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Customer Relationship Management in B2B Markets - Lesson Summary

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Conceptual Model for Aggregator Business

In an aggregator business context, there is an aggregator and the actual service provider. The aggregator connects the service provider to the customers. An aggregator can be held responsible for a service failure when the aggregator could have controlled the failure. When a customers’ perception of an aggregator's control over service is high, the customer would hold the aggregator responsible for any service failure. In an aggregator business scenario, compensation will be expected when the aggregator is held responsible for a service failure. But, if the perceived responsibility of the aggregator for the service failure reduces, the expected punishment for the service provider increases.

Characteristics of Business Markets
A business market consists of all the organisations that acquire goods and services used to produce other products or services that are sold, rented, or supplied to others.
The unique characteristics of B2B markets are:
Few buyers but with large purchasing size, Multiple buying influences, Close supplier-customer relationships, Professional purchasing process
Direct purchasing, Multiple sales calls, Derived and inelastic demand
Fluctuating demand, Geographically concentrated buyers
The stages in the B2B buying process are:
Problem recognition, General need description and product specification
Proposal solicitation, Supplier selection, Order-routine specification
Performance review.

Developments in B2B Markets
The reasons CRM is important in B2B are: There is better availability of demand and supply information., There are vendor comparison reports.
There are upcoming auctioning markets, Existence of day to day trading.
Differential approach while buying low value vs high-value products.
A key account is an account with strategic importance.
The steps in adopting a growth strategy for Key Account Management (KAM) are: Pre KAM identification
Evaluate management strategy of the key account, Evaluate relationship progress of the KAM, Create partnership KAM, Create a synergistic KAM
Uncouple KAM.