Developing Topic 9. Developing business relationships

Developing Topic 9. Developing business relationships

1. relationship spectrum

   • TRANSACTION BASED
     • short term
     • sale and Price focus
     • low interest in other
     • Low trust
     • Low commitment
     • Single transaction
   • RELATIONSHIP BASED
     • Low term
     • Mutual win focus
     • High interest in other
     • High trust
     • High commitment
     • Multiple transaction over time

2. RELATIONSHIP BUILDING

   • Awareness
     • Buyers
     • sellers identify
     • qualify potential providers
     • prospect for relationship
   • Exploration
     • buyers
       • sellers
     • sellers
       • explore the costs and benefit of partnering with each other
       • the fit between their needs and capabilities
   • Expansion
     • relationship
       • buyer
       • seller
         • buyer
         • deeper
     • Exchanges between the parties become more frequent
   • commitment
     • buyer
       • sharing
         • information
         • goal
         • interest
       • committed to achieve mutually beneficial gains
     • seller
   • Dissolution
     • may happen
     • may not happen
     • the relationship is terminated because of
       • performance problems
       • change in circumstances
       • change in circumstances

3. buyer

   • seller

4. seller

   • relationship
     • vary from
       • single time transactions
       • relationships that lasts for years and involve multiple sales
     • actuality
       • opposite ends of a relationship continuum
     • Transactional marketing
       • single activity market exchanges
         • short term focus
         • little interaction between buyer and seller
     • marketing
       • creating
         • ties to customers based on a long-term commitment to customer needs
         • long term
           • commitment
             • customer needs
           • customer
             • increaing their lifetime value
               • sum of their purchases over time
       • bulding