1. Chapter 2
The Character of
Business Marketing

2. SUPPLY CHAIN MANAGEMENT
SCM is proactively planning and coordinating the flow of products, services, and information among connected firms focusing on creating and delivering value to end users.
SCM INVOLVES . . .
INFORMATION SHARING
JOINT PLANNING
COORDINATION OF EFFORTS TO
ELIMINATE WASTE
BE INNOVATIVE
IMPROVE QUALITY and PROVIDE FLEXIBILITY
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3. SUPPLY CHAIN MANAGEMENT
What is important in supply chain management? One is efficiency Two is effectiveness Discuss and explain.

4. BUSINESS TO BUSINESS: WHAT DETERMINES A SUCCESSFUL RELATIONSHIP?
MOTIVATION !
THE SELLER’S MOTIVATION TO RELATE
THE BUYER’S MOTIVATION TO RELATE
IF THEY AREN’T EQUALLY MOTIVATED IT WON’T BE AN EQUAL RELATIONSHIP
2-4

5. BUSINESS TO BUSINESS: THE TYPES OF RELATIONSHIPS
WHEN SELLER’S MOTIVATION TO RELATE IS
HIGH
RESULTS IN BUYER’S ADVANTAGE
RESULTS IN STRATEGIC PARTNERSHIPS
LOW
HIGH
BUYER’S MOTIVATION TO RELATE IS
TRANSACTIONAL RELATIONSHIPS
SELLER’S ADVANTAGE
LOW
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6. THE REALM OF RELATIONSHIPS
High
Low
Seller’s motivation to relate
Buyer’s motivation to relate
Seller’s market
Seller-maintained relation
Joint relationship maintenance
Buyer-maintained relation
Buyer’s Market
Discrete exchange (spot contracts)
No exchange
EXHIBIT 2-2
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7. STRATEGIC PARTNERSHIPS
OCCUR WHEN BOTH PARTIES HAVE
MUTUALLY STRONG INTERESTS
IN MAINTAINING AN
ONGOING EXCHANGE
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8. Strategic partnership
Strategic partnerships have been influenced by the quality revolution. A management process of renewed dedication to customer satisfaction and efficiency. What is TQM?

9. JIT
Many companies have found it necessary to reduce the number of suppliers at one hand, and try to work together (seller and buyer) to reduce inventories.
Buyer as a co-producer concept! What does it mean?
Six sigma?

10. JIT RELATIONSHIPS A SUPPLIER PRODUCES AND DELIVERS PRECISELY . . .
THE NECESSARY QUANTITIES
AT THE NECESSARY TIME
WITH THE NECESSARY PERFORMANCE SPECIFICATIONS . . .
EVERYTIME
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11. GOING FOR HIGH PERFORMANCE RELATIONSHIPS
SELLERS
Want to:
Sell Large Volumes
Sell similar amounts over time
Manage their selling and support expenses
BUYERS
Want:
Reliable delivery without interruptions
Reliable products with low rejection and defect rates
Efficient lead times
DEVELOP A
COMMON
GROUND
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12. REQUIREMENTS FOR HIGH PERFORMANCE RELATIONSHIPS
GOES BEYOND THE FINANCIAL CONSIDERATIONS:
INTEGRITY
FAIRNESS
LOYALTY
FLEXIBILITY
INPUT INTO YOUR PARTNER’S STRATEGY
PARTNER’S INPUT INTO YOUR STRATEGY
COMPLIANCE WITH PROCEDURES AND AGREEMENT
HONOR COMMITMENTS
STAND BEHIND YOUR PRODUCTS
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13. RELATIONSHIP DEVELOPMENT PHASES
AWARENESS
No interaction
EXPLORATION
Limited interaction
EXPANSION
Additional relational benefits
COMMITMENT
Sustaining actions (i.e. Contracts)
EXHIBIT 2-4
2-13

14. TWO CHOICES FOR STAYING IN A BUSINESS RELATIONSHIP
YOU WANT TO.
THE REWARDS ARE FINANCIAL, STRATEGIC OR PSYCHOLOGICAL
YOU HAVE TO.
THE COST TO EXIT IS TOO HIGH OR THERE ARE NO ALTERNATIVES
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15. SUGGESTIONS FOR MAKING BUSINESS- TO-BUSINESS RELATIONSHIPS LAST
MAKE ON-SITE VISITS TO YOUR PARTNER
TRADE PERSONNEL AND OFFICES
MANAGE TOTAL DEPENDENCE WITH AN ALTERNATE SUPPLIER
MAKE THE PLEDGE OF CONTINUOUS SERVICE
DEVELOP A RELATIONAL CONTRACT
PROVIDE OWNERSHIP BY BRINGING FUNCTIONS OR TECHNOLOGY WITHIN BOUNDARIES OF PARTNER’S FIRM
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