LOGISTICS (REVIEWER)
CH3: Customer Relationship Management
3.1 Customer-focused Marketing
Concepts include:
• Customer needs are more basic than products/services
• No single market
• Customers must be ready to purchase 4 economic utilities: (1) Form (2) Position (3) Time (4) Place
• Profitability instead of sales volume
Transactional Marketing: profit in transactions; establishes short-term relationship with customers
Relationship Marketing: establishes long-term relationships with customers and suppliers. Micromarketing means each individual has unique
requirements. Reduces transactional costs, individual transaction routine, and better accommodation for customer requirements.
Supply chain service outputs:
• Discrepancy in time – rate of production and market consumption
• Discrepancy in space – location of production activities and consumption are often the same
• Discrepancy in quantity & assortment – specialize in producing large quantities of limited variety
4 generic service outputs:
• Waiting time – between order and delivery; the less time is involved the higher supply chain service it is
• Spatial convenience – amount of shopping time and effort spent by customer
CH3: Customer Relationship Management
3.1 Customer-focused Marketing
Concepts include:
• Customer needs are more basic than products/services
• No single market
• Customers must be ready to purchase 4 economic utilities: (1) Form (2) Position (3) Time (4) Place
• Profitability instead of sales volume
Transactional Marketing: profit in transactions; establishes short-term relationship with customers
Relationship Marketing: establishes long-term relationships with customers and suppliers. Micromarketing means each individual has unique
requirements. Reduces transactional costs, individual transaction routine, and better accommodation for customer requirements.
Supply chain service outputs:
• Discrepancy in time – rate of production and market consumption
• Discrepancy in space – location of production activities and consumption are often the same
• Discrepancy in quantity & assortment – specialize in producing large quantities of limited variety
4 generic service outputs:
• Waiting time – between order and delivery; the less time is involved the higher supply chain service it is
• Spatial convenience – amount of shopping time and effort spent by customer
