B2B Selling

Roles Purchases
• Gatekeeper • Rebuy

• Influencer • Modified Rebuy

• Technical purchase
• Decision maker
• QUASI RESOLUTION
• User • Org related
• Personal related
 Selling quality

Gatekeeper

Gatekeeper Influencer
Influencer
Decision maker
Decision maker
User

User

Routine Modified Rebuy Technical

 Competitive situation
Entry barriers

Intra Industry
Competition Buyers
Suppliers
Bargaining power Market structure Bargaining power
Market Conduct
Market performance

Threat of
Substitutes
 Entry barriers
Entry barriers

Product related Government/ Legal Marketing related

Technology Cost Distribution Brand

 Need to build
Ideal Competitive advantage
Entry barriers
Build marketing
Build production Related entry barriers
Related entry barriers High

Intra Industry
Suppliers Competition Buyers
Bargaining power (Change Bargaining power
Market conduct)
Low Low Low

Threat of
Substitutes

Low
 Marketing
Building quality
First option
Second option

Gatekeeper
Influencer Influence Buyers
Influence OEM Decision maker

R&D

Missionary selling User

 Procurement Model
Low Dependence High Dependence of
of the buyer on the buyer on the
the seller seller

Low Dependence
of the seller on
the buyer

High Dependence
of the seller on
the buyer
 Low Dependence of High Dependence of
the buyer on the the buyer on the
seller seller

Low Dependence
of the seller on
the buyer

High
Dependence of
the seller on
the buyer
• Reduce Suppliers side bargaining power by increasing production based entry
barriers.
*Cost of prod *Better Technology
• Reduce Buyers side bargaining power by increasing marketing based entry
barriers.
*Distribution *Service *Brand
 Increase Production based entry barriers by
Dependence matrix
Dependence of Dependence of buyer on supplier
supplier (inputs) on Low High
buyer
High
Several Suppliers and Few Interdependence
buyers
Eg: Jatropa Eg: Refinery
Low
Multiple buyers and Several Buyers/ Specialized
suppliers component
Eg: Steel Eg: Intel
 Short term: Cost based Strategies

Dependence of Dependence of buyer on supplier

supplier on buyer Low High
High Low Inventory Assured Supply

JIT Contract
Low Price from Suppliers
High Credit terms
Low High Inventory Reduce cost

Bulk Buying TQM

Order by Economic order qty Backward integration
 Long term: Technology based
Dependence of Dependence of buyer on supplier
supplier on buyer Low High
High
Expansion

Low

Low grade inputs Process Modification

Selling style
 Buyer and seller involvement in decision
Involvement of the end consumer in the decision process

Low High

Low Involvement Picking Variety seeking, habit

of the Impulse buying Textiles
salesperson Petrol
required during
decision
process
High Sub contracted decision Problem solving
Involvement of the Consumer not Risk high
salesperson knowledgeable about High involvement in
required during product/ brands. decision process.
decision Trust/ relationship Buyer knowledgeable
process Ex: Lubricants New Business selling
Ex: Industrial buying
 Selling styles
Involvement of the end consumer in the decision process
Low High
Low Trade selling Trade selling
Involvement of the Salesman (I am) not OK Buyer: Variety seeking behaviour, then:
salesperson required Retailer (U) are OK Salesman (I am) not OK
during decision Acceptance Retailer (U) are OK
process Acceptance
Buyer: Habitual
Salesman (I am) OK
Retailer (U) are notOK
Drive
High Missionary selling New Business selling
Involvement of the Salesman (I am) OK Salesman (I am) OK
salesperson required Buyer (U) are not OK Buyer (U) are OK
during decision Dominance Analytical thinking
process
 Generalized Framework - Selling style

Product Low uncertainty of untried brands High uncertainty of untried brands

characteristics
Low differences Trade selling High advertising support.
between Trade schemes Salesman (I am) OK
brands Salesman (I am) not OK Retailer (U) are not OK
Retailer (U) are OK Dominance
Acceptance
High differences Trade selling Selling solutions (if consumers’
between Salesman (I am) not OK knowledgeable)
brands Retailer (U) are OK Salesman (I am) OK
Acceptance Buyer (U) are OK
Analytical thinking
Missionary selling (if consumers’
not knowledgeable)
Salesman (I am) OK
Buyer (U) are not OK
Dominance
Service Orientation
 Service Orientation

Service orientation

Relationship Increase value Reduce dissonance

 Service orientation for different types of buying
Involvement of the end consumer in the decision process
Low High
Low Picking Habit
Involvement of the Consumer indifferent to the brand Risk of purchase is high
salesperson Service: Increase value proposition to Brand decision dominates
required during the trade. Service: Reduce dissonance
decision process Increase Post sale service
Variety Seeking
Risk of purchase is low
Increase Value at the time of purchase
(At service)
High Sub contracted decision Problem solving
Involvement of the Consumer not knowledgeable about Risk high
salesperson product/ brands. High involvement in decision process.
required during Trust/ relationship Buyer knowledgeable
decision process Service: Relationship New Business selling
Increase pre sale service Total service provider.
Complete service Pre-At and Post
 Generalized Framework – Service orientation

Product Low uncertainty of untried High uncertainty of untried

characteristi brands brands
cs
Low differences Increase value to retailer Reduce Dissonance.
between Service: “Post” sale
brands

High Increase sales promotion. Total solution provider (if

differences Service: “At” point of sale consumer is knowledgeable)
between Service Pre-At-Post (Total
brands service)
If consumer is not
knowledgeable:
Relationship.
Service: “Pre” sale