Building Partnering Relationships

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2009 The McGraw-Hill Companies, Inc. All rights reserved.


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BUILDING PARTNERING RELATIONSHIPS

What differenttypes of relationships exist between buyersand sellers?

When is eachtype of relationshipappropriate?

Whatare the characteristics of successful partnerships?

Whatare the benefits and risks in partnering relationships? How do relationships develop overtime?

Whatare the responsibilities of salespeople in partnerships?

SOME QUESTIONS ANSWERED IN THIS CHAPTER ARE:

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Clients want to know that you have the ability

to relate to them on a personal level and that

earning your commission is not the most

important factor driving your willingness towork with them.

~John L. Peteet

Metropolitan Realty



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The Evolution of Personal Selling

Buying on the Internet

Buyers have needs thatare

met by:

The product

The selling process

Buyers buyto also make a

________

Salespeople orientations

Partnering orientation


Value = selling price (cost + time and effort)


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2009 The McGraw-Hill Companies, Inc. All rights reserved.2-5

The Evolution of Personal Selling

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Relationships and Selling

Relationship

marketing

Loyalty

Behavioral

Attitudinal

Lifetime

customer value


Behavioral loyaltyrefers to thepurchase ofthesame product fromthe same vendorovertime.

Attitudinal loyalty

is an emotionalattachmentto abrand, company, orsalesperson.


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Solo exchanges

No future business

Bothparties pursue their own self

interest

Functional relationships

________ market exchanges

Behavior loyalty

Previous purchase influences next

purchase

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Market Exchanges

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Relational partnerships Buyerand sellerhave aclose personal

relationship

Buyerand sellerwork togetherto solveproblems

Trust

Strategicpartnerships Long-term relationships

Partner organizations make significantinvestments to improve the profitability of bothparties

Uncoverand exploit joint opportunities

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Partnerships

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Types of Relationships Between Buyers

and Sellers

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Making contact

Find someone to listen

Make small talk

Ingratiate (gain favor)and build support

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Market Exchange Selling

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Goal: Making a sale


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Closing the sale delivera sales pitchto:

Getthe prospects attention Create interest

Build desire

Getthe prospectto take action

Stayalert forclosing signals Use trial closes

Overcome objections

Close ________and ________

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Market Exchange Selling (continued)

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Goal: Making a sale


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Following through

Reestablishcontact

Resell self, company, and products

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Market Exchange Selling (continued)

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Goal: Making a sale


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Initiating the relationship

Engage in ________ prospecting andqualifying

Gatherand studypre-call information

Identify buying influences

Plan the initial sales call

Demonstrate an understanding ofthecustomers needs

Identify opportunities to build a relationship

Illustrate the value ofa relationshipwiththecustomer

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Long-Term Relationship Selling

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Goal: Building________


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Developing the relationship

Selectan appropriate offering

Customize the relationship

Link the solution to the customers________

Discuss customerconcerns

Summarize the solution to confirmbenefits

Secure commitment2-14


(continued)

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Goal: Building trust


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Enhancing the relationship

Assess customer satisfaction

Take actions to ensure satisfaction

Maintain open, two-waycommunications

Expand collaborative involvement

Work to add value and enhance mutual

opportunities

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(continued)

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Goal: Building trust


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Foundations of Successful

Relationships

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Dependability

Living upto promises

made

Competence

Demonstrated

knowledge ofthe

customer, the product,the industryand the

competition

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Characteristics of Successful

Partnerships Mutual Trust

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Trust is a belief by one

partythatthe otherpartywill fulfill its ________ ina relationship.


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Customer orientation

Putcustomer needs first

Honesty Truthfulness, sincerity,

being candid

Likeability

Least importantcomponent

oftrust

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Partnerships Mutual Trust (continued)

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Key building block for building

successful relationships

Listen, listen, listen

Very importantwhen there is conflict

Type ofpartnerships determines

openness ofcommunication

Be aware ofcultural differences

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Partnerships Open Communication

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Keyto a successful relationship

Helps partners focus on opportunities

Helps sustain the partnership ________ goals are critical

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Partnerships Common Goals

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Commitmentto mutual gain

Mutual investment

Organizational support Structure and culture

Training

Rewards

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Partnerships (continued)

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Awareness Salespeople

locate and qualifyprospects; buyers

identify sources ofsupply

Exploration Bothparties may

explore thepotential benefitsand costs ofapartnership

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Phases of Relationship Development

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Supplier relationshipmanagement (SRM) isthe use oftechnologyand

statistics to identifyimportant suppliers andopportunities forcostreduction, greaterefficiency, and otherbenefits.


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Expansion

Bothparties investigate the benefits ofa

long-term relationship

Commitment

The customerand seller ________ to

continue the relationship foraperiod of

time Dissolution

Process ofterminating the relationship

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Phases of Relationship Development

(continued)

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Choosing the Right Relationship

Size

Access and image

Access to innovation



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Using Technology to Increase Efficiency

Using technologyto drive two key

areas of salesperson performance

Knowledge managementtechnology Relational managementtechnology

Create direct links withcustomers

and suppliers



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Businesses are moving toward partneringstrategies.

Functional relationships and strategicpartnerships are characterized bya mutual

concern of eachparty forthe long-runwelfare ofthe otherparty.

Mutual trust, open communication,common goals, acommitmentto mutualgain, and organizational supportare keyingredients in successful relationships.

Customers trust salespeople who aredependable, capable, and concerned aboutthe customers welfare.

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Summary

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Building Partnering Relationships