The Importance of Managing Customer Relationship in Improving Competitive Advantage in B2B Market
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
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