Bui l ding Partnering

Relationships
Definition, Generic Structure And Language Features
 The Ev o l u t i o n o f
Personal S e l l i n g
• Past p a n y
e v e r t h e c o m
- sells what p e o p le
e n if it w a s n o t w h a t
produ c e d e v
r y h ig h p r ic e s .
needed at ve
rin g - O r ie n te d )
• Present (Partne e l o p s a n
s a n d d e v
- finds solution
actual partnership
 Why do buyers
buy?
“ bu ye r s buy t o a ls o m a ke a
pr of it”

• Buyers have needs that

are m et by:
- The product
- The selling process
R e l a t i o ns hi p s a n d Se l l i n g

Relationship Marketing
- companies’ attempts to develop stronger relationships with their customers.
- loyal customers buy more, are willing to pay more, and are more valuable
customers.
- building a stronger relationship is accomplished through building loyalty.
- in professional selling, it refers to creating the type of relationship that best
suits the customer’s needs, which may or may not require a partnership.
Th e re a re 2 t y p e s o f Lo ya l t y:
Behavioral Loyalty
refers to the purchase of the same product from the same vendor over time;
out-of-habit purchases

Attitudinal Loyalty
an emotional attachment to a brand, company, or salesperson. At a personal
level, it is friendship, but you might also think of fans of a sports team as
attitudinally loyal.
 t i m e C u s t o m e r
L i f e
Va l u e ( L C V )
u m o f c u s t o m e r ’s
is basically the s
t h e i r e n t i r e l i f e
p u rc h a s e s o v e r

i z e t h e p o w e r o f
s p e o p l e w h o r e c o gn
> Sale d
b e h a v i o r a l a n
a n d c o n s i d e r bot h
LCV
o b j e c t i v e s e l l i n a
d i n a l l o y a l t y a s an
at t i t u
f o c u s e d o n l y on
f e r e n t w a y t h a n if
di f
a k i n g t h e n e x t s al e.
m
 Ty p e s o f R e l a t i o ns h ip s
• Ma r k e t E x c h a n g e s
- a transaction between a buyer and a seller in
which each party is concerned only about that party’s
benefit. The seller is concerned only with making the
sale; the buyer with getting the product at the lowest
possible price.
2 t y pe s of M a rke t Ex c h a n g e s
Solo Exchanges
parties in the transaction do not plan on doing business together again, both
buyer and seller pursue their own self-interests.

Functional Relationships
long-term market exchanges characterized by behavioral loyalty, the buyer
purchases the same product out of habit or routine. previous purchases do not
influence the next purchase.
 Ty p e s o f R e l a t i o ns h ip s
2 . Pa r tn e r s h ip s
- in partnerships, both parties are concerned about
each other’s welfare and in developing win-win
relationships. By working together, both parties benefit
because the size of the pie increases.
2 t y pe s of Pa rt n e rs hi p s
Relational Partnerships
when both buyer and the salesperson feel safe and stable in a friendship they
established, open and honest communication takes place.

Strategic Partnerships
long-term business relationships in which the partnere organizations make
significant investments to improve the profitability of both parties. Members have a
high level of dependence on and trust in each other.
 FACTORS INVOLVED IN THE SOLO FUNCTIONAL RELATIONAL STRATEGIC
RELATIONSHIP EXCHANGE RELATIONSHIP PARTNERSHIP PARTNERSHIP

SHORT
TIME HORIZON LONG TERM LONG TERM LONG TERM
TERM

CONCERN FOR OTHER

LOW LOW MEDIUM HIGH
PARTY

TRUST LOW LOW HIGH HIGH

INVESTMENT IN THE
LOW LOW LOW HIGH
RELATIONSHIP

CONFLICT
NATURE OF THE ACCOMODATIO
BARGAININ COOPERATION COORDINATION
RELATIONSHIP N
G

RISK IN RELATIONSHIP LOW MEDIUM HIGH HIGH

POTENTIAL BENEFITS LOW MEDIUM HIGH HIGH

Se l l i n g i n M a rk e t Exc ha n ge s
a nd Lo ng -Te rm R e l a t i o ns h ip s
Market Exchange Selling
Goal: Making a Sale

Long-Term Relationship Selling

Goal: Building Trust
M a rke t Ex c h a n g e Se l l i ng

Making Contact
• Find someone to listen. • Ingratiate and build
• Make small talk rapport.

Following Through
• Reestablish contact.
• Resell self, company, and products.
M a rke t Ex c h a n g e Se l l i ng

Closing the Sale

• Deliver a sales pitch to:
⚬ Get the prospect’s attention ⚬ Use trial closes
⚬ Create interest ⚬ Overcome objections
⚬ Build desire ⚬ Close early and often.
⚬ Get the prospect to take action.
⚬ Stay alert for closing signals.
Lo ng -Te rm R e l a t i o ns hi p Se ll i n g
Initiating the Relationship
• Engage in strategic prospecting and qualifying.
• Gather and study precall information.
• Identify buying influences.
• Plan the inital 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.
Lo ng -Te rm R e l a t i o ns hi p Se ll i n g
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.
Lo ng -Te rm R e l a t i o ns hi p Se ll i n g
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.
Lo ng -Te rm R e l a t i o ns hi p Se ll i n g
Enhancing the Relationship
• Asses customer satisfaction.
• Take actions to ensure satisfaction.
• Maintain open, two-way communication.
• Expand collaborative involvement.
• Work to add value and enchance mutual opportunities.
C h a ra c t e ri s t i c s o f Su c c e s s fu l
Pa rt n e rs h ip s
Su c c e s s fu l re la tio n sh ip s in v o lv e c u ltiv a tin g m u tu a l
b e n e f its a s th e p a rtn e rs le a rn to tru st a n d d e p e n d o n
e a c h o th e r m o re a n d m o re .

Mu tu a l Tru s t, O p e n C o m m u n ic a tio n , Co m m o n G o a ls ,
C o m m itm e n t to Mu tu a l G a in , O rg a n iz a tio n a l Su p p o rt
M u t ua l Tru s t
Trust is a belief by one parry that the other party will fulfill its obligations in a
relationship.

“A little trust and confidence go a long way in motivating the supplier to go beyond
the single requirements of a contract.”
D e p e n d a b i l it y
Dependability, the buyer’s perception that the salesperson, and the product, and
company he or she represents, will live up to promises made, is not something a
salesperson can demonstrate immediately.

“Consistency in performance or behaviour; financialy sound; reliable .”

C o m pe t e n c e
Knowledgeable, it is when a salesperson demonstrate how much they know about
what they are selling or what they are talking about.

“Consider demonstrating your competence instead of announcing your Credentials”

P H A S E S O F R E L AT I O N S H I P D E V E L O P M EN T

• Awareness
it is likely that no transaction has taken place. During the awareness phase
salespeople locate and qualify prospects, while buyers identify various sources of
supply.

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.
P H A S E S O F R E L AT I O N S H I P D E V E L O P M EN T

2. Exploration
The exploration stage is a search and trial phase for both buyer and seller. The
exploration stage is a search and trial phase for both buyer and seller. Both parties
may explore the potential benefits and costs of a partnership.

3. Expansion
The expansion stage involves efforts by both parties to investigate the benefits of a
long-term relationship.
P H A S E S O F R E L AT I O N S H I P D E V E L O P M EN T

4. Commitment
In the commitment stage the customer and seller have implicitly or explicitly
pledged to continue the relationship for a period of time.
5. Dissolution
Dissolution can occur at any time in the relationship process, though it doesn't
necessarily have to occur at all. Dissolution is the process of terminating the
relationship and can occur because of poor performance, clash in culture, change ia
needs, and other factors.
 MANAGING
R E L AT I O N S H I P S A N
D
PA R T N E R I N G

Salespeople are usually resp

onsible
for determining the appropr
iate form
of relationship and for makin
g sure
that their companies develop
the
appropriate types of relation
ships with
each customer.
CH O O SI N G T H E RI G H T RE L AT I O N SH I P
Size
Size matters! Most strategic partnerships involve larger customers like JPenney
rather than Jordans because their size makes the investments into the partnerships
worthwhile.
Access and Image
A strategic partnership may be called for if an account can provide access to a
specific, desired market or can enhance the image of the seller.
CH O O SI N G T H E RI G H T RE L AT I O N SH I P

Access to Innovation
Some companies are called lead users because they face and resolve needs months
or years ahead of the rest of the marketplace. These companies often develop
innovations, either in the way they use a product or by altering a product, that the
supplier can copy.
 U SIN G T E C H N O L O G Y TO
IN C R E A SE E F F IC IE N C Y
Partnering relationships are built on effective
communications. To improve con-munications
with customers, salespeople are using technology
more efficiently:
Companies are also creating direct links with
customers via technology.
T h a n k
Y o u