All purchasing situations share a common framework within which the behavior of the participants can be described. Sales promotional activity should be based upon an understanding of this framework, and a clear statement of how this activity will influence the behavior and thus development of relationships. For instance, sales promotions that invite individuals to join organizations to which they already belong are of dubious credibility. When new members are offered terms more favorable than those enjoyed by the member, tolerance is also stretched. Such experiences may well lead to terminating the relationship - decidedly not the objective of the campaign.
To understand more clearly the added value that the promotion will offer you have to understand the exact nature of the relationships that you seek to influence. Business relationships evolve through four major stages: courtship, engagement, wedlock, honeymoon. The basis for deciding where you are at easy moment in time is to consider the various parameters discussed earlier (power, trust, tolerance, and so on). Each of the stages is made up of sub-stages or states, some of which are early wedlock, post honeymoon, growing apart. The characteristic of each state are well defined and can be identified and assessed.
At the heart of any promotional activity are the added values that the customer will derive. Before the customer / prospect can be introduced to added values, the supplier must determine that the fundamental basis of the transaction is being honored. Many instances have seen the bandage of customer service being applied in circumstances where a dose of an antibiotic or perhaps an emetic would be more appropriate. The needs of the customer vary depending on the nature of the relationship.
Take banks: it is unlikely that their clients will be motivated to increase their involvement with a mortgage in circumstances where they perceive that the service offered in the core product is remote, incentive, overpriced, and entirely lacking in any personal, individual or human relationships. Despite this, substantial amounts of money are poured into cross marketing promotions that are almost certainly going to fail.
The reasons can be understood when the relationship model is applied. Most companies assume that their clients are in a wedlock stage, based on the fact that their accounts are stable, that few people have more than one account, that even fewer company with more than one holding company house. This represents a splendid opportunity for the company to develop an excellent relationship with the typical client.
However if you question some of the key characteristics that are an intrinsic part of assessing relationships, how are they balanced in this hypothetical company relationship? Where is the power base? How do the parties relate to each other in terms of trust? How tolerant is the supplier to mistakes and errors? What sort of communications take place between the two parties?
To understand more clearly the added value that the promotion will offer you have to understand the exact nature of the relationships that you seek to influence. Business relationships evolve through four major stages: courtship, engagement, wedlock, honeymoon. The basis for deciding where you are at easy moment in time is to consider the various parameters discussed earlier (power, trust, tolerance, and so on). Each of the stages is made up of sub-stages or states, some of which are early wedlock, post honeymoon, growing apart. The characteristic of each state are well defined and can be identified and assessed.
At the heart of any promotional activity are the added values that the customer will derive. Before the customer / prospect can be introduced to added values, the supplier must determine that the fundamental basis of the transaction is being honored. Many instances have seen the bandage of customer service being applied in circumstances where a dose of an antibiotic or perhaps an emetic would be more appropriate. The needs of the customer vary depending on the nature of the relationship.
Take banks: it is unlikely that their clients will be motivated to increase their involvement with a mortgage in circumstances where they perceive that the service offered in the core product is remote, incentive, overpriced, and entirely lacking in any personal, individual or human relationships. Despite this, substantial amounts of money are poured into cross marketing promotions that are almost certainly going to fail.
The reasons can be understood when the relationship model is applied. Most companies assume that their clients are in a wedlock stage, based on the fact that their accounts are stable, that few people have more than one account, that even fewer company with more than one holding company house. This represents a splendid opportunity for the company to develop an excellent relationship with the typical client.
However if you question some of the key characteristics that are an intrinsic part of assessing relationships, how are they balanced in this hypothetical company relationship? Where is the power base? How do the parties relate to each other in terms of trust? How tolerant is the supplier to mistakes and errors? What sort of communications take place between the two parties?
