value is related to customer benefits
DESCRIPTION
Value is Related to Customer Benefits. Utility – the want-satisfying power of a good or service Types of Utility Form Place Time Ownership. Lifetime Value of a Customer. - PowerPoint PPT PresentationTRANSCRIPT
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VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
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Value is Related to Customer Benefits
• Utility – the want-satisfying power of a good or service
• Types of Utility• Form• Place• Time• Ownership
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
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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
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
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Communicating Value in the Sales Message
• Product quality
• Channel deliverables (supply chain)
• Integrated marketing communications (IMC)
• Synergy between sales and marketing
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
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Communicating Value in the Sales Message
• Execution of marketing mix programs
• Quality of the buyer-seller relationship (trust)
• Service quality
• Salesperson professionalism
VALUE CREATION IN BUYER-SELLER RELATIONSHIPS
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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
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Execution of Marketing Mix Programs
• Product
• Place - for distribution, or getting the product into the hands of the customer
• Price
• Promotion - marketing communications
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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