-precise statement of requirements and tolerances

-usually already developed in transactional relationships

-specs are usually dictavted by the anticipated demand for the product or by it technological requirements

-consultative/enterprise relationships work together to determine specs

request for proposal from the buyer

notice that a customer sends to qualified suppliers asking them to big on a project with certain specifications

-link trading partners to internal internal netrworks to provide secure and private transactions

-part of the purchasing process

a crucial factor in b2b relationships

-especially for commodity-type items with many comparable alternatives

ensure that all promises are fulfilled and customer expectations are met or exceeded

after immediate post-purchase, seller's focus should shift to customer retention and growth

-nuturing business, performing research, analysis, evaluation and more

how organiazations formally evaluate their suppliers

-detailed analysis of a product

-focuses on total cost  of providing the service/produce with the necessary quality

costs related to holding inventory

high for repetitively purchased items

focuses on the vendor looking at delivery reliability, price, service, ad technical competence

"wavelength" measurements of attitude, responsiveness ect

1. In-Supplier

2.Preferred

3.Extended

4. Partner

-recognitzing that groups should be treated differently buyers are organizing suppliers into tiers

-depending on which tier the supplier is in, the relationship and the purchasing process will be quite different

arms-length relationship

indivdiual relationship level dominates

standardized nonstrategic products

relationship focused on products (preferred)

high familiarity and trust

bundle of products

collaborative processes, product design, inventory management

supplier viewd as "best in class"

viewd as a key to customer's competitive position

business relationship rarely challenged

some degree of exclusivity

all the people formally or informall involved in the purchasing decision

changes over time

not a formal department

person or committee with the power to give final approcal to buy your product or service

-money and able to release it

Focus: Performance

establish priority of projects

economic health of the business

future oriented

why?

can say yes when everyone else says no

can say no when everyone else says yes

determines the impact of the purchase on the joy they or other their people perform

Focus: Operations, narrow

tactical view vs a strategic view

past and present rather than future consideration

concerned with how the product affects them not the company

"gatekeepers"

screen products and suppliers that dont meet the needs of the organization

function: to narrow down the choices to the alternatives most likely to fuflfill organzational objectives

Have powerful influence on the finanl decision, can be the only one who says no but cannot be the only one who says yes

Focus: quantifiable aspects as they relate to specifications

engineers, legal counsel, purchasing agents # of people

guide you in the sale by providing critical information about the organization and the people involved

sell for you when you are not there

advocate and seller must work together, the advocate does not take over the selling role

1.personal-they know or like you

2.professional-wants to do better in their own job to help the company

3.recognition

4.negative-wants someone else to lose

1. recommending selling strategies

2. building interest

3.referring you to other advocates

4.reviewing your presentations

5.gaining access to decision makers

* for an advocate to be successful others in the buying center must feel that the person is trustworthy and competent

*results in long-term success because people are less likely to change after establishing a publically stated position

1.Awareness

2.Exploration

3.Expansion

4.Commitment

5.Dissolution

-done by psychological research

-each stage represents a major shift

-all relationships are dynamic, but they are not all linear, can jump from step to step

drive parties to progress to a fully committed relationship

1.Creating Value

2.Meeting Expectations

3.Building Trust

the perception that rewards exceeds the costs associated with establishing/expanding a relationship

must ultimately reach the customer's customer (better quality, more choices, quicker access)

final two phases of the selling process

1.purchase decision

2.implementation and evaluation

strongest during 1st 2 phases

1.need recognition

2.evaluation of alternatives

across all four

1.needs

2.alternatives

3.purchase

4.implimentation

rules or norms with respect to accepatable conduct and performance

varies by individual preferences, company policy and national cultures

salesperson must be careful not to encourage unfavorable buyer expectations

expectations develop with respect to PERFORMANCE

accuracy in determining buyer performance is related to high sales performance

adults less accurate of buyer expectation than younger people

the opininon that someone's word/promise can be believed and that long-term interests will be served

*essential in establishing working partnerships

*takes time--length of relationship makes it stronger

Honesty

Competence

dependebility

customer orientation

likability

*studies of buyers perceptions of the 5 attributes of trustworthiness of sales people indicate that they are important to a buyers overall feelings