B2B-CHAPTER FOUR RELATIONSHIPS

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B2B-CHAPTER FOUR RELATIONSHIPS

• Top managers from each firm must be visibly
  involved in development of alliances and
  communicate strategies of alliance to other
  employees LPC1_at_umsl.edu

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Chapter 4. Relationship Strategies for Business
MarketsBA 303 B2B LPC

• the importance of relationship marketing to
  business marketers. A relationship continuum
  identifies different types of relationships that
  can exist between buyers and sellers. The
  importance of trust (WE) and relationship
  commitment to strong relationships. Strategies
  appropriate for each type of relationship
  identified.

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Relationship Strategies for Business Markets

• The relationship connectors are information
  exchange, operational linkages, legal bonds,
  cooperative norms, relationship specific
  adaptations, market factors, and situational
  factors.

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the management of buyer seller relationships
WIN-WIN

• transactional and collaborative exchanges
  Managers are encouraged to manage each
  relationship individually and develop strategies
  for each customer based on the relationship type.

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development of relationship marketing strategies

• five stages
• Capturing relationship data
• Selecting accounts,
• Creating account specific offerings,
• Implementing the relationship strategies,
• Evaluating the relationship strategy
• outcomes.

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strategic alliances
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Relationships vary across a continuum from
transactional to collaborativeexchanges

• Transactional exchange arm's length negotiations
  and competitive
• bidding

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Value added exchange focus on keeping customers
byunderstanding their needs and using tailored
strategies andincentives

• Consultant Problem Solver
• Informational
• Servicing a Relationship

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Collaborative exchange develop trust and
relationshipcommitment with customers and
integrate processes between firms

• develop relationships with customers by
• learning more about their needs and providing
  products and services to
• meet those needs

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Transactional exchanges chosen when the
importance and complexity ofthe purchase is low,
the need for information exchange and
linkagesbetween firms is limited, and when the
market is stable with many supply
alternatives
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Collaborative exchange chosen when the importance
and complexity ofthe purchase is high, the need
for information exchange and linkagesbetween
firms is high, and when the market is volatile
few supply alternatives
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And now CONSULTATIVE SELLING

• CLIENT- CONSULTANT
• WIN- WIN SERVICING
• PROFIT IMPROVEMENT PROPOSALS
• PROBLEM SOLVING-VALUE ADDED
• SERVICING A RELATIONSHIP

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• WOULD YOU LIKE MORE WIN - WIN INSIGHTS????

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Chapter four question one

• 1. Because Boeing will relay on their supplier to
  help them meet customers' needs from a
  technological standpoint, Boeing will focus on a
  potential supplier's RD expenditures,
  engineering staff, technological success, patent
  history, new product successes, and quality.
  Technically trained marketing individuals as well
  as engineers will help develop the relationship
  from the selling side. Product development
  personnel, engineers, and designers will be
  involved initially on the buyer's side.

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Chapter four question two

• 2. The availability of alternatives, vigorous
  activity (dynamism) of the supply market,
  importance and complexity of the purchase, amount
  of information exchange, and number of
  operational linkages could be used to place
  suppliers in transactional or collaborative
  relationships. To develop more collaborative
  relationships, business marketers must be
  trustworthy and demonstrate a long term
  commitment to the relationship. They also need to
  learn about customer needs and develop tailored
  strategies to satisfy those needs.

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B2B-CHAPTER FOUR-BONDING

• Top managers from each firm must be visibly
  involved in development of alliances and
  communicate strategies of alliance to other
  employees LPC1_at_umsl.edu