Internal Relationship Marketing

As the world has moved towards globalization, businesses and Organisations have had to keep pace with the external environment. We have seen the emergence of large Business Organisations and Multi National Companies who have business presence in multiple sectors and are present in markets across the globe. Such Organisations are structured differently and promote de-centralised style of functioning.

As far as the production is concerned, they set up factories {or source through contract manufacturers} in countries where the costs of raw materials as well as the cost of labour is cheap. From such locations they service the nearby regions as well as export to the countries where they have markets. However on the marketing front, they usually have Business Units at local or country level as well as at Global Head Quarters. The Bus are designed to work as independent Profit Centres.

Such a structure brings into the Company the concept of Suppliers and Buyers internally too. The BU in charge of a particular country would have the freedom to negotiate and demand services and products from the supplier facility on mutually agreed terms or source from alternate supplier. The same concept exists in most of the medium scale and large scale organisations.

The typical structure in the Organisation consists of the Board or Management which oversees, directs and guides the overall business policies and decisions followed by Profit Centres and Supplier Units besides the Cost Centres or Support functions including HR, Legal, and Administration etc.

When the business Organisations are spread over multiple facilities and overseas, the complexities of management calls for enhanced Relationship Management. The manufacturing facilities would need to engage with the Business Units to build relationship and understand the BUs as well as their requirements failing which they could end up manufacturing and supplying something that is not wanted in the market.

It becomes important for the Management to set up clear process and guide the Relationship Management at all levels to ensure smooth operations. In multi location setups management of relationship becomes an essential factor for achieving business objectives.

The ownership of creating the platform for managing relationship lies with the overall Management which is overseeing the Global operations.

The amount of time and effort that is invested into building Relationships between the various business units will result in smooth and profitable business failing which there can be colossal losses in terms of defective supplies or loss of business opportunities.

Total Quality Management concept has been the most popular tool that the Companies have used to build seamless bridge between internal customers as well as external customers too. TQM concept ties together the Customer and Marketing to the Production and Quality thus establishing effective process that helps define and manage Relationships between all internal as well as external stake holders in the business.

TQM helps define the Customer needs, wants and perceptions and build a process aimed at building products and services that will satisfy the Customer and thereby help build revenues.

Companies like GE that have made strides in marketing are seen to have embraced TQM as their corporate philosophy governing all the businesses. This helps to create a perception in the minds of the customer, be it an individual customer or a business organisation with regard to the supplier company that presupposes a favourable relationship where customer satisfaction and delight is guaranteed.