Marketing and Purchasing in a Business Market

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FÖ2009 Marketing and Purchasing in a Business Market

The Importance in Managing Customer Relationship to Improve Competitive Advantage in B2B Market

Author: Lin Yu Ju (h10yjlin@du.se)

Teacher: Lena Bjerhamma

Table
 of
 Contents
 
1.
 Introduction
  2.
 Purpose
  3.
 Methodology
  4.
 Literature
 Review
  5.
 Result
  5.1
 The
 definition
 of
 Customer
 Relationship
 Management
  2
  2
  3
  3
  3
  3
 

5.2
 The
 advantages
 of
 integrating
 Customer
 Relationship
 Management
 in
 B2B
 market
  5
  6.
 Conclusion
  7. Reference:
  6
  7
 

 

 

1.
 Introduction
 
The contemporary business market has been changing dramatically for the last few years. The volumes of transaction have switched from business-to-customer into business-to-business. Business customers no longer need to travel for a long distance to visit another business firm’s warehouse or office to make orders, it can be done through online internet platform. Company’s orientation is changing from business oriented to customer oriented. The concept of Customer Relationship Management, also called CRM was not a wellknown term until recent years. The term was officially brought up since 1976 by Londe and Zinser, although more and more have this concept of CRM or customer service been developing, it has not been practically used by companies until the 1990s. (Joost, 2004 and Payne, 2006) Through the application of CRM into B2B market, it enable firms to develop a closer relationship to their target customer group, retaining the profitable customer, getting the first-hand information about the customer’s thought and develop a long term relationship with the customers. With these strategies, it increases the customer value as well as a firm’s competitive advantages from its competitors.

2.
 Purpose
 
The purpose of this paper is to illustrate and deepen our understanding of customer relationship management in a business-to-business market, and point out the benefits from integrating CRM in B2B market. Firstly, the author will provide some background information about managing company and customer relationship. Secondly, the paper will look into the reason why and how it is emerging in the contemporary business market, and how can it increase a company’s competitive advantage.

 

2
 

3.
 Methodology
 
In order to complete this paper, the authors used mainly website online document articles, which were found through the school library website of Högskolan Dalarna’s searching engine called the Summon Beta. The searching engine allows the author to refine the search into peer-reviewed publication and full text articles. Through this website, the author was able to get more insights about customer relationship management. One book regarding CRM was also used in supporting the research. The articles relating to CRM, which the author has been reading, sometimes provide different angles and approach in achieving CRM. Therefor the author needs to make analysis of defining CRM from different references.

4.
 Literature
 Review
 
Nowadays, customer relationship management and business-to-business market are one of the two hottest topics in the business market. Both of them share some similarities, such as the usage of technology, or the on-on-one business marketing etc.; from integrating them, it may create benefits to the business firm. CRM is used as an information system, where firms store the customer’s purchasing record, purchasing preference or problems or complaints about the products. With these databases, firms are able to improve their customer service, create innovation of the products according the customer’s preference, as well as increasing their customer loyalty, which all of these will generate into a larger customer value and profit to the firm....
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