 Creatively joining your company’s capabilities with your customer’s needs.

 Comprised of buyers and sellers  Span boundaries of own organization and those of customer’s  Liaison to other key organizations  Can be major asset in buyer-seller relationship

 More time consuming  More relational between buyer and seller  Stakes are greater in terms of “value” of sale

 Repeated, ongoing relationships  Solution-oriented, total system effort  Long time period before sale pays off  Continuous adjustment of needs  Buyer demands creativity of seller in problem solving Exhibit 12-1

Relationship between seller and buying center is a series of dyadic interactions  One-on-One meetings between stakeholders of buying center and seller

Customers buy solutions  Seller and selling organization must understand needs of customer  Also understand different motivating elements between members of buying center

Outcome of sales not known for months/years  Use development period to reinforce value offering o Reducing customer’s feeling of risk

Be flexible and responsive to changes in customer needs  Customer needs evolve as learn more about offering

Customization of offering to specific needs of customer is expected  Approach in a way where customers feel offering is unique and advantageous o Relieve pricing concerns

Successful relationships between customer and seller involve:  Mutual Respect  Trust  Authenticity

Levels of Relationship and Intricacy:  Discrete Exchange  Differentiating an undifferentiated product  Multiple Transactions  Collaboration/Partnering

Maximizing production/sales is often the goal  Production Era  Product Era

Maximizing market choice or life quality and focus on satisfying a need  Marketing Era  Societal/partnering/ value network Era

4 Forms of Seller Roles Order Taker Persuader/ Sustainer Motivator/ Problem Solver Relationship/ Value Creator Takes orders, ensures correct and timely delivery of offering. Major effort in the “place” marketing mix variable. Proactive role in relationship. Informs customers about offerings and ongoing updates. Attempts to convince customer of value of offering, though the focus is still on needs of selling organization. Focus on the needs of the customer organization, potentially creating unique customer solutions through match of supplier capabilities with customer needs. Considered a resource by the customer. Build and maintain partnership with all elements of the customer buying center. Supplier/customer relationship is mutually inspiring and stimulating; both parties recognize an equity in the other’s success. Exhibit 12-6

4 Forms of Seller Roles Order Taker  Take Orders  Ensure Timely Deliver of Products – major effort in “place” in marketing mix.

4 Forms of Seller Roles Persuader/Sustainer  Proactive role in relationship  Updates customers about offerings  Convinces customers of offering’s value

4 Forms of Seller Roles Motivator/Problem Solver  Focused on the needs of the customer’s organization  Unique customer solutions through match of capabilities and needs  A customer resource

4 Forms of Seller Roles Relationship/Value Creator  Builds and maintains partnership with all elements of the buying center  Relationship is mutually inspiring and stimulating  Both seller and buyer recognize equity in the other’s success

One must understand the Customer’s:  Technologies  Products  Markets and Customers  Competitors  Channels  Buying Center and Buying Patterns  Culture

 Missionary Sellers—Task oriented  Field-Marketers—Market developers, focus in translation  Post-Sale Customer Service— Reinforce purchase decision

Relationship Between Field Sales & Field Marketing Vice President of Marketing & Sales Sales Manager Marketing Manager Purchasing Influences at customers who are contract providers to end users. Field Marketer Regional Sales Manager Field Sellers Programs Manager Field Manager Headquarters Segment Specialists Field Marketer Regional Sales Manager Specifying Influences at End User customers who rely on contract providers Specifying Influences at End User customers who have integrated manufacturing facilities Purchasing Influences at integrated customer facilities Field Sales Team Field Marketing Team Specifying Influences at End User customers who rely on contract providers Field Marketing Flow Outsource/ Contract Provider Flow Direct Sales Flow Exhibit 12-7 Field Sellers

Correlation of Value & Complexity of Relationships A Generalized Case Increasing Value Orientation Transactional Sales Relationship Sales Complexity of Seller Skills Order Taker Motivator/Problem Solver Persuader/Sustainer Relationship/Value Creator Degree of shading indicates relative degree of importance. Increasing complexity of Relationship Exhibit 12-8

 Needs of Job Function  Needs of Organization  Individual Needs of Buyer/Seller

Direct Sales Force Manufacturer’s Representatives Distributors Any Combination of The Three

 Straight Commission  Straight Salary  Combination Plans

 Repeat efforts necessary to sustain customer purchases  Rewards short term  Sellers focus on those who have frequent purchases  Inappropriate during new product introductions  Compensation variability/ volatility may be a problem for the seller

 Management has greater control over sales force  Appropriate when sellers provide design and engineering assistance  Motivator/Problem Solver, Relationship/Value Creator  Creates Stability  Does not tie financial rewards to sales results

 Frequently used form of compensation  Salary portion contributes to needs of management control  Commission encourages higher sales  Commission is paid as it is earned

 Specialists in a particular market segment or collection of segments that have common users or call patterns.  In business for themselves or as part of an agency of reps’

 No ownership for what they sell  Carry no inventory  Have low fixed costs  Have little or no transaction between principle and customer  Commission given only after sale is booked

 The product is technically complex  The situation requires a specialized background  Control is important – the organization selects, trains, and controls personnel  Long lead times expected for results  Prospecting for new customers is required  The customer base is concentrated  Explicit customer feedback is desired  High fixed costs Exhibit 12-11

 The product is standardized or generic  For technical products, a technical background is important  Control of personnel is less important  Short sales cycles are common  The reps have other complementary lines  Reps have established relationships with target customer segments  Match of reps’ existing call patterns  The market is dispersed and/or when the market consists of many small customers  Customer feedback is less critical  Low fixed costs are required Exhibit 12-11