1. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

2. 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 McGraw-Hill/Irwin chapter 2

3. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. “Clients want to know that you have the ability to relate to them on a personal level and that earning your commission is not the most important factor driving your willingness to work with them.” ~John L. Peteet Metropolitan Realty 2-3 McGraw-Hill/Irwin

4. © 2009 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 ________  Salespeople orientations –Partnering orientation 2-4 McGraw-Hill/Irwin Value = selling price – (cost + time and effort)

5. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2-5 The Evolution of Personal Selling McGraw-Hill/Irwin

6. © 2009 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.

7. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Solo exchanges –No future business –Both parties pursue their own self interest  Functional relationships –________ market exchanges –Behavior loyalty –Previous purchase influences next purchase 2-7 Market Exchanges McGraw-Hill/Irwin

8. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Relational partnerships –Buyer and seller have a close personal relationship –Buyer and seller work together to solve problems –Trust  Strategic partnerships –Long-term relationships –Partner organizations make significant investments to improve the profitability of both parties –Uncover and exploit joint opportunities 2-8 Partnerships McGraw-Hill/Irwin

9. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2-9 Types of Relationships Between Buyers and Sellers McGraw-Hill/Irwin

10. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Making contact –Find someone to listen –Make small talk –Ingratiate (gain favor) and build support 2-10 Market Exchange Selling McGraw-Hill/Irwin Goal: Making a sale

11. © 2009 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 ________ and ________ 2-11 Market Exchange Selling (continued) McGraw-Hill/Irwin Goal: Making a sale

12. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Following through –Reestablish contact –Resell self, company, and products 2-12 Market Exchange Selling (continued) McGraw-Hill/Irwin Goal: Making a sale

13. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Initiating the relationship –Engage in ________ prospecting and qualifying –Gather and study pre-call 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 2-13 Long-Term Relationship Selling McGraw-Hill/Irwin Goal: Building ________

14. © 2009 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 ________ –Discuss customer concerns –Summarize the solution to confirm benefits –Secure commitment 2-14 Long-Term Relationship Selling (continued) McGraw-Hill/Irwin Goal: Building trust

15. © 2009 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 2-15 Long-Term Relationship Selling (continued) McGraw-Hill/Irwin Goal: Building trust

16. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2-16 Foundations of Successful Relationships McGraw-Hill/Irwin

17. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Dependability –Living up to promises made  Competence –Demonstrated knowledge of the customer, the product, the industry and the competition 2-17 Characteristics of Successful Partnerships – Mutual Trust McGraw-Hill/Irwin Trust is a belief by one party that the other party will fulfill its ________ in a relationship.

18. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Customer orientation –Put customer needs first  Honesty –Truthfulness, sincerity, being candid  Likeability –Least important component of trust 2-18 Characteristics of Successful Partnerships – Mutual Trust (continued) McGraw-Hill/Irwin

19. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Key building block for building successful relationships  Listen, listen, listen  Very important when there is conflict  Type of partnerships determines openness of communication  Be aware of cultural differences 2-19 Characteristics of Successful Partnerships – Open Communication McGraw-Hill/Irwin

20. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Key to a successful relationship  Helps partners focus on opportunities  Helps sustain the partnership  ________ goals are critical 2-20 Characteristics of Successful Partnerships – Common Goals McGraw-Hill/Irwin

21. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Commitment to mutual gain –Mutual investment  Organizational support –Structure and culture –Training –Rewards 2-21 Characteristics of Successful Partnerships (continued) McGraw-Hill/Irwin

22. © 2009 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 2-22 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.

23. © 2009 The McGraw-Hill Companies, Inc. All rights reserved.  Expansion –Both parties investigate the benefits of a long-term relationship  Commitment –The customer and seller ________ to continue the relationship for a period of time  Dissolution –Process of terminating the relationship 2-23 Phases of Relationship Development (continued) McGraw-Hill/Irwin

24. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. Choosing the Right Relationship  Size  Access and image  Access to innovation 2-24 McGraw-Hill/Irwin

25. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. Using Technology to Increase Efficiency  Using technology to drive two key areas of salesperson performance –Knowledge management technology –Relational management technology  Create direct links with customers and suppliers 2-25 McGraw-Hill/Irwin

26. © 2009 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. 2-26 Summary McGraw-Hill/Irwin