* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Chap003
Target audience wikipedia , lookup
Supply chain management wikipedia , lookup
Revenue management wikipedia , lookup
Youth marketing wikipedia , lookup
Pricing strategies wikipedia , lookup
Viral marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Brand equity wikipedia , lookup
Multi-level marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Product planning wikipedia , lookup
Internal communications wikipedia , lookup
Street marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Target market wikipedia , lookup
Green marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Service parts pricing wikipedia , lookup
Marketing channel wikipedia , lookup
Direct marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Sales process engineering wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Customer experience wikipedia , lookup
Sensory branding wikipedia , lookup
Customer relationship management wikipedia , lookup
Customer satisfaction wikipedia , lookup
Value proposition wikipedia , lookup
Relationship Selling Mark W. Johnston Greg W. Marshall McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Value Creation in Buyer-Seller Relationships Chapter 3 3-3 Learning Objectives • Understand the concept of perceived value and its importance in relationship selling • Explain the relationship of the roles of selling and marketing within a firm • Explain why customer loyalty is so critical to business success 3-4 Learning Objectives • Recognize and discuss the value chain • Identify and give examples for each category of communicating value in the sales message • Understand how to manage customer expectations 3-5 Exhibit 3.1 Factors Affecting Marketing Communications Mix 3-6 Value is Related to Customer Benefits • Utility – the want-satisfying power of a good or service • Types of Utility • Form • Place • Time • Ownership 3-7 Increasing Value to the Customer • Raise benefits • Reduce costs • Raise benefits and reduce costs • Raise benefits by more than the increase in costs • Lower benefits by less than the reduction in costs 3-8 Exhibit 3.2 Generic Value Chain 3-9 Lifetime Value of a Customer • Lifetime value of a customer – present value of the stream of future profits expected over a customer’s lifetime of purchases • Firing a customer – encouraging a customer to find alternative sources from which to purchase 3-10 Communicating Value in the Sales Message • Product quality • Channel deliverables (supply chain) • Integrated marketing communications (IMC) • Synergy between sales and marketing 3-11 Communicating Value in the Sales Message • Execution of marketing mix programs • Quality of the buyer-seller relationship (trust) • Service quality • Salesperson professionalism 3-12 Communicating Value in the Sales Message • Brand equity • Corporate image/reputation • Application of technology • Price 3-13 Product Quality • • • • • • • • Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality 3-14 Channel Deliverables (Supply Chain) • Excellent supply chain management systems can add tremendous value to customers • Supply chain – encompasses every element in the channel of distribution • FedEx and Wal-Mart are examples of companies with exemplary supply chain management systems 3-15 Integrated Marketing Communications • Solid IMC allows salespeople to solidify their client relationships by referring to a well-known, consistent corporate message • Clients expect and deserve consistency in the way a firm’s value-added message is put forth 3-16 IMC Communicating the Message Firm’s internal value chain Message Message Employees and other internal stakeholders Customers and other external stakeholders 3-17 Synergy Between Sales and Marketing • Seamless organizational processes focused on managing customer relationships strengthen the value proposition • When sales and marketing are not synergistic, the customer is marginalized 3-18 Execution of Marketing Mix Programs • Product • Place - for distribution, or getting the product into the hands of the customer • Price • Promotion - marketing communications 3-19 Quality of the Buyer-Seller Relationship • Trust - a belief by one party that the other party will fulfill its obligations • Trust is essential to successful relationship selling • Trust signifies that a salesperson has the customer’s long-term interests at heart 3-20 Service Quality • Services differ from goods in that they exhibit these unique properties: • • • • • Intangibility Inseparability Variability Perishability These properties create opportunities to add value to the firm’s overall product offerings 3-21 Dimensions of Service Quality • Reliability • Responsiveness • Assurance • Empathy • Tangibles 3-22 Brand Equity • Brand equity – the value inherent in a brand name in and of itself • How might applying the concept of brand equity influence how you “brand yourself” in customer relationships? 3-23 Corporate Image/Reputation • A strong, positive corporate image • Provides a leg up on the competition • Brings confidence to clients • Can overcome other issues in making a sale 3-24 Application of Technology • Technology can add substantial value to customer relationships • Example: Pharmaceutical companies like Pfizer and Merck have developed sophisticated software for specific clients • Strategic Partnerships – formalized relationships where companies share assets for mutual advantage 3-25 Price • Value – amount by which benefits to a customer exceed cost of doing business with a seller (including a product’s price) • Low price may be a marketing strategy 3-26 Managing Customer Expectations • Customer expectations management – underpromise and overdeliver to create customer delight • Customer delight – exceeding customer expectations to a surprising degree; a powerful way to gain customer loyalty 3-27 Role Play http://www.mhhe.com/business/marketing/videos/RS/03_RP_value_creation.mp4 3-28 3-29