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• The Customer Pyramid model segments a customer base by profitability, which allows marketers to create different offerings to promote lower tier customers into more profitable tiers.
• Customer relationship management is a process thus requires the firm to take a holistic perspective on maximizing a customer’s lifetime value.
CRITICAL qUESTIONS
1 Compare and contrast the various marketing objectives a firm can pursue. If you were the manager of a leading company and you were faced with the prospect of fighting off a big competitor, which would you choose? What if the competitor was a small start-up?
2 Discuss how price can be adjusted to take into account the different types of customers that exist.
3 Identify the internal factors that influence the price charged.
4 What are the unique features of luxury goods with respect to
market demand?
SUGGESTIONS FOR FURTHER READING
Michael Hutt and Thomas Speh, Business Marketing Management: B2B New York, South-Western College Publishing, 2009. A big textbook that explains the ins and outs of B2B marketing. Students will find the end of chapter materials especially helpful.
Roger Baran, Robert Galka and Daniel Strunk, Principles of Customer Relationship Management, New York, South-Western College Publishing, 2007. A textbook that explores the strategic aspect of customer relationship management