chapter 4 account relationship management. organizational purchasing process u need recognition u...
TRANSCRIPT
CHAPTER 4CHAPTER 4
ACCOUNT RELATIONSHIP MANAGEMENT
ORGANIZATIONAL ORGANIZATIONAL PURCHASING PURCHASING PROCESSPROCESS
Need Recognition Specifications Search for Suppliers Proposals Supplier Selection Performance Evaluation Repeat Purchases
NEED RECOGNITIONNEED RECOGNITION
Problem identification Needs recognized
internally externally derived demand
SPECIFICATIONSSPECIFICATIONS
Defining characteristics and quantity of items to be purchased
SUPPLIER SEARCHSUPPLIER SEARCH
Purchasing department responsibility (usually)
ACQUISITION OF ACQUISITION OF PROPOSALSPROPOSALS
Bid process Systems selling
SUPPLIER SELECTIONSUPPLIER SELECTION
Buying Centers Marketing Manufacturing Research and Development General Management Purchasing
Buying Criteria
PERFORMANCE PERFORMANCE EVALUATIONEVALUATION
Value analysis Focus on total costs (invoice,
possession and acquisition costs) Vendor analysis
Focus on vendor’s performance (delivery, reliability, quality, price, service, technical competence)
REPEAT PURCHASESREPEAT PURCHASES
Straight rebuys Modified rebuys New task
BUYING CENTERBUYING CENTER
“All people involved in the buying decision”
Includes: Economic Buyer User Buyer Technical Buying Influence Advocate/Coach
ECONOMIC BUYERECONOMIC BUYER
Role: Gives final approval Characteristics: Has access to
money, can release money, veto power
Focus: Total organization, bottom line
USER BUYING USER BUYING INFLUENCEINFLUENCE
Role: to decide on how a purchase will affect job performance
Characteristics: Use or supervise use of product or service
Focus: The job to be performed
TECHNICAL BUYING TECHNICAL BUYING INFLUENCEINFLUENCE
Role: To eliminate alternatives Characteristics: Focuses on
quantifiable aspects of product and service; can only say “no” not “yes”
Focus: Product Specifications
ADVOCATE/COACH ADVOCATE/COACH INFLUENCEINFLUENCE
Role: Helps guide the sale Characteristics: May be inside
or outside the organization; furnishes and interprets information
Focus: Your success
BUILDING BUILDING RELATIONSHIPSRELATIONSHIPS
Awareness Exploration Expansion Commitment Dissolution
AWARENESSAWARENESS
Recognition that a supplier is a viable source
Selling Objectives gain attention demonstrate how needs can be
satisfied
EXPLORATIONEXPLORATION
Parties feel that a possibility of mutual benefit exists; limited commitment and trial.
Selling Objectives gain initial acceptance build a successful relationship
EXPANSIONEXPANSION
Parties have experienced benefits of relationship and want expanded interaction
Selling Objectives: Get to know customer better Look for additional ways to help
client
COMMITMENTCOMMITMENT
Establishing a sole or nearly sole supplier relationship
Selling Objectives early supplier involvement in
need process long term focus to relationship multi level interaction
DISSOLUTIONDISSOLUTION
Decision to limit or leave relationship
Selling Objectives: look for warning signals attempt to reinitiate the
relationship
DISSOLUTION--DISSOLUTION--WARNING SIGNSWARNING SIGNS
Missing information Uncertainty about information Uncontacted buying influence New personnel to job Reorganization
ENHANCING ENHANCING RELATIONSHIPSRELATIONSHIPS
Value Expectations Bargaining Trust
VALUEVALUE
Perception that rewards exceed costs
EXPECTATIONSEXPECTATIONS
Standards of conduct and performance are established
BARGAININGBARGAINING
Willingness to negotiate each party’s obligations.
TRUSTTRUST
Belief that an individual’s word can be believed and will be fulfilled
Trust based on likeability competence dependability honesty customer orientation
FROM THE INTERNETFROM THE INTERNET
Relationship Management in Action--The Alleris Group, Inc.
<http://www.alleris.com/> Look at the Relationship
Management Challenge Questionnaire
FROM YOUR TEXTFROM YOUR TEXT
Read all of Chapter 4, pages 168-184