Relationship MarketingNew customers Vs. Old customersSelling customers today creating

customers for tomorrow.RM= Customers Loyalty

Continuous attention

2-1

Relationship Marketing andthe Sales Force

2-2

Four basic questions used as guidelines in defining the role of the sales force:

1. How much selling effort is necessary to gain and hold customers?

2. Is the sales force the best marketing tool?

3. What type of sales activity will be necessary?

4. Can the firm gain strength relative to its competition with its sales force?

Relationship Marketing andthe Sales ForcePersonal selling builds relationships!Two main functions of personal selling are to:

Generate Revenue Provide Service

Flexible in operationFocused on prospective customersResults in actual sales

2-3

Relationship Marketing andthe Sales Force

Generate RevenueProduct availabilityCustomized sales presentationsSee reaction and adjust immediately (Adv. Can’t

do)

Provide ServicePlease come back again (call again!)Customers Expectations

2-4

SP implement RMConstant contact w/ customersCustomer oriented philosophyTake care of unhappy customersKnowledgeable/ listen well/stand by after the

sale

Three Levels of Relationship Marketing

Transaction sellingRelationship selling

Partnering80/20 principle

2-6

Three Levels of Relationship MarketingTransaction selling: customers are sold to and

not contacted againRelationship 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

2-7

Partnering with Customers

Encourages both seller and buyerWin-winAnticipate trends in the customer’s business

2-8

Criteria for building Partnership

Individual excellence

WillingnessInterdependance

InvestementInformation sharingIntegrity

EvolutionLong ago:

Pitch: focus on specific product/controlled by the SP

Today:Dialogue and interactivityThe ability to develop customers over time

Consultative Selling

Consultative SellingThe process of helping the customer achieve

strategic short and long-term goals through the use of the seller’s goods and/or servicesA highly interactive dialogue between a

salesperson and a customerA balanced exchange of information

2-11

Three Roles of Consultative SellingThe Team Leader

Coordinates all of the information, resources, and activities needed to support customers before, during, and after the sale

The Business ConsultantGives advice and service. Uses internal and

external resources to gain an understanding of the customer’s business and marketplace

2-12

Three Roles of Consultative SellingThe 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

2-13

The Customer-Seller Relationship GapMay occur when the salesperson’s interest in

the customer declinesUsually after the saleCustomer’s interest increases after the saleService after the sales is so important

2-14

The Golden RuleWould you let a stranger invade your business

privacy?

TrustIntegrity

ReliabilityProfessionalism

Knowledge

2-15