CHAPTER 2 Building Partnership Relationships

The Evolution of Personal Selling Page 33 2-2 McGraw-Hill/Irwin

Types of Relationships Market exchanges Win-Lose Buyer concerned only about buyer (lowest price) Seller concerned only about seller (making sale) Types Solo (flat tire on road) Functional relationships (buy out of habit) Partnerships Win-Win Types Relational partnerships (based on trust, bonding) Strategic partnerships (significant investment by both to benefit BOTH, Starbucks & United Airlines) Pages 35-37 2-3 McGraw-Hill/Irwin

Group Activity Smack-Down: Market Exchange vs. Partnership In groups (pick two & be ready to discuss): Why would anyone want to use the Market Exchange method? Why wouldn’t you use the Partnership method all the time? Name 3 products that are appropriate for the Marketing Exchange method Name 3 products that are appropriate for the Partnership method Page 14 1-4 McGraw-Hill/Irwin

Market Exchange Selling Make a Sale! Making contact Find someone to listen Make small talk Ingratiate and build support Closing the sale – deliver a sales pitch to: Get the prospect’s attention Create interest Build desire Get the prospect to take action Stay alert for closing signals Use trial closes Overcome objections Close early and often Page 39 2-5 McGraw-Hill/Irwin

Partnership Selling Build Trust & Long-Term Relationship Initiating the relationship Engage in strategic prospecting and qualifying Gather and study precall information Identify buying influences Plan the initial sales call Demonstrate an understanding of the customer’s needs Developing the relationship Link the solution to the customer’s needs Discuss customer concerns Summarize the solution to confirm benefits Secure commitment Enhancing the relationship Assess customer satisfaction Expand collaborative involvement Work to add value and enhance mutual opportunities Page 39 2-6 McGraw-Hill/Irwin

Foundations of Successful Relationships Page 40 2-7 McGraw-Hill/Irwin

Characteristics of Successful Partnerships Mutual trust Dependability Competence Customer orientation Honesty Likeability Open communication Common goals Commitment to mutual gain Mutual investment Organizational support Structure and culture Training Rewards Pages 39-45 2-8 McGraw-Hill/Irwin

Phases of a Relationship Expansion Commitment Exploration Pages 48-49 Awareness Dissolution 2-9 McGraw-Hill/Irwin

Phases of Relationship Development Awareness Salespeople locate and qualify prospects; buyers identify sources of supply Exploration Both parties may explore the potential benefits and costs of a partnership 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. Pages 47, 48 2-10 McGraw-Hill/Irwin

Phases of Relationship Development (continued) 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 Pages 48-49 2-11 McGraw-Hill/Irwin