Marketing 2 Exam Chapter 13 B2B and Personal Selling

B2B and Personal Selling

Customer Relationships

the most important relationship in the B2B world where the steaks of each sale are high and the number of potential buyers is low

Transaction Selling

focus is on making the sale (customers are not contacted again)

Relationship Selling

focus is on building the relationship

Sales Process

Prospecting, The Preapproach, The Approach, The Presentation, The Follow Up

B2B

goods or services are sold for any use other than personal consumption

Derived Demand

the demand for a company’s products comes from the demand for their customer’s products, most demand comes from consumers

Joint Demand

Two products are used together and demanded together - Both products are consumed at the same time

Inelastic Demand

Few or no substitutes

Uses of B2B products

For additional production, for use of operations, for resale

Entering Goods

Become part of finished product

Cost is assigned to manufacturing process

Foundation Goods

Capital Items

Typically depreciated over time

Facilitating Products

Support organizational operations

Handled as overhead expenses

Installations

Major long term investment items

Building, land, fixed equipment, etc

Accessory Equipment

Less expensive and short lived

Not considered part of fixed plant

Portable tools, etc

Categories of B2B Customers

Commercial Interprises

Governmental organizations

Institutions

Studies show people spend _ of their time persuading others

40%

1 in _ Americans work in sales

9

Partnering

the seller works continually to improve its customers operations, sales, and profits

Dependence __ as Relationships become More Important

Increases

Consultive Selling

Process of helping the customer achieve strategic short and long-term goals through the use of the seller’s goods and/or services

Three Roles of Consultative Selling

The TEAM LEADER coordinates all the info

The BUSINESS CONSULTANT gives advice and service

The LONG TERM ALLY creates and “win-win” situation

Benjamin Franklin’s success

“I will speak ill of no man”

Perceptual Contrast

• When shown two (or more) alternatives that vary greatly 

• People will judge second to be much better or worse than if they were shown only the second 

Reciprocation

When people are given something, they feel they owe the giver (sample, small gifts from non profits)

Liking Rule

People buy from people they like

Authority Obedience

When actors dress as doctors in commercials

Commitment and Consistency

People desire to be and look consistent with their words, beliefs, attitudes, and actions 

Scarcity

• People assign more value to opportunities that are less available 

• People are loss averse, losses are more important than gains 

Unity

People say yes to someone they consider one of them. Shared identities