Relationship Portfolios - Past, Present and Future

Abstract

Since the 1980s the concepts of portfolio management have been adopted within the context of understanding business markets. Academics on both sides of the Atlantic have conceptualized and empirically tested a variety of customer and supplier portfolio models. More recently the concept of an indirect portfolio of relationships and its management has also been introduced. This paper reviews the role of relationship portfolios: customer, supplier and indirect in the context of business-to-business markets. We critically assess the most significant models, map their evolution and consider what the future holds for relationship management. We then discuss the manner in which portfolios and network can be integrated in order to provide a practical guide for marketing management. In conclusion we recognize the importance of conceptualizing the network as a set of portfolios (customer, supplier and indirect) and suggest that, in the context of business-to-business marketing at the very least, portfolio analysis provides the key to successful relationship management and important inputs to strategic management.

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