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Value Creation in Buyer-Seller Relationships - Coggle Diagram
Value Creation in Buyer-Seller Relationships
Valueis the bundle of benefits the customer derives from a purchase.
Value creation - adding value for a customer beyond an isolated transaction.
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.
Communicating Value in the Sales Message
Communicating Value in the Sales Message (2)
• Execution of marketing mix programs.
• Quality of the buyer-seller relationship (trust).
• Service quality.
• Salesperson professionalism.
Communicating Value in the Sales Message (3)
• Brand equity.
• Corporate image/reputation.
• Application of technology.
• Price.
Communicating Value in the Sales Message (1)
• Product quality.
• Channel deliverables (supply chain).
• Integrated marketing communications (IMC).
• Synergy between sales and marketing.
Product Quality
•Conformance
•Durability
•Reliability
•Serviceability
•Features
•Aesthetics
•Performance
•Perceived quality
Channel Deliverables (Supply Chain)
FedEx and Wal-Mart are examples of companies with exemplary supply chain management systems
Supply chain – encompasses every element in the channel of distribution.
Excellent supply chain management systems can add tremendous value to customers.
Integrated Marketing Communications (IMC)
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 value-added message is put forth.
IMC – Communicating the Message
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
Execution of Marketing Mix Programs
• Product
• Place - for distribution, or getting the product into the hands of the customer.
• Price
• Promotion - marketing communications.
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 longterm interests at heart.
Service Quality
Services differ from goods in that they exhibit these unique properties
Inseparability
Variability
Intangibility
Perishability
These properties create opportunities to add value to the firm’s overall product offerings.
Dimensions of
Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
Brand Equity
That value is determined by consumer perception of and experiences with the brand.
Brand equity is a marketing term that describes a brand’s value.
Consider how applying the concept of brand equity might provide insights on how to “brand yourself” in your customer relationships.
Brand Awareness
Perceived Quality
Brand Association
Brand Loyalty
Corporate Image/Reputation
A strong and positive corporate image:
•Provides a leg up on the competition.
•Brings confidence to clients.
•Can overcome other issues in making a sale.
Application of Technology
•Technology can add substantial value to customer relationships.
•Example: Pharmaceutical companies like Pfizer and Merck have developed sophisticated software for specific clients.
•Strategic Partnerships – formalized relationships where companies share assets for mutual advantage.
Price
Value – amount by which benefits to a customer exceed cost of doing business with a seller (including a product’s price).
Low price may be a marketing
Managing Customer Expectations
Customer expectations management – under-promise and over-deliver to create customer delight.
Customer delight – exceeding customer expectations to a surprising degree; a powerful way to gain customer loyalty.
