Final answer:
Customer-managed relationships orient around the customer's control over their interactions with brands, while consumer-generated marketing involves content created by consumers to organically promote a brand. Both are influenced by advancements in technology and globalization which enable a more connected and consumer-empowered market.
Step-by-step explanation:
To compare and contrast customer-managed relationships and consumer-generated marketing, we must identify the core focus and method of engagement for each strategy. Customer-managed relationships are built on principles of empowering customers, giving them control over the interaction they have with a brand. This strategy emphasizes a two-way interaction where the customer's feedback and preferences directly shape the nature of the service or product, aligning with the modern trend of valuing the customer’s voice in the business relationship. On the other hand, consumer-generated marketing refers to practices that encourage consumers themselves to create content and engage in activities that promote the brand, without direct management from the business itself. This could include online reviews, social media posts, and testimonials that organically develop a brand's reputation among peer networks.
This shift towards both strategies is underpinned by major global changes, especially in technology and globalization. As technology has evolved, consumers have gained access to a wide array of competitive offerings around the globe, creating a more dynamic marketplace and necessitating personalized interactions. Similarly, consumer-generated marketing leverages globalized communication networks, with the internet playing a central role in distributing peer-based endorsements and reviews. Both changes are challenging traditional marketing and business relations, moving towards a greater focus on individual consumer experiences and peer-led brand promotion.