Chapter 2 Topics

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Chapter 2 Topics

• What different types of relationships exist
  between buyers and sellers?
• When is each type of relationship appropriate?
• What are the characteristics of successful
  partnerships?
• What are the benefits and risks in partnering
  relationships?
• How do relationships develop over time?
• What are the responsibilities of salespeople in
  partnerships?

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Evolution of Personal SellingProduction
Orientation
Marketing 1960-1990
Sales 1930-1960
Production Before 1930
Partnering 1990-Now
Demand exceeds supply.
Characteristics
Drummer, Peddler.
Salesperson Titles
Negotiate price barter.
Characteristics of the sales job
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Evolution of Personal SellingSales Orientation
Marketing 1960-1990
Sales 1930-1960
Production Before 1930
Partnering 1990-Now
Demand catches up limited competition.
Characteristics
Salesman.
Salesperson Titles
Get customer to buy short-term orientation
canned presentations high pressure manipulation.
Characteristics of the sales job
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Evolution of Personal SellingMarketing
Orientation
Marketing 1960-1990
Sales 1930-1960
Production Before 1930
Partnering 1990-Now
Intense competition.
Characteristics
Account Executive, Sales Consultant, Marketing
Rep., Sales Engineer.
Salesperson Titles
Building relationships adaptive selling
solving problems long-term orientation
building customer loyalty.
Characteristics of the sales job
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Evolution of Personal SellingPartnering
Orientation
Marketing 1960-1990
Sales 1930-1960
Production Before 1930
Partnering 1990-Now
Intense global competition in input and output
markets.
Characteristics
Value creators, relationship managers.
Salesperson Titles
Synergistic relationships with suppliers long-ter
m relationships with customers and suppliers
internal selling.
Characteristics of the sales job
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Types of Relationships betweenBuyers and Sellers
Exhibit 2.2
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How is the sales role changing?
Traditional Salesperson
Modern Salesperson
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Market Exchange Selling as Compared to Long-term
Relationship Selling
Exhibit 2.3

• Find someone to listen
• Make small talk
• Ingratiate and build rapport

Making Contact

• Engage in strategic prospecting and qualifying
• Gather and study precall information
• Identify buying influence
• Plan the initial sales call
• Demonstrate an understanding of the customers
  needs
• Identify opportunities to build a relationship
• Illustrate the value of a relationship with the
  customer

Initiating the Relationship
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Market Exchange Selling as Compared to Long-term
Relationship Selling
Exhibit 2.3 Contd

• Delivering a sales pitch to
• Get the prospects attention
• Create interest
• Build desire
• Get the prospect to take action

Closing the Sale

• Select an appropriate offering
• Customize the relationship
• Link the solution to the customers needs
• Discuss customer concerns
• Summarize the solution to confirm benefits
• Secure commitment

Developing the Relationship
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Market Exchange Selling as Compared to Long-term
Relationship Selling
Exhibit 2.3 Contd

• Reestablish contact
• Resell self, company, and products

Following Through

• Assess customer satisfaction
• Take actions to ensure satisfaction
• Maintain open, two-way communications
• Expand collaborative involvement
• Work to add value and enhance mutual opportunities

Enhancing the Relationship
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What role did these factors play in the close
relationships youve had with others?
DependabilityCapability or expertise Mutual
concern
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What are the foundations of successful
relationships?
Exhibit 2.4
Open communication
Mutual trust
Common goals
Commitment to mutual gain
Organizational support
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Developing TrustDependability

• Dependability
• The buyers perception that the salesperson, and
  the product and company he or she represents,
  will live up to the promises made.
• Promises must be made and then kept.
• Consider using
• Third-party references
• Product demonstrations, plant tours, and other
  special types of presentations.
• Proof of prior experience and training.

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Developing TrustCompetence
Competence Salespeople demonstrate competence
when they can show that they know what they are
talking about.

• Requires knowledge of
• The customer
• The product
• The industry
• The competition

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Developing TrustCustomer Orientation

• Customer Orientation
• The degree to which the salesperson puts the
  customers needs first.
• Salespeople who think only of making sales are
  sales oriented rather than customer oriented.
• Buyers perceive salespeople as customer-oriented
  when sellers stress benefits, and solutions to
  problems, over features.

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A Customer Orientation
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Developing TrustCustomer Orientation

• Honesty is both truthfulness and sincerity.
• Giving both pros and cons can increase
  perceptions of honesty.
• Salespeople must also be willing to admit that
  they do not know something rather than trying to
  fake it.

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Developing TrustLikability

• Likability refers to behaving in a friendly
  manner and finding a common ground between buyer
  and seller.
• Likability can be influenced with personal
  communications such as birthday cards,
  hand-written notes, and so forth.

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Is communication an important part of developing
successful relationships?
Compare the quality of communication, especially
how much you know about those with whom youve
had a close relationship, to the communication in
those relationships with those you dont know so
well.
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Common Goals

• Salespeople and customers must have common goals
  for a successful relationship to develop.
• Shared goals give both members of the
  relationship a strong incentive to pool their
  strengths and abilities.

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A Commitmentto Mutual Gain
If both parties share about the same amount of
power, they can spend their time figuring out how
to expand the pie instead of how to divide it.
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Organizational Support

• Structure and Culture
• The organizational structure and management
  provide the necessary support for the salespeople
  and buyers in a partnering relationship.
• Training
• Special training is required to sell effectively
  in a relationship-building environment.
• Rewards
• Reward systems on both sides of the relationship
  should be coordinated to encourage supportive
  behaviors.

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How do relationships develop?
Expansion
Commitment
Exploration

• Salespeople locate and qualify prospects.
• Buyers consider various sources of supply

Awareness
Dissolution
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How do relationships develop?
Expansion
Commitment
Exploration

• This is a search and trial phase.
• Both parties explore the potential benefits and
  costs involved in a relationship.

Awareness
Dissolution
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How do relationships develop?
Expansion
Commitment
Exploration

• Significant efforts are made by both parties to
  investigate the potential benefits of a long-term
  relationship.

Awareness
Dissolution
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How do relationships develop?
Expansion
Commitment
Exploration

• The customer and the salesperson have implicitly
  or explicitly pledged to continue the
  relationship for an extended period of time.

Awareness
Dissolution
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How do relationships develop?
Expansion
Commitment
Exploration

• This can occur at any time during the
  relationship building process.
• It can have a major impact on many people inside
  and outside of the companies involved.

Awareness
Dissolution
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Dissolution

• Think of a store you used to do business with
  regularly but dont visit much any more.
• Was there anything one of its salespeople did to
  contribute to your current lack of interest?
• What could the salesperson have done to have kept
  your business?

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Any questions about the terminology?

• Awareness
• Commitment
• Competence
• Credible commitments
• Customer orientation
• Dependability
• Dissolution
• Expansion
• Exploration
• Functional relationship

• Honesty
• Lead user
• Likability
• Market exchange
• Relationship manager
• Solo market exchange
• Strategic partnership
• Trust
• Win-lose relationship
• Win-win relationship

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