Customer analysis for strategy development in industrial markets

Abstract

This paper reports on concepts and techniques which have been developed for analysing customers and used as an aid to assessing the strategic position of companies in industrial markets. The emphasis on supplier/customer relationships presented here derives from the interaction approach to marketing and purchasing strategy. Many industrial markets are highly concentrated, and many companies develop in conjunction with key customers in a symbiotic relationship, where strategy evolves as proposals made by either side are either accepted or rejected. To take account of this we propose a 3‐stage framework for analysing customers which builds on and transforms techniques traditionally used for an analysis of products. The purpose of the analysis is to improve the allocation of scarce marketing and technical resources, to reappraise the company's competitive position with different customer groups and to ensure that key relationships are managed effectively.

Total value in business relationships: exploring the link between power and value appropriation

“…Therefore, power between two actors is essentially about the relationship between the utility and scarcity of resources each actor brings to an exchange (Emerson, 1962;El-Ansary and Stern;1972;Jacobs;1974, Pfeffer andSalancik, 1978;Campbell and Cunningham, 1983;Frazier and Antia, 1995;Caniels and Gelderman, 2007). Cox et al, (2000), developed a perspective which explored the dimensions of buyer and supplier power, using the constructs of resource utility, resource scarcity and information scarcity.…”

Power in distribution channels — Supplier assortment strategy for balancing power

“…Several researchers recognize the importance of understanding the power situation in terms of the dependency between buyer and supplier in a business relationship (e.g. Emerson, 1962;El-Ansary and Stern, 1972;Pfeffer and Salancik, 1978;Campbell and Cunningham, 1983;Provan and Gassenheimer, 1994;Frazier and Antia, 1995;Hingley, 2005;Caniëls and Gelderman, 2007). They often argue that the relative power is a result of the amount of utility and scarcity of resources that the buyer and seller respectively bring to a business exchange (also cf.…”

Outward-looking and future-oriented customer value potential management: The sales force value appropriation role

“…In the business marketing context, various customer portfolio management studies represent a central perspective on managing customer relationships based on their value to the selling firm (Campbell & Cunningham, 1983;Fiocca, 1982;Homburg et al, 2009;Johnson & Selnes, 2004, 2005Ryals, 2003;Storbacka, 1997;Tarasi et al, 2011;Zolkiewski & Turnbull, 2002). The wide range of portfolio models focus on "analyzing the current and future value of a firm's customers for developing a balanced customer structure through effective resource allocation to different customers or customer groups" (Terho & Halinen, 2007;p.…”