2-1

Relationship Marketing:
Where Personal Selling
Fits
Chapter
2
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The Purpose of Business is to:
Making a profit in order to operate the
business and to provide beneficial products to
the marketplace
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Profit is a Means to an End
Profit is needed to serve needs of customers
Profit is needed to operate the business
Profit is needed to provide products to the
marketplace
Profit is needed for jobs and benefits for
employees
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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.



What is Marketing?
2-5
The Production Concept
Companies are production oriented
We know what
people want they
want our product.

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The Selling Concept
Emphasis on the product
Features and Benefits
Product created and then sold to
solve a problem
Management is sales-volume oriented
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The Marketing Concept
Emphasis is on customers wants
Customers wants drive production
Management is profit-oriented
Planning is long-term
Stresses wants of buyers
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Marketings Importance in the
Firm
Marketers have four main objectives:
Maximize the sales for existing products in
existing markets
Develop and sell new products
Develop new markets for existing or new
products
Provide quality service to ensure repeat
business
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Exhibit 2.3: Four Elements of the Marketing
Mix and Four Promotion Activities
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What is Meant by the Term
Product?
A product is a bundle of tangible and
intangible attributes, including package, color,
and brand, plus the services and even the
reputation of the seller
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The Term Product May Refer to a
Good or Service
Examples
Goods - a physical object for sale
Automobile
Cell phone
Prescription medicine
Services - an action or activity done for
others for a fee
Automobile repair
Wireless phone plan
Health insurance
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We Will Use the Terms Follow-up and
Service. What do They Mean?
Follow-up refers to maintaining contact with a
customer in order to evaluate the
effectiveness of the product and the
satisfaction of the customer (More on this in
Chapter 14)
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The Term Service May Refer to A:
Product, as insurance and advertise which is
sold by someone
Service, as customer service which is an
activity offered by a seller in conjunction with
the purchase of a product, such as delivery,
repair, credit cards accepted, 800 telephone
number, web site, salesperson available to
help customer (More on this in Chapter 14)
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Customer Service by the Salesperson
Include:
Salesperson goes to customers business to
help:
Resell products
Customer use product
Handling complaints
Return damaged products
Provide samples
Suggest further business opportunities


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People Buy More Than the Product
People buy want-satisfaction as
Brand Image of owning as a
Polo shirt vs. Wal-Mart shirt
Dodge Viper* vs. Volkswagen Vanagon*
What the product will do
Its quality

*products and associated images used for illustrative purposes only
2-16
What is a consumer product?
A consumer product is produced for, and
purchased by, households or end consumers for
their personal use
What is an example of a consumer product?
Toothpaste
Television
Clothes
There Are Two General Types of Products -
Consumer and Industrial Products
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There Are Two General Types of Products-
Consumer and Industrial Products Cont
What is industrial product?
An industrial product is sold primarily for use in
producing other products. Industrial users are
profit/nonprofit organizations that buy good and
services for one of three purposes
1. To make other goods and services
2. To sell to consumer or other industrial users
3. To conduct the organizations operations
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Price: Its Important to Success
Price refers to the value or worth of a product
that attracts the buyer to exchange money or
something of value for the product
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Consumer and Industrial Products are
Often Distributed Through Resellers
What are Resellers?
Resellers, such as wholesalers or retailers,
purchase products and then sell to
organizations and/or individuals
Often add value
Additional Services
Bundling
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What Is a Wholesaler? The Wholesaler
(May Be Referred to as a Distributor)
Primarily engaged in buying, taking title to,
usually storing and physically handling goods
in large quantities, and reselling the goods,
usually in smaller quantities to
Retailers
Wholesalers
Manufacturers
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Exhibit 2.5: Examples of Distribution Channels for
Consumer and Industrial Products

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Promotion Tells People
Promotion increases sales by communicating
product information to potential customers
The four basic components of a firms
promotional effort are: (PAPS)
Personal selling
Advertising
Publicity
Sales promotion

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Exhibit 2.7: Examples of Each
Marketing Mix Element
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Relationship Marketing
Relationship marketing is the
creation of customer loyalty
Targets a major customer
that it wants to sell to now
and in the future
Establishes a long-term
collaborative relationship
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implement
relationship
marketing
Relationship Marketing and
the Sales Force
Salespeople
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Three Levels of Relationship
Marketing
Transaction selling: customers are sold to
and not contacted again
Relationship selling: the seller contacts
customers after the purchase to determine if
they are satisfied and have future needs
Partnering: the seller works continually to
improve its customers operations, sales, and
profits
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Partnering with Customers
Encourages both the
buyer and seller to
share information
Two companies work
toward the same
objective
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Consultative Selling
The process of helping the customer achieve
strategic short and long-term goals through
the use of the sellers goods and/or services
A highly interactive dialogue between a
salesperson and a customer
A balanced exchange of information
Add Value
Mutual Benefit
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Three Consultative Selling Roles for
the 21
st
Century
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Exhibit 2.11: Marketing and Personal
Selling Provide Service to Customers