Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1 Creatively joining the seller company’s capabilities with customer’s needs to create value for both parties. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2 Managing customer relationships Gathering customer information Gathering competitior and market information Build customer loyalty Gain new customers Providing customer services Establishing customer dialogues Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 3 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 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 Customers buy solutions Seller and selling organization must understand needs of customer Must also understand different motivating elements between members of buying center Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5 Be flexible and responsive to changes in customer needs Customer needs evolve as they learn more about offering Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6 Successful relationships between customer and seller involve: Mutual Respect Trust Each customer relationship is unique Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 7 4 Forms of Seller Roles Exhibit 12-6 Order Taker Takes orders, ensures correct and timely delivery of offering. Major effort in the “place” marketing mix variable. Persuader/ Sustainer 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. Motivator/ Problem Solver Focuses on the needs of the customer organization, potentially creating unique customer solutions by matching supplier capabilities with customer needs. Considered a resource by the customer. Relationship/ Value Creator 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. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8 4 Forms of Seller Roles Order Taker Take orders Ensure timely delivery of products – major effort in “place” in marketing mix Buyer-seller relationship is not complex Simple products, e.g., simple machine parts Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9 4 Forms of Seller Roles Persuader/Sustainer Proactive role in relationship Updates customers about offerings Convinces customers of offerings’ value Buyer-seller relationship is less complex Product/service is not so complex, e.g., engine lubricants Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 10 4 Forms of Seller Roles Motivator/Problem Solver Focused on the needs of the customer’s organization Finds unique customer solutions by matching capabilities and needs A customer resource Relationship is more complex Product/ service is more complex, e.g., software Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11 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 Relationship is the most complex Product/service is the most complex, e.g., electronic systems for cars Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12 B2B marketer must understand the customer’s: Technologies Products Markets and Customers Competitors Channels Buying Center and Buying Patterns Culture Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 13 Relationship Between Field Sales & Field Marketing Exhibit 12-7 Vice President of Marketing & Sales Sales Manager Regional Sales Manager Regional Sales Manager Field Sellers Field Sellers Marketing Manager Field Sales Team Field Manager Headquarters Segment Specialists Field Sellers Purchasing Influences at customers who are contract providers to end users. Purchasing Influences at integrated customer facilities Specifying Influences at End User customers who have integrated manufacturing facilities Direct Sales Flow Programs Manager Field Marketer Specifying Influences at End User customers who rely on contract providers Outsource/Contract Provider Flow Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Field Marketing Team Headquarters Segment Specialists Field Marketer Specifying Influences at End User customers who rely on contract providers Field Marketing Flow 14 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15 Transactional exchanges employ an Arms-Length relationship. The business market includes items like: Packaging, Cleaning products or Commodity-type products or service activity where bidding is employed. Occurs when alternatives are few, market is dynamic, the purchase is complex and the price is high Features close information, social, and operational linkages, as well as mutual commitments Switching costs are extremely important to collaborative customers Trust is the key and it exists when one party has complete confidence in their partner’s ability and integrity A major consideration before changing from one supplier to another is the switching costs. Organizational buyers invest heavily in their relationships with suppliers. Investments include: 1. Money 2. People 3. Training Costs 4. Equipment 5. Procedures and processes Retention of profitable customers is crucial to business. However, due to competition and internal / external environmental factors, achieving this goal is difficult. One method that is proving successful for customer retention is the use of CRM programs. Established customers buy more. Cost of serving loyal customers declines. Less expensive than acquiring new customers. Customer Relationship Management (CRM) is a cross-functional process for achieving: a.Continuing dialog with customers across all contact and access points b.Personalized service to the most valuable customers c.Increased customer retention d.Continued marketing effectiveness CRM programs are software systems that capture information and integrate sales, marketing and customer service information. CRM programs can gather information from many sources including email, call centers, service and sales reps. The information is available to the right people in the organization in real time. There are many types of CRM programs: 1. Some companies develop their own proprietary programs. 2. Some companies purchase off-theshelf programs. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 25 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 26 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permissionCopyright of the publisher. Printed in theEducation, United States of America. © 2009 Pearson Inc. Publishing as Prentice Hall 1-27 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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