Marketing Management-3

Q. Assume your company, which sells paper products, has 60 percent of the business at
your largest account. What factors would make it relatively easy for you to get a larger
share of that customer’s business, and what factors would make it harder?

Factors that would make it easy Factors that would make it

difficult
• Trust due to long term • Capacity constraint on
relationship seller’s side.
• Deep Discounting • Channel conflict

• Easy seamless returns • Past unsolved disputes

• Longer payment cycle • Buyer’s reluctance to

depend on a single supplier
• Familiarity with buying • Customer Dissatisfaction
process
• Long term contact with • Capacity limitations on
security of price buyers end

Seller supplier would like to have large accounts and favour such accounts because having
60% of business with one customer it is always better to keep him and expand his account
because it is going to bring in greater ease of working with the customer. The customer
knows the seller and is very comfortable dealing with him. To get a larger share it will be
very beneficial to give them a longer payment period and discounts. The factors that make it
harder would be the fact that the buyer neither would want all his supplies and raw materials
from the same entity. The buyer may also get better terms from other sellers or competitors
and so the buyer will look at others.

It is B2B selling so we can assume that so we can assume that buyer is well informed and
factors which will help us increase our share more than 60% are :-
1. We can provide good after sales service.
2. Fulfil orders on urgent and priority basis
3. Assign a dedicated account manager for and provide good customer service

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 4. The company must make the effort to study the business of the customer and provide
new or products which would serve the purpose of the customer
5. Maintain clear communication with consumer

The factors which will contribute in losing business from the customer are
1. Over-charging consumer and providing bad products
2. Lack of good after sales service
3. Taking time in solving customer queries
4. Not providing products on given time
5. Lack of proper communication with customer

To summarise, having a good sales crew that is driven, focused, and has excellent
communication skills will always assist in acquiring more business. Product knowledge
should be extensive. tidy, and it helps if the salesman understands the customer's industry and
a bonus is certain to increase business. Finally, simply selling is no longer sufficient, as
today's customers are demanding and expect good after-sales service and support. As a result,
it is critical for the business success to be customer-centric.

Pranshu Porwal
MBA/1237/07

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