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McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-2
Chapter
2
Relationship Marketing:
Where Personal Selling Fits
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-3
Chapter
2
What is Marketing?
Customer Orientation’s Evolution
Marketing’s Importance in the Firm
Essentials of a Firm’s Marketing Effort
Relationship Marketing
Relationship Marketing and the Sales Force
Levels of Relationship Marketing
Partnering with Customers – Consultative Selling
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-4
Chapter
2
The New Consultative Selling
Technology and Information Building
What’s a Salesperson Worth?
The Key to Success
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-5
What is Marketing?
Marketing is a process of planning:
the conception, pricing, promotion, and distribution of
goods, services, and ideas
to create exchanges that
satisfy individual and organizational objectives
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2-6
Customer Orientation’s Evolution
The production concept
The selling concept
The marketing concept
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The Production Concept
Companies were production oriented
We know what
people want – they
want our product.
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2-8
The Selling Concept
The salesperson as order-taker
Characterized by product demonstrations
and unsophisticated sales techniques
Emphasis on the product
Product created and then sold
Management is sales-volume oriented
Stresses needs of the seller
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2-9
The Marketing Concept
The salesperson as order-getter
Emphasis is on customer’s wants
Customer’s wants drive production
Management is profit-oriented
Planning is long-run
Stresses wants of buyers
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2-10
Marketing’s Importance in the Firm
Marketers have four main objectives:
 Maximize the sales of existing products in existing
markets
Develop and sell new products
Develop new markets for existing or new products
Provide quality service to ensure repeat business
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2-11
Product: It’s More Than You Think
A good is a physical object that can be purchased
A service is an action or activity done for others
for a fee
Value-added refers to benefits received that are
not included in the purchase price of a good or
service
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2-12
Price: It’s Important to Success
Price refers to the value or worth of a product that
attracts the buyer to exchange money or something
of value for the product
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Distribution Moves Products to
Customers. Three Customer Groups
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A household refers to a decision-making unit
buying for personal use
A firm is an organization that produces goods
and services
A government is an organization that has two
functions:
The provision of goods and services to households
and firms
The redistribution of income and wealth
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2-14
Promotion Tells People
Increases sales by communicating product
information to potential customers
The four basic parts of a firm’s promotional effort
are:
Personal selling
Advertising
Publicity
Sales promotion
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2-15
Relationship Marketing
Relationship marketing is the
creation of customer loyalty
Targets a major customer that it
wants to sell to now and in the future
Establishes a long-term
collaborative relationship
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2-16
Levels of Relationship Marketing
Transaction selling: customers are sold to and
not contacted again
Relationship selling: the seller contacts
customers after the purchase to determine if they
are satisfied and have future needs
Partnering: the seller works continually to
improve its customers’ operations, sales, and
profits
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Partnering with Customers
Encourages both the buyer
and seller to share
information
Two companies work toward
the same objective
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Partnering cont…
Components of partnering include:
Individual excellence
Importance
Interdependence
Investment
Information
Integration
Institutionalization
Integrity
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2-19
Consultative Selling
The process of helping the customer achieve
strategic short- and long-term goals through the
use of the seller’s good and/or service
A highly interactive dialogue between a salesperson
and a customer
A balanced exchange of information
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2-20
Three Roles of Consultative Selling
The Team Leader
Coordinates all of the information, resources, and
activities needed to support customers before,
during, and after the sale
The Business Consultant
Gives advice and service. Uses internal and
external resources to gain an understanding of the
customer’s business and marketplace
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2-21
Three Roles of Consultative Selling
The Long-Term Ally
Creates a “win – win” situation. As the customer’s
sales and profits grow, so do the salesperson’s
The ability of a salesperson to fulfill the role of
long-term ally is a pivotal factor in determining
whether a sales transaction is just a transaction or
the beginning of a relationship
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2-22
What’s a Salesperson Worth?
“Worth” is dependent upon at least three factors:
What the salesperson costs
How much he/she sells
The profit margin
Salespeople make a valuable contribution to the
success of their employer
Selling closes deals and generates the revenue
to keep the organization in business
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2-23
The Key to Success
Knowing and satisfying target customers with
competitively superior products and service
Marketing is the company function that defines
customer targets and the best way to satisfy their
needs and wants competitively and profitably
Marketing’s main customer contacts are salespeople
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-24
Summary
Selling is only a part of the overall marketing
activities of the firm
Marketing is an exchange process between
buyers and sellers
The marketing concept is based upon a firm’s
desire to increase sales while anticipating and
satisfying consumer needs
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2-25
Summary cont…
The marketing mix is comprised of four variables:
Product
Price
Distribution
Promotion
The role of the salesperson is carefully considered
in the firm’s determination of the promotional
aspect of its marketing mix
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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
2-26
Summary cont…
Consultative selling is focused
upon the salesperson’s ability to
provide customer satisfaction by
adding value to the sales
transaction
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.