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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?
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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
“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
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
The Evolution of Personal Selling 2-5 McGraw-Hill/Irwin
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
Types of Relationships • Market exchanges • Solo exchanges • Functional relationships • Partnerships • Relational partnerships • Strategic partnerships 2-7 McGraw-Hill/Irwin
Types of Relationships Between Buyers and Sellers 2-8 McGraw-Hill/Irwin
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
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
Market Exchange Selling (continued) • Following through • Reestablish contact • Resell self, company, and products Goal: Making a sale 2-11 McGraw-Hill/Irwin
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
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
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
Foundations of Successful Relationships 2-15 McGraw-Hill/Irwin
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
Characteristics of Successful Partnerships (continued) • Commitment to mutual gain • Mutual investment • Organizational support • Structure and culture • Training • Rewards 2-17 McGraw-Hill/Irwin
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
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
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
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