1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Creatively joining the seller company’s capabilities with customer’s needs to create value for both parties. 2 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Managing customer relationships  Gathering customer information  Gathering competitior and market information  Build customer loyalty  Gain new customers  Providing customer services  Establishing customer dialogues 3 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Repeated, ongoing relationships  Solution-oriented, total system effort  Long time-period before sale pays off  Continuous adjustment of needs  Buyer demands creativity of seller in problem solving 4 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Customers buy solutions  Seller and selling organization must understand needs of customer  Must also understand different motivating elements between members of buying center 5 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Be flexible and responsive to changes in customer needs  Customer needs evolve as they learn more about offering 6 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Successful relationships between customer and seller involve:  Mutual Respect  Trust  Each customer relationship is unique 7 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4 Forms of Seller Roles Order Taker Persuader/ Sustainer Motivator/ Problem Solver Relationship/ Value Creator Takes orders, ensures correct and timely delivery of offering. Major effort in the “place” marketing mix variable. Proactive role in relationship. Informs customers about offerings and ongoing updates. Attempts to convince customer of value of offering, though the focus is still on needs of selling organization. Focuses on the needs of the customer organization, potentially creating unique customer solutions by matching supplier capabilities with customer needs. Considered a resource by the customer. Build and maintain partnership with all elements of the customer buying center. Supplier/customer relationship is mutually inspiring and stimulating. Both parties recognize an equity in the other’s success. Exhibit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4 Forms of Seller Roles Order Taker  Take orders  Ensure timely delivery of products – major effort in “place” in marketing mix  Buyer-seller relationship is not complex  Simple products, e.g., simple machine parts 9 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4 Forms of Seller Roles Persuader/Sustainer  Proactive role in relationship  Updates customers about offerings  Convinces customers of offerings’ value  Buyer-seller relationship is less complex  Product/service is not so complex, e.g., engine lubricants 10 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4 Forms of Seller Roles Motivator/Problem Solver  Focused on the needs of the customer’s organization  Finds unique customer solutions by matching capabilities and needs  A customer resource  Relationship is more complex  Product/ service is more complex, e.g., software 11 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4 Forms of Seller Roles Relationship/Value Creator  Builds and maintains partnership with all elements of the buying center  Relationship is mutually inspiring and stimulating  Both seller and buyer recognize equity in the other’s success  Relationship is the most complex  Product/service is the most complex, e.g., electronic systems for cars 12 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

One must understand the customer’s:  Technologies  Products  Markets and Customers  Competitors  Channels  Buying Center and Buying Patterns  Culture 13 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Relationship Between Field Sales & Field Marketing Vice President of Marketing & Sales Sales Manager Marketing Manager Purchasing Influences at customers who are contract providers to end users. Field Marketer Regional Sales Manager Field Sellers Programs Manager Field Manager Headquarters Segment Specialists Field Marketer Regional Sales Manager Specifying Influences at End User customers who rely on contract providers Specifying Influences at End User customers who have integrated manufacturing facilities Purchasing Influences at integrated customer facilities Field Sales Team Field Marketing Team Specifying Influences at End User customers who rely on contract providers Field Marketing Flow Outsource/Contract Provider Flow Direct Sales Flow Exhibit 12-7 Field Sellers 14 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Straight Commission  Straight Salary  Combination Plans 15 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Repeat efforts necessary to sustain customer purchases  Rewards are short-term  Sellers focus on those who have frequent purchases  Inappropriate during new product introductions  Compensation variability/volatility may be a problem for the seller 16 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 Management has greater control over sales force  Appropriate when sellers provide design and engineering assistance  Motivator/Problem Solver, Relationship/Value Creator  Creates stability  Does not tie financial rewards to sales results 17 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

 A combination of salary+commissions  Frequently used form of compensation  Salary portion contributes to needs of management control  Commission encourages higher sales  Commission is paid as it is earned 18 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall1-19 Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.