Lecture Nine: Outline

1
Lecture Nine Outline

• Relationship Management
• The Spectrum of Buyer-Seller Relationships
• The Stakeholder Value Model the Ideal
• A Realistic View of Stakeholder Value Models?
• Stakeholder Models
• Guide to Selecting Partnership Options in Value
  Chain Decisions
• Stakeholder Performance Expectations
• Shareholder-Stakeholder Interests
• Identifying Partner Stakeholder Interests
• A Relationship Management Led Organisation

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Relationship Management

• Walters (2002) asserts that relationship
  management is the managerial activity which
  identifies, establishes, maintains and reinforces
  economic relationships with customers, suppliers
  and other partners with complimentary (and
  supplementary) capabilities and capacities so
  that the objectives of the organisation and those
  of all other partners may be bet by agreeing and
  implementing mutually acceptable strategies

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Relationship Management (contd)

• Hutt and Speh (1998) explain that relationships
  in the business market are often close and
  enduring. Rather than constituting the end
  result, a sale signals the beginning of a
  relationship.

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Relationship Management (contd)

• Much the same approach is becoming more common
  not just in business markets, but also in
  consumer or end-user markets

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Relationship Management (contd)

• Additionally, the same basic philosophy can be
  extended to include all stakeholders to the
  company, with monetary transactions being
  replaced by exchanges of information between some
  stakeholder groups and the company

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The Spectrum of Buyer-Seller Relationships

• According to Hutt et al (1998), this ranges
  through (from top)
• Pure transactions
• Reciprocated transactions
• Long-term relationships
• Buyer-seller relationships
• Strategic alliances

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The Spectrum of Buyer-Seller Relationships
(contd)

• Traditional View
• Purpose of marketing is to make a sale
• Sale is the result and measure of success
• Business is defined by its products and
  factories price is an input
• Communications are aimed at aggregates of
  customers
• Marketer is valued for its products and prices
• Objective to make the next sale, find the next
  customer

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The Spectrum of Buyer-Seller Relationships
(contd)

• Relationship View
• Purpose of marketing is to create a customer
• Sale is beginning of relationship profit is a
  measure of success
• Business is defined by its customer relationships
• Price is determined by negotiation and joint
  decision making price is an outcome
• Communications are targeted and tailored to
  individuals
• Marketer is valued for its present and future
  problem-solving capability
• Objective to satisfy the customer you have by
  delivering superior value

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The Stakeholder Value Model the Ideal
Source Walters (2002)
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A Realistic View of Stakeholder Value Models?
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Stakeholder Models
Source Walters (2002)
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Guide to Selecting Partnership Options in Value
Chain Decisions
Source Walters (2002)
13
Stakeholder Performance Expectations
Source Walters (2002)
14
Shareholder-Stakeholder Interests
Source Walters (2002)
15
Identifying Partner Stakeholder Interests
Source Walters (2002)
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A Relationship Management Led Organisation
Source Walters (2002)
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Discussion Questions

• What kind of relationship is the most profitable
  for business in a stable environment? Why?
• How can a company effectively manage stakeholder
  priorities? Which stakeholder group should be the
  companys highest priority?
• What kind of company should be relationship led?
  Why? Give examples.