Transcript Creating Value

3
3-1
Value Creation in
Buyer-Seller
Relationships
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
3-2
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Learning Objectives
• Understand the concept of perceived
value and its importance in
relationship selling
• Explain the relationship of the roles of
selling and marketing within a firm
• Explain why customer loyalty is so
critical to business success
3-3
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Learning Objectives
• Recognize and discuss the value
chain
• Identify and give examples for each
category of communicating value in
the sales message
• Understand how to manage customer
expectations
3-4
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Value is Related to Customer Benefits
• Utility – the want-satisfying power of a
good or service
• Types of Utility
•
•
•
•
3-5
Form
Place
Time
Ownership
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Increasing the Value to the Customer
• Raise benefits
• Reduce costs
• Raise benefits and reduce costs
• Raise benefits by more than the
increase in costs
• Lower benefits by less than the
reduction in costs
3-6
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Lifetime Value of a Customer
• Lifetime value of a customer – present
value of the stream of future profits
expected over a customer’s lifetime of
purchases
• Firing a customer – encouraging a
customer to find alternative sources
from which to purchase
3-7
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Communicating
Value in the Sales Message
3-8
•
Product quality
•
Channel deliverables (supply chain)
•
Integrated marketing
communications (IMC)
•
Synergy between sales and
marketing
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Communicating
Value in the Sales Message
3-9
•
Execution of marketing mix
programs
•
Quality of the buyer-seller
relationship (trust)
•
Service quality
•
Salesperson professionalism
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Communicating
Value in the Sales Message
3-10
•
Brand equity
•
Corporate image/reputation
•
Application of technology
•
Price
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Product Quality
3-11
•Performance
•Durability
•Features
•Serviceability
•Reliability
•Aesthetics
•Conformance
•Perceived quality
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Integrated Marketing Communications
• Solid IMC allows salespeople to
solidify their client relationships by
referring to a well-known, consistent
corporate message
• Clients expect and deserve
consistency in the way a firm’s valueadded message is put forth
3-12
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
IMC – Communicating the Message
Firm’s
employees
and other
internal
stakeholders
Firm’s internal
value chain
Customers
and other
external
stakeholders
3-13
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Synergy Between Sales and Marketing
• Seamless organizational processes
focused on managing customer
relationships strengthen the value
proposition
• When sales and marketing are not
synergistic, the customer is
marginalized
3-14
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Execution of Marketing Mix Programs
• Product
• Place - for distribution, or getting the
product into the hands of the customer
• Price
• Promotion - marketing communications
3-15
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
Quality of the Buyer-Seller Relationship
• The quality of the buyer-seller relationship
is measured by trust
• Trust - a belief by one party that the other
party will fulfill its obligations
• Trust is essential to successful relationship
selling
• Trust signifies that a salesperson has the
customer’s long-term interests at heart
3-16