Part II

SALES FORCE
ACTIVITIES

Account
Relationship
Management
Account Relationship
Management Concepts

Account The Building Account

Purchasing Buying Account Relationship
Process Center Relationships Binders
 Recognition Evaluation Purchase Implementation
of Needs of Options Decision and Evaluation

Value Added Role of Sales Force:

Do you track
supplier Do you single
performance? out certain
suppliers as
“preferred”?
9%
No N.A.
16%

Yes
Yes No 55%
84% 36%
Do you have
multiple tiers
for ranking
suppliers?

Yes No
51% 40%

9%
N.A.
 Have any
suppliers
attained and No
lost top-level 23%
status? Yes
77%
Traits of Top-Performing Suppliers

<5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5% . . Others
7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . Good
8% Management
12% . . . . . . . . . . . . . . . . . . . Good
14% Response/Flexibility
28% . . . . . . . . . . . . . . . . . . . . ISO 9000
Certification

0 5 10 . . . . . . .20
15 . . . . . . .25
. . . . . . 30
....
. Service
. . . . . . . . . . . . . . . On-Time
Figure 4-3:

Tiering of Suppliers
Tier Type of Nature of the Relationship
Supplier
1 In 

2 Preferred 

3 Extended 

4 Partner 
Standard Questions in a
Value Analysis Study
Value Analysis – Focus: TOTAL
COST
Standard Questions in a
Value Analysis Study
Value Analysis – Focus:
INVOICE
COST
POSSESSION
COSTS

ACQUISITION
COSTS
Determine the
Decision-Making Process



Determine the
Decision-Making Process



Buying Center Members
MARKETING

MANUFACTURIN
G

RESEARCH AND
DEVELOPMENT

GENERAL
MANAGEMENT

PURCHASING
Economic Buying
Influence
ROLE: Asks “Why”
Gives final approval

CHARACTERISTICS: Access to money

Can release money
Veto power

FOCUS: Total organization

Bottom line
The Future
User Buying Influence

ROLE: To decide on how a

purchase will affect job
performance

CHARACTERISTICS: Implementation oriented

Use or supervise use of
product or service

FOCUS: Tactical, not strategic

The job to be performed
Technical Buying
Influence
ROLE: To eliminate alternatives
To recommend

CHARACTERISTICS: Focuses on quantifiable

aspects of product and
service
Gatekeeper
Can only say “no,”
not “yes”

FOCUS: Product specifications

Asks “What,” not “Why”
Advocate

ROLE: Helps guide the sale

CHARACTERISTICS: May be inside or outside

of the buying organization
Furnishes and interprets
information

FOCUS: Your success

Advocate:

PERSONAL

PROFESSIONAL

RECOGNITION

NEGATIVE
Advocate:


Relationshi
p Stage Description Key Selling Objectives



Business Expansion Questions
EXISTING 

USE 

POSSIBLE 

NEEDS


POSSIBLE 

SOLUTION 
S
POSSIBLE 

NEW USES 

DECISION 

CRITERIA
Thomas’s

A
S
S
• Confrontatio
n • Confrontation
E
R
T
I • Compromise
V
E
N
E
• Avoidance • Accommodatio
n
S
S

COOPERATION
Dissolution Stage: Warning
Signals


A “Reasonable”
Salesperson
Fortkamp Construction had a major contract delayed
due to equipment failure. With a deadline quickly
approaching the company called Rogers, a salesperson
for Acme Supply. They requested an immediate
delivery of replacement supplies so that Fortkamp
could meet its promised deadline.

Eager to break into this new account, Rogers agreed to

generous credit terms and to absorb air freight
charges to get the equipment to the customer as quickly
as possible. These concessions, however, reduced his
company’s net profit of 20% to below 10%.
A “Reasonable”
Salesperson
When asked by his sales manager why the sale
should be made at such a low profit margin, Rogers
explained, “I felt I needed to be reasonable with this
account. I wanted their business in the future. I was
there when they needed help, the deal was struck
quickly, and they’d remember and thank me later with
new business. I think the concessions were justified.”

How would you respond

to Rogers if you were his
sales manager?
Account Relationships

Salesforce Market Conditions:



Which of the following is the best

alternative:
Account Relationships

Alternative Management Systems

 Low Pricing Authority:

 Medium Pricing Authority:

 High Pricing Authority:

Account Relationships

LOW 

AUTHORITY 

MEDIUM 

AUTHORITY 

HIGH 

AUTHORITY 


Considerations
When Choosing a Partner



Account Relationships

Relationship Enhancers
 Creating Value:

 Meeting Expectations:

 Building Trust:
 Customer Value Creation
in the Purchasing
Process
Customer Value Creation in the Purchasing Process

High

Custom
er
Value

Low

Relationships:
___ Enterprise
---- Consultative
..... Transactional
Figure 4-6 Account
Intelligence
Figure 4-6 Continued
Figure 4-7: Account
Relationship Strategy and
Relationship Binders

Create
Value

Meet
expectation
s

Build Trust
Measures of Performance Levels



Results






Trust
Earning
Components Sample Questions



 Trust Earning
Components Sales People Buyers

5 5

2 2

1 1

3 3

4 4

Source: Hawes, Mast & Swan (1989) PS&SM: 193 Salespeople; 173 Purchasing Agents
A “Valued” Customer
Jacobs is about to close the sale when the buyer mentions,
“There’s been $5,500 worth of breakage because of your lousy
packaging, but I’m willing to split it with you if you give the word
right now. I’ve another appointment beginning in a few
minutes.” Jacobs suspects that the breakage was the fault of
the buyer’s handling equipment, but cannot prove it.

Thinking that splitting the difference is always a reasonable

way out, Jacobs decides to agree with the buyer and to get the
contract signed.
Do you agree with Jacobs’
reasoning?
What would you advise Jacobs to
have done, if you were her sales
manager?