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Business Market Management 3 rd  edition Managing Customers Chapter 10
Section IV:  Delivering Value Business Market Management,  3 rd  edition Chapter 10-
Chapter 10:  Managing Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Managing Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
I.  Differentiating Transactional and Collaborative Customers Business Market Management,  3 rd  edition Chapter 10-
Thinking Strategically about Relationships ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
The Working Relationship Continuum and Industry Bandwidth Business Market Management,  3 rd  edition Chapter 10-
Industry Bandwidths ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Partnering as a Focused  Market Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Partnering as a Focused Market Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
II. Pursuing Growth and Continuity Business Market Management,  3 rd  edition Chapter 10-
Pursing Growth and Continuity ,[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Pursuing Growth in a  Customer Account ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10- Which customer  share growth  prospects are  worth pursuing? How should we grow business with a  customer over time?
Different Paths to Building  Customer Share Business Market Management,  3 rd  edition Chapter 10-
Foot-to-Door Approach Business Market Management,  3 rd  edition Chapter 10-
Ideal FITD Candidate ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Customer Acquisition and Retention Business Market Management,  3 rd  edition Chapter 10- Acquire Customer Foot-in- The Door Follow-on Sales Other Sales Retain Customer Time Revenue
Problems with FITD Strategy ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
All-at-Once Approach ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
HP’s Migration Strategy Business Market Management,  3 rd  edition Chapter 10- Develop trusted advisor relationship Migrate up to IT  Infrastructure and  enterprise-wide solutions  Start where HP has a price/performance advantage
Pursuing Continuity ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Promote Honest and  Open Communication ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Bridging ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Build Trust and Commitment ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Building Trust Business Market Management,  3 rd  edition Chapter 10-
Trust and Commitment Business Market Management,  3 rd  edition Chapter 10- Pledge ,[object Object],[object Object],Commitment ,[object Object],[object Object],[object Object],[object Object],Guarantee ,[object Object],Service Recovery System ,[object Object]
Business Market Management,  3 rd  edition Chapter 10- Courtesy of Cushman & Wakefield
Implement Coordination Mechanism Business Market Management,  3 rd  edition Chapter 10- Coordination ,[object Object],[object Object],[object Object],Market-Clearing Price ,[object Object],[object Object],[object Object],[object Object],Power ,[object Object],Cooperation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Anticipate and Resolve Conflict ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Three Primary Sources of Disagreements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Conflict Resolution Mechanisms ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
III. Delivering Superior Value with Relationship-Specific Offerings Business Market Management,  3 rd  edition Chapter 10-
Flaring Out from the  Industry Bandwidth Business Market Management,  3 rd  edition Chapter 10- a d b c Pure Transactional Exchange Flaring Out By Unbundling Focal Industry Flaring out with Augmentation Pure Collaborative Exchange
Construct Relationship-Specific Market Offerings Business Market Management,  3 rd  edition Chapter 10- Flare Out from Industry Bandwidth Supplier firm tries to gain a competitive advantage over other suppliers by better meeting customer requirements and preference sin both collaborative-emphasis and transaction- emphasis segment Flare Out by Unbundling Eliminate certain standard elements from the market offering entirely or transform them into options Flare Out with Augmentation Draw on the practices of more collaborative industries and add new programs and systems that collaborative accounts will value to the standard offering or as options
Price Relationship-Specific Offerings ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Focused Share Building ,[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Multiple Single-Sourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Building New Organizational Capabilities ,[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Adopt New Profit Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Document the Profitability of Greater Share ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
IV. Managing a Portfolio of Customers Business Market Management,  3 rd  edition Chapter 10-
Customer Relationship Management Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Measuring Cost-to-Serve Customers and Customer Loyalty ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Loyal Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
The Loyalty Ladder Business Market Management,  3 rd  edition Chapter 10- Willing to pay a premium Actively seeks to expand relationship Buys a bundle of products Skeptic— Willing to be  convinced Enthusiastic  Advocate Invests in the relationship Switcher—will buy if the price is right Cynic—won’t buy
The Loyalty-Customer Management Effort (Cost-to-Serve) Framework Business Market Management,  3 rd  edition Chapter 10- Most Valuable  Customer (MVC) Partner Switcher Undesirable  Customers Customer Management Effort Position on the Loyalty Ladder Lo Hi
Organizing the Selling Effort Business Market Management,  3 rd  edition Chapter 10- Undesirable Customers ,[object Object],[object Object],[object Object],[object Object],Partners ,[object Object],[object Object],Most Valuable  Customers ,[object Object],[object Object],[object Object]
Executing Migration Strategies ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Motorola’s Statement of  Partnership Goals Chapter 10- Business Market Management,  3 rd  edition Objective I Objective II All partnership programs such as codesign or joint development will result in profits for both Motorola and its partner firm. Motorola’s sales to the partner firm will be substantial or exhibit significant growth potential. Objective III Objective IV Motorola should have a significant, if not exclusive, share of the partner’s business. The partnership should contribute to the achievement of Motorola’s technology roadmap goals.
Emerging CRM Applications ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
V. Sustaining Customer Relationships Through Connected Relationships Business Market Management,  3 rd  edition Chapter 10-
Managing with a Business Network Context ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Framework for Crafting Strategies Business Market Management,  3 rd  edition Chapter 10-
Adding Value through  Business Networks ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
VI. Looking Ahead—A Final Thought on Managing Customers Business Market Management,  3 rd  edition Chapter 10- “ Whom we serve affects what we are, and what we are affects whom we can serve.”
Strategic Approach on Managing Customers Business Market Management,  3 rd  edition Chapter 10- Step 1 ,[object Object],[object Object],Step 2 Construct and implement appropriate relationship-specific offerings at every stage in each customer relationship Step 3 ,[object Object],[object Object],[object Object]
VII. Summary Business Market Management,  3 rd  edition Chapter 10-
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 10-
Business Market Management,  3 rd  edition Chapter 10- All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall

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Chapter10

  • 1. Business Market Management 3 rd edition Managing Customers Chapter 10
  • 2. Section IV: Delivering Value Business Market Management, 3 rd edition Chapter 10-
  • 3.
  • 4.
  • 5.
  • 6. I. Differentiating Transactional and Collaborative Customers Business Market Management, 3 rd edition Chapter 10-
  • 7.
  • 8. The Working Relationship Continuum and Industry Bandwidth Business Market Management, 3 rd edition Chapter 10-
  • 9.
  • 10.
  • 11.
  • 12. II. Pursuing Growth and Continuity Business Market Management, 3 rd edition Chapter 10-
  • 13.
  • 14.
  • 15. Different Paths to Building Customer Share Business Market Management, 3 rd edition Chapter 10-
  • 16. Foot-to-Door Approach Business Market Management, 3 rd edition Chapter 10-
  • 17.
  • 18. Customer Acquisition and Retention Business Market Management, 3 rd edition Chapter 10- Acquire Customer Foot-in- The Door Follow-on Sales Other Sales Retain Customer Time Revenue
  • 19.
  • 20.
  • 21. HP’s Migration Strategy Business Market Management, 3 rd edition Chapter 10- Develop trusted advisor relationship Migrate up to IT Infrastructure and enterprise-wide solutions Start where HP has a price/performance advantage
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Building Trust Business Market Management, 3 rd edition Chapter 10-
  • 27.
  • 28. Business Market Management, 3 rd edition Chapter 10- Courtesy of Cushman & Wakefield
  • 29.
  • 30.
  • 31.
  • 32.
  • 33. III. Delivering Superior Value with Relationship-Specific Offerings Business Market Management, 3 rd edition Chapter 10-
  • 34. Flaring Out from the Industry Bandwidth Business Market Management, 3 rd edition Chapter 10- a d b c Pure Transactional Exchange Flaring Out By Unbundling Focal Industry Flaring out with Augmentation Pure Collaborative Exchange
  • 35. Construct Relationship-Specific Market Offerings Business Market Management, 3 rd edition Chapter 10- Flare Out from Industry Bandwidth Supplier firm tries to gain a competitive advantage over other suppliers by better meeting customer requirements and preference sin both collaborative-emphasis and transaction- emphasis segment Flare Out by Unbundling Eliminate certain standard elements from the market offering entirely or transform them into options Flare Out with Augmentation Draw on the practices of more collaborative industries and add new programs and systems that collaborative accounts will value to the standard offering or as options
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42. IV. Managing a Portfolio of Customers Business Market Management, 3 rd edition Chapter 10-
  • 43.
  • 44.
  • 45.
  • 46. The Loyalty Ladder Business Market Management, 3 rd edition Chapter 10- Willing to pay a premium Actively seeks to expand relationship Buys a bundle of products Skeptic— Willing to be convinced Enthusiastic Advocate Invests in the relationship Switcher—will buy if the price is right Cynic—won’t buy
  • 47. The Loyalty-Customer Management Effort (Cost-to-Serve) Framework Business Market Management, 3 rd edition Chapter 10- Most Valuable Customer (MVC) Partner Switcher Undesirable Customers Customer Management Effort Position on the Loyalty Ladder Lo Hi
  • 48.
  • 49.
  • 50. Motorola’s Statement of Partnership Goals Chapter 10- Business Market Management, 3 rd edition Objective I Objective II All partnership programs such as codesign or joint development will result in profits for both Motorola and its partner firm. Motorola’s sales to the partner firm will be substantial or exhibit significant growth potential. Objective III Objective IV Motorola should have a significant, if not exclusive, share of the partner’s business. The partnership should contribute to the achievement of Motorola’s technology roadmap goals.
  • 51.
  • 52. V. Sustaining Customer Relationships Through Connected Relationships Business Market Management, 3 rd edition Chapter 10-
  • 53.
  • 54.
  • 55.
  • 56. VI. Looking Ahead—A Final Thought on Managing Customers Business Market Management, 3 rd edition Chapter 10- “ Whom we serve affects what we are, and what we are affects whom we can serve.”
  • 57.
  • 58. VII. Summary Business Market Management, 3 rd edition Chapter 10-
  • 59.
  • 60. Business Market Management, 3 rd edition Chapter 10- All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall