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Results of P5: Customer Orientation and Marketing
Olga Tretyak, Nikita Popov, Aleksandr Rogkov, Ekaterina
Buzulukova
12 March 2010
Hämeenlinna, 2010
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 1. Structure of the chapter.
1
What is a market-oriented interfirm network?
2 Managing customer
relationships (B2B)
4
3 Managing supplier
relationships (B2B)
How to engineer a
customer-oriented network of partners?
Stage 1
Setting the framework
Stage 2
Relationship facet
Stage 3
Network development
5
How to cope with
the risks involved?
Stage 4
Study of risks
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 2. The research focus.
THE SCOPE OF
MARKETING MANAGEMENT
APPROACHES
Market orientation
Customer orientation
Competitor orientation
Market domination
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 3. The preliminary framework of market-oriented interfirm network.
Market knowledge
sharing
Cross-firm
planning of CRM,
SCM
Motivation and control
for market orientation
Network
information
systems
Network
collaboration
structures
Control structures
and shared values
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 4. Evaluation of network’s degree of customer orientation.
higher
value creation
market share growth
risk management
uncertainty avoidance
cost management
cost cutting
lower
Reactive approach
Proactive approach
Project description and objectives
The study of interfirm level customer orientation’s relationship facet
included a study of interfirm customer relations, CRM tools and
customer orientation, as well as a study of relationships with suppliers.
Main objectives of the customer relations study were:
•
To identify levels of customer orientation and ways of customer value
creation;
•
To identify main stages of customer relations development, as well as
issues emerging at each stage;
•
To identify most frequent tools and practices used for CRM.
Purchasing study aimed at:
•
Investigating how purchasing management in a chain of firms evolves
when certain changes in demand occur
•
Identifying purchasing practices which are present at different levels of
network-level market orientation.
Project description and objectives
•
Network development facet study was devoted to describing the relationship
development process of five Finnish companies on the Russian market. Its
immediate task was to show different types of entrance strategies and difficulties
in strengthening relationships with the local partners. Also common market
difficulties and special company’s problems were revealed. The last objective
was to investigate the role of RM in customer satisfaction
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 5. The phases of relationship development.
Stage 1
Creation
Stage 2
Operation
Stage 3
Evolution
Stage 4
Dissolution
Source: (Camarinha-Matos and Afsarnabesh, 2003)
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 7. Different entry strategies to Russian market employed by Finnish
companies.
Parent Finnish
Company
Finnish
Company
Parent
Finnish
Company
Russian
Company
Russian
Company
Subsidiary
Finnish
(Russian)
Company
Russian
Company
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 8. The phases of relationship development.
Stage 1
Partner
search
Stage 2
First
meeting
Stage 3
Project
draft
Stage 3
Price and
details
Stage 5
Contract
and future
plan
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 9. Relationship stability drivers.
Interest in
relationships
Business
relations
turnover
Readiness to
adapt
Social
bonds
Relationship
atmosphere
Knowledge
bonds
Technical
bonds
Economic
bonds
Customer firm turnover
Developing marketing for the STROI-network. Report for Perspective 5: Marketing
Figure 9. Groups of Russian market difficulties.
Managing
personnel
High
Environment
Uncertainty
Construction
norms, low
regulations
Russian Market
Difficulties
State
institution
Relations
Partners
Relations
Accounting
RESEARCH RESULTS AND INDUSTRIAL IMPACT
•
Investigated companies exhibit relatively low level of customer orientation, and don’t measure customer
satisfaction;
•
Investigated companies exhibit relatively low level of CRM tools and policies usage;
•
When securing customer company’s commitment becomes possible, companies don’t pay due attention to
it;
•
Customer companies pass through relationship stages individually, and success in reaching commitment
stage mainly depends on particular manager’s knowledge and experience;
•
Companies have developed systems to evaluate performance of suppliers and the products supplied, but
not of supplier relationships;
•
Some firms are buying from suppliers which disregard final customers’ needs and have poor purchasing
capabilities, and this prevents these firms’ ability to translate its own customer knowledge into tailored
value propositions;
•
Successful implementation of three types of market entry strategies can be observed;
•
As perceived by firms, trust, honesty, willingness to conduct open dialog, readiness to adapt and great wish
to work account for relationship stability (over and above economic returns);
•
Main difficulties of companies are macroenvironmental factors (such as bribes, obsolete standards,
changing legislation);
•
While many firms maintain strong relations with their suppliers (often also Finnish firms), few firms develop
strong customer relationships.