Business to business marketing is a specialized field of marketing where the rules of the game is substantially different. Transaction between Microsoft and Dell can be compared to transaction between P&G and a consumer John, but to a certain extent. The level of trust and relationship is markedly different in the above two business transactions. The intricacies of trust and relationship in B2B transactions have been discussed in depth in a paper written by Shelby D Hunt. In the past decade there has been a paradigm shift towards relationship marketing and this is more evident in B2B segment. However, at the kirana store level the importance of relationship marketing cannot be neglected in a developing country. It is seen that the importance of this concept varies with the level of development in the society. The more developed a country the less is the importance at B2C level. In emerging nations where the systems are not well defined and where best practices are rare, adjustment and adoption to individual customers is been practiced since decades.
Business to business marketing is a specialized field of marketing where the rules of the game is substantially different. Transaction between Microsoft and Dell can be compared to transaction between P&G and a consumer John, but to a certain extent. The level of trust and relationship is markedly different in the above two business transactions. The intricacies of trust and relationship in B2B transactions have been discussed in depth in a paper written by Shelby D Hunt. In the past decade there has been a paradigm shift towards relationship marketing and this is more evident in B2B segment. However, at the kirana store level the importance of relationship marketing cannot be neglected in a developing country. It is seen that the importance of this concept varies with the level of development in the society. The more developed a country the less is the importance at B2C level. In emerging nations where the systems are not well defined and where best practices are rare, adjustment and adoption to individual customers is been practiced since decades.
With this background information, here i would like to throw some light on an interesting relation between human behavior and relationship marketing. Interaction and transaction among human beings happen at three levels:
one-With family members
Two-with friends
Three-with acquaintance
Let us explore the importance and consequence of relationship in all the three scenarios. At level one, humans compulsorily adopt to the family members needs and change involuntarily. If your wife needs some time, she need not take an appointment from you. At level two, humans adopt to the needs of their friends voluntarily. If your friend wants to meet you, you might change your regular appointment to accommodate your friends need. However, at level three, the chances that you treat the acquaintance differently are very bleak.
Now, let us explore these options for a business house.
level one: Big client without whom you cannot survive. Just like family members.
level Two: key clients whom you perceive to be better than other clients (in terms of business, process or growth prospects). Just like friends.
level Three: other clients
In level one, your client defines the way you work and can be compared to family members.
In level two, there is a mutual adjustment and you act as if they are your friends. You would change your normal business process wherever required.
Interestingly, at level three, you do business with other not so important clients and you act as if they are just acquaintance and you resist any demand in process change.
From the above comparison i conclude that a manager can understand its business better if he handles the clients as if they are family members, friends or just acquaintance.
“Three tier relationship management in business”.
Rogues
