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Transcript of 2 - 1 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships...
2 - 2
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
Evolution of personal selling:Evolution of personal selling:sales orientationsales orientation
ProductionBefore 1930
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
Salespersonactivities
Sales1930 - 1960
Marketing1960 - 1990
Partnering1990 - Now
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
Evolution of personal selling:Evolution of personal selling:marketing orientationmarketing orientation
ProductionBefore 1930
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
Salespersonactivities
Sales1930 - 1960
Marketing1960 - 1990
Partnering1990 - Now
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
Evolution of personal selling:Evolution of personal selling:partnering orientationpartnering orientation
ProductionBefore 1930
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
Salespersonactivities
Sales1930 - 1960
Marketing1960 - 1990
Partnering1990 - Now
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
Market exchange selling as compared to Market exchange selling as compared to long-term relationship sellinglong-term relationship selling
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
Market exchange selling as compared to Market exchange selling as compared to long-term relationship sellinglong-term relationship selling
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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
Organizationalsupport
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
How do relationships develop?How do relationships develop?
Awareness
Salespeople locate and qualify prospects.
Buyers consider various sources of supply
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
How do relationships develop?How do relationships develop?
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
How do relationships develop?How do relationships develop?
Exploration
Awareness
Expansion
Significant efforts are made by both parties to investigate the potential benefits of a long-term relationship.
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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
How do relationships develop?How do relationships develop?
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
How do relationships develop?How do relationships develop?
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology
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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ChapterChapter22
Questionsanswered
Evolution ofselling
Types ofrelationships
Relationshipcharacteristics
Developingrelationships
Relationshipchoices
Terminology