Download Business-to-Business Selling

Business-to-Business Selling: Developing and
Managing the Customer Relationship
Anand G Khanna
Relationship(Building ) Marketing
What is relationship marketing?
• Satisfaction , Commitment & Trust
• The 3rd variable in services
• Outcomes of achieving commitment, trust, and
comfort
What is Relationship Marketing?
• "Relationship marketing is attracting,
maintaining and - - in multi-service
organizations - - enhancing customer
relationships"
Berry 1983
What is Relationship Marketing?
• "Relationship marketing concerns attracting,
developing, and retaining customer
relationships."
Berry & Parasuraman 1991
What is Relationship Marketing?
• "Relationship marketing refers to all marketing
activities directed toward establishing,
developing, and maintaining successful
relational exchanges."
Morgan & Hunt 1994
The Firm’s Potential
Marketing Relationships
Supplier Partnerships
Goods
Suppliers
Services
Suppliers
Business
Units
Competitors
Focal
Firm
Employees
Nonprofit
Organizations
Functional
Departments
Internal
Partnerships
Lateral
Partnerships
Government
Intermediate
Customers
Ultimate
Customers
Buyer Partnerships
Both Sellers and Buyers Are
“Boundary Personnel”
Boundary
Personnel
Individuals in the organization who
span the boundaries of their own
organizations and those of
customers.
Boundary personnel serve as the liaison with
other key organizations – they can be a major
asset in the buyer-seller relationship.
Business-to-Business Selling
Characteristics
1. Repeated, ongoing relationships
2. Solution-oriented, total system effort
3. Long time period before
selling effort pays off
4. Continuous adjustment of needs
5. Creativity in problem solving often
demanded by buyer of seller
1. Repeated, ongoing relationships
• The relationship between the seller and
buying center members is a series of dyadic
interactions
– One-to-one meetings or interactions between
stakeholders in the buying center and the seller or
other individuals in the selling organization’s value
chain.
2. Solution-oriented, total system effort
• Customers buy solutions, not technologies or
core products.
– The seller and the selling organization must
understand the needs of the customer.
– The seller must also understand the different
motivating elements between members of the
customer buying center.
3. Long time period before
selling effort pays off
• In business-to-business selling, the outcome
of the sales effort may not be known for
months (or years!)
– It is important to use the development period to
reinforce the value offering relative to competitive
offerings.
– Reduce buyer perceptions of risk by reinforcing
the total value of the offering.
4. Continuous adjustment of needs
• It is important to be flexible and responsive to
the changing needs of customers.
• Customer needs evolve as they learn more
about the sellers offering and how the offering
can be applied to their needs.
5. Creativity in problem solving
often demanded by buyer of seller
• Customization of the offering to meet the specific
needs of the buyer is expected, especially by large
customers.
• Approaching each customer’s problem in such a way
that the customer perceives the offering as unique is
particularly advantageous.
– Can relieve the seller of concerns relative to pricing
What Constitutes a “Relationship” in
Relationship Marketing?
Discrete
Exchange
Multiple
Transactions
Differentiating an
Undifferentiated
Product
Collaboration/
Partnering
Production
Era
Marketing
Era
Philosophies of Marketing
Sales
Era
Societal/
Partnering/
Value Network
Era
Evolution of Business
THE CHANGING WORLD
Internet
Producer influence
DOMINANCE
Intermediate Distributor Influence
Rise of End-User Influence
1900
Inventor
Producer
2000
Efficient local
Producer
Mass
Producer
Mass Intermediate
Distributor
Beginning of
End-User
Influence
The Evolution of Personal Selling
(Weitz et al.
2000)
Now Entrepreneurial Selling
THE EVER CHANGING WORLD OF SELLING
Internet
Entrepreneurial
Selling
Power
Entrepreneurial System, Territory
Selling
Selling
Team
Selling
1900
Strategic
Partnership
Selling
2000
Increasing complexity
Entrepreneurial
Selling
2015
Selling Value Continuum – What kind of relationship
fits?
Wasted Effort
Investment
by
Supplier
Lost Sales
Investment by Customer
(Rackham and DeVincentis 2000)
Sellers must know and
understand the customers’…
Culture
Buying Center and Buying Patterns
Channels
Competitors
Markets and Customers
Products
Technologies
1. The needs of the
job function
The needs of
the organization
3. The individual needs
of the buyer and seller.
Organizations
and Buyers have
three needs to
satisfy