This is the Chapter 2 presentation of the Profesional Selling course at the Eastern International University. The course comprised of 17 chapters based on the book: Fundamentals of Selling by Futrell, Charles M., 13th edition (2011) McGraw-Hill. Created and lectured by Phong Nguyen

1. McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. CHAPTER
Relationship Marketing:
Where Personal Selling Fits
2

3. Chapter
2
2-3

4. The Purpose of Business is to:
• Increase the general well being of humankind through the
sales of goods and services

5. This Requires
• Making a profit in order to operate the business and to
provide beneficial products to the marketplace

6. Profit is a Means to an End
• Profit is needed to serve humankind
• Profit is needed to operate the business
• Profit is needed to provide products to the marketplace

7. The Two Basic Functions and Goal
of Business
• Two Basic Functions of Business
• Production of goods or creating of services
• Marketing those goods and services
• The Primary Goal of Business
• Transform marketplace and workplace into an environment
where everyone is treated fairly

8. What is Marketing?
• 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.

9. The Production Concept
• Companies are production oriented
We know what
people want – they
want our product.

10. The Selling Concept
• Characterized by product demonstrations and
unsophisticated sales techniques
• Emphasis on the product
• Product created and then sold
• Management is sales-volume oriented
• Stresses needs of the seller

11. The Marketing Concept
• Emphasis is on customer’s wants
• Customer’s wants drive production
• Management is profit-oriented
• Planning is long-term
• Stresses wants of buyers

12. Marketing’s 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

13. Exhibit 2.2: The Marketing Group is the Link
Between Customers and the Organization

14. Product: It’s More Than You Think
• A good is a physical object that can be purchased
• A service is an action or activity performed for a fee
• Value-added refers to benefits received that are not
included in the purchase price of a good or service

15. Exhibit 2.3: Four Elements of the Marketing
Mix and Four Promotion Activities

16. 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

17. 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

18. The Good and the Service:
• Automobile - repair services
• Cell phone - wireless phone plane
• Prescription medicine - health insurance

19. 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)

20. 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)

21. Customer Service by the Salesperson
Include:
• Salesperson goes to customer’s business to help:
• Resell products
• Customer use product
• Handling complaints
• Return damaged products
• Provide samples
• Suggest further business opportunities
(Above discussed in Chapter 1)

22. People Buy More Than the Product
• People buy want-satisfaction as
• 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

23. There Are Two General Types of Products
- Consumer and Industrial Products
• 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

24. 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 organization’s operations

25. The Key Phrases That Differentiate Between
Consumer and Industrial Products are:
• Consumer product - personal use
• Industrial product - producing other products
• What is an example of an industrial product?
• Airlines purchase airplanes
• Boeing sells their airplanes to airlines
• University buys computers

26. What Is Another Name for an Industrial
Product?
• Business product
• Organizational product

27. Price: It’s 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

28. Distribution Moves
Products to Customers
• Three Customer Groups
• A household refers to a decision-making unit that buys for
personal use
• A firm is an organization that produces goods and services
• A government is an organization that has two functions:
• The provision of goods and services to households and
firms
• The redistribution of income and wealth

29. 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

30. 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

31. Exhibit 2.5: Examples of Distribution Channels for
Consumer and Industrial Products

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

33. Exhibit 2.7: Examples of Each Marketing Mix
Element

34. 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

35. Relationship Marketing and
the Sales Force
implement relationship
marketing
 Salespeople

36. 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

37. Partnering with Customers
• Encourages both the
buyer and seller to
share information
• Two companies work
toward the same
objective

38. Consultative Selling
• The process of helping the customer achieve strategic
short and long-term goals through the use of the seller’s
goods and/or services
• A highly interactive dialogue between a salesperson and a
customer
• A balanced exchange of information

39. Three Consultative Selling
Roles for the 21st Century

40. Exhibit 2.11: Marketing and Personal
Selling Provide Service to Customers