.1.3. Perspectives on role of industrial and business marketing
Research has focused on the value of either the object or the process of exchange reflects two fundamentally different perspectives on the role of business and industrial marketing (Axelsson & Wynstra, 2002).
The first views the market system as fully functional and marked by perfect competition. Business and industrial marketing activities target relevant markets, and the number of alternative buyers and sellers represents the room for action, which depends on the standardization of the offering (a more unique offering creates lock-in effects). High termination costs mean the parties constantly analyze whether they can solve existing problems. Key commercial competencies include market knowledge and the ability to play the market. The market pushes for the use of existing competition and exploiting opportunities. This market structure thus supports a transactional approach to business and industrial marketing.
The second perspective regards markets as well-organized, connected networks (Axelsson & Wynstra, 2002), so business and industrial marketing activities pertain to the relations across activities, ties among resources, and bonds between actors. Relationship functions are critical, including the customer's resource supply system and its significance for the company's position in various networks. The company focuses on specific customers, not vast market segments, with an emphasis on the contents and functions of a specific relationship in the larger network. This situation fosters practices in line with the relational approach.
Table 1 illustrates the main differences between transactional (competition) and relational (collaboration) exchange behavior (Axelsson & Wynstra, 2002). Both perspectives represent distinct theoretical foci and ideas about the role of business and industrial marketing.
.1.3. Perspectives on role of industrial and business marketing
Research has focused on the value of either the object or the process of exchange reflects two fundamentally different perspectives on the role of business and industrial marketing (Axelsson & Wynstra, 2002).
The first views the market system as fully functional and marked by perfect competition. Business and industrial marketing activities target relevant markets, and the number of alternative buyers and sellers represents the room for action, which depends on the standardization of the offering (a more unique offering creates lock-in effects). High termination costs mean the parties constantly analyze whether they can solve existing problems. Key commercial competencies include market knowledge and the ability to play the market. The market pushes for the use of existing competition and exploiting opportunities. This market structure thus supports a transactional approach to business and industrial marketing.
The second perspective regards markets as well-organized, connected networks (Axelsson & Wynstra, 2002), so business and industrial marketing activities pertain to the relations across activities, ties among resources, and bonds between actors. Relationship functions are critical, including the customer's resource supply system and its significance for the company's position in various networks. The company focuses on specific customers, not vast market segments, with an emphasis on the contents and functions of a specific relationship in the larger network. This situation fosters practices in line with the relational approach.
Table 1 illustrates the main differences between transactional (competition) and relational (collaboration) exchange behavior (Axelsson & Wynstra, 2002). Both perspectives represent distinct theoretical foci and ideas about the role of business and industrial marketing.
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