Download - 2 - 1 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship

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ChapterChapter22

Questionsanswered

Evolution ofselling

Types ofrelationships

Relationshipcharacteristics

Developingrelationships

Relationshipchoices

Terminology

Some questions answered inSome questions answered inChapter 2Chapter 2

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 selling:Evolution of personal selling:production orientationproduction orientation

ProductionBefore 1930

Demand exceeds supply

Making sales

Short-term seller needs

Provider

Taking orders, delivering goods

Drummer, peddler

Markets

Sales objective

Orientation

Salesperson role

Titles

Salespersonactivities

Sales1930 - 1960

Marketing1960 - 1990

Partnering1990 - Now

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Evolution of personal selling:Evolution of personal selling:sales orientationsales orientation


Supply catches up; limited competition

Making sales

Short-term seller needs

Persuader

Aggressively convincing buyers to buy products

Salesman

Markets

Sales objective

Orientation

Salesperson role

Titles


Sales1930 - 1960



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Evolution of personal selling:Evolution of personal selling:marketing orientationmarketing orientation


Intense competition

Satisfying customer needs

Short-term customer needs

Problem solver

Matching available offerings to buyer needs

Account executive, Sales consultant

Markets

Sales objective

Orientation

Salesperson role

Titles


Sales1930 - 1960



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Evolution of personal selling:Evolution of personal selling:partnering orientationpartnering orientation


Intense global competition

Building relationships

Long-term customer and seller needs

Value creator

Creating new alternatives, matching buyer needs with seller capabilities

Relationship manager

Markets

Sales objective

Orientation

Salesperson role

Titles


Sales1930 - 1960



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Types of relationshipsTypes of relationships

Franco raises fish as a hobby. For the last nine years he has gone to Fins to You, a local pet store that specializes in tropical fish, for all of his needs – from fish food to aquarium heaters to replacement fish. Which of the following terms best describes the relationship Franco has with Fins to You?

1. Functional relationship2. Strategic partnership3. Tactical relationship4. Relational partnership5. Routine partnership

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Types of relationships betweenTypes of relationships betweenbuyers and sellersbuyers and sellers

Solo Market

Exchange

Functional

Relationship

Relational

Partnership

Strategic

Partnership

Time horizon Short term Long term Long term Long term

Concern for other party Low Low Medium High

Trust Low Low High High

Investments in relationship Low Low Low High

Nature of the relationship

Conflict, bargaining

Coopera-tion

Accommoda-tion

Coordina-tion

Risk in relationship Low Medium High High

Potential benefits Low Medium High High

Exhibit 2.2

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How is the sales role changing?How is the sales role changing?

Traditional salesperson Modern salesperson

Product oriented Customer oriented

Creates customer needs Uncovers and satisfies customer needs

One-way communication – aggressively push products

Two-way communications – listens and learns

Sells products Sells solutions

Short-term sales Long-term relationships

No after-sales support Emphasizes follow-up service

Works alone Works with a company team

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Market exchange selling as compared to Market exchange selling as compared to long-term relationship sellinglong-term relationship selling

Making contactInitiating the relationship

Find someone to listenFind someone to listen

Make small talkMake small talk

Ingratiate and build rapportIngratiate and build rapport

Engage in strategic Engage in strategic prospecting and qualifyingprospecting and qualifying

Gather and study precall Gather and study precall informationinformation

Identify buying influenceIdentify buying influence

Plan the initial sales callPlan the initial sales call

Demonstrate an Demonstrate an understanding of the understanding of the customer’s needscustomer’s needs

Identify opportunities to build Identify opportunities to build a relationshipa relationship

Illustrate the value of a Illustrate the value of a relationship with the customerrelationship with the customer

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Closing the saleDeveloping the

relationshipDelivering a sales pitch to:Delivering a sales pitch to:

Get the prospect’s Get the prospect’s attentionattention

Create interestCreate interest

Build desireBuild desire

Get the prospect to take Get the prospect to take actionaction

Select an appropriate offeringSelect an appropriate offering

Customize the relationshipCustomize the relationship

Link the solution to the Link the solution to the customer’s needscustomer’s needs

Discuss customer concernsDiscuss customer concerns

Summarize the solution to Summarize the solution to confirm benefitsconfirm benefits

Secure commitmentSecure commitment

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Following through Enhancing the relationship

Reestablish contactReestablish contact

Resell self, company, and Resell self, company, and productsproducts

Assess customer satisfactionAssess customer satisfaction

Take actions to ensure Take actions to ensure satisfactionsatisfaction

Maintain open, two-way Maintain open, two-way communicationscommunications

Expand collaborative Expand collaborative involvementinvolvement

Work to add value and Work to add value and enhance mutual enhance mutual opportunitiesopportunities

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What role did these factors play in the close What role did these factors play in the close relationships you’ve had with others?relationships you’ve had with others?

Dependability

Capability or expertise

Mutual concern

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What are the foundations What are the foundations of successful relationships?of successful relationships?

CommonCommongoalsgoals

Commitment toCommitment tomutual gainmutual gain

OrganizationalOrganizationalsupportsupport

Mutual trustMutual trust OpenOpencommunicationcommunication

Exhibit 2.4

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Developing trust:Developing trust:dependabilitydependability

DependabilityThe buyer’s 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 referencesProduct demonstrations, plant tours, and other special types of presentations.Proof of prior experience and training.

Mutualtrust

Opencommunication

Commongoals

Mutualgain

Organizationalsupport

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Developing trust:Developing trust:capability or competencecapability or competence

CompetenceSalespeople 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

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Developing trust:Developing trust:concern for other partyconcern for other party

Customer OrientationThe degree to which the salesperson puts the customer’s 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.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Developing trust:Developing trust:customer orientationcustomer 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.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Developing trust:Developing trust:likabilitylikability

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 soforth.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Is communication an important part of Is communication an important part of developing successful relationships?developing successful relationships?

Compare the quality of communication, especially how much you know about those with whom you’ve had a close relationship, to the communication in those relationships with those you don’t know so well.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Common goalsCommon 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.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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A commitment to mutual gainA commitment to 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.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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Organizational supportOrganizational support

Structure and cultureThe organizational structure and management provide the necessary support for the salespeople and buyers in a partnering relationship.

TrainingSpecial training is required to sell effectively in a relationship-building environment.

RewardsReward systems on both sides of the relationship should be coordinated to encourage supportive behaviors.

Mutualtrust

Opencommunication

Commongoals

Mutualgain


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How do relationships develop?How do relationships develop?

Awareness

Salespeople locate and qualify prospects.

Buyers consider various sources of supply

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Exploration

Awareness

This is a search and trial phase.

Both parties explore the potential benefits and costs involved in a relationship.

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Exploration

Awareness

Expansion

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

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

Exploration

Awareness

Expansion

Commitment

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Exploration

Awareness

Expansion

Commitment

Dissolution

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.

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DissolutionDissolution

Think of a store you used to do business with regularly but don’t 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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Objectives of relationshipsObjectives of relationships

What factors should a salesperson consider when deciding with which customers s/he wants to develop a close relationship?

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Any questions about the terminology?Any questions about the terminology?

AwarenessBarterCommitmentCompetenceCredible commitmentsCustomer orientationDependabilityDissolutionExpansionExplorationFunctional relationshipHonesty

Keiretsu

Lead user

Likability

Market exchange

Relational partnership

Relationship manager

Solo market exchange

Strategic partnership

Trust

Win-lose relationship

Win-win relationship

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Evolution ofselling




Relationshipchoices

Terminology

Download - 2 - 1 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship

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