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Strategic Action
National Logistics Inc provides trucking services to large customers. It has an excellent reputation for reliable scheduling and careful handling. With decreasing regulation. NLI's management decided that they needed more of a marketing orientation. They wanted to build and maintain long- lasting profitable relationships with their customers. NLI invested time and effort to study customers' shipping needs and were especially effective at helping customers plan for their needs. After two years, NLI's managers were very dissapointed with the results. Customers were pleased with the new marketing approach and frequently complimented NLI, but sales were down. Low cost competitors were particularly bothersome.
Explain and discuss
What went wrong? Why didn't customers want to commit to long-term relationships?
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