2 - 1 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Some questions answered in Chapter 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?

2 - 2 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Evolution of personal selling: production orientation Production Before 1930 Demand exceeds supply Making sales Short-term seller needs Provider Taking orders, delivering goods Drummer, peddler Markets Sales objective Orientation Salesperson role Titles Salesperson activities Sales Marketing Partnering Now

2 - 3 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Evolution of personal selling: sales orientation Production Before 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 Salesperson activities Sales Marketing Partnering Now

2 - 4 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Evolution of personal selling: marketing orientation Production Before 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 Salesperson activities Sales Marketing Partnering Now

2 - 5 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Evolution of personal selling: partnering orientation Production Before 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 Salesperson activities Sales Marketing Partnering Now

2 - 6 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Types 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 relationship 2.Strategic partnership 3.Tactical relationship 4.Relational partnership 5.Routine partnership

2 - 7 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Types of relationships between buyers and sellers Solo Market Exchange Functional Relationship Relational Partnership Strategic Partnership Time horizon Short termLong term Concern for other party Low MediumHigh Trust Low High Investments in relationship Low High Nature of the relationship Conflict, bargaining Coopera- tion Accommoda -tion Coordina- tion Risk in relationship LowMediumHigh Potential benefits LowMediumHigh Exhibit 2.2

2 - 8 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology How is the sales role changing? Traditional salespersonModern salesperson Product orientedCustomer oriented Creates customer needs Uncovers and satisfies customer needs One-way communication – aggressively push products Two-way communications – listens and learns Sells productsSells solutions Short-term salesLong-term relationships No after-sales support Emphasizes follow-up service Works aloneWorks with a company team

2 - 9 Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Market exchange selling as compared to long-term relationship selling Making contact Initiating the relationship Find someone to listen Make small talk Ingratiate and build rapport Engage in strategic prospecting and qualifying Gather and study precall information Identify buying influence Plan the initial sales call Demonstrate an understanding of the customer’s needs Identify opportunities to build a relationship Illustrate the value of a relationship with the customer

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Market exchange selling as compared to long-term relationship selling Closing the sale Developing the relationship Delivering a sales pitch to: Get the prospect’s attention Create interest Build desire Get the prospect to take action Select an appropriate offering Customize the relationship Link the solution to the customer’s needs Discuss customer concerns Summarize the solution to confirm benefits Secure commitment

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Market exchange selling as compared to long-term relationship selling Following through Enhancing the relationship Reestablish contact Resell self, company, and products Assess customer satisfaction Take actions to ensure satisfaction Maintain open, two-way communications Expand collaborative involvement Work to add value and enhance mutual opportunities

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology What role did these factors play in the close relationships you’ve had with others? Dependability Capability or expertise Mutual concern

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology What are the foundations of successful relationships? Commongoals Commitment to mutual gain Organizationalsupport Mutual trust Opencommunication Exhibit 2.4

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Developing trust: dependability Dependability The 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 references Product demonstrations, plant tours, and other special types of presentations. Proof of prior experience and training. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Developing trust: capability or competence Competence Salespeople 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 Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Developing trust: concern for other party Customer Orientation The 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. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Developing trust: customer 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. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Developing trust: likability 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 so forth. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Is communication an important part of 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. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Common 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. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology A 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. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Organizational support Structure and culture The organizational structure and management provide the necessary support for the salespeople and buyers in a partnering relationship. Training Special training is required to sell effectively in a relationship-building environment. Rewards Reward systems on both sides of the relationship should be coordinated to encourage supportive behaviors. Mutual trust Open communication Common goals Mutual gain Organizational support

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology How do relationships develop? Awareness  Salespeople locate and qualify prospects.  Buyers consider various sources of supply

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology 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.

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology How do relationships develop? Exploration Awareness Expansion Significant efforts are made by both parties to investigate the potential benefits of a long-term relationship.

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology 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

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology 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.

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices TerminologyDissolution 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?

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Objectives of relationships What factors should a salesperson consider when deciding with which customers s/he wants to develop a close relationship?

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology Any questions about the terminology? Awareness Barter Commitment Competence Credible commitments Customer orientation Dependability Dissolution Expansion Exploration Functional relationship Honesty Keiretsu Lead user Likability Market exchange Relational partnership Relationship manager Solo market exchange Strategic partnership Trust Win-lose relationship Win-win relationship

Chapter 2 Chapter 2 Questions answered Evolution of selling Types of relationships Relationship characteristics Developing relationships Relationship choices Terminology