Customer analysis for strategy development in industrial markets

Abstract

AbstractThis paper reports on concepts and techniques which have been developed for analysing customers and used as an aid to assessing the strategic position of companies in industrial markets. The emphasis on supplier/customer relationships presented here derives from the interaction approach to marketing and purchasing strategy. Many industrial markets are highly concentrated, and many companies develop in conjunction with key customers in a symbiotic relationship, where strategy evolves as proposals made by either side are either accepted or rejected. To take account of this we propose a 3‐stage framework for analysing customers which builds on and transforms techniques traditionally used for an analysis of products. The purpose of the analysis is to improve the allocation of scarce marketing and technical resources, to reappraise the company's competitive position with different customer groups and to ensure that key relationships are managed effectively.