Evolution of Personal Selling

• Before the 1930's?
• 1930-1960
• 1960-1990
• After 1990

-objective? Orientation? Role of Salesperson? Activities of Salespeople?

Relationships 

"All things being equal, _______________________",
....All things being not so equal _______________"

People buy from People they know........ 

People STILL buy form people THEY KNOW 

Relationships and Selling 

Relationship Marketing 

- reflects company attempts to develop stronger relationships with their customers

Relationships and Selling 

Customer Lifetime Value (CLV)

- the COMBINED TOTAL of ALL FUTURE SALES

Relationships and Selling 

BEHAVIORAL LOYALTY 

- the purchase of the same product from the same vendor over time

Relationships and Selling 

Attitudinal Loyalty 

- emotional attachment to a brand, company, or salesperson.

Market Exchanges

Solo Exchanges

• no future business
   
• both parties pursue their own self interest 

Market Exchanges

Functional Relationships

• long-term market exchanges
   
• behavior loyalty 
   
• previous purchase influences next purchase

Partnerships

Relational Partnerships

• Buyer & Seller have Close Personal Relationship
   
• Buyer & Seller work together to solve problems
   
• Trust

Partnerships

Strategic Partnerships

• Long-term relationships
   
• Make significant investments to improve the profitability of both parties
   
• uncover and exploit joint opportunties

Types of Relationships

between Buyers and Sellers 

(Image)

What are 4 Factors that

Influence a Salesperon's Choice of Relationship

1. Type of relationship customer desires
    
2. size of account
    
3. access & image in the market
    
4. access to technology 

Using Technology to Increase Efficiency

Technology drives what

two key areas of salesperson performance

1. helps manage all information required to be effective 
    
2. Relational Management Technology - builds on customer knowledge management systems to create models that can be used to develop strategy 

What are the 5 Phases of Relationship Development 

1. Awareness
• Salespeople locate and qualify prospects
  
• buyers identify sources of supply
   
2. Exploration
• both parties may explorer potential benefits & costs of a partnership
   
3. Expansion
• both parties investigate the benefits of LT Relationsihip
  
  
4. Committment 
• customer & seller pledge to continue the relationship for a period of time
  
  
5. Dissolution
• process of terminating the relationship
  

What are the

5 Foundations of Successful Relationships 

1. Mutual Trust
2. Open Communication
3. Common Goals
4. Committment to mutual Gain 
5. Organizational Support 

5 foundations of Successful Relationships

Mutual Trust 

1. Dependability
    
2. Competence

1. buyers perception that the salesperson, and the product and company he represents, will live up tothe promises made 
    
2. demonstrated knowledge of the customer, the product, and the industry and the competition

5 foundations of Successful Relationships

Mutual Trust 

1. Customer Orientation
    
2. Honesty 
    
3. Likeability

1. degree to which salesperson puts customer needs first
    
2. truthfulness, sincerity, being candid
    
3. Behaving in a friendly manner and finding a common ground between buyer & seller

5 foundations of Successful Relationships

Open Communication

• KEY BUILDING BLOCK for building successful relationships
   
• Listen, Listen, Listen
   
• Salespeople should make it as easy as possible for the buyer to speak up
   
• Be aware of cultural differences 

5 foundations of Successful Relationships

Common Goals

• Partners can focus on exploiting opportunities rather than arguing about who will benefit the most from the relationship
   
• Helps sustain the relationship
   
• measurable goals are critical 

5 foundations of Successful Relationships

Committment to Mutual Gain

- mutual investment

5 foundations of Successful Relationships

Organizational Support

• Structure & Culture
   
• Training
   
• Rewards