NISHU GUPTA ( BCOM P 3RD YR )

QUES 2

Explain the process of relationship selling?

Ans Personal selling is the oral presentation in a conversation with one or more
prospective purchasers for the purpose of making sales it’s the ability to
persuade people to buy goods and services at profit to the seller and benefit to
the buyer.

Whereas relationship selling refers to the sales technique that focusses on the
interaction between the buyer and the salesperson rather than the price or details
of the product.

Example: A lot of us like to revisit the same place when we go on vacation and
stay in the same hotel. When we do that the staff typically learns our name and
our preferences things like our favourite room etc. The effort the hotel staff puts
into learning these things is a form of relationship selling even if we tend to
think of it as simply good service.

Process of relationship selling –

Salesperson play an important role in fostering relationship with customers.

Building customer relationships and loyalty involves the following stages-

1 Awareness - Here both the parties that is buyer and seller gets familiar with
each other and become aware of the possibility of a long term relationship.
2 Exploration – During this stage each side tries to determine the potential
value of relationship. The relationship is define through the development of
each side expectation and interaction between the both parties.
A strong exploration is needed for the relationship to flourish over time. When
the buyer tries the product for the first time he or she is excited to receive the
promised benefits. A poor initial experience becomes the strong obstacle. The
salesperson must have:
 Set proper expectations – Never promise more what can who deliver.
Over promising may get the initial sale. But dissatisfied customer will not
buy again and will tell many others not to buy.

 Monitor order processing and delivery - The buyer expects that

product which deliver to them is ready to use. The sales person must
ensure that product should deliver within a short time.
 Ensure proper use – If the product is not operating at its full efficiency
then customer will lose value. The seller must train customers to get full
value of use. Most firms have a customer service department.

 Assist in servicing – Salesperson should find out if the customers are

happy with the product. In case of any problem or complaint prompt and
courteous attention must be paid to solve problem.
3 Expansion – This stage provides an opportunity to sell new products or
increase the sale of existing products. The following strategies may be used
to expand business and built long term commitment to relationships:
 Generating repeat sales and upgrading – Generating repeat orders
particularly for supply items and others operating needs requires the
salesperson to recognise buying cycles and to be present at buying
times. Upgrading is important because it meets the buyer demand for
the newer product or high quality product.

 Full line selling – Selling the entire line of associated products is

known as full line selling. It is different from full line forcing which
means forcing distributors to carry complete line.

 Cross selling – Selling unrelated products is called cross selling. It

works best when the sales person can leverage the existing
relationship with buyer.

4 Commitment – Customer loyalty is the basis of expanding a

relationship. Loyal customers are very reluctant to switch suppliers due to
the commitment. The sales person and mangers must be empowered to
serve the customer.

Ques 4

Discuss the right set of circumstance theory. Why it is called situation

response model of selling?

Ans- Under the right set of circumstances theory the success in selling
depends upon on how well the salesperson handles the situation. The
situation here means all the internal and external factors that influence the
prospect.

Therefore the theory may be summed up as “everything was right for

that sale”.The circumstances prevailing in a giving selling situation
cause the prospect to respond in a predictable way . Salesperson should
say right thing in correct order to stimulate the prospects needs and
desires. If the salesperson secure the attention and gain the interest of the
prospect the desired response can occur. The set of circumstances consist
of external and internal factors.

Example- Suppose sales person say to customer “Let’s go out for a cup
of coffee’’. The salesperson and the remark are external factors. Internal
factor include desire or not to have a cup of coffee, to have it now, to go
out, and to go out with a salesperson. The salesperson cannot easily
manipulate the internal factors.

This is a selling-oriented theory. It stresses the control by the

salesperson of the situation. It does not solve the problem of tacking the
internal factor. It fails to recognize fully the response side of the situation
response interaction.
 Right set of circumstance theory is also known as situation response
theory –
a) It states that salesperson must be highly skilled to create the right
circumstances which can lead to sale.
b) Everything right for the sale summed up the theory. There are
particular circumstances prevailing in the given selling situation cause the
prospect to respond in a predicted way. If the sales person succeed in
securing attention and gaining interest of the prospect and present proper
stimuli and appeals the desired response i.e sale will result.

c) As shown below in the diagram if circumstances are right means

everything is going as per seller (buyer is convinced from the seller
words )then definitely it will lead to sale because both internal and
external factors are supporting him whereas if the circumstances are not
right (means wrong) then seller will not be able to make the sale as both
internal and external factors are against him .

Ex - Suppose sales person say to customer “Let’s go out for a cup of

coffee’’. The salesperson and the remark are external factors. Internal
factor include desire or not to have a cup of coffee, to have it now, to go
out, and to go out with a salesperson. The salesperson cannot easily
manipulate the internal factors.

RIGHT RIGHT SET OF CIRCUMSTANCES MODEL

CIRCUMSTANCES RIGHT SALE

CIRCUMSTANCES WRONG NO SALE