1. Business-to-Business Selling: Developing and Managing the Customer Relationship Anand G Khanna

2. Relationship(Building ) Marketing What is relationship marketing? Satisfaction, Commitment & Trust The 3 rd variable in services Outcomes of achieving commitment, trust, and comfort

3. What is Relationship Marketing? "Relationship marketing is attracting, maintaining and - - in multi-service organizations - - enhancing customer relationships" Berry 1983

4. What is Relationship Marketing? "Relationship marketing concerns attracting, developing, and retaining customer relationships." Berry & Parasuraman 1991

5. What is Relationship Marketing? "Relationship marketing refers to all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges." Morgan & Hunt 1994

6. The Firm’s Potential Marketing Relationships

7. Both Sellers and Buyers Are “Boundary Personnel” Boundary Personnel Boundary Personnel Individuals in the organization who span the boundaries of their own organizations and those of customers. Boundary personnel serve as the liaison with other key organizations – they can be a major asset in the buyer-seller relationship.

8. 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

9. 1. 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.

10. 2. 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.

11. 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.

12. 4. 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.

13. 5. 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

14. What Constitutes a “Relationship” in Relationship Marketing? Discrete Exchange Multiple Transactions Collaboration/ Partnering Differentiating an Undifferentiated Product

15. Philosophies of Marketing Production Era Production Era Societal/ Partnering/ Value Network Era Societal/ Partnering/ Value Network Era Sales Era Sales Era Marketing Era Marketing Era

16. Inventor Efficient local Mass Mass Intermediate Beginning of Producer Producer Producer Distributor End-User Influence DOMINANCE 1900 2000 Internet Producer influence Intermediate Distributor Influence Rise of End-User Influence THE CHANGING WORLD Evolution of Business

17. The Evolution of Personal Selling (Weitz et al. 2000)

18. Entrepreneurial Selling Power Increasing complexity 1900 2000 2015 Internet Entrepreneurial Selling System, Territory Selling Team Selling Entrepreneurial Selling THE EVER CHANGING WORLD OF SELLING Strategic Partnership Selling Now Entrepreneurial Selling

19. Selling Value Continuum – What kind of relationship fits? Lost Sales Wasted Effort (Rackham and DeVincentis 2000) Investment by Supplier Investment by Customer Transactional Relationship Consultative Relationship Enterprise Relationship

20. Culture Buying Center and Buying Patterns Channels Competitors Markets and Customers Products Sellers must know and understand the customers’… Technologies

21. Organizations and Buyers have three needs to satisfy 1. The needs of the job function 3. The individual needs of the buyer and seller. The needs of the organization