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Customer And Competitor Elements Of The Micro Environment


Marketing is a process wherein imperative element matter the most particular on the area and stature of micro environment as to which customer accounts to competitor stance of certain products and services for example, a loyal customer of Starbucks coffee may buy as well as patronize other products and services that are of the same business and marketing nature, the customer may then drink coffee lattes offered by McDonalds café in which it is a fact that, McDonalds café is one of Starbucks coffee market led competitor such as those from within HK and UK cites. The contemporary relevance of marketing concept is source of continuing debate as marketers question its universal application across all situations. In the past, the emergence of the societal marketing concept and the marketing warfare metaphor represent challenges to the veracity of the marketing concept.

Thus, there argues that the continuing relevance of the marketing concept and the emergence of alternative paradigms can be linked to changes in the operating environments of firms or industries. The marketing concept finds application in relatively placid, benign environments which characterized post-war economies and markets. More recently, new emphasis has emerged with the growing recognition of the importance of competitive forces in imperfectly competitive markets and the inadequacy of the marketing concept in such environments; the examples of contemporary industries are discussed to illustrate the relevance of argument. Another example would relate to the marketers use mental models of markets to simplify and impose order on complex and ambiguous competitive environments and isolate points of competitive advantage or deficiency. In this study of senior managers of 190 businesses, the authors found four different types of mental models or representations of competitive advantage, varying in the emphasis placed on customer or management judgments about where and how competitors differ.

The representation was influenced equally by pressure points in the environment and choice of strategy, the type of representation was also strongly associated with constrained patterns of information search and usage, raising the possibility that the necessary simplifications and narrowing of perspective may come at the cost of myopia and insensitivity to challenges from unexpected directions (Reinartz, 1999; Reinartz and Kumar, 2000). There was then certain strong association between the completeness of the managerial representation and relative financial performance, which supports related studies on the profitability of a market orientation. Customer is integral to the competitor of certain service as the latter tries their best to satisfy customers of the other business, the rival strikes more stiffly for instance, marketing promotions goes well with British Airways and not with Qantas Airlines, same goes with Dell in rival notions with HP or Compaq and that the view is put forward that the effective sourcing and management of information is critical in the search for a winning business strategy.

Thus, some market information will be secured from environmental and market analysis and will be matched with the company's competitive advantage in the generation of strategic marketing options. Well-managed information streams will be important in all aspects of the marketing mix as well as in market selection. Information will allow competitive company to decide on an effective supply posture to meet customer base demands and trust values for growth, opportunity as well as stability. The issue takes look at value from three different perspectives: value creation for the customer, value creation for the supplier, and joint buyer–seller value creation. Directions for future customer value research in the area of business marketing have been used and provided.

In addition, cross-border business has experienced unparalleled growth. This growth is due to advances in communication and information technologies, privatization and deregulation in emerging economies, and emergence of the global consumer. As the era of globalization continues to manifest through the emergence of global companies, the importance of customer relationship management in these companies has become increasingly significant.

Global CRM is the strategic application of the processes and practices of CRM by firms operating in multiple countries or by firms serving customers who span multiple countries, which incorporates relevant differences in business practices, competition, regulatory characteristics, country characteristics, and consumer characteristics to CRM strategies to maximize customer value across the global customer portfolio of the firm. The innovative tenets of the theory are the inclusion of cognitive, organizational processes and benchmarking simultaneously. First, the authors describe the impact of the marketing SRP on marketing strategic choice behavior captured in the tradeoff between risk and return as was proposed by prospect theory. Then, they explore the performance consequences of integrating the newly formed stages while considering organizational process and implementation issues of reference points such as content, configuration, consensus and change.

Another, is the market based assumption such as change in Dell’s customer equity is change in its current and future customers’ lifetime values, summed across customers in the industry. Each customer’s lifetime value results from the frequency of category purchases, average quantity of purchase, and brand-switching patterns combined with the firm’s contribution margin. The brand-switching matrix can be estimated from either longitudinal panel data or cross-sectional survey data, using a logic choice model (Rust, Roland, Keiningham, Clemens and Zahorik, 1999). Competitive business can analyze drivers that have the greatest impact, compare the drivers’ performance with that of competitors’ drivers, and project return on investment from improvements in the drivers.

The need to demonstrate how the approach can be implemented in specific corporate setting and to show the methods used to test and validate the model, the authors illustrate a detailed application of the approach by using data from the airline industry. The framework enables what-if evaluation of marketing return on investment, which can include such criteria as return on quality, return on advertising, return on loyalty programs, and even return on corporate citizenship, given a particular shift in customer perceptions, enable business to focus marketing efforts on strategic initiatives that generate customer loyalty and healthy competition among business of same nature and field.



Reinartz, Werner (1999), “Customer Lifetime Value: An Integrated

Empirical Framework for Measurement, Antecedents, and Consequences,” doctoral dissertation, Department of Marketing, University of Houston.


Reinartz, Werner and V. Kumar (2000), “On the Profitability of Long Lifetime Customers: An Empirical Investigation and Implications for Marketing,” Journal of Marketing, 64 (October), 17–35.


Rust, Roland T., Timothy L. Keiningham, Stephen Clemens, and Anthony Zahorik (1999), “Return on Quality at Chase Manhattan

Bank,” Interfaces, 29 (March–April), 62–72.

Author(s): Roland T. Rust 1 | Katherine N. Lemon 2 | Valarie A. Zeithaml 3

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