Understanding the position in the supply chain – LU 9
(Position)

Consultative selling is typically done for the organizational markets where the buyer is not the end user. Companies selling complex and expensive goods have influential suppliers behind them and co-operate with subcontractors and partners. It means selling happens in a supply chain.

The salesman must understand his industry’s supply chain and must see his company’s position it clearly. He must understand how revenue and profit distribution is related to competitive forces, mutual dependence and bargaining positions. He must understand the forces influencing the development of modern supply chain and must adapt his selling strategy and behaviour to all these things.