F10++MKTG+3104+Student+20.+Personal+Selling+ppt

Customer relationships relationships have value

This preview shows page 13 - 19 out of 26 pages.

Customer Relationships Relationships have value because customers are more profitable over time More and larger _________ Lower operations _______ Provide more _________ Less price sensitive, more. _____ Increasingly, marketers use databases to calculate customer lifetime value Customer relationship management and selling strategy can then be based on the value of individual customers
Image of page 13

Subscribe to view the full document.

Customer Relationship Management (CRM) 1. Create database with customer information 2. Differentiate customers by expected profitability given their potential, your competitive position, and cost to serve Large lifetime profits Target (more selling effort) Small lifetime profits Reduce costs (direct marketing) Unprofitable Drop!
Image of page 14
Best Buy “Devils” (20% of customers) Buy up loss leaders and resell on eBay Buy item, apply for rebates, return it, buy back at “returned merchandise’ discount Demand price matching of Internet sites Strategy remove “devils” from email lists reduce promotions that attract them enforce 15% restocking fee for returns sell returns online, not an original
Image of page 15

Subscribe to view the full document.

How is relationship marketing different from traditional selling that focuses on transactions?
Image of page 16
Selling Orientation Transaction Relationship Partnership Selling Selling Selling Short-term focus on the current exchange, managing the product Low levels of trust Individual goals, committed to own gain Long-term focus on ongoing exchanges, managing customers High levels of trust Shared goals, committed to mutual gain investments Joint planning and operational linkages
Image of page 17

Subscribe to view the full document.

Selling Orientation Transaction Relationship
Image of page 18
Image of page 19
You've reached the end of this preview.
  • Spring '08
  • EBCoupey
  • Marketing, Sales, Personal Selling, personal selling process

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern