Publication Type

Magazine Article

Version

acceptedVersion

Publication Date

5-2008

Abstract

Increasingly held accountable for reducing costs, purchasing and other customer managers don't have the luxury of simply believing suppliers' claims of cost savings. A relatively easy and quick way to obtain savings is for purchasing managers to focus on price and obtain price concessions from suppliers. To enhance their negotiating power, purchasing managers attempt to convince suppliers that their offerings are the same as their competitors, so that they could be easily replaced. In the face of such pressure, suppliers cave in and match competitor prices. Doing business based on demonstrating and documenting superior value is, indeed, a rare commodity. Yet it doesn't have to be so. By adopting the customer value management approach, value merchants can prevail when they encounter challenges. The approach includes: 1. Conceptualize value. 2. Formulate value propositions. 3. Substantiate value propositions. 4. Tailor market offerings. 5. Transform sales force to value merchants. 6. Profit from value provided.

Keywords

Vendor-supplier relations, cost reduction, sales management, competition, value added

Discipline

Marketing | Sales and Merchandising

Research Areas

Marketing

Publication

Sales and Marketing Management

Volume

160

Issue

3

First Page

20

Last Page

23

ISSN

0163-7517

Publisher

Nielsen Business Publications

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