by Paul Herbig

Created on: May 15, 2009   Last Updated: May 19, 2009

HOW CLOSE IS CLOSE ENOUGH TO THE CUSTOMER

EXECUTIVE SUMMARY

While getting close to the customer is widely recommended as an obvious way of serving the customer better, there is no clear demarcation between being close to the customer and being customer driven. No longer content with the ability to anticipate customer demand, many suppliers are seeking to influence this demand, moving from being reactive to gently proactive. Increasing involvement in the customer's business may help lock in the customer, but it also leads to increasing involvement of the customer in the supplier's business, locking in the supplier as much as the customer. This incremental integration has important strategic implications that firms must examine carefully.

INTRODUCTION

Getting close to just one customer or a few major customers is somewhat easier and less complicated than getting close to lots of customers. Each customer has different requirements and sometimes have different preferences. While getting close to the customer is widely recommended there can be a point when you can become to close that there could be problems that arise. Although it is a rare subject that is infrequently talked about it does exist There can be a point when you are to close for comfort. Most companies thrive on being close to the customers and it is a concept that is spreading day by day. Researchers are starting to realize certain implications that arise when companies get to close to there customers.

IMPORTANCE OF TOPIC AND RELATIONSHIP TO MARKETING

Although an incumbent marketer has the luxury of being close to the customer, the advantage of that position is overshadowed by at least four difficulties that the marketer must overcome to remain successful. First, closeness with the customer gives the customer absolute information with which to evaluate the incumbent marketer's competition. Second, the marketer and customer have different views about the awarded contract or the sales order. Third, the marketer may not have the drive after the sale is won to continue serving the customer. Fourth, the marketer may be working to hard to keep a customer and overshadow the fact of winning new customers. The incumbent has a constant demand to market their product or service. It is a position that the opponent can benefit from. Even though the incumbent has the advantage of being close to the customer the opponent is always a threat (Gilbert, 1994 p.4).

Being close to the customer is letting

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