Akash C.Mathapati

The Partnering Route

Innovate and Integrate with your customer

Akash C.Mathapati

Collaborate on Design1st Model Nypro collaboration with vistakon There would be no innovation without

uncensored complete sharing of knowledge, insight and inspiration

Customer improvement teams from both companies meet formally every 6 weeks

Since 1989, Nypro’s automated system has manufactured more than 2 billion defect free plastic molds for vistakon

Vistakon is a industry giant with more than 40% of the US market

Akash C.Mathapati

Focus on customer’s customer GE plastics worked in partnership with Delphi

Interior and Lighting Systems (Delphi-I), a GM component supply division

Akash C.Mathapati

Synchronize your operations2nd Model Nypro – Abbott Lab

New plastic blood-test pack

Synchronized technology and integrated systems

Nypro tied the control processes of its manufacturing system

Abbott tied Nypro directly to its customer order information

Helped both the co’s by providing a platform for their continuing joint search for product, process & cost improvement

Akash C.Mathapati

Make Teamwork Work Two crucial aspects for successful joint

operational partnering Supplier & customer must sync their info & tech Needs to designate certain of its employees to

work on cooperating teams NovaCare – National Health Care Affiliates, Inc

(NHCA) Acquisition of InSpeech NHCI represented about 20% of total business Planned & managed rehab therapy operations

together NovaCare has assigned members to work with

NHCA’s rehab

Akash C.Mathapati

Shift To Business Integration3rd Model Marshall Industries US’s fourth larget

distributors of electronic components Diagonastic Instrument Corporation

Akash C.Mathapati

Relationship Marketing in Services

Akash C.Mathapati

Relationship marketing terminology in the services literature 1983

Recognition of the need to market formally to existing customers appeared earlier

Prof.Levitt emphasized the need for firms to

engage in constant reselling efforts

Akash C.Mathapati

Relationship Marketing in Services What accounts for the accelerated interest in

relationship marketing in services ? Four convergent influences have propelled the

current focus on relationship marketing a. Maturing of services marketing b. increased recognition of potential benefits for

the firm and customers c. technological advances

Akash C.Mathapati

Implication of marketing a performance rather than an object are well understood today

Reality of many services being rendered on an ongoing or periodic basis coupled with the reality of customers forming relationship with people rather than goods paves the way for relationship marketing

Repeated contact between customers and service providers

Services often requires reselling efforts

Akash C.Mathapati

Benefits to the firm Service industries competition has been fierce

since 1990’s Banks, Airlines Marketing to protect customer base has become

imperative Reduce customer defection, duration of the

relationship doubles

Akash C.Mathapati

Benefits to the customers High involvement services also hold

relationship appeal for customers Services illustrate some or all of the

significant characters – importance, complexity, involvement etc

Causes many customer to desire continuity with same service providers

Risk reduction benefit of having a relationship with a supplier, customer can reap social benefits

Akash C.Mathapati

Technological Advances Marketers are likely interested in relationship

marketing if its affordable and practical United services automobile asso (USAA)

1994 2.6 million members & associate member Walgreen fills more than 7% of all

prescriptions in USA Intercom satellite based computer sustem