Relationship Marketing PDF

BUILDING PARTNERING RELATIONSHIP Maurrin DR. Madrid  LEARNING OBJECTIVES After studying this chapter,  The sales force is one you should be able to: part of an organization’s Define and explain the marketing effort;...

BUILDING PARTNERING RELATIONSHIP Maurrin DR. Madrid  LEARNING OBJECTIVES After studying this chapter,  The sales force is one you should be able to: part of an organization’s Define and explain the marketing effort; terms marketing and  you should understand the role and importance marketing concept. of the sales force in a Answer the question, firm’s total marketing Why is marketing effort. important to an organization?  Illustrate how the firm’s Discuss the role of product, price, personal selling in distribution, and the firm’s marketing promotion efforts are coordinated for relationship efforts. maximum sales success. Understand a  Explain why an salesperson’s roles organization should listen to its customers. when practicing consultative selling. FACING A SALES CHALLENGE All sizes of firms faces a dilemma of how to increase their sales? Yes or No. Yes… Why FIRMS ARE …. good in developing products and services but know very little about marketing their products/services.  WHAT IS THE PURPOSE OF BUSINESS? This requires making a  The purpose of profit in order to business is to increase operate the business the general well-being and provide of humankind through beneficial products to the sale of goods and the marketplace. services.  WHAT IS THE PURPOSE OF BUSINESS? Businesses have two  Profit is a major functions: production of goods means to an or creation of services and end. marketing those 1 goods and services.  THE PRIMARY GOAL OF BUSINESS The primary goal of business should be to transform the marketplace and workplace into an environment where everyone is treated as they would like to be treated. Business should be fair to all parties involved in both the buying and selling of goods and services.  There are numerous definitions of marketing. Marketing is the activity, set of institutions, and processes for creating, communicating, WHAT IS MARKETING? delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. American Marketing Association’s  It is not WHAT IS MARKETING? limited to business. WHAT IS MARKETING? A transaction is a trade of values between two parties; it forms a relationship between buyer and seller. Exchange and transactions Exchange refers to the act of obtaining a desired product from someone by offering something in return. MARKETING MANAGEMENT ORIENTATION MARKETING MANAGEMENT oldest concept of marketing- ORIENTATION company focus on production whatever they produce that is sold in the market. Production -they don’t focus on what customers need. Concept The main disadvantage : is that the customer not always purchase the easy and cheap available product  - focuses on the MARKETING MANAGEMENT ORIENTATION better quality of the product. Product Concept They produce the product as the best of there knowledge. MARKETING MANAGEMENT ORIENTATION - the marketers think that the production and quality of the product do not lead to the sale so they start Selling attracting the customer towards them. Concept The product needs to be sold by the salesman. MARKETING MANAGEMENT ORIENTATION - companies start to focus Marketing on the customer need and what customer wants and Concept how to satisfy their need. MARKETING MANAGEMENT ORIENTATION Societal - the company focus on the satisfaction of the Marketing customer but also the society will accept it or not. Concept  ESSENTIALS 0F A FIRM’S MARKETING EFFORT to determine the to create and maintain needs of their an effective marketing customers. mix that satisfies customer needs. THE 4P’S OF MARKETING Good – a physical object that can be Product: It’s purchased Service is an action More Than or activity done for You Think others for a fee.  Idea is a concept, image, THE 4P’S OF MARKETING issue or philosophy. Product: It’s Value-Added refers to benefits received that are More Than not included in the You Think purchased price of the individual good, service or idea. THE 4P’S OF MARKETING Major types of products Consumer products are produced for, and A product is a bundle of purchased by, households tangible and intangible or end consumers for their attributes, including personal use. packaging, color, and Industrial products are brand, plus the services sold primarily for use in and even the reputation producing other products. of the seller. THE 4P’S OF MARKETING Price refers to the value or worth of a product that attracts the buyer to Price: It’s exchange money or Important to something of value for Success the product. THE 4P’S OF MARKETING Distribution Moves Products to Customers THE 4P’S OF MARKETING Distribution refers to the channel structure used to transfer products from an organization to its customers. It is important to have the product available to customers in a convenient and accessible location when they want it.  THE 4P’S OF MARKETING A firm is an organization Three groups of that produces goods and customers: services.  A government is an  A household organization that has two refers to a functions: the provision of decision-making goods and services to unit buying for households and firms and the personal use. redistribution of income and wealth. PROMOTION: Promotion, as part of the marketing mix, You Have to increases company sales by Tell People communicating about It product information to potential customers. PROMOTION (1) personal selling, The four basic (2) advertising, parts of a firm’s (3) public relations, promotional effort and are (4) sales promotion.  PROMOTION ACTIVITIES Non personal Advertising communication of information paid for by an identified sponsor.  PROMOTION ACTIVITIES Personal communication of information to Personal unselfishly persuade a Selling prospective customer to buy something that satisfies an individual needs.  PROMOTION ACTIVITIES Non personal communication of Public information that is not Relations paid for by an individual or organization  PROMOTION ACTIVITIES Sales Involves activities Promotion. or materials need to create sales for goods or services.  2 TYPES OF SALES PROMOTION Consumer Free sample Sales Coupons Promotion. Contest Demonstration  2 TYPES OF SALES PROMOTION Encourages wholesaler and Trade Sales retailer to purchase and sell aggressively using devices such Promotion as sales contest, displays, special purchase prices, and  free merchandise RELATIONSHIP MARKETING Relationship marketing is the creation of customer loyalty. Organizations use combinations of products, prices, distribution, promotions, and service to achieve this goal. Relationship marketing is based on the idea that important customers need continuous attention.  RELATIONSHIP MARKETING AND THE SALES FORCE RELATIONSHIP MARKETING AND THE SALES FORCE Firms use *A major issue in an salespeople organization’s in many relationship marketing ways. program is the role of the sales force.  RELATIONSHIP RELATIONSHIP MARKETING AND THE SALES FORCE MARKETING AND THE SALES FORCE 3. What type of sales 1. How much selling effort is activities—for example, necessary to gain and technical assistance, frequent or infrequent hold customers? sales calls—will be 2. Is the sales force the best necessary? marketing tool, compared 4. Can the firm gain to advertising and other strength relative to its competition with its sales sales promotion methods, force? in terms of cost and  RELATIONSHIP MARKETING AND THE SALES FORCE RELATIONSHIP MARKETING AND THE SALES FORCE 1. Sales force objectives The answer come 2. The level of resources- such as personnel and largely from an money allocated to sales analysis of activities competition, the target 3. The importance of markets, and firms personal selling in the product offering marketing mix  PERSONAL SELLING BUILDS RELATIONSHIPS Personal selling is an essential element of any organization’s marketing mix. The main functions of personal selling are to generate revenue and provide service to help make customers satisfied with their purchases. This builds relationships and is the key to success in today’s competitive marketplace. LEVELS OF RELATIONSHIP Is the cost of keeping MARKETING a relationship worth it? What type of relationships should To answer these an organization questions, let’s define the three general have with its levels of selling customers? relationships with customers:  LEVELS OF RELATIONSHIP Transaction selling: MARKETING customers are sold to Relationship selling: and not contacted the seller contacts again. customers after the Partnering: the seller purchase to determine works continually to if they are satisfied improve its customers’ and have future needs. operations, sales, and profits. 80-20 principle  PARTNERING WITH Partnering encourages CUSTOMERS both buyer and seller to The ultimate outcome of share information such as relationship marketing is marketing research building of a partnership findings and production between the seller and the cost data. buyer. Partnering gives a whole The seller’s company work new meaning to customer continuously to help the customer focus CONSULTATIVE SELLING The term consultative selling is not a new one, but sales Consultative selling. managers are redefining it to * is the process of reflect the values of today’s helping the customer more sophisticated customers achieve strategic short- and sales forces. and long-term goals through the use of the seller’s good and/or service. CONSULTATIVE SELLING 1. The Team Leader Three Roles of Role Consultative Selling 2. The Business Consultant Role 3. The Long-term ally role  Buying Teams – CONSULTATIVE SELLING *are composed of multifunctional specialists who ensure that their organizations accurately convey their complex needs to the seller and The Team thoroughly assess the accuracy of the supplier’s recommendations. Leader Role Team Leader coordinate information, resources and activities needed to support customer before, during and after the sale.  Team selling – CONSULTATIVE SELLING *brings together the appropriate people and resources needed to make the sales call. The Team E-sales calls Leader Role allow a supplier’s sales team to make a presentation to any buyer group at locations around the world.  The salesperson gives advice CONSULTATIVE SELLING and service. The Business Uses internal and external Consultant Role resources to gain an understanding of the customer business and marketplace. CONSULTATIVE SELLING The salesperson act as a helper in meeting the customer’s needs. The Long-Term Ally Role The salesperson’s goal is to create a win-win situation. Questions Clarifications THANK YOU!