Relationship Selling

By: Bhavesh Mor NIPER-Hyderabad

Value Creation in Buyer-Seller Relationships

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Exhibit
Factors Affecting Marketing Communications Mix

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Value is Related to Customer Benefits

Utility the want-satisfying power of a

good or service

Types of Utility Form Place Time Ownership

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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
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Exhibit
Generic Value Chain

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Lifetime Value of a Customer

Lifetime value of a customer present

value of the stream of future profits expected over a customers lifetime of purchases

Firing a customer encouraging a

customer to find alternative sources from which to purchase

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Communicating Value in the Sales Message

Product quality Channel deliverables (supply chain) Integrated marketing communications

(IMC)

Synergy between sales and marketing

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Communicating Value in the Sales Message

Execution of marketing mix programs Quality of the buyer-seller relationship

(trust)

Service quality Salesperson professionalism

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Communicating Value in the Sales Message

Brand equity Corporate image/reputation Application of technology Price

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Product Quality

Performance Features

Reliability
Conformance Durability Serviceability Aesthetics Perceived quality
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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
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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 firms value-added message is put forth

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IMC Communicating the Message

Message

Message

Employees and other internal stakeholders

Firms internal value chain

Customers and other external stakeholders

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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

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Execution of Marketing Mix Programs

Product Place - for distribution, or getting the

product into the hands of the customer

Price Promotion - marketing communications

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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

customers long-term interests at heart
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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 firms overall product offerings
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Dimensions of Service Quality

Reliability Responsiveness Assurance Empathy Tangibles

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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?

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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

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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
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Price

Value amount by which benefits to a

customer exceed cost of doing business with a seller (including a products price)

Low price may be a marketing strategy

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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

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THANK YOU