Value is Related to Customer Benefits

3-1

VALUE CREATION IN BUYER-SELLER RELATIONSHIPS


3-2

Value is Related to Customer Benefits

• Utility – the want-satisfying power of a good or service

• Types of Utility• Form• Place• Time• Ownership


3-3

Lifetime Value of a Customer

• Lifetime value of a customer – present value of the stream of future profits expected over a customer’s lifetime of purchases

• Firing a customer – encouraging a customer to find alternative sources from which to purchase


3-4

Communicating Value in the Sales Message

• Product quality

• Channel deliverables (supply chain)

• Integrated marketing communications (IMC)

• Synergy between sales and marketing


3-5

Communicating Value in the Sales Message

• Execution of marketing mix programs

• Quality of the buyer-seller relationship (trust)

• Service quality

• Salesperson professionalism


3-6

Synergy Between Sales and Marketing

• Seamless organizational processes focused on managing customer relationships strengthen the value proposition

• When sales and marketing are not synergistic, the customer is marginalized


3-7

Execution of Marketing Mix Programs

• Product

• Place - for distribution, or getting the product into the hands of the customer

• Price

• Promotion - marketing communications


3-8

Quality of the Buyer-Seller Relationship

• The quality of the buyer-seller relationship is measured by trust

• Trust - a belief by one party that the other party will fulfill its obligations

• Trust is essential to successful relationship selling

• Trust signifies that a salesperson has the customer’s long-term interests at heart

Value is Related to Customer Benefits

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