© 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 2 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. “Your challenge as a professional will be to understand the different types of relationships and how those relationships can impact you and your company, whether positive or negative.” ~Steve Reel Martin Marietta Materials 2-3 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. The Evolution of Personal Selling Buying on the Internet Buyers have needs that are met by: –The product –The selling process Buyers buy to also make a profit Salespeople orientations –Partnering orientation 2-4 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-5 The Evolution of Personal Selling McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Relationships and Selling Relationship marketing Loyalty Behavioral Attitudinal Lifetime customer value 2-6 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 2-7 Types of Relationships McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 2-8 Types of Relationships Between Buyers and Sellers McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Making contact –Find someone to listen –Make small talk –Ingratiate and build support 2-9 Market Exchange Selling McGraw-Hill/Irwin Goal: Making a sale

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 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 2-10 Market Exchange Selling (continued) McGraw-Hill/Irwin Goal: Making a sale

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Following through –Reestablish contact –Resell self, company, and products 2-11 Market Exchange Selling (continued) McGraw-Hill/Irwin Goal: Making a sale

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 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 –Identify opportunities to build a relationship –Illustrate the value of a relationship with the customer 2-12 Long-Term Relationship Selling McGraw-Hill/Irwin Goal: Building trust

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Developing the relationship –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 2-13 Long-Term Relationship Selling (continued) McGraw-Hill/Irwin Goal: Building trust

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Enhancing the relationship –Assess customer satisfaction –Take actions to ensure satisfaction –Maintain open, two-way communications –Expand collaborative involvement –Work to add value and enhance mutual opportunities 2-14 Long-Term Relationship Selling (continued) McGraw-Hill/Irwin Goal: Building trust

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

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Mutual trust –Dependability –Competence –Customer orientation –Honesty –Likeability Open communication Common goals 2-16 Characteristics of Successful Partnerships McGraw-Hill/Irwin Trust is a belief by one party that the other party will fulfill its obligations in a relationship.

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Commitment to mutual gain –Mutual investment Organizational support –Structure and culture –Training –Rewards 2-17 Characteristics of Successful Partnerships (continued) 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 2-18 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 2-19 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 2-20 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