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Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. Introduction to Marketing Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. The Business Market: Size and Scope The business market all organizations that buy goods and services to make into other goods, for consumption, for use, or for resale. Objective 1 Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. Products P. 105 Mining e.g. coal for steel Parts and components e.g. milk in yoghurt, buttons on shirts Installations e.g. factory, robots Accessories e.g. conveyor belt Supplies e.g. stationery Nature of CRM in B2B markets 1. appropriate conditions for relationships between organisations 2. seven dimensions of transactions 3. types of relationships in B2B Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. Six Conditions of B2B Relations Asymmetry – the balance of power between organizations – strong vs. weak Stability – created by long-term contracts for prices, delivery, etc Legitimacy – fewer checks needed Necessity – using the same accountants, etc Reciprocity – mutual benefit, mutual buying and selling Efficiency – co-ordination of costs, trust, etc See: page 107 Copyright ?2005 by South-Western, a division of Thomson Learning. All rights reserved. Dimensions of Transactions Asset specificity – the assets needed to complete a transaction e.g. factory Frequency – how often we do business together Duration – how long we do business Complexity – how much customization is necessary Monitoring – how do both parties make sure they fulfill their contract Measurement – how to measure performance Connectedness – purchasing decisions See: page 109 B2B - types of relationships The relationship spectrum Transactional exchanges Value-adding exchanges Collaborative exch
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