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1 Customer perspective in network business Rozhkov Alexander, SU-HSE 09/02/09
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2 Research project description Research questions Customer Relationship Management (CRM) in B2B (Business to Business) networks: theoretical presentation Development of customer relationship model B2B (Business to Business) networks: –Relationship management –Communication system –Customer attraction and retention techniques –Network coordination Customer perspective in Russian business culture: inner and outer customer relationship in company network
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3 External factors (as reported) Global factors Russia is more exposed to crisis processes than Finland Construction industry is in recession Companies become more oriented on profit than long term relationship Number of customers and suppliers is decreasing dramatically Customer market power is increasing because of decreasing demand Market organization Russian market is much more dynamic than Finnish Competition is much more intensive Legislation and certification
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4 CRM model: Relationship management Customer relation building process Main success factors are interpersonal relations and communication Russian sales staff – as one of the most important instruments of adaptation Initial contact Repeating transactions Initial transaction Legal agreement ! Grey scheme in supply ! Loyal Customer (partner) Legislation and certification
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5 CRM model: Relationship management (2) Main goals in customer relations -Increase in sales volume -Loyalty (build up by credit lines, interpersonal relations and contract terms fulfillment) -No negative feedback -Private label development (for individual customers) Problem solving -Information support on all delays -Additional discounts -Fees and penalties according the agreement
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6 CRM model: customer indicators Initial contact -No particular criteria, all customers are good in crisis period -Company size (?) Repeating transactions -Operation profit -Contract terms fulfillment -Sales volume growth
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7 Intermediate Results Areas of uncertainty Russian partners and their customer base. (accessibility) Business culture aspects in Russia == Value chain modification
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8 Relevant Literature Intercompany relations Cannon, Joseph P. and William D. Perreault Jr. 1999. “Buyer-Seller Relationships in Business Markets.” Journal of Marketing Research 36 (November): 439-460. K. Möller, A. Rajala “Rise of strategic nets — New modes of value creation” Industrial Marketing Management 36 (2007) 895–908 Methodology Mahmood M. Hajjat Customer orientation: construction and validation of the CUSTOR scale. Marketing Intelligence & Planning 20/7 [2002] 428-441 Saxe, R. and Weitz, B.A. (1982), “The SOCO scale: a measure of the customer orientation of salespeople”, Journal of Marketing Research, Vol. 19, August, pp. 343-51. Eisenhardt K. Building theories from case study research. Academic Management Review 1989;14(4):532 –50. Market orientation (network level) Kohli, Ajay K. and Bernard J. Jaworski. 1990. “Market Orientation: The Construct, Research Propositions, and Managerial Implications.” Journal of Marketing 54 (2): 1-18. H. Terho, A. Halinen “Customer portfolio analysis practices in different exchange contexts/ Journal of Business Research 60 (2007) 720–730 U. Elg Inter-firm Market Orientation: Its Significance and Antecedents in Distribution Networks / Journal of Marketing Management, 2002,18, 633-655
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9 Thank You for your attention!
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