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CHAPTER 2
Relationship Marketing: Where Personal Selling Fits
LECTURE OUTLINE
I. WHAT IS THE PURPOSE OF BUSINESS?
A. The purpose of business is to increase the general well-being of
B. This requires making a profit in order to operate the business and provide
D. Two major functions of business are:
1. The production of goods or creation of services.
E. The Primary Goal of Business
1. Transform the marketplace and workplace into an environment
II. WHAT IS MARKETING?
A. To be successful, businesspeople must do two things:
1. Determine people's needs and wants.
B. Marketing – the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. It involves a diverse set of
activities such as:
1. The development of products (products refer to goods or services).
2. The pricing of products.
C. Marketing is not limited to business - Anytime you try to persuade someone to do
D. Exchanges and Transactions.
1. Exchanges - obtaining desired products through transactions.
III. CUSTOMER ORIENTATION’S EVOLUTION.
A. The transformation to a customer-oriented attitude.
1. The Production Concept.
a. Pre-Great Depression, 1930’s.
2. The Selling Concept.
a. Early 1940’s through WWII.
b. Products produced without regard for customer needs.
3. The Marketing Concept.
a. Began in the 1950’s.
b. Three fundamental beliefs:
(1) Customer oriented planning and operations.
c. Marketing concept - customer’s want-satisfaction is economic and
d. Difference between Selling and Marketing concepts.
(1) Selling—emphasis on product.
IV. MARKETING’S IMPORTANCE IN THE FIRM
A. Product must be marketed to consumers before its full value is realized.
B. Marketing people have four objectives to accomplish:
1. Maximize sales of existing products in existing markets.
4. the quality of service necessary for customers to be satisfied with their
transaction.
V. ESSENTIALS OF A FIRM’S MARKETING EFFORT
A. To determine the needs of their customers.
C. Marketing Mix Elements:
1. Product.
2. Price.
D. Product - It’s more than you think.
1. Value-added Benefits - benefits received that are not included in the
E. Price - Value or worth of a product - It's Important to Success.
F. Distribution - the channel structure used to transfer products from an organization
to its customers.
1. Customers fall into three groups:
a. Households.
2. Resellers are:
a. Wholesalers.
G. Promotion - increases company sales by communicating product information to
potential customers.
1. The four parts of the promotion effort are:
a. Personal selling.
b. Advertising.
H. Goal of the Marketing Mix - to provide the right product, price, time, and
I. Coordination is important.
VI. RELATIONSHIP MARKETING
A. Emphasis on creating customers for tomorrow.
B. Relationship Marketing - creation of customer loyalty. Organizations use a
VII. RELATIONSHIP MARKETING AND THE SALES FORCE
A. The four basic questions used as guidelines in defining the role of the sales force
are:
1. How much selling effort is necessary to gain and hold customers?
B. Personal Selling builds relationships.
1. The two main functions of personal selling are:
a. Generate revenue.
2. Personal Selling:
a. Is flexible in operation.
C. Salespeople implement relationship marketing.
VIII. LEVELS OF CUSTOMER RELATIONSHIP MARKETING
A. Three general levels:
determine satisfaction and future needs.
3. Partnering - the seller works to continually improve the customer’s
business.
IX. PARTNERING WITH CUSTOMERS
A. The criteria which encourages buyers and sellers to share information:
1. Individual Excellence - both partners add value, and their motives are
2. Importance - both partners want the relationship to work because it helps
3. Interdependence - the partners need each other to reach their goal.
5. Information - the partners communicate openly about goals, technical
6. Integration - the partners develop shared ways of operating; they teach
8. Integrity - both partners are trustworthy and honorable.
X. THE NEW CONSULTATIVE SELLING
A. Consultative Selling vs. Traditional Selling:
1. Consultative Selling - the process of helping the customer achieve
2. Traditional selling - the process of strictly gaining and maintaining sales
with a customer. There is a minimal amount of involvement between the
customers and the salesperson.
B. Three Roles of Consultative Selling:
1. Team leaders - coordinate information, resources, and activities needed
3. Long-term allies - act as helpers in meeting customers' needs and filling
Customer-Seller Relationship Gaps which are buyer-seller post-sale
levels of concern for each other.
a. The buyer’s concern is usually high.
XI. E-SELLING: TECHNOLOGY AND INFORMATION BUILDS RELATIONSHIPS -
through an increased use of technology, salespeople are becoming faster, better
XII. WHAT’S A SALESPERSON WORTH? - Salespeople:
A. Close deals.
XIII. THE KEY TO SUCCESS
A. Excellent salespeople know and satisfy target customers' needs. These needs
are:
1. Identified by marketing.
B. Salespeople are aided by the 4 P's of Marketing:
1. Product - provided by the company.
C. The salesperson should personally contact the buyer to:
1. Analyzer needs.
2. Present product benefits.
