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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

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Chapter 4. Relationship Strategies for Business

MarketsBA 303 B2B LPCthe 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.

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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.

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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.

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development of relationship marketing strategies

five stages: (1)Capturing relationship data (2) Selecting accounts, (3) Creating account specific offerings, (4) Implementing the relationship strategies, (5) Evaluating the relationship strategy outcomes.

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strategic alliances

relationships that allow firms to leverage core competencies by linking them with thecomplementary expertise of other firms

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Relationships vary across a continuum from transactional

to collaborativeexchanges

Transactional exchange: arm's length negotiations and

competitivebidding

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Value added exchange: focus on keeping customers by

understanding their needs and using tailored strategies and

incentives

Consultant Problem SolverInformational

Servicing a Relationship

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Collaborative exchange: develop trust and relationshipcommitment with customers

and integrate processes between firms

develop relationships with customers bylearning more about their needs and providing products and services to

meet those needs

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Transactional exchanges chosen when the importance

and complexity ofthe purchase is low, the need for information exchange and

linkagesbetween firms is limited, and

when the market is stable with many supply alternatives

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Collaborative exchange chosen when the importance

and complexity ofthe purchase is high, the need for information exchange and

linkagesbetween firms is high, and

when the market is volatile few supply alternatives

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And now CONSULTATIVE SELLING

CLIENT- CONSULTANT WIN- WIN SERVICING PROFIT IMPROVEMENT PROPOSALS PROBLEM SOLVING-VALUE ADDED SERVICING A RELATIONSHIP

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WOULD YOU LIKE MORE WIN - WIN INSIGHTS????

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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.

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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.

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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