6 Markets Model in Relationship Marketing

The 6 market model helps the organization to study about the stakeholders and key market domain that may be important to them. If an organization wants to grow and sustain, it has to maintain its relation with internal as well as external environment. Through the analysis of all 6 markets, managers can kind the critical markets and the opportunity in each market. In order to visualize and understand each market’s importance Payne and Holt(2001) gave this 6 markets model.


Source:Lindgreen, Adam (2004)

Let’s explain one by one.
1. Customer Market: This market contains buyer, intermediates, final customers and retailers. They are our final consumers for a product. So they are the most important entity for any business. We need to retain them as long as we can. We also need to attract new customers. Ultimately creating brand loyal customers is our main goal. We can add more values to our product.
Customer Market directly influences an organization. If customers are not satisfied with our product, we can not retain them. In case of Service Marketing customers’ satisfaction is more crucial.

2. Influence Market: Influence market includes stakeholders as well as third parties. Customers who have bought our product must give feedback to their friends, relatives and neighbors. For any organization these customers are their influencers and when third party like supply partners and retailers influence our customer to buy our product, they are called value added influencers. They may be TV reporters, Shopkeeper, Article writers, Analysts etc.
Sometimes our own competitors also act as our influencer. Their ads can help an organization to add more customers and their promotional activities can decline our sale.

3. Referral Market: Referral marketing is when we buy something after being referred by our friends and relatives. In general we can understand this term as “Word of Mouth”. In case of Service Marketing, Referral marketing is very common. We can also find this in our daily life. We can get hundreds of advises when we look for a doctor. Everyone in our family would suggest a different Physician. So this is what Referral Marketing is.
So Referral Market can further be divided into 2 categories: Customer and Non Customer Referral Markets. So this is the cheapest way of promotion and effective too. So our main priority should be “Customer Satisfaction”.

4. Supplier Market: Suppliers are like partners to an organization. They do supply the crucial raw materials and parts. We need to develop an strategic alliance with them. We need to maintain a good relation with them as well.

5. Employee/Recruitment Market: This market helps an organization to keep the best people who can add values to the organization. They should be talented, experienced, skilled and royal. In IT industry the firm needs innovative and skilled persons but in case of Service Markets firms need skilled as well as experienced people. So we can say that people inside the firm also affect the profitability. An organization always looks for individuals with particular skills; who are highly productive, innovative, and effective; and who share a given organization’s values.

6. Internal Market: This kind of market applies to the customers and employees within the organization. Actually there should be proper harmony among the employee and suppliers and customers so that organization can work together and achieve its mission.
Specifically in terms of relationship marketing, those within the organizations must understand how the impact relationships between the firm and other parties, do so in a way that reflects and supports the organization’s long-term goals, and resolve conflicts of interest accordingly.

Payne, Adrian, David Ballantyne, and Martin Christopher (2005) summarize this 6 Markets model as:
(1) “Customer markets” include existing and prospective customers as well as intermediaries like retailers, wholesalers;
(2) “Referral markets” include two main categories – existing customers who recommend their suppliers to others, and referral sources, or “multipliers”, such as an accounting firm who may refer work to a law firm;
(3) “Influencer markets” include financial analysts, shareholders, the business press, the government, and consumer groups;
(4) “Employee markets” concerns with attracting the right employees to the organization);
(5) “Supplier markets” include traditional suppliers as well as organizations with which the firms has some form of strategic alliance); and
(6) “Internal markets” (the organization including internal departments and staff (Christopher et al., 1991).

References:
1. Lindgreen, Adam. “The design, implementation and monitoring of a CRM programme: a case study.” Marketing Intelligence & Planning 22.2 (2004): 160-186.
2. Payne, Adrian, David Ballantyne, and Martin Christopher. “A stakeholder approach to relationship marketing strategy: The development and use of the “six markets” model.” European Journal of Marketing 39.7/8 (2005): 855-871.
3. Relationship Marketing: Creating Stakeholder Value by Authors: Martin Christopher, Adrian Payne and David Ballantyne Taylor and Francis: 2002

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Deepesh Singh
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One thought on “6 Markets Model in Relationship Marketing

  1. What’s up, always i used to check web site posts here
    in the early hours in the break of day, as i love to learn more and more.

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