FUNDAMENTALS OF SELLING

Customers For Life Through Service

13th Edition

Charles M. Futrell
Chapter 2-
Relationship Selling

aw-Hill/Irwina qqa Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
 Chapter
2
Relationship Marketing:
Where Personal Selling
Fits
2-2
 What is Marketing?
1.DEVELOP PRODUCT/SERVCE

2.TELL/EXPLAIN IT TO CUSTOMERS
Advertising and Selling

3.MAKE IT AVAILABLE (STORE, ON LINE)

4.FOLLOW UP TO INSURE SATISFACTION

2-3
STEVE KAYE’S 10 P’S FOR SUCCESS IN MARKETING

1. Product-Development and Optimization with Consumers

2. Positioning Statement-Name, Personality, Target, Frame, benefits, support,
Insight
• Case Histories - Huggies
3. Package-Physical and copy story
• POPPYCOCK – AMAZING GLAZE
4. Pitch-Elevator Pitch, Advertising, Sales and PR Message
• MILK MUSTACHE
5. Profitability-Price, business Model-Plan A
6. Promotion, Trial, loading action events
7. Passion-Champion to prevent changing horses in mid stream
8. Protection- Patents and Trademarks, competitive response
9.Plan b –budget, Timetable
10. Pace-Hustle and work harder

2-4
Marketing’s Importance in the
Firm
 Marketers have four main objectives:
 Maximize the sales for existing products in
existing markets
 Develop and sell new products
 Develop new markets for existing or new
products
 Provide quality service to ensure repeat
business

2-5
Exhibit 2.2: The Marketing Group is the Link
Between Customers and the Organization

2-6
The Term “Product” May Refer to a
Good or Service
 Examples
 Goods - a physical object for sale
 Automobile
 Cell phone

 Prescription medicine

 Services- an action or activity done for

others for a fee
 Automobile repair
 Wireless phone plan

 Health insurance

2-7
We Will Use the Terms Follow-up and
Service. What do They Mean?
 Follow-up refers to maintaining contact with a
customer in order to evaluate the
effectiveness of the product and the
satisfaction of the customer

2-8
 People Buy Benefits
 People buy want-satisfaction as
 Image of owning as a
 Polo shirt vs. Wal-Mart shirt
 Dodge Viper* vs. Volkswagen Vanagon*

 What the product will do

 Its quality

*products and associated images used for illustrative purposes only 2-9
There Are Two General Types of Products -
Consumer (BtoC)and Industrial Products(Bto B)
 What is a consumer product?
 A consumer product is produced for, and
purchased by, households or end consumers
for their personal use
 What is an example of a consumer product?
 Toothpaste
 Television
 Clothes

2-10
There Are Two General Types of Products-
Consumer and Industrial Products Cont…
 What is an industrial (B to B) product?
 An industrial product is sold primarily for use
in producing other products. Industrial users
are profit/nonprofit organizations that buy
good and services for one of three purposes
• To make other goods and services

2-11
There Are Two General Types of Products-
Consumer and Industrial Products Cont…
 What is industrial product?
 An industrial product is sold primarily for use
in producing other products. Industrial users
are profit/nonprofit organizations that buy
good and services for one of three purposes
1. To make other goods and services
2. To sell to consumer or other industrial users
3. To conduct the organization’s operations

2-12
There Are Two General Types of Products-
Consumer and Industrial Products Cont…
 What is an industrial product?
 An industrial product is sold primarily for use
in producing other products. Industrial users
are profit/nonprofit organizations that buy
good and services for one of three purposes
1. To make other goods and services
2. To sell to consumer or other industrial users
3. To conduct the organization’s operations

2-13
CASE – ROCHESTER BUTTON

 What is industrial product?

 An industrial product is sold primarily for use
in producing other products. Industrial users
are profit/nonprofit organizations that buy
good and services for one of three purposes
1. To make other goods and services
2. To sell to consumer or other industrial users
3. To conduct the organization’s operations

2-14
The Key Phrases That Differentiate Between
Consumer and Industrial Products are:
 Consumer product - personal use
 Industrial product - producing other products
 What is an example of an industrial product?
 Airlinespurchase airplanes
 Boeing sells their airplanes to airlines
 University buys computers

2-15
What Is Another Name for an
Industrial Product?
 Business product
 Organizational product

2-16
Distribution Moves
Products to Customers
 Three Customer Groups
 A household refers to a decision-making unit
that buys for personal use
 A firm is an organization that produces goods
and services
 A government is an organization that:
 Provides of goods and services to government
 organizations

2-17
Consumer and Industrial Products are
Often Distributed Through Resellers
 What are Resellers?
 Resellers, such as wholesalers or retailers,
purchase products and then sell to
organizations and/or individuals

2-18
What Is a Wholesaler? The Wholesaler
(May Be Referred to as a Distributor)
 Primarily engaged in buying, taking title to,
usually storing and physically handling goods
in large quantities, and reselling the goods,
usually in smaller quantities to
 Retailers
 Wholesalers
 Manufacturers

2-19
Exhibit 2.5: Examples of Distribution Channels for
Consumer and Industrial Products

2-20
Promotion Tells People
 Promotion increases sales by communicating
product information to potential customers
 The four basic components of a firm’s
promotional effort are: (PAPS)
 Personal selling
 Advertising
 Publicity
 Sales promotion

2-21
Exhibit 2.7: Examples of Each
Marketing Mix Element

2-22
STEVE KAYE’S 10 P’S FOR SUCCESS IN MARKETING

1. Product-Development and Optimization with Consumers

2. Positioning Statement-Name, Personality, Target, Frame, benefits, support,
Insight
• Case Histories - Huggies
3. Package-Physical and copy story
• POPPYCOCK – AMAZING GLAZE
4. Pitch-Elevator Pitch, Advertising, Sales and PR Message
• MILK MUSTACHE
5. Profitability-Price, business Model-Plan A
6. Promotion, Trial, loading action events
7. Passion-Champion to prevent changing horses in mid stream
8. Protection- Patents and Trademarks, competitive response
9.Plan b –budget, Timetable
10. Pace-Hustle and work harder

2-23
 Relationship Marketing
 Relationship marketing is the
creation of customer loyalty
 Targets a major customer
that it wants to sell to now
and in the future
 Establishes a long-term
collaborative relationship

2-24
Relationship Marketing and
the Sales Force

 Salespeople
implement
relationship
marketing

2-25
Three Levels of Relationship
Marketing
 Transaction selling: customers are sold to
and not contacted again
 Relationship 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
2-26
 Partnering with Customers
 Encourages both the
buyer and seller to
share information
 Two companies work
toward the same
objective

2-27
 Consultative Selling
 The process of helping the customer achieve
strategic short and long-term goals through
the use of the seller’s goods and/or services
 A highlyinteractive dialogue between a
salesperson and a customer
 A balanced exchange of information

2-28
2-29