1. Relationship Selling Mark W. Johnston Greg W. Marshall
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. What is Relationship Selling?
PART ONE

3. What is Relationship Selling?
Customer-centric
Puts the customer at the center of the universe
Focuses on securing, building, and maintaining long-term relationships with profitable customers
Chapter 1
1-3

4. Understanding Buyers and Sellers
Buying
Who participates?
What are the stages in the process?
What is the organizational buying situation?
Selling
Key drivers of change
Selling as a career
Key success factors
Selling activities
Types of sales jobs
Chapter 2
1-4

5. Chapter 3 Value Creation
Creating customer value is central to most business models
Relationship selling is an important way an organization can create value
Communicating the value proposition is a critical skill
Chapter 3
1-5

6. Ethical and Legal Issues
Ethics plays an important role
Stakeholders are watching companies’ behavior
Salespeople and their managers must be aware of legal implications of their actions
Chapter 4
1-6

7. Introduction to Relationship Selling
Chapter 1

8. 1-8

9. Learning Objectives
Identify and define the concept of relationship selling
Understand the importance of a customer-centric organization
Explain why value is a central theme in relationship selling
Identify the processes involved in relationship selling
Identify the elements in managing relationship selling
Discuss and give examples of the elements of the external and internal environment for relationship selling
1-9

10. Model - Overview Customer-centric Highly customer- oriented
Exhibit customer mindset
1-10

11. Customer Orientation Focus on understanding customers’ requirements
Generate organization-wide understanding of the marketplace
Respond effectively with innovative products and services
1-11

12. External Customer Mindset
1.1
Test Your Customer Mindset
External Customer Mindset 1 2 3 4 5 6
I must understand the needs of my company's customers
It is critical to provide value to my company's customers
I am primarily interested in satisfying my company's customers
I must understand who buys my company's products/services
I can perform my job better if I understand the needs of my company's customer
Understanding my company's customers will help me do my job better
Strongly Disagree
Strongly Agree
1-12

13. Internal Customer Mindset
1.1
Test Your Customer Mindset
Internal Customer Mindset 1 2 3 4 5 6
Employees who receive my work are my customers
Meeting the needs of employees who receive my work is critical to doing a good job
It is important to receive feedback from employees who receive my work
I focus on the requirements of the person who receives my work
Total
Higher total ➤ Greater customer mindset
Strongly Disagree
Strongly Agree
1-13

14. The Customer Customer at center Return on customer investment
Lifetime value of a customer
1-14

15. Innovation 1.1 Want to Think Like a Customer? Avoid...
Wasting customer’s time
Lacking empowerment to handle problems now
Not knowing customer’s business
Bringing problems, not solutions
1-15

16. Value Creation
Value - bundle of benefits a customer derives from a purchase
Give-get ratio
Value creation - adding value for a customer beyond an isolated transaction
1-16

17. 1.2 Transactional vs Relationship Selling Transactional
Buyers mainly interested in price and convenience
Suppliers bring no additional benefits
Suppliers reduce resources allocated to selling
Relationship
Consultative
Buyers willing to pay for new value and additional benefits
Enterprise
Strategically important customers demand extraordinary value creation
Requires cross-functional teams to execute
1-17

18. Enterprise Selling - Example
Proctor & Gamble’s relationship with Wal-Mart
P&G uses integrated technology to provide Wal-Mart with just-in-time delivery of products
Representatives from many functional areas within P&G are required to make this enterprise selling effort successful
1-18

19. 1.3 Time Investment in Each Stage of the Sale Value-Added Selling
Developing Understanding of Buyer’s Needs
Traditional Selling
Value-Added Selling
Presenting a solution
Closing the Sale
Time Invested
1-19

20. Difficulties Salespeople Have in the Marketplace
1.2
Biggest Challenge?
Shift to Value-Added Selling
Difficulties Salespeople Have in the Marketplace
Moving to solution-type sell
69%
Selling value
67%
Inexperience
63%
Negotiating
58%
Prospecting
55%
Closing
Unable to get to decision-maker
51%
1-20

21. Ethics
Company’s ethical reputation impacts customer purchase decisions
Social values set standards for ethical behavior
Some actions may be legal but not ethical
1-21

22. Ethical Dilemmas Portray products and services accurately
Act fairly and treat all social groups equallyShow respect for individuals Design sales territories, assign quotas, and determine compensation with integrity
Customer
Salesperson
Sales
Manager
1-22

23. Relationship Selling Prospecting and sales call planning
Communicating the sales message
Negotiating for win- win solutions
Closing the sale and follow-up
Self-management
1-23

24. Innovation 1.3 Power of Follow-Up
Long-term customer relationships ➤long- term success
It pays to nurture existing customer relationships
It is 5 to 10 times more costly to acquire new customers
CRM can help balance new customer acquisition and existing customer service (follow-up)
1-24

25. Sales Management Motivation Recruiting and selection
Training and development
Compensation and incentives
Evaluating salesperson performance
1-25

26. 1.4
Components of the Internal Environment
1-26

27. Internal Environment Southwest Airlines
Places the employee at the center of its business model
Promotes fun
Hires people by “tryouts”
Lends itself to a favorable service culture
1-27

28. 1.5
Components of the External Environment
1-28

29. Role Play
1-29

30. 1-30