Sales Management: Building Customer Relationships via the Internet - Assignment Example

Sales management 1. Discuss the advantages and disadvantages of building customer relationships via the internet. Customers form quite an integral part within any given business environment. Need therefore arises for customer management this being a methodology aimed at aiding businesses in the process of enhancing or rather building relationship with customers1. The invention of internet has led to many business organizations adopting its use. In this case regarding building customer relationships via the internet there are both advantages as well disadvantages of the same. Advantages By adopting the internet to build customer relationship many business have found this step quite beneficial. Through the creation of the relationships businesses are able to broaden their perspectives in regards to the different influences on the needs of customers as well as their levels of satisfaction2. In this case business is able to achieve comprehensive understanding of the needs of customers so that they can make improvements and service their customers in the best way possible within the surrounding competitive market3. Building customer relationship via the internet aids business in retaining a regular status as far as the brand of goods and services is concerned. This means that business to customer relationship through the internet goes beyond developing and providing products and services to the customers.1 Additionally exclusive ties between the business and the customers provide benefits to both parties. Customers gain easy access to goods and services being provided and there is ease with making enquiries while the businesses obtain opportunities of gaining a competitive advantage in the market for their goods and services. Relationship between business and customers that is built via the internet aids businesses in increasing business-customer interactions4. Businesses are able to send emails to their customers if there are new products or services that have been developed. Also communication regarding special offers is easily passed to the customers hence ultimately businesses are bound to increase their level of sales5. On the same note customers through the communications develop the feeling that business recognize their existence and value them. In connection to this the internet provides business with an opportunity to show customers that they are truly assets for the businesses through the care they show by providing them with information. An Example on how businesses strengthen their relationships with customers via the internet includes sending of electronic receipts to the customers6. The internet by the use of emails enables business keep records of purchases especially of expensive items that require to be accompanied with receipts. Disadvantages Building customer relationships via the internet has the demerit of lack of trust mark. It is quite to facilitate trust online7. This is due to the fact that the internet encompasses of people who have websites in the name of being business oriented. Some websites are created by people who are not up to doing business with customers but rather stealing from them. Some people use the internet to engage in fraudulent activities8. This perspective of the internet makes customers not have trust for genuine businesses that carry out their operations online. Trust relates as well to the security of information. If business are that work online are not able to develop enough trust from their customers then customers are bound to feel that their information is not at all secure regarding the relationship in existence between them and the business.2 The inability of business online in meeting customer expectations in regards to timely responses to enquiries and deliveries may lead to the reputation and image of the business being damaged9. This may be propelled through communications in the social networks as regards how a certain business that operates online proves to be incompetent as far as customers servicing is concerned. 2. Discuss transaction focused traditional selling and trust based relationship selling Transaction focused traditional selling encompasses making a direct contract with the customers. This means that a business a business carries the responsibility of ensuring that they find people or rather individuals who are willing to listen and know what is being spoken about10. It as well includes the process of pitching the product where a business person makes small talks in regards to what is really being offered in quite a persuasive and convincing manner. On the same note the person relates the significance of the person engaging n doing the sales in selling the firm itself. Stanton points out that the idea of integration and building a rapport with the potential customers emerges which is very crucial in understanding customer tastes and preferences11. Pitching of the product also includes the delivery of a product pitch that is standardized. The main aim for these is but to get attention from the prospective customers, drive the prospects to taking an action and push the prospects towards having a greater desire and interest in what is being offered12. Closing the sale is another step in the traditional transaction focused. This involves the business person being alert of the closing signals in the marketing process of making sales. It includes the employment of trail closes and tactfully engaging talks to overcome any objections that might come from the customers. What follows is closing clearly as well as often. Following through is the final step whereby the sales person engages in re-establishing contacts with the customer followed by re-selling oneself, the businesses itself and the product offering or service13. On the other hand, Trust based relationship selling begins with the process of initiation of the relationship. This step encompasses strategically prospecting checking for qualifications of potential customers. The sales person then gathers previous information regarding customers and studies it14. They then engage in determining influences that may affect buying habits of customers15. The sales person then plans for the initial sales that are to be made. The following involves approaching the customer in a bid to initiate some contact. What follows is the assessment of the circumstance and trying to identify the needs of the customers. There is then the demonstration of the understanding of the needs for the customers including an illustration that there is some value that is being placed on the idea of ensuring that the needs are fulfilled16. Developing relationship with the customers is another step in trust based relationship selling whereby the sales person engages in selecting the most appropriate product or service offerings. “The process of planning the proposal together with the presentation follows whereby the customers are provided for the opportunity to understand the product or service much better.”4 The presentation is then customized and finally the solutions linked to the needs of the customers. Sales person is the required to anticipate and then negotiate and any resistance that the customer may have. The process of summarizing solutions to customers is engaged. This is aimed at confirming the benefits of a product offering or service to the customers. The sales person then secures commitment from the customers17. Enhancing customer relation is another stage in the trust based relationship selling. It encompasses following up customers so as to evaluate whether they have been satisfied or not18. Action is the taken to assure satisfaction of customers while maintaining an open communication19. Sales person then encourages critical encounter with the customer at the same working towards the expansion of collaboration between them and the customers. They finally aim at adding value and enhancing opportunities between both parties20. 3. How would you define sales ethics and why does this topic perceive so much attention today? Ethics basically implies to the rightfulness and wrongness of both behaviour and motives involved in dealing with people that constitutes principles of morality21. In this case individuals are presented with two alternatives to ether choose to do what is right or choose to do what is wrong. “The topic has so much attention today because ethics is quite a crucial factor in relation to the interpersonal relationship involving different aspects of leadership and persuasion.”5 Importance of ethics stretches further when an individual is bound to seek reliance on the integrity as well the objectivity of another individual. In simple terms ethical conducts encompasses a person behaving in such a manner that they are adhering to the already established and accepted principles of morality in their own profession22. Ethics is quite an important aspect as far as sales are concerned23. With sales commission issues regarding ethics have turned to be a subject of discussion. Matters of ethics arise during the process of selecting financial planners in relation to selling. While addressing ethics in sales it is quite important to focus on the fee on the amount of fee on commissions as well as on brokerage. When dealing with sales people it is important to be cautious since it might be quite risky. In connection to this investors should be well informed and have background information as regards to how they should prevent themselves of being victims of sales behaviours that are unethical especially when dealing with brokers. Commission that is paid on the people who carry sales activities is understood to be the compensation that is as a result of computation being a fraction of the units of sales. It is identified that many people who engage in investment activities are usually not aware of the risk that are involved during the section process of a financial planner. It is quite crucial for the investors to know that there exist some costs that are hidden and that are charged as part of the planning process of the investment24. Advisors who are to be paid fee usually charge hourly. For instance if an individual makes an investment of twenty five thousand dollars in a given fund with the load being five percent the time used on the process of offering the advise from estimations its said to be around five or six hours. In this case the adviser makes charges of one hundred and seventy five dollars in one hour. A critical analysis form an ethical point of view indicates that this is a very expensive fee. Commissions for the brokers may be compared to fee-only advisors. Brokers are paid in regards to the number of transactions that they engage in. Each moment that a broker finalizes on a transaction some charges are passed onto the person investing. In connection to this there is a degree of risk that is associated with the transaction25. In this case the kind of risk that is associated with the transaction involving commission is understood to be or is known as churning. Churning is regarded as a practice that is unethical. It is usually practiced by some brokers who aim at increasing the amount of their commissions through trading that is excessive in the account of the client.6 The practice is basically understood to be against the practical rule of fairness26. The practice is basically unethical fro the perspective that it aims benefiting the broker at the expense of the investors27. . In this case as far as sales are concerned ethical practices are quite crucial for there to exist good selling business. Notes 1. Amor, D.The e-business revolution. Upper Saddle River Prentice Hall p. 17 (1999) 2. Paul Timmers, Electronic Commerce - strategies & models for business-to-business trading, pp.31, John Wiley & Sons, Ltd (2000) 3. Roseann S., Rich G. , Stanton W. , Management of a Sales Force, McGraw-Hill Irwin. (2008). p. 44 4. Rumbauskas and Frank, Never Cold Call Again. John Wiley & Sons. p. 192 (2006). 5. Turban and Efraim, Introduction to Electronic Commerce. USA: Pearson. pp. 4. (2011). 6. Anand, V.; Rosen, C. C. "The Ethics of Organizational Secrets". Journal of Management Inquiry 17 (2): 97. (2008). Bibliography Amor, D. The e-business ®evolution. Upper Saddle River: Prentice Hall, 1999. Anand, V. and Rosen, C. “The Ethics of Organizational Secrets". Journal of Management Inquiry 17, no 2 (2008): 97-102. Groucutt, J. and Leadley, G. Marketing: essential principles, new realities. London: Kogan, 2004. p. 75 Hair, J. F, Anderson, R. A, Mehta, R, and Babin, B. J. Sales Management Building Customer relationships and Partnerships. Houghton Mifflin, 2009. Murphey, P. and Laczniak, G. "An ethical basis for relationship marketing: a virtue ethics perspective". European Journal of Marketing 41 (2007): 37–57. Paul, Timmers, Electronic Commerce - strategies & models for business-to-business trading. New York: John Wiley & Sons, Ltd, 2000. Petersen, Glen. The Profit Maximization Paradox: Cracking the Marketing/Sales Alignment Code. Sydney: Booksurge Llc, 2008. Roseann, S., Rich, G. and Stanton W. Management of a Sales Force, McGraw-Hill Irwin, 2008. Rumbauskas, M. and Frank, J. Never Cold Call Again. New York: John Wiley & Sons, 2006. Turban, Efraim. Introduction to Electronic Commerce. New York: Pearson, 2011. Read More