Question

Discuss the steps in the selling process, noting the distinction between transaction-oriented and relationship-building orientations.

Answer 1

Below are the key differences between the selling process in transaction-oriented and relationship building orientations :

1. Transaction oriented : Focus here is on a single exchange. Here after the sales both buyer and seller have little interest in each other. Here the sales person is more interested in selling or promoting his product rather than the needs of the customers. From the customer perpective also they are only interested in best buy and they are ready to do business from other seller if he is giving a better price. The examples of transaction oriented transaction include buying of products like cars, clothes etc. Here the products is the key factor for selling and not the relationship with the customer. The Sales rep has to focus on product be very articulate , quick on the feet and convince customer on the spot to make the decision

The sales rep here should be able to convince customer to go through the transaction with product competitiveness, special offerings etc.

2. Relationship Building orientations : This type of transaction is about building the long term relationship. Here the sales representative needs to know his customer , understand his needs well. The transaction requires considerable investment of time and efforts from both seller and buyer. The example for this type of transaction includes selling of insurance policy to customer , asset management product etc. Here the seller might be invited for a RFQ[Request for Quotation] and customer might go through to the next step only once he has confidence on the seller. In area where there are several competitors available with similar capabilities and track record relationship selling is useful.