Embed Size (px)
Citation preview
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 PotentialMarketing Relationships
Buyer Partnerships
InternalPartnerships
Supplier Partnerships
Lateral Partnerships
FocalFirm
Employees
BusinessUnits
GoodsSuppliers
ServicesSuppliers
Competitors
NonprofitOrganizations
Government
UltimateCustomers
IntermediateCustomers
FunctionalDepartments
Both Sellers and Buyers Are “Boundary Personnel”
BoundaryPersonnelBoundaryPersonnel
Individuals in the organization who span the boundaries of their own organizations and those of customers.
Boundary personnel serve as the liaison withother 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 relationships1. 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 effort2. 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
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 needs4. 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 seller5. 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?
DiscreteExchange
MultipleTransactions
Collaboration/Partnering
Differentiating an Undifferentiated
Product
Philosophies of Marketing
ProductionEra
ProductionEra
Societal/Partnering/
Value NetworkEra
Societal/Partnering/
Value NetworkEra
SalesEraSalesEra
MarketingEra
MarketingEra
Inventor Efficient local Mass Mass Intermediate Beginning ofProducer Producer Producer Distributor End-User Influence
DOMINANCE
1900 2000
InternetProducer influence
Intermediate Distributor Influence
Rise of End-User Influence
THE CHANGING WORLD
Evolution of Business
The Evolution of Personal Selling
(Weitz et al. 2000)
Entrepreneurial
Selling
Power
Increasing complexity1900 2000 2015
Internet
Entrepreneurial Selling
System, Territory
Selling
Team Selling
Entrepreneurial Selling
THE EVER CHANGING WORLD OF SELLING
Strategic Partnership
Selling
Now Entrepreneurial Selling
Selling Value Continuum – What kind of relationship fits?
Lost Sales
Wasted Effort
(Rackham and DeVincentis 2000)
Investmentby
Supplier
Investment by Customer
Transac
tional
Relatio
nship
Consu
ltativ
e
Relatio
nship
Enterpris
e
Relatio
nship
Culture
Buying Center and Buying Patterns
Channels
Competitors
Markets and Customers
Products
Sellers must know and understand the customers’…
Technologies
Organizations Organizations and Buyers have and Buyers have three needs to three needs to
satisfysatisfy
Organizations Organizations and Buyers have and Buyers have three needs to three needs to
satisfysatisfy
1. The needs of the job function
3. The individual needs of the buyer and seller.
The needs of the organization
