RELATIONSHIP MARKETING

Relationship Marketing

Relationship Marketing

Task 1: Literature Review

Introduction

In recent years, the greatest advancement in transforming and building the company based on made two categories: customer value and the management of customer value (customer value management). However, both in literature and in practice the activities of enterprises, there are many questions, like how to understand these categories and how to measure it (Bearden, et. al., 2011, pp. 104-106). Undoubtedly, the managers must be taken into account in strategic decisions aimed at increasing enterprise value. The company provides value to customers in the form of products, services and information, and buyers and consumers provide a value for the company in the form of streams of earnings, cash flow, information, etc.

Investments in customer today can bring benefits to the company in the future. In this sense, customers are assets, which the company has to invest, but also must evaluate the potential returns on those investments. Investment in customers must be treated as long-term decisions, building a client-company relationship (Klassen & Menor, 2006, pp. 64-67). 

Discussion

Customer value: the measurement and management (Automobile Industry)

In the automobile industry, customer value for the company is now the basic category, as there are more powerful conviction also confirmed empirically that the value of customers has a direct impact on company value, shareholder value and is increasingly market-value basis for valuation of a company through out in the automobile sector. The author further added that the future of competition involves a completely new approach to value creation, based on co-creating value for customers and in fact, these emerging patterns of interaction between the consumer shape and the company value creation process by challenging existing ways of doing business (Siess, 2003, pp. 121-125). In the automobile sector, the essence of the client as co-founder of the company implies a departure from the separation of functions and management of production of the consumption function and the treatment of the market as a forum for exchange of value between the company and the customer.

This close interaction (cooperation) between customers and the company must be based on the commitment of both parties in building shareholder value and enterprise value will increase with the increase of experience co-creation (Best, 2005, pp. 171-174). The basis of customer co-creation of value is to identify what clients bring to the company, which streams generated by the customer to the company acquires its value, because the value for business customers must be expressed in what they bring to the company. In the traditional and narrow approaches to customer value is limited to the viability or profitability of transactions in the customer life cycle in the company (CLV-Customer Lifetime Value). At the moment, in the automobile industry, the requirement is of the broader view of customer value, i.e. the consideration of all the streams created by the companies and the desire to measure the value of those streams (translate them into financial values). The following streams are not only the elements that create the value customers, but also is an investment clients ...