B2B Selling for consumables

Roles Purchases
• Gatekeeper • Rebuy
• Influencer • Modified Rebuy
• Decision maker • Technical purchase
• User • QUASI RESOLUTION
– 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
Suppliers Competition Buyers
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
Influence Decision Buyers
OEM maker

R&D

Missionary
User
selling
 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 High Dependence
of the buyer on of the buyer on
the seller the 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
Long term strategies adopted by companies to increase dependence
Low Dependence of the High Dependence of the
buyer on the seller buyer on the seller
Low Dependence of Expansion (Consumer goods) Backward integration
the seller on the buyer (Captive mines)
High Dependence of Process modification
the seller on the buyer Use of Low-grade inputs
(Sinter plant)