January 15

1

• Session 2
• January 15
• BUSI 569 Business Marketing
• Intro and The Big Picture

2
Derived Demand

• YOU CAN MAKE HEADLAMP ASSEMBLIES FOR AUTOS

Consumers want more cars
Automobile manufacturers need more components and
steel
Need more of your companys headlamp assemblies
Consumers stop buying cars
Automobile manufacturers stop making cars
You cant sell headlamp assemblies
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THREE CRITICAL QUESTIONS FOR A
SUCCESSFULBUSINESS TO BUSINESS PROGRAM

• Who Are Its Customers?
• What Do Its Customers Want?
• How Do Its Buyers Make Their Buying Decisions?

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CUSTOMER FOCUSED TEAM STRUCTURE
OEM partsManufactured materialsSubassemblies
ComponentsRaw materialsAssemblies
Originalequipment products
Capital equipment Accessory
equipment Facilitating services
and products
OEM
Distributors
IBM
Value-addedresellers
Users
Maintenance repair, and operationssupplies
Maintenance, repair, and operations supplies
Supply houses
Components Raw materials Manufactured materials
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B2B What Determines a Successful relationship?
MOTIVATION

• THE SELLERS MOTIVATION TO RELATE
• THE BUYERS MOTIVATION TO RELATE
• IF THEY ARENT EQUALLY MOTIVATED IT WONT BE AN
  EQUAL RELATIONSHIP

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BUSINESS TO BUSINESSTHE TYPES OF RELATIONSHIPS
BUYERS MOTIVATION TO RELATE
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HIGH PERFORMANCE RELATIONSHIPS
BUYERS Want Reliable delivery without
interruptions Reliable products with low
rejection and defect rates Efficient lead times
SELLERS Want to Sell Large Volumes Sell similar
amounts over time Manage their selling and
support expenses
DEVELOP A COMMON GROUND
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REQUIREMENTS FOR HIGH PERFORMANCE RELATIONSHIPS

• BEYOND THE FINANCIAL CONSIDERATIONS
• INTEGRITY
• FAIRNESS
• LOYALTY
• FLEXIBILITY
• INPUT INTO YOUR PARTNERS STRATEGY
• PARTNERS INPUT INTO YOUR STRATEGY
• COMPLIANCE WITH PROCEDURES AND AGREEMENT
• HONOR COMMITMENTS
• STAND BEHIND YOUR PRODUCTS

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TWO CHOICES FOR STAYINGIN 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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SUGGESTIONS FOR MAKING B2B 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 partners firm

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