Identifying the key players in DMU and the benefits they are after Essay Example

the university's interests, he had to provide his own justification, which formed a recommendation submitted to the senior management committee for their final decision. This meant he was eager to make the right choice and select the most suitable and reliable company for installing a high-quality running track. Additionally, as he was pursuing a part-time MBA, he considered using this case as the focus of his final year project. From his standpoint, he aimed to gain clarity on the intricacies of decision-making and viewed this opportunity as a valuable learning experience.

Janet, the secretary of Professor Jones, and Irene, the former secretary of Mr. Reason, served as gatekeepers in this scenario. They were responsible for connecting suppliers with their respective contacts - Professor Jones as the influencer and Mr. Reason as the decider. They controlled the flow of information from suppliers to the influencer and decider, making them the primary channels of communication for the DMU members. While they did not have direct involvement in the final decision-making process, their role was to support the effective functioning of their respective contacts.

The vice chancellor, of unknown identity, served as an enigmatic decision-maker due to a lack of promotion. As a vital participant on the Facility Development Committee, his primary concern was attaining and preserving a reputable position in the fiercely competitive student sports market. Consequently, his pursuit revolved around obtaining quality sports facilities while adhering to a budgetary constraint.

After identifying the key players in LU's purchasing decision, let's attempt to answer the question: why did Sports-Trax fail to win the bid? And how could things have been improved to better understand the DMU? We believe that the

failure can be attributed to two main reasons: a lack of proper development in the buyer-seller relationship, which we will refer to as the "Approach strategy," and a failure to establish the correct pricing and negotiating strategy. Our analysis will be divided into these two parts accordingly.

The development of buyer-seller relationships in the Sport-Trax case is an important aspect of business marketing. According to David Ford from the University of Bath, business marketing involves more than just making sales but also includes establishing, developing, and managing customer relationships.

However, in this particular case, the failure can be attributed to the improper and ineffective implementation of the buyer-seller relationship development, also known as the "Approach strategy." This is evident from the final outcome, where they lost the bid by a narrow margin.

Sport-Trax is in great need of an "Approach strategy" as its sales are divided between the public and private sectors. Over half of its total market share is occupied by public sector sales, and Loughborough University is a key player in the sports field. Therefore, winning this bid will have a critical impact on more than half of Sport-Trax's market. It is crucial for Sport-Trax to prioritize this bid and focus on winning the support of the most important players at DMU. The objective of the Approach strategy should be to achieve the deal through multiple approaches, with less consideration for profits.

In addition, we must evaluate the collaboration among key members of the DMU to determine the specific module and area of focus. Please refer to Figure 1.

(Figure 1) Internal Interaction

By analyzing the information above, we can identify specific methods to enhance buyer-seller relationships.

The interaction approach

can be used to analyze buyer-seller relationships. When a company assesses a possible new supplier, the evaluation will primarily depend on three factors: experience, uncertainty, and distance. This includes social distance, cultural distance, technological distance, time distance, and geographical distance.

The experience between buyer and seller is an important factor in determining their relationship. Uncertainty regarding costs and benefits can arise for the buyer. Another factor to consider is the perceived distance between the buyer and seller. The key to the "Approach strategy" is finding ways to reduce these distances and uncertainty through experience. We will offer suggestions to Sport-Trax for their approach strategy based on these factors.

1: Approaching Gordon from the perspective of social distance, it refers to a lack of knowledge between buyer and seller companies, as well as a lack of personal relationships between the individuals involved. According to David Ford's book "Understanding business marketing and purchasing," a key point to consider is the previous personal relationship between Gordon and Taylor. Strengthening and extending this relationship could significantly reduce the social distance between them and create more favorable conditions for buyer-seller interactions. Taylor recognized this opportunity but unfortunately neglected it when Gordon's role was passed on to Paul. It is important to note that Gordon holds the ultimate decision-making power. Firstly, as Paul's boss, any final decisions must be approved by him. Additionally, only Gordon has the authority to negotiate the budget with the bursar. While it may be difficult for the sales team to obtain full internal information, Taylor should at least make a positive impression during the first visit with Gordon. It is crucial for Taylor to present a professional image

and show respect and personal consideration towards Gordon, as corporate decision-makers continue to respond to these factors even after they enter the office. Ultimately, they tend to favor suppliers whom they feel close to and who demonstrate respect towards them.[Marketing management 7th ed Philip kilter] Taylor should maintain contact with Gordon outside of work in order to nurture their private friendship. Taylor can invite Gordon to social events a few days after their initial work-related contact, focusing on discussing personal matters rather than prying into internal information or bragging about achievements. This approach has the potential to positively influence Gordon and ultimately shape Paul's attitude.

2: Approaching Professor Jones regarding technological distance

Technological distance refers to the differences between the product and process technologies of the two parties involved. This disparity is often significant when assessing potential product purchases (Understanding business marketing and purchasing David Ford).

Based on the case, it is clear that most tenders are able to meet the minimum required technical standards. Therefore, the focus shifted to evaluating service and TOD (time of delivery). Taylor recognized this and attempted to highlight the benefits from this perspective. While his efforts were not in vain and it seems that Jones, to some extent, supported him within the Decision-Making Unit (DMU), ultimately Jones does not have the final say. However, I still have two points to argue:

Firstly, Taylor's lack of prompt response to Jones' insightful technical questions during their initial meeting directly impacts how professional individuals perceive the company. In such critical situations, I recommend a joint visit by the sales manager and engineer to immediately reduce the technological gap.

Regarding Taylor's response to Jones' question regarding installation time,

it appears that Jones was not satisfied. Additionally, Sport-Trax has failed to gain a competitive advantage in terms of TOD and has missed out on the opportunity to receive exclusive support from Jones.

3: Approaching Paul from social distance and personal interests

Paul plays a significant role in both the preparatory stages of setting the specifications and the management of the actual installation. His support greatly impacts the final decision. Additionally, he is intrigued by the opportunity to use the purchase of the running track as the subject of his final year project for his MBA courses. This presents a crucial opportunity that can be capitalized upon by aligning with his interests.

Organizational buyers, on the other hand, have personal objectives that can impact their purchasing decisions. Many organizational buyers are motivated by the psychological fulfillment that accompanies promotions and financial incentives (Marketing 3rd European Edition Dib sinking pride Ferrell).

Accordingly, Taylor should initially demonstrate a strong interest in Paul's individual interests. They should engage in discussions focused on topics that Paul actively cares about, such as offering resources regarding the running tracks industry that align with his interests, providing marketing insights related to relationship marketing and supply chain during subsequent interactions, and so forth.

Secondly, when discussing academic marketing issues, Taylor should examine his psychological activity in relation to the role he aims to fulfill realistically. Concurrently, he should endeavor to have a positive impact on the committee.

By experiencing these side effects, not only would Paul be pleased, but more importantly, he would feel psychologically satisfied, knowing that he is being respected and personally considered.

Approaching Mr. Reason by reducing uncertainty is essential in the relationship between the buyer

and seller. This includes aspects like price and service. Hence, the main concern when interacting with Mr. Reason is gaining his trust regarding the project's cost structure. We will delve into this matter extensively in the following section.

5: The passage of time in the selling process. Furthermore, we have inquiries regarding the duration of the selling process.

In the case, Taylor's first visit to Jones took place 6 days after the invitation of bid was accepted. From our perspective, this timeframe is considered too long for a prompt response which is highly appreciated by most buyers. Despite the need to wait for the secretary's arrangement during this period, Taylor should have chosen other key individuals to visit, such as Paul or Gordon. Furthermore, the timing of Taylor's visit to Paul was delayed, taking place 16 days after a regrettable phone call. As the leader of this project, Paul should have been informed as early as possible. Lastly, after visiting Paul, Taylor took a two-week (17-day) vacation without any form of communication and neglected to delegate any responsibilities. This is undoubtedly a major mistake that provided his competitors with a significant opportunity during this interval.