market potential analysis.
Organizational Demand Perspectives

First, what is highest possible level of market demand that may accrue to all producers in industry in particular time period?
Second, what level of sales can the firm reasonably expect to achieve, given particular level and type of marketing effort?
Secondary Data Internet

Internet has all types marketing intelligence.
Information easy to locate Internet information more current than hard data sources Inexpensive, quick access, easy to use Can be used for primary data collection
Before Using Internet Information

Assess quality: How was it gathered?
Sample size? Who provided information? Original purpose for which information was collected?
Internet Market Research Limitations

No standards for information Owner has no requirement to provide account of sites accuracy. No review process People can publish whatever they wantopinion enters in.
Relationship Between Potential and Forecast
Sales forecast answers the question: What level of sales do we expect next year, given particular level and type of marketing effort?
Developed by Cool Pictures and MultiMedia Presentations Developed by Cool Pictures and MultiMedia Presentations Copyright Copyrightby South-Western, a division of Thomson Learning, Inc. All rights reserved. 2007 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Estimates of Absolute Market Potential Using Statistical Series

1. Select statistical series that appears to relate to product demand. 2. For each target NAICS industry, determine relationship of statistical series to potential demand for product. 3. Forecast statistical series and its relationship to demand for desired time frame. 4. Determine market potential by relating demand to future values of statistical series.
Important Criteria in Selecting Statistical Series

Data on series must be available.
Future estimates of series should be easier to predict than product demand itself would be.
Estimating Market Potential Depends On:

How well the demand or usage factor represents underlying demand. The quality of the data used. The ability to estimate future values of the series and usage factors.
The extent of distortion caused by using averages, gross estimates, and proxies
A Complete Market Census is Warranted When:
Markets very concentrated Direct sales contact Orders have relatively high value Unit volume low
Qualitative Approaches to Sales Forecasting

Qualitative techniques
Rely on informed judgment and rating schemes.
Include executive judgment method, sales force composite method, and Delphi method.
Effectiveness of qualitative approaches depends on close relationships between customers and suppliers.
Developed by Cool Pictures and MultiMedia Presentations Developed by Cool Pictures and MultiMedia Presentations
Copyright Copyrightby South-Western, a division of Thomson Learning, Inc. All rights reserved. 2007 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Qualitative Approaches to Sales Forecasting

Executive Judgment
Enjoys high level of usage. Collective expertise, experience, and opinions
Primary limitation: does not systematically analyze cause-and-effect relationships. No established formula for deriving estimates.
Delphi Application
Usually applied to long-range forecasting.
Well suited to: Forecasting for new products Estimating for future events when historical data are limited.
Analyzing situations not appropriate for quantitative analysis.
Quantitative Forecasting Offers Two Primary Methodoligies

Time series techniques use historical data ordered in time to project trends and sales growth rates.
Regression, or causal, analysis uses factors that have affected sales in the past and seeks relationships in mathematical models.
Summary of Qualitative Forecasting Techniques
Typically, qualitative estimates merged with quantitative ones.


Day Two

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Day Two

Hochgeladen von

Copyright:

Verfügbare Formate

Chapter Four

Customer Relationship Management Strategies for Business Markets

Developed by Cool Pictures and MultiMedia Presentations

Developed by Cool Pictures and MultiMedia Presentations

Developed by Cool Pictures and MultiMedia Presentations

Developed by Cool Pictures and MultiMedia Presentations

The Relationship Spectrum

Developed by Cool Pictures and MultiMedia Presentations

Spectrum of Buyer-Seller Relationships

Developed by Cool Pictures and MultiMedia Presentations

2. Develop appropriate strategy for each type of purchasing situation

Developed by Cool Pictures and MultiMedia Presentations

Managing Relationship Portfolio

Developed by Cool Pictures and MultiMedia Presentations

The Characteristics of High- versus Low-Cost-to-Serve Customers

Frequent changes in delivery requirements

No changes in delivery requirements

Replenish as produced Pay on time

Net Margin Realized

Price Sensitive but Few Special Demands

Low Low Cost-to-Serve

Developed by Cool Pictures and MultiMedia Presentations

Customer Relationship Management

Developed by Cool Pictures and MultiMedia Presentations

Transactional and Collaborative Working Relationships

Pure Transactional Exchange

(a) Industry Relationship Bandwidths

Pure Collaborative Exchange

Hospital Supplies (e.g. surgical gloves, syringes)

Medical Equipment (e.g. imaging systems)

(b) Flaring Out from the Industry Bandwidth

Learning to Retain Customers

Developed by Cool Pictures and MultiMedia Presentations

Chapter Five Segmenting the Business Market

Developed by Cool Pictures and MultiMedia Presentations

High-Growth Companies Succeed By:

Selecting welldefined groups of potentially profitable customers.

Developing distinctive value propositions.

Focusing marketing resources on acquiring, developing, and retaining profitable customers.

Developed by Cool Pictures and MultiMedia Presentations

Five Criteria for Evaluating Potential Market Segments

Accessibility Substantiality Compatibility Responsiveness

Developed by Cool Pictures and MultiMedia Presentations

Technological Environment Assessment

Developed by Cool Pictures and MultiMedia Presentations

Developed by Cool Pictures and MultiMedia Presentations

Bases for Segmenting Business Markets

Developed by Cool Pictures and MultiMedia Presentations

Selected Macrolevel Bases of Segmentation

Developed by Cool Pictures and MultiMedia Presentations

Selected Microlevel Bases of Segmentation

Developed by Cool Pictures and MultiMedia Presentations

Purchasing Strategy Classifications

Developed by Cool Pictures and MultiMedia Presentations

Developed by Cool Pictures and MultiMedia Presentations

An Approach to Segmentation of Business Markets

Developed by Cool Pictures and MultiMedia Presentations

Organizational Demand Analysis

Developed by Cool Pictures and MultiMedia Presentations

Organizational Demand Analysis

Composed of: Sales forecasting

Developed by Cool Pictures and MultiMedia Presentations