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B2B Marketing

Personal SellingKey Account Management

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Relationship Communications

Direct Marketing

Personal Selling

IIM Ranchi PGEXP 2014-16

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Direct Marketing

Absence of face-to-face contact

Use of online and offline media for direct, one-to-onecommunication and transactions

Facility to measure responses to communications

Use of databases

Targets are drawn

Responses and transactions are added


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Database Elements

Information on

Customers &Prospects

Name / Contactdetails

Company size /

Activities /Purchase process

Key decisionmakers &

influencers

Transactions

Frequency /Timescale

Amount

Productcategories

Promotions

Campaignsexposed

Results

leads /sales

ProductsIndustry / Market /

Geography


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Telemarketing

Inbound and outbound

Access of customer/prospect information to all concernedusing internal IT system

Versatile

Account management

Field support

Prospecting

Not suitable for handling complex situations

Involvement of DMUs

Complementary


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Personal Selling

Benefits

Based on customer communication, marketer determines preciserequirements

Negotiation of adjustments to suppliers offer

Formulation of a bespoke offering

Initiation, development and maintenance of supplier-customerrelationships


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Responsibilities

Identify and secure revenue-generating opportunities

Win business from targeted customers

Augment the offering using technical expertise, industryexperience to recommend optimum solution

The face of the supplier firm

Face of the customer in their own firm

Feeding back information to the internal system


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Selling Elements

Internal perspective


Product

Logistics

AdaptationAdvice

Service

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Value Buying

Intrinsic value

buyers

Extrinsic value

buyers

Strategic value buyers

Straight rebuy Product Product /

services

Modified

rebuy

Product Product /

services /

logistics

Logistics / adaptation /

advice

New task Logistics Logistics / adaptation /

advice

Selling mode Transactional Consultative Enterprise


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Salesperson Characteristics

Missionary

Frontline

Internal


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Shipbuilding


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Process

Lead

generationProspecting

Call

preparation

SellingOrderfulfillment


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Lead Generation & Prospecting

Created from IMC tools

Qualification

Using similar product?

Considering purchasing one offered by us?

Timeline & volume of likely purchase

Ultimate decision-maker (if not the person with current contact)

Finance approval received?

Inserts/response cards in DMS/ads websites


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Call Preparation

Visit objectives Customer awareness about the firm as a viable alternative source

Establishing customer difficulties with existing products

Encouragement to reveal future sourcing plan

Presenting solutions to previously discussed problems

Negotiate terms / finalise definite purchase decisions

Product / customer / competitor knowledge

Prepare for behavioural aspects of the DMU members


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Handling Objections Research a priori about possible objections

May include

Additional information needs

Commercial terms

The price challenge

Flush out all objections

Use credentials/references

Focus on substantive elements

Avoid arguments Listen

Agree and counter


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Closing the Sale

Most critical step

Get the commitment after taking care of all objections

Introduce a sense of urgency, achievement on part of the

buyer

Throw in some concessions, but only one at a time


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Order Fulfillment

Buyer end

Getting the order signed

Ensuring the credit terms

Tying up payment

Firm end Informing manufacturing/operations

Arranging delivery

Arranging service/installation

Arranging training, if necessary

Regular visits for feedback


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Relationship Building

Overseeing the handling of current contract(s) Obtaining and acting on customer feedback

Determining the scope and negotiating the expansion ofsupplier share

Responding to and seeking to resolve new sourcing problems

Monitoring developments in customer firms

Identifying new product opportunities

Negotiating new contract(s)


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Relationship Promoters

Boundary-spanners

Coordinate activities within own firm to support developmentof relationships

Personal attributes

Social competence

Knowledge

Portfolio of relationships


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Coordination

Inter-firm

Geographical

Product

Customer Key Account Management


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Key AccountManagement


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Portfolio Management

Of relationships

Standard PM notions apply

Constitute sources of risk/return

Vary in type of risk Vary in level of return

Vary in time horizon for the return


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Relationship Life Cycle Stages


Experience

Commitment

Adaptation

Distance

Uncertainty

Time

High

Low

r

e

e

l

a

o

n

s

h

i

p

Early

Development

Long term

Final

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Key Account

Application of relationship portfolio management

Of critical and/or strategic importance

Receive special treatment in order to maintain and develop therelationship


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Key Account Management

Seller-initiated type of strategic alliance (Millman & Wilson, 1995)

Strategic Beyond direct economic importance

Reference value

Access to process / technological knowledge

Also termed as national/strategic/major accountmarketing/management

Hold power advantage over the supplier

Key account manager has to reduce the instability associated with thisasymmetry


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Evolution of KAM


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Evolution of KAM Contd.


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Implementation

Sales or separate from Sales

Pros/cons

Relationship facilitator

Does not take over the relationship

Privileged source of information

Owner of the key account plan (marketing and otherwise)


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Reasons for Selecting a Customer (Bolesetal.,1999)


29

48

55

61

78

92

Management discretion

Industry of customers

Size of customer

Comeptitor's actions

Volume of past sales

Volume of potential business

0 20 40 60 80 100

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Drivers for Success

Knowledge and understanding of the KA business

Proper implementation and understanding of the KAprogramme

Commitment KA and senior management

Suitability of the KA manager

Trust


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Pitfalls

Opportunity-loss Other customers prone to competition attack

Neglect to customer prospecting

Opportunism

Anti-trust litigation


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Thank You!!


b2b - module9

Documents