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2. Chapter 2 The Character of Business Marketing
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

3. CESSNA AIRCRAFT COMPANY TURNAROUND STRATEGY
INTEGRATED THREE CRITICAL PROCESSES:
NEW PRODUCT DEVELOPMENT
STRATEGIC SOURCING
SUSTAINING PRODUCTION
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

4. SUPPLY CHAIN MANAGEMENT
SCM INVOLVES . . .
INFORMATION SHARING
JOINT PLANNING
COORDINATION OF EFFORTS TO
ELIMINATE WASTE
BE INNOVATIVE
IMPROVE QUALITY
PROVIDE FLEXIBILITY
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

5. BUSINESS TO BUSINESS: WHAT DETERMINES A SUCCESSFUL RELATIONSHIP?
MOTIVATION !
THE SELLER’S MOTIVATION TO RELATE
THE BUYER’S MOTIVATION TO RELATE
IF THEY AREN’T EQUALLY MOTIVATED IT WON’T BE AN EQUAL RELATIONSHIP
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

6. BUSINESS TO BUSINESS: THE TYPES OF RELATIONSHIPS
WHEN SELLER’S MOTIVATION TO RELATE IS
HIGH
RESULTS IN BUYER’S ADVANTAGE
RESULTS IN STRATEGIC PARTNERSHIPS
LOW
HIGH
BUYER’S MOTIVATION TO RELATE IS
TRANSACTIONAL RELATIONSHIPS
SELLER’S ADVANTAGE
LOW
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

7. THE REALM OF RELATIONSHIPS
High
Low
Seller’s motivation to relate
Buyer’s motivation to relate
Seller’s market
Seller-maintained relation
Joint relationship maintenance
Buyer-maintained relation
Buyer’s Market
Discrete exchange (spot contracts)
No exchange
EXHIBIT 2-2
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

8. STRATEGIC PARTNERSHIPS
OCCUR WHEN BOTH PARTIES HAVE
MUTUALLY STRONG INTERESTS
IN MAINTAINING AN
ONGOING EXCHANGE
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9. JIT RELATIONSHIPS A SUPPLIER PRODUCES AND DELIVERS PRECISELY . . .
THE NECESSARY QUANTITIES
AT THE NECESSARY TIME
WITH THE NECESSARY PERFORMANCE SPECIFICATIONS . . .
EVERYTIME
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10. GOING FOR HIGH PERFORMANCE RELATIONSHIPS
SELLERS
Want to:
Sell Large Volumes
Sell similar amounts over time
Manage their selling and support expenses
BUYERS
Want:
Reliable delivery without interruptions
Reliable products with low rejection and defect rates
Efficient lead times
DEVELOP A
COMMON
GROUND
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved

11. REQUIREMENTS FOR HIGH PERFORMANCE RELATIONSHIPS
GOES BEYOND THE FINANCIAL CONSIDERATIONS:
INTEGRITY
FAIRNESS
LOYALTY
FLEXIBILITY
INPUT INTO YOUR PARTNER’S STRATEGY
PARTNER’S INPUT INTO YOUR STRATEGY
COMPLIANCE WITH PROCEDURES AND AGREEMENT
HONOR COMMITMENTS
STAND BEHIND YOUR PRODUCTS
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12. Communication & bargaining
THE RELATIONSHIP DEVELOPMENT PROCESS
Relationship phase
Phase characteristics
Awareness
2. Exploration
3. Expansion
4. Commitment 1.
No interaction. Unilateral
considerations of potential Partners.
2..
Interaction between the parties
occurs. A gradual increase in
dependence reflects probing and
testing. Termination of this
fragile association is simple 3.
One party has made a successful
request for adjustment. Both
parties are satisfied with some
customization involved. Additional
benefits from products, services, or
terms are sought from the current
partner rather than from an
alternative partner. 4.
Some means of sustaining the
relationship result contracts, shared
ownership, social ties, inputs are
significant and consistent. Partners
adapt and resolve disputes
internally
Communication & bargaining
Power &
justice
Attraction
Norm
development
Expectations
development
Shared values and decision-
making structures
support joint investment in relation.
0 Seller’s dependence on buyer
Buyer’s dependence on seller 0
Source: Adapted from F. Robert Dwyer, Paul H. Schurr, and Sejo Ob, “Developing Buyer-Seller Relationships.: Used with permission from the Journal of marketing, published by the American Marketing Association, vol 52 (April 1987), p.21.
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved
Exhibit 2-4
2-12

13. TWO CHOICES FOR STAYING IN A BUSINESS RELATIONSHIP
YOU WANT TO.
THE REWARDS ARE FINANCIAL, STRATEGIC OR PSYCHOLOGICAL
YOU HAVE TO.
THE COST TO EXIT IS TOO HIGH OR THERE ARE NO ALTERNATIVES
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14. SUGGESTIONS FOR MAKING BUSINESS- TO-BUSINESS RELATIONSHIPS LAST
MAKE ON-SITE VISITS TO YOUR PARTNER
TRADE PERSONNEL AND OFFICES
MANAGE TOTAL DEPENDENCE WITH AN ALTERNATE SUPPLIER
MAKE THE PLEDGE OF CONTINUOUS SERVICE
DEVELOP A RELATIONAL CONTRACT
PROVIDE OWNERSHIP BY BRINGING FUNCTIONS OR TECHNOLOGY WITHIN BOUNDARIES OF PARTNER’S FIRM
2-McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved