0404

Problem

Sony develops “collaborative relationships” with some suppliers and “transactional relationships” with other suppliers. What criteria would purchasing executives use in segmenting suppliers into these two categories? Describe the steps a business marketer might take to move the relationship with Sony from a transactional relationship to a more collaborative one.

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In business scenario, buyers and sellers design and implement various types of relationships concerning market and purchasing situations. Customers usually adopt two types of relationships with the sellers. They are explained below in detail:

Transactional relationship:

Transactional relationship is the relationship where there is no scope of large exchanges between buyers and sellers. It involves where there are various alternatives in the market and supply market is stable.

Collaborative relationship:

Collaborative relationship refers to a rigid and long- term mutual goal oriented system. It furnishes a path for essential purchases and emphasizes operational linkages.

There involves particular criteria that purchasing executives use in segmenting suppliers into these two categories. It is explained below in detail:

Criteria for segmenting suppliers:

Collaborative relationship:

• To build strong and lasting business relationships.

• To attract investing resources.

• To receive business planning.

• To receive expert aid on strategy and coordination issues.

• To design best qualitative and quantitative products and services.

• To attain ultimate customer satisfaction.

Transactional relationship:

• Executive works which require no accurate loyalty.

• To procure products for minimum possible price.

• To receive technical support and other benefits for no cost.

• Executives prefer transactional relationships where there is no reason to approach a single vendor.

Sometimes business marketers prefer to move the relationship from transactional relationship to a more collaborative one. Steps are provided below to perform the above transaction.

Steps to change from transactional relationship to a collaborative relationship:

• Firstly, to receive business planning.

• Secondly, to receive expert aid on strategy and coordination issues.

• Thirdly, to design best qualitative and quantitative products and services.

• Fourthly, to attract investing resources.

• Fifthly, to build strong and lasting business relationships.

• Sixthly, to attain ultimate customer satisfaction.