Chapter 5

Business to Business Sales (B2B)

and CRM

SALES MANAGEMENT:
SHARPING FUTURE SALES
LEADERS, Tanner, Honeycutt, and
Erffmeyer, 2e Wesser 2014.
Objectives

Recognize how people make organizational

purchasing decisions.
Describe and explain the three buying situations
Understand individual forces that influence the
B2B buying process
Explain success factors that apply to buyer-seller
relationships
 The Buyer’s Decision-Making Process
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 Differences b/w B2B and B2C customers

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5-4
 3 Buying Situations of Organizations
 Occurs when a complex or expensive
product is purchased for the first time.
New Buy
 The greater relationship, the higher
opportunity for seller.
 Buyer is considering different vendors or
Modified product changes.
Re-Buy  Need to know customers want, and offer
the best solution.

Straight  Buying firm moves directly from need

Re-Buy recognition (Step 1) to ordering (Step 7)

.
 Participation in the Buying Stages of the
B2B Buying Process

Buying Stages New Buy Modified Re- Straight Re-

Buy Buy
1. Recognize problem Yes Perhaps No
2. Determine product Yes Perhaps No
characteristics
3. Determine product Yes Yes Yes
specifications
4. Search for suppliers Yes Perhaps No
5. Evaluate proposals Yes Perhaps No
6. Select supplier Yes Perhaps No
7. Specify quantity needed Yes Yes Yes
8. Review the supplier/product Yes Yes Yes
performance

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5-6
Understanding the Buyer’s Criteria

Understand the needs and goals of buyers is keys.

The buyers use multi-attribute matrix to evaluate
vendors by assigning an importance weight to categories
like price, product, conformance, delivery time, and
manufacturing capacity

Attribute Weight Vendor A Vendor B

Quality .5 9 = 4.5 7 = 3.5

Delivery .3 8 = 2.4 9 = 2.7

Customer Service .2 10 = 2.0 8 = 1.6

Totals 1.0 8.9 7.8

Understanding the Buyer’s Criteria
Roles of the Decision-Making Unit (buying group)
Decision-Making Unit  is a collection or team of individuals
who participate in a buyer decision process. They play a
variety of roles in the process.

 Initiator
 Decision maker
 Purchaser
 Controller
 Influencers
 Users
 Gatekeepers
5-9
How to success in B2B selling

5-10
 Discussion Questions

 Now, HSU needs a new computer lab for training

students.
 You are computer salesperson, and have been
collected some information relating HSU’ requirement.

• Who are maybe relating to buying process?

• Who are maybe the most important person in this case?

5-11
 Requirements by B2B salesperson

Personal relationship
skills
Highly skilled sales force
Constant support from
other functional groups,
especially sales
managers
Information technology
system that’s easy to use
and gives accurate and
.
near-real-time information
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Team Selling

Extended selling team

A group of specialists of major
areas
Quicker response to buyer.
Ability to speak to one’s
counterpart who understands
technical language.
Capability to work as a group to
offer multidisciplinary solutions
to complex buyer problems

5-14
Multi-Level Selling team

Multi-level selling
 Salespeople from different level
position of selling firm, make
sales calls to counterparts of
buying company.
 To easy contact the key person
in the buying organization

5-15
 Team Selling and Multi-Level Selling
Multi-level selling
 Salespeople from different level
position of selling firm, make
sales calls to counterparts of
buying company.
 To easy contact the key person
in the buying organization
Extended selling team
 A group of specialists of major
areas
 Quicker response to buyer.
 Ability to speak to one’s
counterpart who understands
technical language.
 Capability to work as a group to
offer multidisciplinary solutions
to complex buyer problems
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B2B Customer Relationship Management

Customer Relationship
Management

 Identifying and grouping

customers in order to develop an
appropriate relationship strategy
 So the organization can acquire,
retain, and grow the business

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The levels of B2B Relationships

Buyer-seller relationship can be adversarial when

Transactional
either party views the situation from a purely
Relationships economic perspective

Facilitative Trust and cooperation between buyers and sellers

Relationships is better and can create value for both parties

Deepest relationship, where selling firm becomes

Integrative the buyer’s sole source supplier
Relationships Buyers and sellers trust one another and cooperate
to reduce costs and advance their mutual goals

5-18
Differences in Key Variables Based on
Stage of Relationship

Relationship Transactional Facilitative Integrative

Trust Little trust Increasing trust Broad trust
A few depts begin Direct communication
Communication Buyer-seller “bow tie” communicating between all depts
Buyer: lower prices
Value “Win-Lose” Seller: lower costs “Win-Win” for both
Little expectations Growing commitment by Long-term expectations
Commitment beyond current buyer & seller of partnership
contract
Little expectation of Growing acceptance of Honest feedback
Feedback feedback feedback expected and sought
Little opportunity to May switch to inside Expansive opportunity to
Sales programs cross-or up-sell salesperson cross- or up-sell
Little concern for Acknowledgement that
Profits supplier profits More concern supplier must make
reasonable profit
Competitive Little other than current Growing competitive Customized offering
advantage buy advantage

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Planning Sales Strategy Based on CLV
Low % of Purchase Share
Frequent sales force visits
Monthly visits
High Lifetime Direct mail/telemarketing
Earning Value
Optimal contact: biweekly
High potential customer value
Extended sales force visits
Yearly intervals
Low Lifetime Direct mail/telemarketing
Earning Value
Optimal contact: quarterly
Low value customer
High % of Purchase Share
Constant sales force
interaction
Weekly visits
Direct mail/telemarketing
Optimal contact: weekly
Highest customer value
Infrequent sales force visits
6-month intervals
Direct mail/telemarketing
Optimal contact: bimonthly
Low potential customer value
5-22
The Stages of B2B Customer
Relationship Management

1
Up-sell / cross-sell to existing
customers
2
Manage customer relationships
to earn higher profits
3
Offer customized solutions to
most profitable buyers

5-23
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