Building Loyalty in Business Markets

By Prof. Das Narayandas

Submitted by “Group 5”Ajay ParmarAditi Kapoor

Sanjeev Bhugra

Delhi School of Business

CONSUMER MARKET

Large number of buyers with similar wants

Transactions usually small in value

Products can be mass produced

Customers perception determines product value

BUSINESS MARKET

Fewer customers

Transactions tend to be larger

Customized product or service

Usage of the product or service determines its value

Distinction

A Typology of Benefits Tangible Financial Benefits

Have value that sellers can communicate and buyers can verify

Non-tangible financial benefitsBenefits with value that sellers can convey but buyers cannot easily validate

Tangible Non-financial benefitsHave value that is difficult for sellers to quantify, even though buyers perceive it

Non-tangible Non-financial benefitsHave value that both sellers and buyers are unable to quantify, especially in monitory terms

The Benefit Stack and Decision Maker Stack

TYPICAL CUSTOMER BENEFTIS OFFERED

Highly competitive price and Quality

Manufacturing Plants on Four Continents

Internet based order placement, tracking and billing system

24/7 customer response facility with radio links to trucks

Customized manufacture and delivery of products to meet plants daily needs

Willingness to handle changes in customer needs with 12 hours notice

Sunday, holiday and 24/7 delivery, when required

Just in time delivery

SELLER

TYPICAL PURCHASE TEAM MEMBERS

Warehouse Manager

Purchase Manager

Logistics Officer

Maintenance Manager

Factory Manager

Chief Marketing Officer

CFO

Supply Chain Head

COO

CEO (on occasion)

SELLER

Least Important

Most Important

Levels of Ladder

Wants to grow the relationship

Endorses Products

Resists competitors blandishments

Is willing to pay premiums

Seeks to collaborate on new product development

May Invest in you

Succ

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of lo

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Type of Customers

Most Valuable customers Partners

Commodity Buyers

Under Performers

Sellers cost of Serving CustomersLow High

Buye

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