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@umsl.edu 9/20/2018

Chapter 4. Relationship Strategies for Business Markets BA 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. 9/20/2018

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. 9/20/2018

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. 9/20/2018

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. 9/20/2018

strategic alliances 9/20/2018

Transactional exchange: arm's length negotiations and competitive Relationships vary across a continuum from transactional to collaborative exchanges Transactional exchange: arm's length negotiations and competitive bidding 9/20/2018

Consultant Problem Solver Informational Servicing a Relationship Value added exchange: focus on keeping customers by understanding their needs and using tailored strategies and incentives Consultant Problem Solver Informational Servicing a Relationship 9/20/2018

Collaborative exchange: develop trust and relationship commitment 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 9/20/2018

Transactional exchanges chosen when the importance and complexity of the purchase is low, the need for information exchange and linkages between firms is limited, and when the market is stable with many supply alternatives 9/20/2018

Collaborative exchange chosen when the importance and complexity of the purchase is high, the need for information exchange and linkages between firms is high, and when the market is volatile few supply alternatives 9/20/2018

And now CONSULTATIVE SELLING CLIENT- CONSULTANT WIN- WIN SERVICING PROFIT IMPROVEMENT PROPOSALS PROBLEM SOLVING-VALUE ADDED SERVICING A RELATIONSHIP 9/20/2018

WOULD YOU LIKE MORE WIN - WIN INSIGHTS???? 9/20/2018

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 R&D 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. 9/20/2018

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. 9/20/2018

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@umsl.edu 9/20/2018