chapter 10 channel relationship management. theoretical basis of crm relationship marketing theory...
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Chapter 10 Channel Relationship Management
Theoretical Basis of CRM
Relationship Marketing Theory
Transaction Cost Theory
Resource-dependent Theory
Strategic Alliance Theory
Core-competence Theory
Concept of CR
Channel Relationship
Transaction Benefit School of Hunt
Transaction Partner School of Stern
Transaction Benefit School of HuntHunt(1983)thinks that channel relationship a kind of
exchange relationship that contributes to mutual interests of the channel members based on the perspective of transaction,which is widely recognized by many scholars.
Pelton and someothers(2002)developed Hunt’s definition about the channel relationship by defining it as various relationships that aim at creating customer value during the process of acquiring,consuming and disposing the prdocuts and services.The think the channel relationship is emerging to adapt to the market need as a means of serving the market.
Transaction Partner School of Stern School of transaction partner think channel relationship is that the
related parties recognize each others’ special status and regard each other as its parnter to improve the product quality and reduce
management costs in a concerted effort, based on the trust.
Gronroos developed this idea in 1990.He thinks channel relationship is the member relationship which is exchanged ,promised ,built ,maintained and commacialized with the aim at realizing all the channel memebers’goals.
In 2001 Stern further ponited out that the nature of the channel relationship is that the channel members concert efforts to build alliance between the upstream enterprises and the downstream enterprises to maintain the sustainable competition and excessive profits.
Based on the study fruits of many scholars ,we could see that
Channel Relationship is a reciprocal relationship which is built from the upstream to th downstream based on the interactions among the channel members,which aims at acquiring greater channel value.
Components of Channel
Relationship
Components of Channel Relationship
Common vision
Mutual trust
Behavioral cooperation
Sharing of information and benefits
Value of channel relationship
Synergy Effect
Sharing of detailed customers’ information
Sharing about the other party enterprise ability to realize the increasing income of own enterprise ability
Key Words of Channel Alliance
Awareness
Exploration
Expansion
Commitment
Decline and Dissolution
Discussion Comparison between TC & RC
A B C D E
Nature Supplier Manufacturer Distributor Consumer
Transaciton Distribution Relatinship DistributionUnstable relationship Stable relationship
Single transaction Mutiple transaction
Short cooperative time Long cooperative time
Statisfying customers in one way Statisfying customers in many ways
one time transaction Distributors’ loyalty
Occasional action Schemed action
Independent transaction goal Realizing the goal of sharing
Small supplier quantity Large supplier quantity
Pursuiting profits per transaction Solving the promblems in a long term
Acquring new customers continously Maintaining the current customers
Low trust between each other High trust between each other
Few cooperative contents Many cooperative contents
Little feedback to each other Much sharing resource
Main Factors of Channel Members’ Relationship
1) Trust
2) Mutual Dependence
3 ) Influence Strategy
4 ) Reputation & Promise of Suppliers
5 ) Uncertainty of Environment
Information Flow
Material Flow
Capital Flow
Relationship-oriented Innovation of Channel Management
consumerManufacturersupplierSales
Agent
Philosophy Innovation
Management Innovation
Mechanism Innovation
Process Innovation
Thank you for your time!
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