Manager-Customer Relationship Summary

Manager- Customer Relationship  Summary of Chapter 2 This chapter explores the evolution of marketing strategy and the interaction between managers and customers. It divides the evolution into several schools of thought, highlighting the progression from non-...

Manager- Customer Relationship  Summary of Chapter 2 This chapter explores the evolution of marketing strategy and the interaction between managers and customers. It divides the evolution into several schools of thought, highlighting the progression from non- interactive to interactive relationships, as well as economic and non-economic focuses. EVOLUTION OF MARKETING STRATEGY Interaction Marketing customer Integrated relationships Non-Economic between marketing and Relationship as Source Economic of profit customers Marketing on Holistic customer ‘simple’ economic perspective grounds Non-Interaction  Non-Interactive/ Economic Schools Focus on the producer with minimal customer interactio n Cu s f to s ma ollowmer l ude dit na s In c m o de s ger’ m l c Co y, iona du ision t su e t s nc d Fu , an nal pr peri o gio ls ch od or ar uc Re choo a t S sti c te c s ri  Interactive/ Economic Schools Interaction between managers and customers Economic goals still dominate Emphasizes the 4Ps of marketing (product, place, price, promotion) Includes Institutional, Functionalist, and Managerial Schools  Interactive/ Non- Economic Schools Social interactions dominate, with less focus on economic factors Managers and customers work as equal partners Includes Organizational Dynamics, Systems, and Social Exchange Schools  Non- Interactive/Non- Economic Schools Focus on psychological and social aspects of customer behavior Managers analyze customer behavior but don't directly interact Includes Buyer Behavior, Activist, and Macro-Marketing Schools  EVOLUTION OF MARKETING STRATEGY Interaction Marketing customer Integrated relationships Non-Economic Relationship as Source between marketing and Economic of profit customers Relational School Marketing on Holistic customer ‘simple’ economic perspective grounds Non-Interaction  Long-term, continuous relationships between firms and customers Relation Customers play an al active role in firm decisions School Goes beyond simple transactions, focusing on strategic collaboration  Shift from manager-led to collaborative approaches Common Denominato Emphasis on social and rs of economic goals Marketing Theory Evolution Innovation is driven by both internal and external sources, especially customers Agency Theory in Marketing Managers and customers act as principals or agents in marketing relationships Information asymmetry and conflicting goals create agency problems Solutions include monitoring costs, incentives, and risk-sharing mechanisms  Agency theory provides a framework to understand the evolving relationship between Conclusi managers and customers. Marketing strategies must on balance control and interaction, while acknowledging the customer’s increasing role in decision-making.