Chapter Twelve
Business-to-Business Selling:
Developing and Managing the Customer Relationship
Authors’ Comments
In this chapter, we highlight the role of relationships in business-to-business
marketing. Field marketers (missionary sellers) and the sales force are the primary
builders of the relationship with customers. These individuals have the opportunity, as
This chapter takes the position that selling is an ongoing process of creatively
combining customer needs with the capabilities of the selling organization. The
ongoing nature of the effort is key to the development of a successful relationship.
We also note that the buying organization needs to be oriented toward a relationship–
no relationship results unless the customer wants a relationship.
customer wants to buy.”
Opening Vignette
HP Returns to its Original Selling Competency
The opening describes the Hewlett Packard sales organization at the time Mark Hurd
became CEO. What the new CEO inherited was a sales organization that, once very
efficient, had grown to a rather oversized (bloated?) organization that was
overburdened with its own bureaucracy and slow to respond to customers. We have
found this situation at other firms in rapidly growing markets, particularly high-tech, as
the need for “more representation” as product offerings multiply and markets expand
takes priority over efficient sales force design. A redesign that returned to the
fundamentals of good business-to-business sales structure was needed.
It may prove useful to relate the changes made by Mark Hurd to some basic
Chapter 12: Business–to-Business Selling 2
Learning Objective
Understand the roles of sales and the seller in business–to-business
organizations.
The seller is important to the organization’s Value Image. Sellers serve on the
front-line of the marketing effort.
Learning Objective
Understand the differences between selling in business–to-business
markets and selling in consumer markets.
The Nature of Sales and Selling
Definition versus Consumer sales:
Many students have negative ideas about selling based on consumer
experiences−just mention real estate or automotive sales and observe
the reaction. Many students would not consider a career in sales.
Chapter 12: Business–to-Business Selling 3
Characteristics of Business–to-Business Selling: Exhibit 12-1 (PowerPoint 12.5)
Repeated, ongoing relationships (PowerPoint 12.6)
• The relationship between the seller and buying center members is a
Solution-oriented, total system effort (PowerPoint 12.7)
• Customers buy solutions, not technologies or core products.
Long time period before selling effort pays off (PowerPoint 12.8)
• In business-to-business selling, the outcome of the sales effort may
Continuous adjustment of needs (PowerPoint 12.9)
• It is important to be flexible and responsive to the changing needs of
customers.
o Customer needs evolve as they learn more about the sellers
• Approaching each customer’s problem in such a way that the
Chapter 12: Business–to-Business Selling 4
Learning Objective
Understand the basics of business-to-business sales force
organization.
Relationship Sales and Marketing
The relationship” between buyer and seller is always important though
the nature of the relationship and the expectations of the parties
involved change under different circumstances.
Successful relationships between suppliers and business customers
involve (PowerPoint 12.11)
• mutual respect
Learning Objective
Recognize the different types of sales representation that are most
appropriate for offerings under different customer buying patterns.
The discussion of culture and relationships that follows can be successfully
related to the eras/philosophies of marketing (Chapter 1) and the four forms of
seller roles, discussed later in this chapter.
Corporate Culture and Relationships
Chapter 12: Business–to-Business Selling 5
cultures are inward focused.
Four Forms of Seller Roles: Exhibit 12-6 (PowerPoint 12.15)
• The order taker
Primary role is taking orders and ensuring timely delivery of
products. (PowerPoint 12.16)
• The persuader/sustainer
• The relationship/value creator
Creates a partnership with the buying center that stimulates
customers. Often built by sales and marketing teams. (PowerPoint
12.19)
The type of seller in any particular organization will depend on culture,
customer expectations, the degree of innovation, ownership versus share
leadership and so on (basically, a summary of the previous 11 chapters).
Learning Objective
Understand the internal and external relationships necessary for
successful sales and market development personnel.
Chapter 12: Business–to-Business Selling 6
Other Types of Seller Roles (PowerPoint 12.21)
• Missionary Sellers−(often part of marketing organization) generic
term for individuals who perform many merchandising tasks,
relationship/value creator role. The FMD role is further described in
Chapter 11.
o Different titles are often given to these individuals, depending
on industry. A few examples:
▪ Customer engineers
▪ Product evangelists
The role of FMDs in establishing market ownership, their appropriate
place in the PLC, and the use of dual field structures is demonstrated in the
“Marketing Plastic Resins” case.
Learning Objectives
Recognize the different levels of selling associated with product
types, rewards and seller performance.
Reinforce the necessity of understanding customers’ needs and
preferences in the building of a sustained organizational relationship.
Dual field structures: Exhibit 12-7 (PowerPoint 12.22) (Because of detail, preview for
clarity before projecting to
class)
Exhibit 12-7 shows the relationship between field sales and field
marketing. While a somewhat complex exhibit, time should be spent
such that students understand the purpose of dual structures.
Chapter 12: Business–to-Business Selling 7
The Mutual Needs of Buyer and Seller (PowerPoint 12.24)
Three Needs to Satisfy
Selling−The Structure
Three basic selling structures (PowerPoint 12.25)
Selling−The Compensation (PowerPoint 12.26)
• Straight Commission
• Straight Salary
• Combination Plans
Straight Commission (PowerPoint 12.27)
•Most appropriate where repeat efforts are necessary to sustain
Straight Salary (PowerPoint 12.28)
•Management is able to exercise greater control over the sales
force (compared to straight commission).
Chapter 12: Business–to-Business Selling 8
Combination Plans (PowerPoint 12.29)
•Most frequently used form of compensation.
Manufacturers’ Representatives
“Reps” are specialists in a particular market segment or collection of
segments that have common users or call patterns. (PowerPoint 12.30)
• A sales call pattern is dependent on the type of selling
Reps act as agents for manufacturers. (PowerPoint 12.31)
(Manufacturers are known as principals in the rep industry.)
As agents, reps
• Take no ownership of what they sell
• Carry no inventory
Exhibit 12-11 (as shown here and on the powerpoints, bullets have been
Chapter 12: Business–to-Business Selling 9
shortened from the text) describes the appropriate market conditions for direct
sales and manufacturers’ representatives. (PowerPoint 12.32 & 33 as noted)
Combinations of Representation
Manufacturers often use a combination of several types of
representation−direct, through distributors, and manufacturers’
representatives−based on the needs and preferences of the customer
base.
Consider an example of a large tire manufacturer such as Goodyear.
Serving many different market segments Goodyear has
Key Terms
booked sale
bottom-up forecast
boundary personnel
Exhibit 12-11 Comparison of Appropriate Market Conditions for a Direct Sales
Force and Manufacturers’ Representatives
(PowerPoint 12-32)
Appropriate for Direct Sales Force When
• The product is technically complex
(PowerPoint 12-33)
Appropriate for Manufacturers’ Representative When
• The product is standardized or generic
Chapter 12: Business–to-Business Selling 10
intensity of territory design
manufacturers’ representative
Answers to Questions for Review and Discussion
1. Compare the role of a seller in consumer markets with a seller in business–to–
business markets.
2. How is the repeated, ongoing relationship in business-to-business selling an
advantage for both the seller and the buyer?
The repeated, on-going relationship in business–to-business selling is an advantage for both
3. Explain why a dyadic relationship between buyer and seller may be of value to
Order Takers.
A dyadic relationship between buyer and seller may be of value to order takers because it
4. As a product moves through the Product Life Cycle, how does the nature and
complexity of customer support change?
The nature and complexity of customer support change through the product life cycle because
Chapter 12: Business–to-Business Selling 11
5. Discuss how the changes examined in Question 4 are related to technology
adoption.
Referring to the Technology Adoption Life Cycle and various adopter groups, customer needs
6. Refer to footnote 13, related to the levels of selling. Of the four forms of seller
roles described in this chapter, which would you assign Level A? Level B? Level
C?
Students will have various positions on this question. Some may assign “C” level to the less
7. Characterize the differences between the seller role of a Motivator/Problem
Solver and the seller role of a Relationship/Value Creator.
Differences between a motivator/problem solver and relationship/value creator are as follows:
Motivator/problem solver:
•
buyer relies on seller for advice as offerings become more innovative
Chapter 12: Business–to-Business Selling 12
8. Many sales managers claim “our sellers are the first line of defense and the first
line of offense in the supplier-customer relationship.” What does this statement
mean? What role types are the sellers likely operating in?
The statement, “…sellers are first line of defense and the first line of offense” means that
9. Suppose you are the marketing manager for a small company marketing a new
product that requires extensive collaboration with the customer before the
customer will adopt it. What are the advantages and disadvantages of selling
your product through manufacturer’s representatives?
In a situation where extensive collaboration with the customer is required prior to adaptation,
the advantages and disadvantages of selling through manufacturer representatives are as
follows:
Disadvantages:
•
contact with the buyer through a second party
10. What are the three areas of mutual needs of buyers and sellers?
11. One–to-one marketing has been a goal for marketers since Peppers and Rogers
popularized the idea.* One-to-one marketing is, in essence, treating each
customer as a segment of one market and marketing directly to that customer.
In business-to-business marketing, how close do you think most companies can
come to implementing one-to-one marketing?
For marketers addressing markets with relatively few and/or large customers, one–to-one
marketing is a necessity–the sales levels and margins for individual customers are very large,
Chapter 12: Business–to-Business Selling 13
12. What risks must be considered when changing representation from
manufacturers’ representatives to a direct sales force?
The risks involved in changing sales policies from manufacturers’ representatives to direct
13. At what level of sales success would you consider making the switch described
in Question 12? What are the factors you must consider to make such a
decision?
The levels of sales success to be considered in making the change alluded to in “12” above
14. Consider the relationship between Daimler-Chrysler and its suppliers, described
in Exhibit 12-9. Chrysler was in trouble and needed cost reductions. Think of
some ways that Chrysler could have obtained the reduced costs and maintained
a strong working relationship with its suppliers.
The answer to this question, written below, was prepared before the recent turmoil in the
automotive industry. The bankruptcy of Chrysler and GM can add credibility to our position that
Chapter 12: Business–to-Business Selling 14