PARTNERSHIP TO BUILD CUSTOMER RELATIONSHIPS

Question : How does marketing work with partners to create and deliver value?

INTRODUCTION:

Customer value is a key component of the marketing formula for success. However, marketers themselves cannot create more value for customers. Marketing plays a key role, but it can only be a partner in acquiring, retaining and growing customers. That is, in addition to managing relationships with customers, marketers they must also practice managing partner relationships.

1) Must work closely with partners in other company departments to create effective internal value chain that serves customers.

2) They must cooperate effectively with other companies in the marketing system to create a competitive company an excellent external network for delivering value.

We now take a closer look at the concepts of the enterprise value chain and the value delivery network.

DEFINITION OF VALUE CHAIN:

A value string can be defined as:

A number of internal departments that perform value-creating activities to design, manufacture, sell, supply and support the company's products.

Marketing's Value
chain

Partnering with
other departments

Partnering with
Others in the
Marketing System

1. Partnership with other departments:

Each company department can be considered as a link in the company's internal value chain, i.e. each department performs value-creating activities in design, manufacturing, marketing, delivery, and support of the company's products. The success of a company does not depend only on how well each department works his work, but also on how well individual departments coordinate their activities. Like Porter's value chain model, it explains that making a profit is only possible through coordination of multiple activities. And these diverse activities are carried out by different departments organization. So we need to maintain linkages and partnerships across departments. The first activity in the value chain is inbound logistics, which includes all receiving, storage, and management of stocks of raw materials ready for production. The second activity is operations which includes all efforts to transform raw materials into a finished product. Outbound logistics is the third activity in the value chain and takes place after all operations completed and the product is ready for the customer. Activities required to deliver the product to the end user are considered part of outbound logistics. Marketing and sales are the fourth part of the value chain and include all strategies to increase product visibility, meet consumer needs with the product, and facilitate the sale of the product. Activities include channel selection, advertising and pricing. The service is the fifth and final step in a company's value chain and describes all the activities that create a better consumer experiences such as customer service, refund and exchange programs, and warranty and repair services.

For example, Walmart offers its customers "Save money, live better". Walmart's goal is

create value and customer satisfaction by providing customers with the products they want at the lowest possible prices. Merchandisers play an important role at Walmart. They learn what customers need and stock store shelves with the desired products at unbeatable low prices. They are preparing an advertisement and merchandising programs and assist shoppers with customer service. Through these and other activities

Walmart merchants help deliver value to customers.

Walmart's Marketing department

R&D
Advertising
Purchase department
Informarion Technique
Operation

However, the marketing department needs help from other departments in the company. Walmart's the ability to offer the right products at low prices depends on the skills of the purchasing department in development necessary suppliers and purchase from them at a low price. Walmart's IT department must to provide quick and accurate information about which products are sold in each store. And his surgery people must ensure efficient, low-cost handling of goods.

Challenges in partnership with other departments:

1. Resistance from other departments:

Relationships in the department are full of conflicts and misunderstandings. Marketing the department takes the consumer's point of view. But when marketing tries to develop the customer satisfaction, it may cause other departments to do a worse job under their circumstances. Marketing Departmental actions can increase purchasing costs, disrupt production schedules, increase inventory, and cause budget problems. Other departments can therefore resist marketing departmental efforts.

2. Think about the customer approach:

Marketers must find ways to get all departments to “think about the consumer” and develop a smoothly functioning value chain. True market orientation does not mean becoming marketing oriented powered by; that is, the entire company (including all departments) is obsessed with creating value for the customer. It should be considered as a unit of a bundle of practices that profitably create, communicate and deliver value to your target customers.

2. Partnership with others in the marketing system

In today's market there is no more competition between individuals competitors. Rather, it takes place between the entire networks of value delivery that these networks create competitors. Customer value delivery network means the network formed by the company, its suppliers, its distributors and ultimately its customers working together to improve performance of the entire system. Partnering with others in the marketing system means looking into the company's value chains suppliers, distributors and ultimately its customers. More companies today collaborate with others supply chain members—suppliers, distributors, and ultimately customers—to improve network performance of delivering value to customers. For example, around the world, McDonald's finely tuned value delivery system provides a the high standard of QSCV - quality, service, cleanliness and value. McDonald's is only effective for to the extent that it successfully works with its franchisees, suppliers and others to co-create “our customers' favorite place and way of eating”. Another example is that Toyota's performance against Ford depends on Toyota's quality total supply network value versus the Ford network. Even if Toyota made the best cars, it could lose out marketplace if the Ford dealer network provides sales and service that is more satisfactory to customers.