For this paper I chose an article from the Journal of Business and Industrial Marketing, which is titled Strategic account management: customer value creation through customer alignment. Account management can be defined as “being the management of dedicated sales and/or marketing processes directed towards important customers” (376 Bauwen/Gosselin). The account management strategy is important to a firm because it determines the plan in acquiring and developing their customers. The authors in the article give new classifications for account management based on the interaction between the seller and customer. These classifications focus on a long-term stable relationship while factoring in the importance of customer value thus creating a competitive …show more content…
The first point of confusion is trying to understand if account management is solely just a sale or marketing activity. According to the article, previous literature never distinguished between sells and marketing, but the actual practice of account management focused on customer driven sales. The second point of confusion deals with account management on a geographical scale. The author believes that “account management, whether implemented from a sales or relationship-marketing perspective, will change dramatically when customers geographic scope changes”(379 Bauwen/Gosselin). Therefore account management doesn’t have the same characteristics worldwide as in comparison to locally. The last confusion revolves around the concept of being able to create one best account management structure that works for all companies. Having factored in these three points of confusions a business will be able to implement a strategy that creates a competitive advantage for …show more content…
Even though this is true I believe that the majority of firms need to put an emphasis on their customer value. A business sector that comes to mind when I think of customer value is banking companies. These companies have to rely on an emphasis in customer value because this will lead to the important factor of customer loyalty. If a customer doesn’t feel appreciated by their bank then they will ultimately take their business somewhere else, and then the previous bank will have a decrease in their competitive advantage. One exception that I believe can be made is towards “companies with a production-oriented business approach favoring high production efficiency, low costs (382 Bauwen/Gosselin). These companies on the other hand are trying to produce a product at a large amount and do not have the time or necessity to put a major focus on customer relations. At the end of the day no company can do wrong by implementing an account management strategy that focuses on the value of their
It is managing profitable customers relationships and to create value for customers and to capture value from customers in return.
Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Every organization uses different business strategies in order to remain in business. Some adopt customer- centric strategies; some uses strategies to maximize their profit. For a long time, many organizations have made quality as their selling point.
Weinstein, A. (2012). Superior customer value: strategies for winning and retaining customers (3rd ed.). Boca Raton, FL: CRC Press.
...can be key in improving customer sales. If a customer does not see the value of an organization's product, that customer may begin to shop for a competitor's product based only on price. Price is not the only competitive advantage an organization may have, but if it is not able to articulate the non-price value, it can significantly lower the organization's competitive advantage.
Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
Building a relationship with the customer has evolved into a system in itself be coordinated through them and cooperation between multiple destinations within the organization in order to one strategic objective, namely, to keep the property profitable customers and ensure their loyalty to the maximum possible period. Therefore, the main task of the CRM also be outside the scope of the marketing department and production, warehouse management and to senior management. But the new thing is in conjunction with the development of information and communication technologies, the emergence of what became known as the management of relations with customers electronically
The purpose of this section of this report is to define the marketing concept; to explain what it means to be a market-orientated organisation; and to show that Tesco’s appear to be a successful, market-orientated company. Furthermore, that Tesco’s employ strategic relationship marketing to offer value to customers’; and achieve higher revenues and brand loyalty in return. Finally, to explain that being market oriented may also have some disadvantages if not carried out effectively.
Value has different aspects which include company values; which relates to new innovations, job growth, reducing costs, as well as long term production and so forth. Value must meet customers’ needs which they benefit from the product or service.
Porter argues that no firm can provide value in all the ways that people wish value to be delivered, so they should select one strategy; cost leadership, differentiation or focus. (Robbins & Barnwell, 2002)
As a result of the above they were giving less importance to customer satisfaction and customer relationship building. This form of strategy conformed to short term business motives. In a globalised and highly competitive world, modern marketing is about concentrating ...
In other words, their purchasing power is more focused on their need, health, and efficiency and cost effective. It is with this in mind, this writer would say that there lies a possibility for a company to cater to both its best interest and that of the consumer conjointly. Without customers, there would not be any company; therefore, a secure partnership between the company and customers would be more beneficial for both parties, in that the customers would be loyal to the company based on if they feel valued and if their needs are being met by the company. The company can foster this partnership by building a strong customer relationship management – where they have a customer-centric model in which they learn ways to enhance their product and service through feedback received from the customers. Here, both interests of the company and the customer will be
Customer relationship management has become the marketing buzzword of the past two decades, with business-to-business firms jumping in, many without really being certain of what they hope to achieve from it, and oftentimes being disappointed with the results. Gummesson (2004) describes CRM as "the values and strategies of relationship marketing with particular emphasis on customer relationships- turned into a practical application. " CRM has become a necessity to successfully and profitability manage customers and a firm’s relationship with them, with the market reaching a value of approximately $11.5 billion in 2002. Xu et al. 2002). The 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Secondary' of the 'Second
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.