1. The Evolution of Personal Selling
Production Sales Marketing Partnering
Time Before 1930 to 1960 to After
Period 1930 1960 1990 1990
Marketing Sales Marketing Sales Satisfying Customer Building
Objective Needs Relationship
Orientation Short – term Short – term seller Short – term seller Long-term
seller needs needs needs customer and
seller need
Role of Salesperson Provider Persuader Problem solver Value creation
Creating new
Taking orders, Aggressively Marketing available alternatives,
Activities of delivering goods convincing buyers offering to buyers matching buyers
Salesperson to buy products needs needs with sellers
capabilities

2. Sellers profit - is selling price minus cost of goods sold and selling
costs.
Buyers profit - is the benefit received minus the selling price and costs
and hassles of buying. Buyers profit is increased due to lower costs
of shopping, even if the net cost is the same as found in a store.
 Partnering-oriented selling
is becoming more common as companies make strategic choices
about the types of selling best suited to their situation, but recent
research indicates that even within partnership, there are times the
buyers needs to hear persuasive messages that might be scripted.
 Relationship marketing
refers to creating the type of relationship that best suits the
customer’s needs, which may or may not require a partnership.

3. Two Types of Loyalty
 1. Behavioral loyalty
 Refers to the purchase of the same product from the same vendor
over
 time.
 Buying out of habit can reduce shopping costs, increasing profit.
 2. Attitudinal loyalty
 is an emotional attachment to a brand, company, or salesperson.
 Life customer value - the sum of their purchase over the entire

4. Successful relationships involve cultivating mutual benefits as the
partners learn to trust and depend on each other more and more.
Buyer and salesperson are able to resolve conflicts as they arise , settle
differences and compromise when necessary.
Without trust, no loyalty and unhappy customers leave.

5. Five foundational element of strategic partnership:
MUTUAL TRUST,OPEN COMMUNICATION, COMMON GOALS, COMMITMENT TO
MUTUAL GAIN, ORGANIZATIONAL SUPPORT
1.) MUTUAL TRUST
 most important element in the development of successful , long- term customer
relationship.
 is a belief by one party that the other party will fulfill its obligation in a relationship.
“ a little trust and confidence go a long way in motivating the supplier to go beyond
the single requirements of a contract” – Daniel Fries
When salespeople and buyers trust each other, they are more willing to share relevant
ideas, clarify goals and problems, and communicate more efficiently.
Information shared between the parties become increasingly comprehensive, accurate
and timely.
Trust is imporatant building block for long-term relationships.

6. 1. Market Exchanges
- is a transaction between a buyer and seller in which each party is
concerned only about the party’s benefit.
Two Types of Market Exchanges
1. Solo exchanges
- Buyer and seller pursue their own self-interest.
2. Functional relationship
- Long term market exchanges characterized by behavioral loyalty; the
buyer purchases the same product out of habit or routine. The buyer that
previously purchase does influence the next purchase.

7.
Factors Involve in the Solo Exchanges Functional Relationship Relational Strategic Partnership
Relationship Partnership
Time Horizon Short term Long term Long term Long term
Concern for the other Party Low Low Medium High
Trust Low Low High High
Investment in the Relationship Low Low Low High
Nature of Relationship Conflict, Bargaining Cooperation Accomodation Coordination
Risk in Relationship Low Medium High High
Potential Benefits Low Medium High High

8. 2. Partnerships
- In partnership both parties are concerned about each other’s welfare
and in developing win-win relationships. By working together, both parties
benefit because the size of the pie increases.
Two Types of Partnership
1.Relationship Partnership
The buyers and the salesperson have a close personal relationship that
allows them to communicate effectively. They create cooperative climate
between the salesperson and the customer. Make an open and honest
communication takes place.
2.Strategic Partnership
are long term business relationship in which the partner organizations
make significant investment to improve the profitability of both parties.
Partnerships are created for the purpose of uncovering and exploiting joint
opportunities.

9. Market Exchange Selling Goal: Making a Sale Long Term Relationship Selling Goal: Building Trust
Making Contact Initiating the Relationship
Find someone to listen Engage in strategic prospecting and qualifying
Make small talk Gather and study precall information
Ingratiate and build rapport Identify buying influence
Closing the Sale Plan the initial sales call
Deliver a sales pitch to: Demonstrate an understanding of the customer’s needs
Get the prospect attention Identify opportunities to build a relationship
Create interest Illustrate the value of a relationship with the customer

10. Build desire Developing the Relationship
Get the prospect to take action Select an appropriate offering
Stay alert for closing signals Customize the relationship
Use trial closes Link the solution of the customers needs
Overcome objections Discuss customers concerns
Close early and often Summarize the solution to confirm benefits
Following through Secure commitment
Reestablish contact Enhancing the Relationship
Resell self, company and products Assess customer satisfaction
Take actions to ensure satisfaction
Maintain open, two way communication
Expand collaborative involvement
Work to add value and enhance mutual opportunities

11. Successful relationships involve cultivating mutual benefits as the
partners learn to trust and depend on each other more and more.
Buyer and salesperson are able to resolve conflicts as they arise , settle
differences and compromise when necessary.
Without trust, no loyalty and unhappy customers leave.

12. MUTUAL TRUST,OPEN COMMUNICATION, COMMON GOALS, COMMITMENT TO
MUTUAL GAIN, ORGANIZATIONAL SUPPORT
1.) MUTUAL TRUST
 most important element in the development of successful , long- term customer
relationship.
 is a belief by one party that the other party will fulfill its obligation in a relationship.
“ a little trust and confidence go a long way in motivating the supplier to go
beyond the single requirements of a contract” – Daniel Fries
When salespeople and buyers trust each other, they are more willing to share
relevant ideas, clarify goals and problems, and communicate more efficiently.
Information shared between the parties become increasingly comprehensive,
accurate and timely.
Trust is imporatant building block for long-term relationships.

13. 1.1) DEPENDABILITY
 the buyer’s perception that the salesperson, and the product and the company
he or she represents, will live up to promise made, is not something a salesperson
can demonstrate immediately.
 third- party references can be useful in proving dependability, if the
salesperson has not yet had an opportunity to prove it personally.
Product demonstration, plant tours and other types of presentations can also
illustrate dependabilty.
Product demonstration can show how the product will work, even under
difficult condition.
Plant tours proves that the company could live up to its promises of on-time
delivery.

14.  salesperson’s prior experience and training can also be
used to prove dependability (length of experience).
As time goes on and the relationship grows, the buyer
assumes dependability.
A reputation for dependability, however, can be quickly
lost if the salesperson fails to continue to deliver as
promised

15.  salespeople demonstrate competence when they can show that they know
what they are talking about.
Knowledge of the customer, the product, the industry and the competiton are
all necessary to the success of the salesperson.
Recent research that competence is a key component in developing loyalty.
Product knowledge is the minimum; customers expect salespeople to know
everything about their own products and their company
Each saleperson undergoes 90 days of training before going into the field.
Once in the field, salespeople undergo an additonal six months of training,
including two weeks at the company’s headquarters in Melville, New York

16. PHASE 1 PHASE 2 PHASE 3
Classroom Field training Classroom Field training Field training
training branches training corporate branches assigned to
corporate throughout Melville,NY throughout US business group
Melville, NY US(two mos.) (three mos.)
(three mos.)
•Introduction to • work with active • arrow sales •Work with active •Based on
the electronics accounts under system accounts under demonstrated
distribution supervision of supervision of sales expertise and
industry. field sales managers company staffing
managers needs, associates
are assigned a
sales terittory
•Customer and •Participate in • roles and • research account • associates
supplier dynamics sales calls with responsibilities potential and continue with
customers and formulate account training specific to
suplliers strategies their assigned
business groups
• technical product • work in arrow • intergroup selling • collaborate with • associates are
training facilities of strategies suppliers on eligible for rewards
customer’s strategies for and incentives for
manufacturing assigned accounts meeting or
facilities exceeding sales
goals

17. Phase 1 Phase 2 Phase 3
Classroom Field training Classroom Field training Field training
training branches training branches assigned to
corporate throughout corporate throughout US business group
Melville, NY US(two mos.) Melville,NY (three mos.) (three mos.)
• introduction to inventory
arrow electronics management
inc.
• feild visit; touring • professional
a customer’s selling skills
facility
• exceeding •Collaborative
customer and selling
supplier
expectation
• professional •Account
development management
• business savvy – •Financial
having impact on management-
day 1 creating profitable
businesses.

18. Phase 1 Phase 2 Phase 3
Classroom Field training Classroom Field training Field training
training branches training branches assigned to
corporate throughout corporate throughout US business group
Melville, NY US(two mos.) Melville,NY (three mos.) (three mos.)
customer service, • professional
team building, development
communication
skills
• career
development and
personal learning
•Presentation skills

19.  degree to which the salesperson puts the customer’s needs first
Salespeople who think only of making sales are sales oriented rather
than customer oriented.
Stating pros and cons can also be perceived as being customer
oriented because understanding the cons also indicates that the
salesperson understands the buyer’s needs
Salesperson’s availability and desire to provide service also indicates a
customer orientation. For example “ call me anytime for anything that
you need” indicates availability and can serve as proof of a customer
orientation.

20.  both truthfulness and sincerity
Highly related to dependability (“ we can count on you and your
word because you are honest”)
Is also realted to competence.
Salespeople must be willing to admit that they do not know
something rather than trying to fake it; buyers consider salespeople
who bluff to be dishonest

21.  likability may be the least important component of trust beacause most people
can be nice.
Likability refers to behaving in a friendly manner and finding common ground
between buyer and seller.
Common ground or interest with all buyers
Likability can also be influenced with personal communication such as birthday
cards, handwritten notes, and so forth
Many businesses send holiday cards and gifts to all customers but personal
touches make these gestures meaningful.
Honesty affects customer orientation which influences dependability
For example: professional salespeople must also be competent, dependable,
honest and customer oriented

22.  open and honest communication is a key building block for developing
successful relationship.
Driving each other’s business, their roles in the relationship, each firm’s
strategies and any problems that arise over the course of the relationship.
Open communication should lead to stronger relationship
Conflict can occur even in the strongest of the partnerships and how it is
handled says more about the relationship than it ir when it happens.
One difference between a relational partnership and a strategic partnership is
the lines of communication.
Relational partnership- most communication between the buyer and the selling
organization goes through the salesperson.
Strategic relationship – more direct communication ties between the buying
organization and the selling organization.

23.  cultural difference in communication style can be easily
misunderstood and thus hinder open and honest
communication.
Japan to say no indirectly are “ it’s very difficult, we’ll think
about it and i’m not sure.”

24.  salespeople and customers must have common goals for a successful
relationship to be develop.
Shared goals give both members of the relaionship a strong incentives to pool
their strengths and abilities.
Partners can focus on exploiting opportunities rather than arguing about who
will benefit the most from the relationship
Shared goals also help to sustain the partnership when the expected benefit
flows are not realized.
Measurable goals are also very important.
Two organization set joint goals such as sales revenue, on-time delivery,
service response time and others
Two organizations can work together to rectify any problems quickly

25.  successful partnership actively work to create win- win
realtionship by making commitment to the relationship.
McDonalds is clearly the more powerful of the two
companies; but in a partnership , commitment to mutual
gainmeans that McDonalds does not take advantage of
Bama
One party is always more powerful than the other party; but in
a partnership, it does not exercise that the power over the other
Mutual dependence creates a cooperative spirit.

26.  parties make investment in the relationship.
Mutual investment are tangible investments in the relationship by both
parties.
Making the hollow statement “ I want to be a partner”.
Involve spending money to improve the products and services sold to
the other party.
These investments signal the partner’s commitment to the relationship
in the long run.
These actions make the commitment believable. Mutual investments
are also called Relationship-Specific assets in other words, these are
resources specific to the relationship and cannot be easily transferred to
another relationship.

27.  foster good relationship
Boundary spanning employees - employees who cross the organizational
boundary and interact with customers or vendors the necessary support
 support are training, rewards that support partnering behavior and structure
and culture.
A.)Structure and culture – organizational structure provide the necessary
support for the salespeople and buyers in a partnering relationship
 partnership created at headquarters should be recognized and treated as
such by local offices and vice versa
Without the support of the respective companies, the partnership is
destined to fail.
The entire firm must have an orientation to building partnership.
 strategic partnership are characterized by direct, open communication
between multiple members of both firms.

28.  B.) training- special training is required to sell effectively in a
reletionship-building environment.
 salepeople taught how to identify customer needs and work with the
customer to achieve better performance.
Constantly trains his salespeople in relationship skills, need identification
skills and other sales skills.
These opportunities are used to train the rep on how to respond in ways
that improve, not damage the relationship.
Training is critical in helping salespeople identify ways to make it easier for
the customer to do business with them.
Training can also support the customer- oriented culture for all boundary-
spanning employees.
 many companies now offer service- oriented training to all customer-
facing employees.

29.  Rewards- reward system on both sides of the relationship
should be coordinated to ancourage supportive behaviors.
 buyers are rewarded for wringing out concessions from the
salespeople
Salespeople are rewarded on the basis of sales volume.
Research indicates that compensation strategies can influence
salespeople’s customer orientation.
 he added that as the plan developed, it became clear that how the
plan was structured would impact how customers were treated.
One challenge is how to reward nonselling employees.
The employees are doing what they are being rewarded for, so the
problem isn’t necessarily theirs.
Creating appropriate reward structures, though, can be difficult.

30.  not all relationship should become partnership.
 strategic partnerships tend to go through several phases.
these phases are:
e) awareness
f)Exploration
g)Expansion
h)Commitment and sometimes
i)Dissolution
Middle three stages are most important:

31.  In awareness stage; no transaction has taken place.
Awareness phase salespeople locate and qualify prospects.
Buyers identify various sources of supply.
 one important trend is toward supplier relationship management.
 Supplier relationship management (SRM)- use of technology and
statistics to identify important suppliers and opportunities for cost
reduction, greater efficiency and other benefits.
Customers may actively seek partnership for keys areas of the firm’s
purchases, which may mean working to develop a strategic partnership with
a new vendor.

32.  exploration stage- search and trial phase for both buyer and seller.
Explore the potential benefits and costs of a partnership.
Buyer may make purchases but these are likely in the form of market
exchanges because neither side has commited to the relationship.

33.  supplier has passed enough tests to be considered for additional business.
Expansion stage involves efforts by both parties to investigate the benefits of a
long-term relationship.
Relationship can still devolve into a functional relationship rather than a
strategic partnership
Intention of both parties is to develop the appropriate type of relationship
Both sides begin to probe regarding interest in a partnership; such probing is
both internal and external.
Strategic partnership requires credible commitments, so many in the selling
organization may need to review the opportunity

34. Commitment stage- customer and seller have implicity or explicity
pledge to continue the relationship for a period of time.
Sharing proprietary information, plans, goals, and the like.
Commitment stage in the relationship involves a promise by both
buyer and seller to work together over many transaction, not just the
one decision.

35.  occur any time in the relationship process, though it doesn’t
necessarily have to occur at all.
Dissolution is the process of terminating the relationship and can
occure because of poor performance, clash in culture, change in needs
and other factors..
Loss of investments made in the relationship can be significant and
have an impact throughout both organizations.

36.  appropriate types of relationship with each customer,
strategic partnership may be called for.
Salesperson must determine which relationship type is
appropriate for optimizing the customer’s lifetime value.

37.  what makes for a strategic relationship.
At least one factor that influences a salesperson’s choice of
relationship is the type of relationship is the type of relationship
the customer desires
Customer isn’t willing to make that investment, then another
type of relationship is called for.
Some of the factors to considered are:
a. size of the account
b. access and images in the market
c. access to technology

38.  JC Penney has a strategic partnership with Levi Strauss.
The thought is that by partnering with large accounts, the accounts invest in
the supplier and become locked in.
Economies of scale can often justify lower prices and higher investment.
Size of the accounts, then, is one aspect to consider.
Some cases larger accounts are not necessarily the most profitable.
When the seller’s investment are factored in, smaller accounts provide
imporatnt benefits that larger accounts cannot, as we will discuss.

39.  account can provide access to a specific, desired market or can enhance
the image of the seller.
Ex. Heineken was shocked to discover that Albert Heijin, the largest
supermarket chain in the Netherlands, placed Heinken beer on stores
“mega- losers” list.
Heineken believed it was important to partner with Albert Heijin because
working with the leader in the market was critical to Heineken’s image.

40.  lead users because they face and resolve needs months or years ahead of the
rest of the market place.
Companies often develop innovation, either in the way they use a product or
by altering a product, that the supplier can copy.
 “ Exclusivity makes customers feel special and that leads to loyalty”
Ability to listen to customers and deliver that knowledge back to the company
so that better products can be developed.
What leads users provide is more than information; they provide the
opportunity to co-create innovations that can then be converted into products
such as logistics, that supplier can copy

41.  partnering relationship are built on effective communication
Improve communication with customers
 salespeople are using technology more efficiently; creating direct links with
customers via technology.
Computer use ranges from providing information during a sales call
analyzing a customer’s problem
According to Thomas Bird, president of Gould Inc.’s test and measurement
division. “ one of the problems in technical sales is that some salespeople do
not exactly convey what the inventor or manufacturer had in mind when the
product was designed.”