customers at the heart of the business and seek building mutually beneficial, long term and profitable relationships with the customers first. The establishment of long lasting relationships helps the client and the provider to create a high value, which can be mutually beneficial and alsocompetitive, advantageous. In relationship framework, interaction is central in business markets (Ford, 2011). Relationships can also be important for this company since they may also formalize into joint ventures, partnerships or strategic alliances, trade associations, networks, interlocking directories where joint involvement and significant cooperation are advocated and deemed necessary. There are two forms of relationships which are beneficial when setting up a new business. One of them is the relationship based on service portfolio and is found in higher volume operations, and the second one is a personal relationship (Mullin, 2010). This is created between an employee and individual customer, particularly in organizations with low volume professionals. Relationships of SLSP with other businesses develops strong relationships with other many firm’s types whose functions or outputs increase the value of their own outputs. For instance, in joint marketing schemes, the firms cooperate in reaching out to customers in the form of the joint distribution and promotion agreements. The suppliers of complementary services and products can also be innovation partners, for new products can arise from output recombination in the most productive ways (Pride, 2011). These relationships include the relationships with the government agencies, which can be vital in keeping informed about legislative developments or entering new markets. The relationships can also be important when developed by the competitors, the cooperative relationships can be developed for various purposes among the competitors, like for
6Business to Business Marketing subvert competition and typical collusion to control. For example, the collaboration of competitors can be to develop technology and product standards (Bodnar, 2011). The relationship between the competitors from one country to enter and develop other overseas markets is another kind of cooperative relationship which is very important. Another importance of relationship is between the suppliers. The relationships with suppliers of strategically valuable services and products can be durable and important source of competitive advantage and one which is hard to steal or imitate. The firms are embedded in networks of production involving several chains of suppliers specializing in aspects different to the value creation process. The network functions depend on the actor’s capabilities as well as onthe working relationship among them (Gillin, 2011).
- Winter '16
- Professor Obura Oluoch