Quiz 13 :
Building Partnering Relationships
Selling partnership stand for the process wherein the seller sells the products to the buyer with the intention and purpose of not only selling the product or a service but also to build a selling partnership with the buyer making the buyer to continue and remain loyal with the product and service that is sold by the seller. In creating selling partnership with the buyer, it is expected that there exists a win-win situation wherein both the seller as well as the buyer undertake the selling process creating benefit for both the parties rather than making one party to win and the other party to lose the negotiation. For this to take place, sellers have to sell the product creating winning situation for all and undertake market exchanges that benefit every party associated in it There exists an ethical difference between win-win and win-lose in a way that in former, the seller as well as the buyer undertake the selling process creating benefit for both the parties rather than making one party to win and the other party to lose the negotiation; while in the latter, either the buyer or the seller only thinks about self-interest and benefit without considering the benefit of other party. This shows a great ethical difference between win-win and win-lose. The customer's value equation should be such that it not only provides benefits to the buyer but also to the seller in terms of selling price of the goods, time and efforts incurred in the making of that product. This way this equation of value will be ethical in all sense.
Relational partnership stands for the personal relationship that is shared by salesperson and the buyer that makes them to communicate effectively and this creates a business environment which is full of trust and dependability over each other. Relational partnerships become potentially dangerous for selling companies when the customers try to get every possible discount and price of the products that it buys from the selling company at a price that suits the customer and his benefits. The selling company in sake of saving the customer account obliges to every demand that the customers makes and asks for. This situation is considered as potentially dangerous for selling companies and should be prevented from taking place. It is good and appropriate that salespeople of a firm try to develop relational partnership with most of the customers but the firms should not force the salespeople to develop relational partnership with every customer account which will unnecessarily create potential dangers for selling companies. Also, the salesperson will feel pressurized to create and develop partnership with customers. There are customers who remain loyal with the firm owing to the products or services they enjoy offered by the firm. So, the company should try to focus on these customers rather than creating relational partnership with all the accounts.
Case summary: A customer of XY firm is loyal to the competing firm, and when the present contract with that customer is about to end, a request for proposal (RFP) has been issued by the customer which is likely to be won by the competing firm this time. But XY firm is aware that the services provided by it will be more efficient in satisfying the customer needs. Solution: It is mentioned that XY firm provides its services to a particular customer, and when the contract neared to end, the customer issued RFP. The way RFP was issued and was written showed that this time the contract will go to the competitor. XY firm is aware that its offerings are capable of serving the customer's needs in a more appropriate manner. In this case, the ethics problem is that the customer has issued a tender or proposal asking firms to apply for in a way that could only be satisfied by the competitor's firm and this shows that the customer has undertaken an unethical action by creating a situation wherein only competing firm could win the contract. This kind of tender offering by a customer shows partiality towards a particular applicant and sidelines the rest of the applicants.