978-0134477404 Chapter 4

subject Type Homework Help
subject Pages 9
subject Words 2756
subject Authors Barry L. Reece, Gerald L. Manning, Michael Ahearne

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Chapter 4
CREATING VALUE WITH ARELATIONSHIP STRATEGY
Part 2, “Developing a Relationship Strategy,” includes three chapters (3, 4, and 5) that
focus on person-to-person relationship-building strategies. Chapter 4 explains how to create
value with a relationship strategy.
EXTENDED PRESENTATION OUTLINE
The manner in which salespeople establish, build, and maintain relationships is a very
important aspect of personal selling. Salespeople who are honest, accountable, and sincerely
concerned about the customer’s welfare bring added value to the sale.
As part of the Reality Selling Today Video Series, this chapter features Susana Rosas
from CBRE Group, selling commercial real estate services.
I. Relationships Add Value
A. There is a relationship between the salesperson’s achievement drive and his view of
personal selling.
1. Salespeople who feel a professional responsibility to create as much value for
2. The manner in which salespeople establish, build, and manage relationships is not an
incidental aspect of personal selling; in the information age, it is the key to success.
3. In the information economy, business is defined by customer relationships, and sales
success depends on adding value.
4. Moving to the conceptual age
5. Value-added selling defined as a series of creative improvements in the sales process
1. Salespersons should constantly strive to build a long-term partnership.
2. With increased competition and greater product complexity, we see the need to adopt
a relationship strategy that emphasizes the “lifetime” customer.
3. High-quality relationships result in repeat business and those important referrals.
4. A growing number of salespeople recognize that the quality of the partnerships they
create is as important as the quality of the products they sell.
5. Partnering can be defined as a strategically developed, high-quality relationship that
focuses on solving the customer’s buying problems.
6. Today’s customer wants a quality product and a quality relationship.
7. Personal selling must be viewed as a process, not an event
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C. Three keys to a partnering relationship:
1. Relationship is built on shared values.
2. Clear understanding of the purpose of the partnership and committed to the vision.
3. Role of the salesperson must move from selling to supporting.
D. Relationship strategies focus on four key groups.
1. Customers.
2. Secondary decision makers
3. Company support staff.
4. Management personnel.
E. Adapting the relationship strategy
1. Ideally, the relationship strategy should be adapted to the type of customer you are
working with.
2. Chapter 2 provides a description of the three most common types of selling situations
3. In consultative sale, the impact of relationships on the sale is quite important.
a. Consultative sale emphasizes need identification
1. Salesperson is working with a company team made up of people from such areas as
research and development (R&D), finance, and distribution.
2. Salesperson must build a good working relationship with each team member
1. Created by folklore to be dynamic, outgoing, and highly assertive
2. Information Age has taught us that many other factors determine sales success.
a. Sales success depends on a positive self-image and the ability to relate to others in
1. Self-concept: a bundle of facts, opinions, beliefs, and perceptions about yourself that
are present in your life every moments of every day.
2. Once we acquire an idea about ourselves, it serves to edit all incoming information
and influence our actions.
3. How to improve your self-image.
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C. The win-win philosophy is when both the customer and salesperson are satisfied.
1. This selling can set the stage for a long-term relationship, repeat business, and future
referrals.
2. Starting point to win-win philosophy is to compare the behaviors of persons who
have adopted the win-lose approach with the behaviors of persons who have adopted
the win-win approach.
D. Empathy and ego drive
1. Empathy is the ability to imagine yourself in some else’s position to understand
what that person is feeling.
2. Ego drive is an inner force that makes the salesperson want and need to make sale.
1. Every salesperson projects an image positive or negative.
2. Effect of nonverbal message on relationships.
a. Nonverbal messages can be defined as “messages without words.”
3. Entrance and carriage
4. Shaking hands
a. The handshake is an important symbol of respect, and in most business settings is
1) Eye contact during handshake maintaining eye contact throughout the
handshaking process is important.
2) Degree of firmness generally speaking, a firm handshake communicates a
caring attitude while a weak grip communicates indifference.
3) Depth of interlock a full, deep grip will communicate friendship to the other
person.
4) Duration of the grip although there is no ideal duration of grip, by extending
5) Degree of dryness of hands a moist palm can give the impression of
nervousness; a clammy handshake is likely to repel most customers.
6) The best time to present your name is during the handshake.
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5. Facial expressions tell us important things about the other person’s inner feelings.
6. Eye contact.
1. Unconscious expectations views we all have concerning appropriate dress and
grooming.
2. When selecting a wardrobe for sales work, consider factors of simplicity,
appropriateness, and quality.
1) A salesperson’s wardrobe should be regarded as an investment.
2) Select neatly tailored attire.
1. Voice quality contributes a great deal to the meaning attached to spoken messages.
2. Voice quality is particularly important when using the telephone.
3. Suggestions for a pleasing verbal presentation.
a. Don’t talk too fast or too slow.
b. Avoid a speech pattern that is dull and colorless.
c. Avoid bad speech habits.
D. The impact of etiquette on your relationships
A. Good manners are as important in a business setting as in a social setting.
B. Rules of etiquette are important to salespeople.
1. Avoid the temptation to address a new prospect by first name.
2. Avoid offensive comments or stories.
3. Recognize the importance of punctuality.
4. When you invite a customer to lunch, don’t discuss business before the meal is
ordered unless the client initiates the subject.
5. When you use voice mail, leave a clear, concise message.
6. Avoid cell phone contempt.
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IV. Conversational Strategies That Enhance Relationships
A. Apply three of Dale Carnegie’s guidelines for building strong relationships.
1. Become genuinely interested in other people.
2. Be a good listener. Encourage others to talk about themselves.
B. In developing conversation, the following three areas should be considered:
1. Comments on here and now observations
2. Compliments
3. Search for mutual acquaintances or interests.
1. Goal setting is an important part of self-improvement.
2. Write out goals in clear, concise language.
1. Eliminate negative self-talk.
2. Replace with positive self-talk and repeat often.
D. Reward your progress.
1. Reward yourself when goals are achieved.
2. Take pride in your accomplishments.
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END-OF-CHAPTER ACTIVITES
Included in this section are answers to selected end-of-chapter exercises. Answers are
provided for all review questions, application exercises, and case problems. Also a brief
description of each role-play is provided.
Not included in this section are answers to the Regional Accounts Management Case
Regional Accounts Management Case Study.
Also not included in this section are answers to exercises related to Appendix 3:
“Partnership Selling: A Role-Play/Simulation. Answers, forms, and instructions related to
titled Traditional Role Play Exercises and Forms.
Key Terms
Empathizer, p. 73: Predicted to be one of the major players in the conceptual age will be the
empathizer. Empathizers have the ability to imagine themselves in someone else’s position
and understand what that person is feeling. They are able to understand the subtleties of
human interaction.
Self-concept, p. 77: Self-concept is the bundle of facts, opinions, beliefs, and perceptions about
yourself that are present in your life every moment of every day.
Ego drive, p. 78: Ego drive is another basic quality that is of critical importance in personal
selling. Ego drive is an inner force that makes the salesperson want and need to make the sale.
Nonverbal messages, p. 79: Nonverbal messages are “messages without words” or “silent
messages.”
Unconscious expectations, p. 82: Unconscious expectations are those views or opinions that
come from unconscious conditioning.
Business casual, p. 82: Business casual is clothing that allows you to feel comfortable but looks
neat and professional.
Visualize, p. 86: To visualize means to form a mental image of something. The power to
visualize (sometimes called “guided imagery”) is in a very real sense the power to create.
Self-talk, p. 86: Self-talk takes place silently in the privacy of your mind. It is the series of
personal conversations you have with yourself almost continually throughout the day.
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MyMarketingLab
To complete the problems with the * in your MyLab, go to the EOC Discussion Questions.
ANSWERS TO REVIEW QUESTIONS
4-1 How important are establishing, building, and maintaining relationships in the selling
4-2 List the four groups of people with whom sales personnel must be able to work effectively.
4-3 Why is partnering described as the highest-quality selling relationship? Why has the
4-5 Describe the four key words that should govern our decision regarding an appropriate set of
4-6 Identify three conversational methods that can be used to establish relationships.
4-7 Describe the meaning of nonverbal messages. Why should salespeople be concerned about
these messages?
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4-8 List and describe each step in the four-step self-improvement plan.
Step one: Set goals. The goal-setting process requires that you be clear about what you want
SUGGESTED ANSWERS FOR APPLICATION EXERCISES
4-10. Students will find a large variety of partnering information (books, company mission
4-11. Answers to the etiquette quiz follow:
a. The right side
4-13. This exercise is designed to develop the students’ awareness of their self-image.
4-14. Encourage students to discuss their views on clothing selection.
ROLE-PLAY EXERCISE
This two-part role-play gives the students an opportunity to apply some important
information featured in Chapter 3. Be sure that each student prepares a written outline of the
things he or she will do during the first five to ten minutes of the meeting.
4-15. CBRE believes that there is a direct link between the image projected by the salespeople
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4-16. Given the long lease lengths and “seemingly incompatible needs” that must be resolved, it
4-18. Perhaps the main difference between a new client and a return client is the level of trust.
Presumably, a salesperson has done a good job of developing trust when a client is returning.
4-19. Salespeople need to learn as much as possible about the language and culture of the

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