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Relationship Marketing
The document discusses the significance of relationship marketing in sales management, emphasizing the transition from merely selling products to building long-term customer relationships. It outlines the differences between selling and marketing concepts, marketing's role in a business, and the necessity of understanding customer needs to maximize sales and satisfaction. The text underscores the importance of salespeople as relationship builders and highlights the evolving role of marketing in a competitive environment.
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Overview of relationship marketing, sales management, and purpose of business.
Purpose of business to enhance well-being, focusing on production and marketing functions.
Definition and scope of marketing; it involves development, pricing, promotion, and distribution.
Evolution of marketing concepts: production, selling, and marketing focus, and their distinctions.
Four main objectives: maximizing sales, new product development, market expansion, and quality service.
Definition and characteristics of products; differentiation between consumer and industrial products.
Steps to create a successful product include customer research, design, trademarks, and policies.
Determining the initial price of a product and its importance in attracting buyers.
Importance of the right place and timing for product distribution to meet customer needs.
Role of promotion in marketing; includes personal selling and various promotional techniques.
The marketing mix aims to ensure the right product, price, place, and promotional strategy.
Focus on creating long-term customer relationships rather than simple transactions.
Sales force's role in gaining and retaining customers; the inseparability of sales and service.
Different levels of relationship marketing: transaction selling, relationship selling, and partnering.
Importance of salespeople as business consultants committed to helping customers succeed.
The salesperson as a team leader, business consultant, and long-term ally for customers.
Using the 4 Ps of marketing effectively while focusing on building relationships over transactions.
Thank you and expressions of gratitude in multiple languages.
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Relationship Marketing
- 1. Relationship Marketing Sales Management Compiled& Presented By: Anuj Sharma Text Book: Fundamentals of Selling – Customers for life through services by Charles M. Futrell (12th Edition) Pre-Class Reading – Chapter 2 Presented to the students of Tolani Institute of Management Studies
- 2. What is thePurpose of Business? • The purpose of business is to increase the general well-being of humankind through the sale of goods and services • This Requires: ▫ Making a Profit – To Operate – Provide Products • Profit is a means to an end 2
- 3. Two Basic functionsof Business • Production of Goods & Services • Marketing those Goods & Services • The Primary Goal of Business: ▫ Transform the marketplace and workplace into an environment where everyone is treated as they would like to be treated. 3
- 4. What is Marketing? •Definition: Marketing is 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. 4
- 5. Marketing Involves • Development •Pricing • Promotion • Distribution • Of want-satisfying goods & services • To consumers & industrial users 5
- 6. Marketing is notjust for a Business • Whenever you try to persuade somebody to do something it needs marketing! ▫ Donate to your charity ▫ Fasten your seat belts ▫ Vote for your candidate ▫ Accept your date or you marriage proposal 6
- 7. The Production Concept •Before the Great Depression of the 1930s • Production oriented companies • “WE KNOW WHAT PEOPLE WANT” • “I LIKE THIS PRODUCT SO WILL OTHERS” • Few firms had marketing departments • No formal sales department • Engineer develops the product – Production makes it – puts it in catalogue – WAIT for people to buy it • The price was determined by Production Department 7
- 8. The Selling Concept •Post World War – Early 1940s • Customers had many products to choose from • Firms had to go to customers – not wait for them • Recognized that personal selling & advertisement was important • Salespeople were just expected to contact customers and take their orders • Unsophisticated selling techniques • Rely on natural ability for developing & giving sales presentation 8
- 9. The Marketing Concept •All company planning & operations should be customer oriented. • The goal of the firm should be profitable sales volume and not just volume for the sake of volume alone. • All marketing activities in a firm should be organizationally coordinated. • Customer’s want-satisfaction is the economic and social justification for a firm’s existence. ▫ While still making a profit! 9
- 10. Difference between Selling& Marketing Concepts Selling Concept Marketing Concept • Emphasis is on the product. • Emphasis is on the customers’ wants. • Company first makes the product & then figures out how to sell it • Company first determines customers’ wants and deliver a product to satisfy those wants. • Management is sales-volume oriented. • Management is profit oriented. • Planning is short-run, in terms of today’s products and markets. • Planning is long-run, in terms of new products, tomorrow’s markets, and future growth. • Stresses needs of the seller. • Stresses wants of buyers. 10
- 11. Marketing’s importance inthe Firm • Four main objectives of Marketing: 1. Maximize the sales of existing products in existing markets. 2. Develop & sell new products. 3. Develop new markets for existing or new products. 4. Provide quality service to customers to ensure repeat business. 11
- 12. Essentials of aFirm’s Marketing Effort • Determine the needs of the customers. • Create & maintain effective Marketing Mix Marketing Mix Product Price Place Promotion Sales PromotionAdvertising Personal Selling Public Relations 12 The 4 P’s of Marketing
- 13. Product • A productis a bundle of tangible & intangible attributes. It includes: ▫ Packaging ▫ Color ▫ Brand ▫ Services ▫ Reputation of the Seller 13
- 14. Types of Products •Consumer Products ▫ Purchased by Households or end consumers. • Industrial Products ▫ Used in producing other products. 14
- 15. Creating a Productthat sells • Research what customer wants • Develop the product • Design the package • Trademarks • Warranties • Service policies 15
- 16. Price • Marketing departmentdetermines Initial Price of the product. ▫ Includes: Normal Price Special Discounted Prices • Price refers to value or worth of product that attracts buyer to exchange money or something of value for the product. 16
- 17. Place • A greatproduct is useless if it doesn’t reaches the right consumer at the right time at the right place. • Marketing helps to determine best method of distributing the product. • Channel structure used to transfer products from an organization to its customers. • Product should be available to customers in a convenient & accessible location when they want it. • Use Resellers wherever needed. 17
- 18. Promotion • Inform peopleabout product’s existence. • Educate customers about the product’s features. • Advantages & benefits of the product. • Tell them where to buy it. • Make them aware of its price versus value. 18
- 19. Promotion Includes (PAPS) 1.Personal Selling 2. Advertising 3. Public Relations 4. Sales Promotions Marketing determines budget and type of promotion required for each product. 19
- 20. The Goal ofa Marketing Mix • The right Product • At the right Price • At the right Place & Time • With the right Promotional effort 20
- 21. Relationship Marketing • Shiftfrom Selling customers Today to Creating customers for Tomorrow. • Relationship Marketing is creation of Customer Loyalty. • Important customers need continuous attention. • Not just a simple sale or transaction. • Targets a major customer that it wants to sell to now and in the future. 21
- 22. Relationship Marketing &Sales Force • How much selling effort is needed to gain & hold customers? • Is the sales force best marketing tool, compared to advertising & other sales promotion methods, in terms of costs and results? • What type of sales activities – for example, technical assistance, frequent or infrequent sales calls – will be necessary? • Can the firm gain strength relative to its competition with its sales force? Remember, Personal Selling builds relationships. 22
- 23. Salespeople Generate Revenue •They can customize presentations to individual needs. • They can see a customer’s reaction to sales approach and make immediate adjustment. • Advertising attracts the customer’s attention and arouses desire but ads don’t close the sale. 23
- 24. Salespeople Implement Relationship Marketing •Sales personnel implement customer contact programs. • Salespeople sell the product to customers. • When customers are unhappy, the salespeople take care of the problems. • Sales & Service are inseparable today. 24
- 25. Levels of RelationshipMarketing • Transaction Selling ▫ Customers are sold to and not contacted again. Example: McDonalds Low Priced – Low Profit Products Large Number of Customers Geographically dispersed • Relationship Selling ▫ The seller contacts customers after purchase to determine if they are satisfied and have future needs. Example: Toyota • Partnering ▫ The seller works continually to improve the customer’s operations, sales and profits. Works on 80/20 principle 25
- 26. Partnering with Customers •Work continuously to help the customer. • If the customer prospers, so do you! • Buyer & Seller share information such as market research findings and production cost data. • Goal is to share risks and profits together. • No longer opponents, but two companies working toward an objective. • Each uses its own resources so both get help of doubled resources! • Enrich the other and not get rich at the other’s expense. 26
- 27. Consultative Selling • Theprocess of helping the customer to achieve strategic short and long term goals through the use of seller’s goods and services. ▫ A highly interactive dialogue between a salesperson and a customer. ▫ A balanced exchange of information. 27
- 28. Today’s Customer Needs... •Salespeople who are committed to help them to succeed. • Help them achieve short and long term objectives. • Salespeople who will stay involved with them over the time - Even if there is not an immediate sales opportunity. • They Need: ▫ A team leader – A business consultant – A long term ally 28
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- 30. Team Leader Role •Coordinates all of the information, resources and activities needed to support customers before, during and after the sale. • Primary contact between the buyer’s and seller’s organisation. • Create a unique solution for the customer. 30
- 31. Business Consultant Role •Salesperson gives advice and service. • Use internal & external resources to gain an understanding of the customer’s business & marketplace. • Customers have many suppliers who want to sell to them. • They want knowledgeable business professionals and not just persuasive peddlers. • Know about your customer’s business at the start. • Be prepared when you walk in the prospective customer’s door. 31
- 32. Long-Term Ally Role •Be interested in your customer even after you close the sale. • The customer’s interest in you increases rapidly after the purchase. • Difference between salesperson’s pre and post sale concern for the customer is called Relationship Gap. 32
- 33. The Key ToSuccess... • Is to use all the 4 Ps of Marketing to your advantage and to your customer’s advantage. Deal in relationships – Not just transactions! 33
- 34. Thank You!!! • Grazie •Gracias • Domo Arigato • Merci • Danke • Obrigado • Mahalo • शुक्रिया 34