Industrial Marketing

Chapter 5 : Buyer-Seller Relationships

+Uncertainties in Buying Situations

+Evolution of Buyer-Seller Relationships

+Types of Buyer-Seller Relationships

+Managing Relationships with Suppliers

+Managing Relationships with Customers

 Managing Relationships with Distributors

+Conflict and Resolution

+Models of Organizational Buying Behavior

Chapter Summary

In this chapter we discussed various aspects of buyer-seller relationships, starting with the uncertainty situations faced by the buyer, that is, need uncertainty, market uncertainty, and transactional uncertainty. The buyer-seller relationship evolves across five stages: pre-relationship stage, exploratory stage, development stage, stable stage, and final stage. This evolution depends on variables like experience, uncertainty, distance, and commitment.

Depending on the extent of their interdependence, the relationships are categorized into transactional relationships, collaborative relationships, alliances, and reciprocal relationships. Industrial marketers have to manage relationships with suppliers, customers, and distributors. This requires analyzing supplier relationships and dimensions, acquiring the right customers, creating value, understanding the importance of power, etc.

Sales representatives play a vital role in managing the relationships with customers by performing multiple functions – information exchange, negotiation and adaptation, crisis insurance, social relationship, and ego-enhancement. We also discussed the different problems in buyer-seller relationships and conflict resolution strategies.

Uncertainty and lack of trust, power difference, deviations from agreements, institutionalized patterns of operation and distance between buyers and sellers lead to conflicts. These conflicts can be resolved through persuasion, compromise, negotiation and bargaining

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