Lesson 7 Flashcards
What is the paradigm in marketing?
Marketing means to establish, maintain and enhance relationships with customers in a profitable way in order to accomplish the objectives of both parties through the reciprocal interchange and keeping of promises”
What does transaction costs include?
o Inventory costs
o Loading and unloading
o Waste
o Loss
o Delays of deliveries
o Administration
o Frictions etc.
What is Relationship Marketing?
Company behaviour with the purpose of establishing, maintaining and developing competitive and profitable customer relationship to the benefit of both parties
What is monadic relation typology?
Exchange based relationship
Transaction based relationship
Focus only on the product/the specific transaction and the actor (the buyer and seller) – win-lose situation
Transactional marketing means that a service from one of the parties is matched by a service from the other party to the transaction. Today, many companies have recognized that this type of marketing is only based on short-term supplier customer relationships without achieving loyalty between the parties.
What is dyadic relation typology?
Integration based relationship
Relation based relationship
Focus on what is being exchanged and especially the relation between the buyer and seller – win-win situation.
Relationship marketing is a supplier-customer collaboration that aims to develop competitive and profitable relationships for the benefit of both parties.
What are some basic assumptions in relationship marketing?
Distances itself from the traditional 4’p (parameter mix) as a basic marketing perspective
Distancing itself from traditional transaction cost theory
Focus from a strategic perspective, not just on the individual transaction
The starting point is a buyer-seller relationship
Key factors are trust, alignment, and interdependence
No opportunistic behaviour between the two companies
Cooperation rather than competition between the two companies
The relationships between companies in a network can be seen by analogy with the relationship between friends
Over time, the relationship develops – generally speaking – from a low degree of familiarity and thus great uncertainty and distance to being characterised by a high degree of adaptation, trust and dependence.
Explain the subcontrator typology
Categorizes subcontractor relationships based on two factors: coordination level and task complexity. It presents four types of subcontractor relationships:
Standardvare-leverancer - Standard product deliveries with low coordination needs and simple task requirements.
Simple underleverancer - Basic subcontracting with slightly higher complexity but still low coordination needs.
Udvidede underleverancer - Expanded subcontracting, requiring more coordination as tasks become more complex.
Udviklingstrategiske Underleverancer - Developmental strategic subcontracting, characterized by high task complexity and extensive coordination, often aligning with a partnership model.
This typology illustrates that as tasks grow more complex, the coordination between the main company and subcontractor increases, often moving toward a closer, partnership-like relationship.
Explain the customer relationship lifecycle
“The Customer Relationship Lifecycle” shows as a circular process in which the customer progresses through different stages, ultimately influencing their loyalty and retention.
In summary, this cycle emphasizes the importance of delivering quality service consistently at each stage to nurture customer loyalty. It’s a continuous loop where positive experiences drive repeat purchases and relationship growth, while negative ones may result in the customer exiting the cycle.
Explain the customer life cycle CLC
Outlines stages in the progression of a customer relationship over time. It describes how a customer moves through various phases, from initial interaction to possible long-term loyalty or eventual termination.
Each phase reflects the evolving dynamics between customer and company, highlighting that relationship strength and commitment typically grow over time but may also decline depending on changes in the external environment or unmet expectations.
Explain the 5 phase relationship model
Describes the evolution of a relationship between a seller and a buyer across five stages. Each phase has specific characteristics and elements that contribute to the deepening or dissolution of the relationship. Both the seller and buyer adjust their behavior, expectations, and investment based on the relationship phase. Early stages are characterized by independence and testing, while later stages focus on interdependence, trust, and commitment. If the relationship fails to deliver value, either party may initiate the dissolution, akin to a “divorce” in the Commitment Phase.
