Building Partnering Relationships

2. Building Partnering Relationships 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? Some questions answered in this chapter are: 2-2 McGraw-Hill/Irwin

3. “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 ReelMartin Marietta Materials 2-3 McGraw-Hill/Irwin

4. 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

5. The Evolution of Personal Selling 2-5 McGraw-Hill/Irwin

6. Relationships and Selling • Relationship marketing • Loyalty • Behavioral • Attitudinal • Lifetime customer value 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. 2-6 McGraw-Hill/Irwin

7. Types of Relationships • Market exchanges • Solo exchanges • Functional relationships • Partnerships • Relational partnerships • Strategic partnerships 2-7 McGraw-Hill/Irwin

8. Types of Relationships Between Buyers and Sellers 2-8 McGraw-Hill/Irwin

9. Market Exchange Selling • Making contact • Find someone to listen • Make small talk • Ingratiate and build support Goal: Making a sale 2-9 McGraw-Hill/Irwin

10. Market Exchange Selling (continued) • 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 Goal: Making a sale 2-10 McGraw-Hill/Irwin

11. Market Exchange Selling (continued) • Following through • Reestablish contact • Resell self, company, and products Goal: Making a sale 2-11 McGraw-Hill/Irwin

12. Long-Term Relationship Selling • 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 Goal: Building trust 2-12 McGraw-Hill/Irwin

13. Long-Term Relationship Selling (continued) • 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 Goal: Building trust 2-13 McGraw-Hill/Irwin

14. Long-Term Relationship Selling (continued) • 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 Goal: Building trust 2-14 McGraw-Hill/Irwin

15. Foundations of Successful Relationships 2-15 McGraw-Hill/Irwin

16. Characteristics of Successful Partnerships • Mutual trust • Dependability • Competence • Customer orientation • Honesty • Likeability • Open communication • Common goals Trust is a belief by one party that the other party will fulfill its obligations in a relationship. 2-16 McGraw-Hill/Irwin

17. Characteristics of Successful Partnerships (continued) • Commitment to mutual gain • Mutual investment • Organizational support • Structure and culture • Training • Rewards 2-17 McGraw-Hill/Irwin

18. 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. 2-18 McGraw-Hill/Irwin

19. 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 2-19 McGraw-Hill/Irwin

20. 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

21. Summary • 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. 2-21 McGraw-Hill/Irwin