Part II
SALES FORCE
ACTIVITIES
Account
Relationship
Management
Account Relationship
Management Concepts
Account The Building Account
Purchasing Buying Account Relationship
Process Center Relationships Binders
Recognition Evaluation Purchase Implementation
of Needs of Options Decision and Evaluation
Value Added Role of Sales Force:
Do you track
supplier Do you single
performance? out certain
suppliers as
“preferred”?
9%
No N.A.
16%
Yes
Yes No 55%
84% 36%
Do you have
multiple tiers
for ranking
suppliers?
Yes No
51% 40%
9%
N.A.
Have any
suppliers
attained and No
lost top-level 23%
status? Yes
77%
Traits of Top-Performing Suppliers
<5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5% . . Others
7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . Good
8% Management
12% . . . . . . . . . . . . . . . . . . . Good
14% Response/Flexibility
28% . . . . . . . . . . . . . . . . . . . . ISO 9000
Certification
0 5 10 . . . . . . .20
15 . . . . . . .25
. . . . . . 30
....
. Service
. . . . . . . . . . . . . . . On-Time
Figure 4-3:
Tiering of Suppliers
Tier Type of Nature of the Relationship
Supplier
1 In
2 Preferred
3 Extended
4 Partner
Standard Questions in a
Value Analysis Study
Value Analysis – Focus: TOTAL
COST
Standard Questions in a
Value Analysis Study
Value Analysis – Focus:
INVOICE
COST
POSSESSION
COSTS
ACQUISITION
COSTS
Determine the
Decision-Making Process
Determine the
Decision-Making Process
Buying Center Members
MARKETING
MANUFACTURIN
G
RESEARCH AND
DEVELOPMENT
GENERAL
MANAGEMENT
PURCHASING
Economic Buying
Influence
ROLE: Asks “Why”
Gives final approval
CHARACTERISTICS: Access to money
Can release money
Veto power
FOCUS: Total organization
Bottom line
The Future
User Buying Influence
ROLE: To decide on how a
purchase will affect job
performance
CHARACTERISTICS: Implementation oriented
Use or supervise use of
product or service
FOCUS: Tactical, not strategic
The job to be performed
Technical Buying
Influence
ROLE: To eliminate alternatives
To recommend
CHARACTERISTICS: Focuses on quantifiable
aspects of product and
service
Gatekeeper
Can only say “no,”
not “yes”
FOCUS: Product specifications
Asks “What,” not “Why”
Advocate
ROLE: Helps guide the sale
CHARACTERISTICS: May be inside or outside
of the buying organization
Furnishes and interprets
information
FOCUS: Your success
Advocate:
PERSONAL
PROFESSIONAL
RECOGNITION
NEGATIVE
Advocate:
Relationshi
p Stage Description Key Selling Objectives
Business Expansion Questions
EXISTING
USE
POSSIBLE
NEEDS
POSSIBLE
SOLUTION
S
POSSIBLE
NEW USES
DECISION
CRITERIA
Thomas’s
A
S
S
• Confrontatio
n • Confrontation
E
R
T
I • Compromise
V
E
N
E
• Avoidance • Accommodatio
n
S
S
COOPERATION
Dissolution Stage: Warning
Signals
A “Reasonable”
Salesperson
Fortkamp Construction had a major contract delayed
due to equipment failure. With a deadline quickly
approaching the company called Rogers, a salesperson
for Acme Supply. They requested an immediate
delivery of replacement supplies so that Fortkamp
could meet its promised deadline.
Eager to break into this new account, Rogers agreed to
generous credit terms and to absorb air freight
charges to get the equipment to the customer as quickly
as possible. These concessions, however, reduced his
company’s net profit of 20% to below 10%.
A “Reasonable”
Salesperson
When asked by his sales manager why the sale
should be made at such a low profit margin, Rogers
explained, “I felt I needed to be reasonable with this
account. I wanted their business in the future. I was
there when they needed help, the deal was struck
quickly, and they’d remember and thank me later with
new business. I think the concessions were justified.”
How would you respond
to Rogers if you were his
sales manager?
Account Relationships
Salesforce Market Conditions:
Which of the following is the best
alternative:
Account Relationships
Alternative Management Systems
Low Pricing Authority:
Medium Pricing Authority:
High Pricing Authority:
Account Relationships
LOW
AUTHORITY
MEDIUM
AUTHORITY
HIGH
AUTHORITY
Considerations
When Choosing a Partner
Account Relationships
Relationship Enhancers
Creating Value:
Meeting Expectations:
Building Trust:
Customer Value Creation
in the Purchasing
Process
Customer Value Creation in the Purchasing Process
High
Custom
er
Value
Low
Relationships:
___ Enterprise
---- Consultative
..... Transactional
Figure 4-6 Account
Intelligence
Figure 4-6 Continued
Figure 4-7: Account
Relationship Strategy and
Relationship Binders
Create
Value
Meet
expectation
s
Build Trust
Measures of Performance Levels
Results
Trust
Earning
Components Sample Questions
Trust Earning
Components Sales People Buyers
5 5
2 2
1 1
3 3
4 4
Source: Hawes, Mast & Swan (1989) PS&SM: 193 Salespeople; 173 Purchasing Agents
A “Valued” Customer
Jacobs is about to close the sale when the buyer mentions,
“There’s been $5,500 worth of breakage because of your lousy
packaging, but I’m willing to split it with you if you give the word
right now. I’ve another appointment beginning in a few
minutes.” Jacobs suspects that the breakage was the fault of
the buyer’s handling equipment, but cannot prove it.
Thinking that splitting the difference is always a reasonable
way out, Jacobs decides to agree with the buyer and to get the
contract signed.
Do you agree with Jacobs’
reasoning?
What would you advise Jacobs to
have done, if you were her sales
manager?
