Leveraging Technology to Build Operational Excellence
Have you ever wondered as to what it is that makes the Market Leaders perform so well in the market and command as well as sustain the leadership position?. Well, the answer lies in their ability to choose the right marketing value proposition and build the entire business model as well as operations aimed at […]
Post Product Launch
Successful product launch does not end with merely introducing the new product in the market and then forgetting about it. Some organizations tend to adopt a casual attitude once their product is in the market and trust me; this is one of the biggest blunders to commit. Post product launch is often the most underestimated […]
Customer Loyalty Breakers
When customers end up his relationship with suppliers, he breaks the loyalty with him. Following are the reasons which are responsible for loyalty break ups: Customer dis-satisfaction: Customer dissatisfaction is the primary reason that results in breaking up the continued loyalty with the supplier. Most of the unsatisfied customers try to find more prominent alternatives […]
What are Offshore Tax Havens and their Uses and Misuses ?
What are Offshore Tax Havens ? In recent years, there has been a lot of media interest in Offshore Tax Havens or countries where the global companies can base their offices as well as route their investments into emerging markets from offshore subsidiaries. To define offshore tax havens, they are countries where there is no […]
Advertising on Social Networks
Marketing has always been relying on traditional print and visual media for advertising their products and services. The basis of the mass media both in print as well as in visual form is to release one common advertisement to the entire mass in general. Such advertising is controlled by the marketers who have control over […]
Business dynamics have forced the Organizations to recognize Customer as the most important factor responsible for its own existence and survival. Organizations have no option but to be customer centric.
When we say that Organizations have to be customer centric, we are not only referring to the marketing and sales tuning in with the end customer in the market, but to the Organization tuning in to listening to the customer, establishing a relationship with the customer.
When we talk about an Organization’s relationship with the customer, we are not only referring exclusively to the end consumer alone, but to the intermediate agencies that are involved in delivering the Company’s products and services to the end customer too. To the Organization these intermediaries are also its customers.
Depending upon the product, particular market and the business model, an Organization might be engaging with franchisees, Whole Dealers, Stockists, Booking agents, Warehousing partners, Distribution partners etc.
Normally it is understood that the relationship between the company and the channel is based on the commission, product volumes and the targets set for sales etc.
If you analyze the network you will find that there is a power play that operates between the Organization and the partner which needs to be managed by the Company by engaging the agency in an interactive relationship and working towards a win win approach.
Take the case of an Wholesale Dealer engaged with a Company. The whole sale dealer by virtue of his position does have the power to strengthen or weaken the sales of the Company in the particular segment or territory.
The wholesaler can influence the market sentiments to the existing products as well as any new products of the Company.
The wholesaler can effectively block or create roadblocks if the Company tries to engage in direct marketing or other alternative forms of selling in the same region.
The Company which is able to manage the relationship with the whole seller effectively is able to get the whole seller to be a partner in its business and not an outside agency.
Effective relationship management can yield in the whole seller representing and converting the market opinion on behalf of the company and boost the sales.
Effective market penetration, market reach and market cover can increase as the outcome of a positive relationship between the Whole seller and the Company. Such a situation calls for the Company to practice a healthy marketing strategy as well as Organizational business strategy outlining its attitude and relationship towards its business partners.
The Company’s attitude and commitment towards the relationship will determine the strength of the partnership and draw participation from the whole seller as well as other partners in the business cycle.
There is a clear cut differentiation between the Organizational policy and relationship management practice towards its partners to the business process requirements expected from the partners.
When the partners are engaged in a relationship, the business process requirements with reference to the business transactions are met with and honoured by both parties. A healthy relationship can effectively convert the Whole seller to be the spokes person of the Company in the market thus leading to opening of many more doors for the Company.
Realising the need for relationship building and seeing the value that can be released based on such a healthy relationship, Companies engage and focus on engaging with the business partners and associates on long term basis. Though marketing departments take the initiative to build such relationship, the management of the organizations as well as other functions like finance, service etc are also involved closely with the business partners talking one common language and following one set of corporate values that speaks for the Organization.
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