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© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Building Partnering Relationships  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? Some questions answered in this chapter are: 2-2 CHAPTER 13 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-3 The Evolution of Personal Selling McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Relationships and Selling Relationship marketing Loyalty Lifetime customer value 2-4 McGraw-Hill/Irwin Behavioral loyalty refers to the purchase of the same product from the same vendor over time. Attitudinal loyalty is an emotional attachment to a brand, company, or salesperson.

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Market exchanges –Solo exchanges –Functional relationships Partnerships –Relational partnerships –Strategic partnerships 2-5 Types of Relationships McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-6 Types of Relationships Between Buyers and Sellers McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-7 Foundations of Successful Relationships McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Awareness –Salespeople locate and qualify prospects; buyers identify sources of supply Exploration –Both parties may explore the potential benefits and costs of a partnership 2-8 Phases of Relationship Development McGraw-Hill/Irwin Supplier relationship management (SRM) is the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits.

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Expansion –Both parties investigate the benefits of a long-term relationship Commitment –The customer and seller pledge to continue the relationship for a period of time Dissolution –Process of terminating the relationship 2-9 Phases of Relationship Development (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Managing Relationships and Partnering Choosing the right relationships –Size –Access and image –Access to innovation Using technology to increase efficiency 2-10 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Businesses are moving toward partnering strategies. Functional relationships and strategic partnerships are characterized by a mutual concern of each party for the long-run welfare of the other party. Mutual trust, open communication, common goals, a commitment to mutual gain, and organizational support are key ingredients in successful relationships. Customers trust salespeople who are dependable, capable, and concerned about the customer’s welfare Summary McGraw-Hill/Irwin