© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
CHAPTER 2
Building Partnering Relationships
Some questions answered in this chapter are:
 What different types of relationships exist between buyers
and sellers?
 When is each type of relationship appropriate?
 What are the characteristics of successful partnerships?
 What are the benefits and risks in partnering relationships?
 How do relationships develop over time?
 What are the responsibilities of salespeople in partnerships?
2-2
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
“Your challenge as a professional will be
to understand the different types of
relationships and how those
relationships can impact you and your
company, whether positive or negative.”
~Steve Reel
Martin Marietta Materials
2-3
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
The Evolution of Personal Selling
• Buying on the Internet
• Buyers have needs that are
met by:
– The product
– The selling process
• Buyers buy to also make a
profit
• Salespeople orientations
– Partnering orientation
2-4
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
The Evolution of Personal Selling
2-5
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Relationships and Selling
• Relationship
marketing
• Loyalty
Behavioral loyalty
refers to the
purchase of the
same product from
the same vendor
over time.
• Behavioral
• Attitudinal
• Lifetime
customer value
Attitudinal loyalty
is an emotional
attachment to a
brand, company, or
salesperson.
2-6
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Types of Relationships
• Market exchanges
– Solo exchanges
– Functional relationships
• Partnerships
– Relational partnerships
– Strategic partnerships
2-7
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Types of Relationships Between Buyers
and Sellers
2-8
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Market Exchange Selling
Goal: Making a sale
• Making contact
– Find someone to listen
– Make small talk
– Ingratiate and build support
2-9
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Market Exchange Selling (continued)
Goal: Making a sale
• Closing the sale – deliver a sales pitch to:
–
–
–
–
–
–
–
–
Get the prospect’s attention
Create interest
Build desire
Get the prospect to take action
Stay alert for closing signals
Use trial closes
Overcome objections
Close early and often
2-10
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Market Exchange Selling (continued)
Goal: Making a sale
• Following through
– Reestablish contact
– Resell self, company, and products
2-11
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Long-Term Relationship Selling
Goal: Building trust
• Initiating the relationship
–
–
–
–
–
Engage in strategic prospecting and qualifying
Gather and study precall information
Identify buying influences
Plan the initial sales call
Demonstrate an understanding of the
customer’s needs
– Identify opportunities to build a relationship
– Illustrate the value of a relationship with the
customer
2-12
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Long-Term Relationship Selling
(continued)
Goal: Building trust
• Developing the relationship
– Select an appropriate offering
– Customize the relationship
– Link the solution to the customer’s needs
– Discuss customer concerns
– Summarize the solution to confirm
benefits
– Secure commitment
2-13
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Long-Term Relationship Selling
(continued)
Goal: Building trust
• Enhancing the relationship
– Assess customer satisfaction
– Take actions to ensure satisfaction
– Maintain open, two-way communications
– Expand collaborative involvement
– Work to add value and enhance mutual
opportunities
2-14
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Foundations of Successful Relationships
2-15
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Characteristics of Successful
Partnerships
• Mutual trust
– Dependability
– Competence
– Customer orientation
– Honesty
– Likeability
Trust is a belief by one
party that the other party
will fulfill its obligations in
a relationship.
• Open communication
• Common goals
2-16
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Characteristics of Successful
Partnerships (continued)
• Commitment to mutual gain
– Mutual investment
• Organizational support
– Structure and culture
– Training
– Rewards
2-17
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Phases of Relationship Development
• Awareness
– Salespeople
locate and qualify
prospects; buyers
identify sources of
supply
Supplier relationship
management (SRM) is
the use of technology and
statistics to identify
important suppliers and
opportunities for cost
reduction, greater
efficiency, and other
benefits.
• Exploration
– Both parties may
explore the
potential benefits
and costs of a
partnership
2-18
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Phases of Relationship Development
(continued)
• Expansion
– Both parties investigate the benefits of a
long-term relationship
• Commitment
– The customer and seller pledge to
continue the relationship for a period of
time
• Dissolution
– Process of terminating the relationship
2-19
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Managing Relationships and Partnering
• Choosing the right relationships
– Size
– Access and image
– Access to innovation
• Using technology to increase efficiency
2-20
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Summary
• Businesses are moving toward partnering
strategies.
• Functional relationships and strategic
partnerships are characterized by a mutual
concern of each party for the long-run
welfare of the other party.
• Mutual trust, open communication,
common goals, a commitment to mutual
gain, and organizational support are key
ingredients in successful relationships.
• Customers trust salespeople who are
dependable, capable, and concerned about
the customer’s welfare.
2-21
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.