Topic 06

B2B Selling Process

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Agenda

Contact strategy
Communication strategy
Presentation strategy FABV and STD
Buyer receptivity analysis
Salesperson - purchase manager: drivers of relationship
marketing effectiveness

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Reading

(Textbook; Reference Books)

B2B Marketing: A South-Asian Perspective (11e)

(Hutt, Sharma, Speh)

Chapter 2: Organizational Buying Behavior

Business Marketing: Text and Cases (4e)

(Havaldar)

Chapter 10: Managing the Personal Selling Function

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Role of Personal Selling

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Role of Personal Selling

Personal selling plays a more important role in business

marketing than in consumer marketing.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Role of Personal Selling

Salesperson
As a part of problem-solving capabilities
As a part of communications mix

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Role of Personal Selling

Salesperson as a part of problem-solving capabilities

Help the customer define (or even recognize) the problem or
need (first two buyphases)

Provide effective customer service

Help in drawing product specifications (third buyphase)

Articulate and propose an appropriate solution
Prepare and present a business case
Ensure delivery, installation/implementation, training,
maintenance & repairs

Represent the customer inside the company

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Role of Personal Selling

Salesperson as a part of communications mix

Communication to the customer
Communicate companys value propositions, USPs
Keep customer informed about companys products and services

Communication to the company

Gather and communicate market information
Changing needs
Competition
Market trends

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Organizational Buying Behavior and Personal Selling

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Buying Behavior and Personal Selling

For personal selling to be successful, it is necessary to have

knowledge of buying behavior of organizational customers.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Buying Behavior and Personal Selling

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Selling Center

Girish Ketkar

Selling Center

Selling organizations members who initiate and maintain

exchange processes with customer organization constitute
the selling center.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Selling Center
Selling
Center

Sales
Marketing
Manufacturing
Engineering
R&D
Distribution
:
:
:

Sales
Person

Purchase
Manager
Exchange
Processes
Information
Problem solving

Negotiation
Friendship, trust
Product/Services

Buying
Center

Purchasing
Manufacturing
Engineering
R&D
Marketing
:
:
:

Payment
Support

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Selling Process

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Selling Process

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Contact Strategy

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Contact Strategy

Identify buying center members

Ascertain their roles (initiator, decider, influencer, etc.)
Understand each members profile
Expert/layman, aggressive/passive
Identify powerful buying center members

Decide selling center composition

Meet each member of buying center (ideally, face-to-face)

Adhere to protocols

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Contact Strategy

Understand each members profile

Aggressive
CMO

Mfg Head
CFO

Expert

Layman
R&D Head
Purchasing Head

Passive
Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Contact Strategy

Read
Table 2.3: Clues for Identifying Powerful Buying Center
Members
Chapter 2: Organizational Buying Behavior
Page 55

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

10

Communication Strategy

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Communication Strategy

What should be communicated?

To whom should it be communicated?
When should it be communicated?
How should it be communicated?

Points to consider

Role in the buying center

Evaluation criteria
Different members may have different evaluation criteria

Position in the management hierarchy

Level of knowledge/expertise
Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

11

Communication Strategy

(Example)

Suppose you are trying to sell a raw material to a

manufacturing company.
To whom?

What?

Top management

Business benefits; ROI

CMO

Competitive advantages that she can get

R&D Head, Mfg Head

Technical information; Quality of raw material

Mfg Head

Ease of use; Delivery schedule; Quality control

CFO

Financial information; ROI

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Communication Strategy

Use of SPIN methodology

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

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12

Presentation Strategy

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Presentation Strategy

Aim
Deliver the right message to the right audience with maximum
impact

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

13

Presentation Strategy

Some methods
FABV
STD

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

FABV: Features, Advantages, Benefits, Value

Feature

Characteristic/attribute of product (or service)

Advantage

What the feature does

What the advantage means to a particular prospect

Benefit

e.g. time saving, reduction in downtime, increased

customer satisfaction, productivity enhancement,
competitive advantage, etc.

Payoff

Value

Girish Ketkar

Whats
in it for
me?

Ideally expressed in financial terms (cost reduction or

revenue increase)
B2B Marketing @ BITM 2015-17 Semester II

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14

FABV

(Example: CNC Lathe Machine)

Feature

All machine components are made of corrosion

resistant and higher grade metals

Advantage

Significant reduction in repairs & maintenance

requirements

Reduced downtime

Benefit

Value

1 day per annum as compared to your current

machines downtime of 2 days per annum

Increase in profits: Rs. 10,00,000 per year

Girish Ketkar

FABV

B2B Marketing @ BITM 2015-17 Semester II

Packaging material is made of paperboard (renewable

material) and aluminium foil.

Advantage

Paperboard provides strength and smoothness to printing

surface.
Aluminium foil protects against oxygen and light to
maintain nutritional value and flavors of food.

Benefit

Girish Ketkar

Topic 06

(Example: Packaging Material)

Feature

Value

Whats
in it for
me?

Easy-to-print packages
Recyclable packaging
Increased shelf life (packaged food lasts longer)
Adherence to governments environmental laws

Reduction in printing costs: Rs. p.a.

Reduction in packaging costs: Rs. p.a. (due to recycling)
Reduction in taxes: Rs. p.a. (government incentives)
B2B Marketing @ BITM 2015-17 Semester II

Whats
in it for
me?

Topic 06

15

FABV: Features, Advantages, Benefits, Value

Benefits and value

Should relate to the customers needs/requirements/problems
These can be identified using SPIN methodology.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

STD: Stress the Difference

Emphasize USPs / PODs

Example: CNC lathe machine

We have more customers as compared to competitors.
We have spare parts stock in our local office. Therefore, we
can provide faster repairs & maintenance service.
Our manufacturing facility is ISO certified. We have won
Deming Prize.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

16

Buyer Receptivity Analysis

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Buyer Receptivity Analysis

How supportive is each buying center member of your

proposal?
Opponent

Neutral

Supporter

Ally

Resisting

Indifferent

Mildly
supportive

Strongly
supportive

Formulate strategy to increase support for your proposal in

the buying center.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

17

Negotiation Strategy

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Negotiation Strategy

Typical tactics used by customers

Bluff!
Your proposal is too expensive! Its 25% costlier than your
nearest competitor!
Your competitors product is far superior!
Your competitor has promised 24x7 support!

Threat!
We are going to decide soon. Can you submit revised proposal
by tomorrow? Otherwise, we will go ahead with your
competitor.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

18

Negotiation Strategy

Dont yield to bargaining tactics.

Defend your proposal.

Justify value.
Highlight your strengths.

Overcome objections.
Convert objections into questions.

Get your seniors support.

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Relationship Strategy

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

19

Key Parameters

Relationship breadth
Number of contact points

Relationship composition
Types of contact points (deciders, influencers, gatekeepers, etc.)

Relationship quality
Basis of relationship
Is it based on commitment and trust?

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

Key Roles: Salesperson and Purchase Manager

Selling
Center

Sales
Marketing
Manufacturing
Engineering
R&D
Distribution
:
:
:

Drivers of Relationship Marketing Effectiveness

Sales
Purchase
Person
Manager
Exchange
Processes
Information
Problem solving

Negotiation
Friendship, trust
Product/Services

Buying
Center

Purchasing
Manufacturing
Engineering
R&D
Marketing
:
:
:

Payment
Support

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

20

Emergence of Key Account Manager

Bow-tie Diamond

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

What We Covered in this Topic

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

21

What We Covered in this Topic

Role of personal selling

Sales rep
As a part of problem-solving capabilities
As a part of communications mix

Organizational buying behavior and personal selling

Selling center

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

What We Covered in this Topic

Topic 06

(Contd.)

Selling process

Contact strategy
Communication strategy
Presentation strategy
Buyer receptivity analysis
Negotiation strategy
Relationship strategy
Key parameters
Key roles: salesperson and purchase manager
Drivers of relationship marketing effectiveness

Emergence of key account manager

Bow-tie Diamond

Girish Ketkar

B2B Marketing @ BITM 2015-17 Semester II

Topic 06

22