Ref: IMD-5-0752

Case study

Reference: IMD-5-0752

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Value selling at SKF Service (B): Facing a tough buyer

By Emeritus Professor Kamran Kashani Kamran Kashani and Aimee DuBrule

This case is the follow up to Value Selling at SKF (A) and updates the students on important decisions and events. The President of the Service division has decided not to participate in Steelcorp’s reverse auction. But the company’s distributor has managed to arrange a meeting between Steelcorp and an SKF sales executive. This could be a last chance for SKF to win Steelcorp’s tough procurement manager over to its total cost pricing. But there is also a significant chance that value selling may backfire. The student is to devise a negotiation strategy for the upcoming meeting. At least $4 million rides on the success or failure of the negotiation. The video supplement informs the student what actually happened in the meeting and how the sales executive succeeded in closing a deal and having the reverse auction cancelled.

Learning Objective

The case and its video supplement can be used for the following learning objectives: Practice role play and negotiation with a key customer.
KeywordsChannel Conflict, Commoditization, Industrial Distribution, Industrial Marketing, Industrial Selling, Key Account Management, Marketing, Negotiation, Reverse Auction, Value Pricing
SettingsGlobal
Contemporary
TypeField Research
Copyright©2009
Available LanguagesEnglish, Spanish
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Reference: IMD-5-0752

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