crm - b2b marketing

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Customer Relationship Building on the Internet in B2B Marketing: A Proposed Typology Author(s): L. Jean Harrison-Walker and Sue E. Neeley Reviewed work(s): Source: Journal of Marketing Theory and Practice, Vol. 12, No. 1 (Winter, 2004), pp. 19-35 Published by: M.E. Sharpe, Inc. Stable URL: . Accessed: 21/09/2012 01:19Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .

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Sue E. Neeley of Lake The University Houston-Clear

of in the number customer there (CRM) applications relationship marketing currentlyuseontheInternet, is a lack Despite large with This a of ofanorganizing structure. paper focus presents3X3 typology e-CRMpractices, particular onbusiness-to-business is decisionprocessand (2) Berry The interactions. typology based on two dimensions: thestageof thepurchase and (1) Theproposed canbeusedtodesign evaluate firm e-CRM of and s( 1 a Parasuramarf 991) levels relationship 's marketing. typology relative itsB2B relationship to marketing objectives. strategies "relationship customers" and prefer personalized with communication thecompany representative. want They whoknows them understands needs(Beny and have their increasing someone historically emphasized strategies Marketing on andParasuraman and market shareto increase can 1991). Thus, primarily relationship profits, focused marketing be to haveloyal, transactional mass selling. In recent satisfied years,it has become beneficial all participants. Companies customers sales who recommend and themto othersand generate customers increasing that current apparent retaining that positive have shown word-of-mouth. Studies have is Customers efficient, to them farmorecost-efficient. dedicated and on consistent can be up to five times more suppliers trust depend for new customers service.As they winning their ofdoing reduce cost customer thanmaintaining customers business, relationships companies existing expensive may and lower for Reichheld Sasser be offered Leach 2002). In fact, prices products. (Bauer,Grether, the of between defection a negative correlation ( 1990) identify have The emergence the Internet of does not changea firm's customers company and existing profits.Companies fundamental to establish need andmaintaining customer shifted focus their toward stable, strong developing relationships. on Businesses must attract still with increasing an focus build customer and customers, trust, create relationships, long-term satisfaction. and committed value(Berger Nasr 1998). lifetime firms customer Building relationships requires measuring to interact withtheir customers meaning thatfirms must to customers individuals allowing as them to Customersalso recognize that (especially in highly strive treat by are control timing extent buyer-seller the and of interactions and relationships markets) good buyer-seller competitive the of customers sellers and and for As essential thesuccessofboth ("How through customization products services. noted for byMohammed al. (2004,p.224): it et to be a Preferred 1991). In fact, is common Supplier" in transaction-based traditional customers forego to marketing firms Arndt couldbe interactive, as ina such favor relationship of 1979). Particularly "Previously, (cf. marketing face-to-face a butonly with small number of customersoften want to be in service organizations, setting, INTRODUCTION Winter 2004 19

e-business to models. Ps use thefour of marketing arrange (2001) use IT systemsand Gordijn and Akkermans models valuetousers. add how toexplain certain architectures (2001) analyzesbusinessmodelsbased on their Applegate et technical Dubosson-Torbay al. (2002) propose platforms. e-business models to of a number dimensions characterize at but traffic scale,andso forth), stopshort security, (required to e-business them. The onlyattempt classify classifying of on to focuses thestrategic models datethat objectives the to of firm relieson dimensions Businesses increasingly of are relating the sourceof value taking advantage thepower or and target audience withcustomers the (financial non-financial) the in to the Internet build relationships (customers, or publicat large)(Lam and Harrisonelectronic Sharma(2002) channel members, (Bakos 1991). marketplace that in marketing Walker2003). In any event,none of the classifications suggests theuse oftheInternet relationship in on can focuses customer hasincreased duetothevaluethat marketingtheB2B sector. relationship dramatically, primarily The allows be generated delivered customers. Internet and to businesses to the makesitpossiblefor to It In summary, Internet customer. accessto information instant specific a single while them of with numbers customers, communication interact large for where can communities treating provides virtual is reliance the on there increasing in occur and customers company between Although employees a setting as individuals. with the for on thatnevercloses. The dependence reaching someone Internet building relationships customers, business structure that lack in and hours" beeneliminated theproblems models use ontheInternet an organizing has during "regular ties the models to relationship indifferent zonesreduced.Transactions specifically with time marketing operating a is of The can be completed a 24/7 basis. This is particularly objectives. purpose thecurrent on project to present businessthat Internet-enabled the in transactions whereboth typology classifies various important business-to-business the CRM options availableduring various somelimited of to-business set to are stages during parties likely be operating can of businesshours. An additional typology assist advantage the of thedecisionprocess.The proposed "regular" new or in and firms designing CRM strategies, evaluating Internetthe is reduction costsfor of both existing buyer seller.The relativeto the relationship and more CRM strategies, reducestime costs through self-service marketing buyer of efficient ordering processesand the seller reducescosts objectives thefirm. Both elements reduce automated information systems. through is the costoftransactions interactions leadtooperational Theremaining and discussion presented four in sections. and First, for is efficiencies eachparticipant for (Sharma 2002). Forexample, the rationale the typology discussed. Second,the when Dell Computers the receives orders from of proposed are business customers dimensions the Third, typology described. these orders are also instantaneously received by in B2B authors adopta seller'sperspective classifying CRM and the practices within proposed the contributions Fourth, manufacturing,suppliers byFedEx,whodelivers by typology. of the current researchand managerial are (Sharma 2002). computers implications and to identified issuesrelating selective ofCRM application While more thanhalf of all e-commerce occurs in the arediscussed. business-to-business market, mostof theliterature to (B2B) dateon CRM tends focuson business-to-consumer to RATIONALE FOR THE PROPOSED TYPOLOGY (B2C) interactions. B2C interactions involve one-way communication and a passive recipientwhereas B2B Whenchoosing e-business modelsas part a firm's of overall communications are interactive and involve two-way CRM strategy, keyissuesemerge focus thefirm's two that on often and at in communications, in real-time First, what (Varadarajan Yadav strategic objectives. point thebuying process email customized shouldthewebsite used? Shoulditbe usedprior the be to 2002). Online FAQs,automatic responders, webpages,andorder status are to and and customers reports justsomeoftheCRM purchase, attract assist potential existing in more for aboutproduct practices usetoday.Other sophisticated applications in searching and accessinginformation in B2B markets include custom alternatives? Shouldthefocusbe on helping in customers vendor-managed inventory, virtual and involvement placing their the or seminars, training meetings customer order, finalizing transaction, coordinating in product whileas many 50 revenue- fulfillment delivery? should focus onproviding as and Or the be planning.In fact, havebeendeveloped usedon business models and customerservice and promoting continuouscustomer generating the (Hanson Net has after is 2000;Rappa2001), rarely any underlying involvement thetransactioncompleted? rationale beenexplained Walker (Lam andHarrison2003). The secondobjective relates thelevelof relationship to the Whilerecent to wants havewith particular to a customer. Muchhasbeen yearshave seen sporadic attempts classify firm e-business to aboutthevalueofa customer theextent which and to models,classifications date have not written existing beentiedto strategic and HarrisonWalker customers and firms want relationships witheach other (Lam objectives Strauss Frost and wantrelationships with 2003). Forexample, (2001) andShin(200 1) (Dorschand Carlson1996). Firms firms customers. their Similarly, couldindividualize or but scale. offerings, notona large product service The Internet allows for interactivityand out individualization be carried in a way never to before. Withthe adventof the Internet, possible with large businessesare able to both inter