Beruflich Dokumente
Kultur Dokumente
M.M.S- 3 rd Sem
Haresh Pursnani
Buyer-Seller Relationship
Buyer-Seller Relationship
Learning Objectives 1. To understand the various aspects of buyer and sales representative interaction, including the perceptions and the roles played by them. 2. To know the major factors which influence buyer-seller relationship. 3. To know the methods used by industrial marketers (or sellers) to influence industrial customers (or buyers), such as sales presentation and negotiations. 4. To understand the special dealing, between buyers and sellers, such as reciprocity and dealing with customers, importance of customers service is also emphasized.
Relationship Marketing
The task of creating strong customer bond or loyalty is called relationship marketing . Barry and Parasuram have suggested three approaches for developing strong customer bond. ?????
Relationship Marketing
First approach is to add financial benefits to the customer relationship. For example, giving volume discount or rewarding the customer with free spare-parts kit. However, these benefits can be imitated by competitors, and hence can not be used to differentiate permanently.
Relationship Marketing
The second approach is to give social benefits, in addition to financial benefits. The company sales persons learn buyers individual needs and wants and then offer individualized services. For example, depending on individuals needs and wants, use problem solving languages, including solving personal problems, such as hotel booking or making travel arrangements.
Relationship Marketing
The third approach is adding structural ties to financial and social benefits. For example, supplying special equipment or service, such as training customers maintenance engineers.
Once a sales person knows such an approached of the industrial customers, he creates an environment, at the final stage of negotiation, that he has lost in the deal (although actually he has gained) but he is accepting the terms in view of long terms business relationship .
Type of Relationships
A business marketer may begin a relationship with GE as a supplier (one of many), move to a preferred supplier status (one of a few), and ultimately enter a collaborative relationship with GE (sole source for particular items).
Buyers and sellers craft different types of relationships in response to market conditions and the characteristics of the purchase situation.
Observe in Figure 4.1 that buyer- seller relationships are positioned on a continuum, with transactional exchange and collaborative exchange serving as the end points.
To develop specific relationship marketing strategies for a particulars customer, the business marketer must understand that some customers select a collaborative relationship, whereas others prefer a more distant or transactional relationship.
the typical characteristics of relationship at the end points of the buyer seller relationship spectrum :
Type of Relationships
Central to every relationship is an exchange process where each side gives something in return for a payoff of greater value. Transactional exchange centers on the timely exchange of basic products for highly competitive market prices.
Moving across the continuum relationships become closer or more collaborative (close) versus transactional (distant ) exchange
To illustrate, Dell Computer provides a customized Web page for each of its premier corporate customers that individual employees in the customer organization can access for an array of information and technical support services.
Strategy Guidelines
The business marketer manages a portfolio of relationships with customers- some of these customers view the purchase as important and desire a close, tightly connected buyerseller relationship; other customers assign a lower level of importance to the purchase and prefer a looser relationship . Given the differing needs and orientations of customers, the business marketers first step is to determine which type of relationship matches the purchasing situation and supplymarket conditions for a particulars customer. Second, a strategy must be designed that is appropriate for each relationship type.
CRM is the bundling of customer strategy and processes, supported by relevant software for the purpose of improving customer loyalty and, eventually, corporate profitability.
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