ABSTRACT
This chapter explores the question of how an industrial sales force can survive, let alone thrive, in an environment where products are treated as commodities and where price is apparently the only important purchase factor. The authors convincingly make the case for sound research on customer needs, customer segmentation, and product differentiation even in highly competitive markets. The chapter suggests that the companies can profitably develop different value propositions, which meet the requirements of different market segments identified via needs-based market segmentation. For all practical purposes, the Business to Business (B2B) market has no commodities. Sometimes customers attach importance to functional distinctions that suppliers do not even know about. More important, customers always value service-like features, such as consulting services, maintenance, and 'conditions of sale'. To realize the value in these non-commodity pieces of the business requires the kind of customer-focused marketing strategy that most B2B companies have never had to adopt.
