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.

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 the Purpose 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
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3. Two Basic functions of 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.
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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.
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5. Marketing Involves
• Development
• Pricing
• Promotion
• Distribution
• Of want-satisfying goods & services
• To consumers & industrial users
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6. Marketing is not just 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
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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
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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
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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!
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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.
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11. Marketing’s importance in the 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.
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12. Essentials of a Firm’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
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The 4 P’s of Marketing

13. Product
• A product is a bundle of tangible & intangible
attributes. It includes:
▫ Packaging
▫ Color
▫ Brand
▫ Services
▫ Reputation of the Seller
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14. Types of Products
• Consumer Products
▫ Purchased by Households or end consumers.
• Industrial Products
▫ Used in producing other products.
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15. Creating a Product that sells
• Research what customer wants
• Develop the product
• Design the package
• Trademarks
• Warranties
• Service policies
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16. Price
• Marketing department determines 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.
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17. Place
• A great product 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.
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18. Promotion
• Inform people about 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.
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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.
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20. The Goal of a Marketing Mix
• The right Product
• At the right Price
• At the right Place & Time
• With the right Promotional effort
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21. Relationship Marketing
• Shift from 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.
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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.
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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.
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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.
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25. Levels of Relationship Marketing
• 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
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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.
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27. Consultative Selling
• The process 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.
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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
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29. Team
Leader
Business
Consultant
Long Term
Ally
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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.
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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.
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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.
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33. The Key To Success...
• Is to use all the 4 Ps of Marketing to your
advantage and to your customer’s advantage.
Deal in relationships –
Not just transactions!
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34. Thank You!!!
• Grazie
• Gracias
• Domo Arigato
• Merci
• Danke
• Obrigado
• Mahalo
• शुक्रिया
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