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ch7 CRM customer r/s mkting - Coggle Diagram
ch7 CRM customer r/s mkting
1 Build customer r/s & customer equity
customer r/s mgmt
: overall process of building & maintaining profitable customer r/s by delivering
superior customer value
&
satisfaction
customer-perceived value
: diff between Ttl customer perceived benefits & customer cost
customer satisfaction
: extent to which perceived performance matches buyer's expectations
chging
nature of customer r/s
: increasingly dynamic
conduct
customer profitability analysis
to identify types of r/s w customers (STP process)
types of r/s
BASIC r/s: low margin customers
FULL partnerships: key customers
SELECTIVE r/s mgmt: weed out unprofitable customers
hv > deeply & interactive r/s
dvlp customer-managed r/s
: abt mkting r/s in which customers, empowered by tdy's new digital tech, interact w Co & w each other to shape their r/s w brands
digital & social media mkting:
use digital mkting tools (websites, social m, mobile ads/apps, email & blogs) that engage consumers anywhere, anytime via their digital devices
managing customer r/s & capturing customer value
customer lifetime value
: value of entire stream of purchs that customer makes over a lifetime of patronage
share of customer
; portion of customer's purchasing that Co gets in its pxt categories
customer equity
: Ttl combined customer lifetime values of all Co's customers
2 planning mkting: partnering to build customer r/s
partner r/s mgmt
: work closely w partners in other Co depts & outside Co to jointly bring greater value to customers
internal value chain:
series of depts that carry out value creating activities to design, produce, mkt, deliver & support a firm's pxts
partner w others in mkting system
value delivery network/ industry value chain
: made up of Co, suppliers, distributors & ultimately customers who partner w each other to improve performance of entire system
downstream VN
: w distributors/ mkting intermediaries
upstream value network
: w suppliers & sources of origin
3 role of trust in r/s
2 conditions to build in r/s: TRUST & Value contribn
2 components of TRUST
COMPETENCE
: perception of dependability
BENEVOLENCE
: Perception of priority & goodwill in r/s
behavioural concepts
bounded rationality
: limits to info & understanding
opportunism
; self-interest above corporate/ partnership interest (Williamson, 1985)
principles of organizational design
that influences risk perception
asset specificity
: involve switching cost
externality
: external effects from decisions of others
Assumptions by Ring & Van de Ven (1992)
firms face: commercial, technological, engineering risks
factors of risk rises proportionately as time, info & ctrl decrease
Traditional methods of undertaking transactions
using MKTS: Discrete mkt transactions, occurs between indep firms
characteristics of using mkts
buyer only interested only in price as assumed that suppliers sell
HOMOGENEOUS
goods
Short term
; buy from supplier in 1 time period is no guarantee that buyer will go bk to supplier in future time periods
LOW risk, LOW trust
In HIERARCHIES: hierarchical managerial transactions, carry out activities in-hse. occurs within org/ grp of Co
under circumstances of uncertainty, hierarchical governance offer greater protection & ctrl than reliance on mkr
when activity is vital/ of strategic value to firm
HIGH risk, LOW trust
4 use r/s instead of mkts/ hierarchies
2 types of CRM r/s (Ring & Van de Ven, 1992)
RECURRENT contracting
: repeated exchgs of assets that hv 'moderate degree of asset specificity', limited extent to which assets are specific to that particular exchg (for mkter means they can be used in exchgs w other customers)
HIGH trust, LOW risk
RELATIONAL contracting
: involve LT invmts
propety, pxts & service may be jointly dvlped & exchg, involve asset-specific invmts
disputes resolved thru
internal negotiation
to ensure equity & efficiency outcomes are recognised
HIGH trust, HIGH risk
5 networks & r/s
NETWORKS: 2 or more orgs involved in LT r/s
exist between Cos/ ppl (social network)
Mkters need to understand network to increase
network efficiency
(degree to which firm's network of alliances involved firms that possess
non-redundant
KL, skills & capabilities)
benefits of high network efficiency
increase firm exposure to novel info from allying w firms from diff industries
increase likelihood that firm will find additional opps to transfer what it has learnt in new alliance to other network members & bring novel new resources to bear on its mgmt of new alliance
Evaluation of network efficiency
SIZE: Ttl/ potential links in network of an individual/ org
Density- diversity (Birley et al, 1991)
DENSITY: proportion of contacts who know each other well as a % of potential no. close associations, which would arise if all contacts knew every other contact well apart from focal org
PRO; increase flow & speed of info flow
CON: increase similarity of ideas, norms & values, this lack of diversity reduces network efficiency due to high redundant info/ KL & resources
CLUSTERING: compartments of particular network that hv a higher density than rest of network
CENTRALITY: no. orgs focal org can reach & the aggregate dist to them
the > orgs focal org can reach & the shorter the aggregate dist to them, the higher the centrality of the focal org
how does focal org benefit from centrality?
info flow quickly in the periphery of the network & come to org from range of others who dk each other, thus providing diff perspectives
benefit of centrality: central position in a network provide assess to info & resources from peripheral parts of network, which others cannot reach