N5 Sales Management 1. Business-to-Business Sales (B2B)
When it comes to Business-to-Business sales, forging long-term relationships with the customer is very important. The salesperson must get to know the staff of the customer, especially the key role players in decision making (the people on the buying team).
When selling to a business (B2B sales), for example the Coca-Cola salesperson that sells to Pick n Pay, or Telkom that sells a new network to Foschini, the salesperson mostly deals with a buying team.
DEFINITION
A buying team is a group of people in a business responsible for making organisational purchase decision.
Buying team/committee/centre How many people does a buying team consist of? The size, structure and composition of a buying team will vary according to: • Size of the organisation (a large organisation usually requires more people’s input while a small organisation’s purchases can be done by a single individual)
• Type of product, in terms of complexity (compare consumer products with industrial products)
• Price • Type of purchase: – straight re-buy (repeat, on a routine basis): for example, Pick n Pay places orders for Coca- Cola products every month. This type of purchase is generally straightforward and might even be done by an individual, for example, Food and Beverage manager of Pick n Pay. – new purchases (first purchases): Done by buying team.
• Company policy regarding who should be involved in the purchasing process • Risk involved in the case of incorrect decision – the greater the risk, the greater the probability of purchasing being done by a group
• Time pressure – If the decision to purchase must be taken within a short period of time, it will be delegated to individuals.
2. A buying team can be appointed on a permanent or temporary basis
A buying team can be appointed on a permanent or temporary basis: • Temporary basis: For purchase decisions that is not often made, for example, a hospital puts a buying team together to decide on a new cleaning service agency.
• Permanent basis: For purchase decisions that are often made, for example, retailers, for example Pick n Pay, the buying team meets regularly for decisions, such as which new product should be given shelf space because retailers have limited shelf space.
A salesperson must: • Establish who is part of the buying team and what role they play • Who influences the buying decision • Who makes the final decision • Who does the actual buying.
Reasons for making use of a buying team • Various viewpoints and a wider range of experience are applied. • Decisions are made more scientifically. • The level of pressure in the buyer-seller relationship is lowered.
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