Marketing Strategy and Competitive Positioning pdf ebook

The real buyer–seller relationship
The critical issue is interdependence between buyer and seller, or perhaps more aptly the bal-
ance of dependence, since it is rarely symmetrical. The question is ‘who is dependent on whom’ 
in the buyer–seller relationship? Failure to grasp the simple issue of the direction of dependency 
is likely to blind the seller to a critical vulnerability of SAM, while simultaneously souring 
relationships with the account in question – professional purchasers find it difficult to work 
with suppliers who misunderstand the nature of the relationship they really have with the 
buyer. Sellers with an exaggerated view of their strategic importance to a buyer have unrealistic 
expectations of the customer, with the potential for growing frustration because the customer 
does not behave in the way expected, and ultimately leading to conflict between buyer and seller.
Figure 14.13 illustrates a buyer perspective on supplier types – the professional purchaser 
distinguishes on the basis of risk (substitutability) and impact (reduced costs or improved 

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competitive advantage in the end-use marketplace). From a purchaser perspective, suppliers 
with significant impact on the buyer’s business, but who can easily be replaced, are mainly 
targets for pressure on price and terms, while those with low impact, who can be easily 
substituted, are likely to be treated as commodities, where the goal is to routinise transac-
tions to reduce supply chain costs. With suppliers who cannot easily be replaced, but have 
limited impact, the goal is to reduce the customer’s risk exposure (perhaps by negotiating 
guaranteed supplies). Only where a supplier cannot easily be substituted by a competitor, 
and has a major impact on the customer’s business, is the customer likely to work towards 
a strategic supplier relationship. At any time, for most buyers it is likely that very few sup-
pliers will have strategic importance. It is important to understand the relationship defined 
by the customer, before assuming that the buyer should be treated as a strategic account.