Determinants of successful
Date
2011-05-05
Authors
Jordaan, Gideon Francois
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Abstract
Globalisation is of great concern for manufacturing industries in developing
countries. The need to gain and keep a competitive advantage in local markets
is becoming a key issue experienced by most manufacturers in South Africa.
This is especially true in the Electrical Power Sector of South Africa, when
considering products from abroad can be imported for much cheaper than the
cost of local manufacturing.
Given this context, this research focuses on understanding determinants that
affect relationship marketing with parastatals in South Africa, as a strategy to
gain a competitive advantage. Standardised open-ended interviews were
conducted with five (5) employees in the procurement department of a
parastatal and five (5) employees from a supplier, to explore the determinants
that affect relationship marketing with parastatals in South Africa.
The findings of the research suggest that the relationship between a supplier
and a parastatal is affected by various determinants. Suppliers seek to do
business with parastatals because it is profitable. In order for suppliers to be
considered by parastatals to engage in a relationship, they need to comply with
government regulations.
Thereafter, determinants that affect the continuation of the relationship are
complete customer satisfaction; meeting and exceeding customer expectations;
the continuous creation of customer value; willingness to cooperate in achieving
the parastatal’s objectives; and lastly the supplier’s ability to negotiate win-win
scenarios if the two parties are experiencing conflict situations.
Although the findings from this research cannot be generalised to all parastatals
in South Africa, they do suggest that relationship marketing is a complex
phenomenon and many determinants need to be considered in order to be
successful
Description
MBA - WBS
Keywords
Relationship marketing, Marketing, Parastatals