the partnering route: innovate and integrate with your customers
DESCRIPTION
Relationship MarketingTRANSCRIPT
Akash C.Mathapati
The Partnering Route
Innovate and Integrate with your customer
Akash C.Mathapati
Collaborate on Design1st Model Nypro collaboration with vistakon There would be no innovation without
uncensored complete sharing of knowledge, insight and inspiration
Customer improvement teams from both companies meet formally every 6 weeks
Since 1989, Nypro’s automated system has manufactured more than 2 billion defect free plastic molds for vistakon
Vistakon is a industry giant with more than 40% of the US market
Akash C.Mathapati
Focus on customer’s customer GE plastics worked in partnership with Delphi
Interior and Lighting Systems (Delphi-I), a GM component supply division
Akash C.Mathapati
Synchronize your operations2nd Model Nypro – Abbott Lab
New plastic blood-test pack
Synchronized technology and integrated systems
Nypro tied the control processes of its manufacturing system
Abbott tied Nypro directly to its customer order information
Helped both the co’s by providing a platform for their continuing joint search for product, process & cost improvement
Akash C.Mathapati
Make Teamwork Work Two crucial aspects for successful joint
operational partnering Supplier & customer must sync their info & tech Needs to designate certain of its employees to
work on cooperating teams NovaCare – National Health Care Affiliates, Inc
(NHCA) Acquisition of InSpeech NHCI represented about 20% of total business Planned & managed rehab therapy operations
together NovaCare has assigned members to work with
NHCA’s rehab
Akash C.Mathapati
Shift To Business Integration3rd Model Marshall Industries US’s fourth larget
distributors of electronic components Diagonastic Instrument Corporation
Akash C.Mathapati
Relationship Marketing in Services
Akash C.Mathapati
Relationship marketing terminology in the services literature 1983
Recognition of the need to market formally to existing customers appeared earlier
Prof.Levitt emphasized the need for firms to
engage in constant reselling efforts
Akash C.Mathapati
Relationship Marketing in Services What accounts for the accelerated interest in
relationship marketing in services ? Four convergent influences have propelled the
current focus on relationship marketing a. Maturing of services marketing b. increased recognition of potential benefits for
the firm and customers c. technological advances
Akash C.Mathapati
Implication of marketing a performance rather than an object are well understood today
Reality of many services being rendered on an ongoing or periodic basis coupled with the reality of customers forming relationship with people rather than goods paves the way for relationship marketing
Repeated contact between customers and service providers
Services often requires reselling efforts
Akash C.Mathapati
Benefits to the firm Service industries competition has been fierce
since 1990’s Banks, Airlines Marketing to protect customer base has become
imperative Reduce customer defection, duration of the
relationship doubles
Akash C.Mathapati
Benefits to the customers High involvement services also hold
relationship appeal for customers Services illustrate some or all of the
significant characters – importance, complexity, involvement etc
Causes many customer to desire continuity with same service providers
Risk reduction benefit of having a relationship with a supplier, customer can reap social benefits
Akash C.Mathapati
Technological Advances Marketers are likely interested in relationship
marketing if its affordable and practical United services automobile asso (USAA)
1994 2.6 million members & associate member Walgreen fills more than 7% of all
prescriptions in USA Intercom satellite based computer sustem