Chapter 13 Flashcards
customer lifetime value
how often x how much x retention
relationship marketing
creating the type of relationship that best suits the customers need, which may or may not require a partnership
behavioral loytalty
purchase of the same product from the same vendor over time, often out of habit
attitudinal loyalty
emotional attachment to a brand, company, or salesperson, for example Apple
market exchanges
solo exchanges
functional relationships
partnership
relational partnerships
strategic partnerships
market exchange definition
transaction between a buyer and a seller in which each party is concerned only about its own benefit
solo exchanges
both the buyer and the seller pursue their own self interests
functional relationships
long term market exchanges characterized by behavioral loyalty
win win relationship
both parties are concerned about each other’s welfare
- relational partnerships
- strategic partnerships
relational partnerships
- buyer and seller have close relationship
- open communication
- partners trust each other
- flexible
strategic partnerships
- long term relationships
- partners invest to improve profits of both parties
- beyond trust
- strategic advantage
- uncover joint opportunities
market exchange selling goals
make contact
close the sale
follow through
long term relationship selling goal
initiating relationship
developing the relationship
enhancing the relationship
choosing the right relationship factors to consider
size
access & image
access to innovation
type of relationship customer desires
knowledge management technology
helps salespeople manage all the information required to be effective (catalogs, records, transaction history)
relational management technology
builds on customer knowledge management systems to create models that can be used to develop strategy
phases of relationship development
awareness exploration expansion commitment dissolution
awareness
- salespeople find/qualify prospects
- buyers identify sources of supply
- supplier relationship management
supplier relationship management
use of technology and statistics to identify important suppliers and opportunities
exploration
- search and trail phase for buyer and seller
- satisfaction allows relationship to progress
- dependability and competence are tested
expansion
involves efforts by both parties to investigate the benefits of long term relationship
both parties want to develop the appropriate type of relationship
commitment
customer and seller implicitly or explicitly pledge to continue the relationship for a period of time
dissolution
process of terminating the relationship. can occur because of:
- poor performance
- clash in culture
- change in needs
- other factors
foundations of successful relationships
mutual trust open communication common goals commitment to mutual gain organizational support
mutual trust
trust dependability competence customer orientation honesty likeability
competence
know what they are talking about
open communication
key building block for building successful relationships
relational partnership and strategic partnership
relational partnership
communication goes through the salesperson
strategic partnership
direct communication between the buying organization and selling organization
common goals
- pool abilities
- exploit opportunities
- sustain partnership
- measuring goals
commitment to mutual gain
- creates win-win relationship
- mutual investment
mutual investment
tangible investment in the relationship by both parties
