Industrial Marketing

Topics: Sales, Iron ore, Marketing Pages: 19 (5041 words) Published: February 23, 2012
Table of content

1. Introduction2
1.1 Research Problem and Research Questions2
2. Theoretical Framework3
2.1 Relationship Marketing3
2.2 Industrial Selling Behavior4
2.2.1 Selling process4
2.2.2 Core selling team6
2.2.3 Selling center6
2.3 Relationships7
2.4. PESTEL Framework9
3. Methodology11
4. Data collection12
4.1 Introductory Information12
4.1.1 LKAB in brief12
4.1.2 Data from the interview13
4.2 Relationship Influence on ISB15
5. Data analysis19
6. Conclusions21

1. Introduction

One of the most important recent trends in sales and research about the sales has been the recognition that the long-term key to success may lie in a relational approach to the buyer-seller interaction (cf. Dwyer et al., 1987). As the marketplace is becoming more and more competitive both in terms of the number of competitors and the quality of their products, the companies are more concentrating on a relationally focused strategies which consider the customer needs and the buyer-seller interaction, not only about the goods or services being sold. In a highly competitive environment, which is around in today's globalize world, any sales organization emphasizes relationship building when the satisfied customers are more likely to be found (Kelley, 92). Nowadays, no clear understanding exists about the impact of the different types of relationships on Industrial Selling Behavior (ISB) and the selling performance, since the sales literature basically agrees with the existing theoretical constructs, which facilitate buyer-seller relationships, as well as the actual nature of the relationship process itself (Dwyer et al., 1987).

1.1 Research Problem and Research Questions

The purpose of this research is to investigate and characterize the effect of different types of relationships on ISB and how is it performed in different kind of relationships. Which arises as the main research problem. Better understanding the impact of relational selling activities on selling process should provide a clearer theoretical perspective on the nature of effective relationship building in sales. (Keillor et al., 2000) In order to reach the above purpose, the research questions aim at studying international industrial company's situation in terms of the selling behavior and its correlation with the business relationships, and are therefore formulated as:

RQ1: How is Industrial Selling Process influenced by different types of relationships? RQ2: How can the influence by different types of relationships on the Selling Center be characterized? RQ3: How can the influence by different types of relationships on the factors on the importance of the environmental factors be characterized?

In order to specify the area of our research and get the real vision of the situation, the interview was conducted towards one industrial company - LKAB, which is the Swedish Multinational company expanding its businesses internationally.

2. Theoretical Framework

2.1 Relationship Marketing

From the very beginning marketing has been focused on the complex of organizational and industrial buying behavior. However, little or no research has been done on selling centers or the combination with buying centers, which were studied to a great extent. (Keillor et al., 2000)

The comparative study of buying and selling habits and in particular the notion of interaction made by the Industrial Marketing and Purchasing group (IMP) has shown that the salesman and the buyer weren’t the only people involved; the emphasis was on the interaction of the different people, on their tasks and roles and on the need to coordinate their tasks throughout the entire process (Hakansson, H (1982), as quoted at Keillor et al., (2000)).

The impact of the length of the relationship on the various parts of the customer development process and on the results in terms of value have shown the economic...
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