1-1 What is Selling? Selling is just one of many marketing components Personal selling includes ...

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What is Selling?

Selling is just one of many marketing components

Personal selling includesPersonal communication of informationPersuasionHelping others

– Goods

– Services

– Ideas

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A New Definition of Personal Selling

Personal SellingRefers to the personal communications of

informationTo unselfishly persuade someone

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Think of Your Grandmother

Would you treat her in a selfish manner?Would you sell her something just to make a

sale?

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The Golden Rule of Personal Selling

Refers to the sales philosophy of unselfishly treating others as you would like to be treated

Reciprocity is not expected

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Salesperson Differences

Traditional Salesperson

Professional Salesperson

Golden Rule Salesperson

Guided by self-interests

Takes care of customers

Others interests most important

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Everybody Sells!

Each of us develops communication techniques for trying to get our way in life

You are involved in selling when you want someone to do something

You use persuasion skills to persuade someone to act

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Types of Sales Jobs

Retail SellingA retail salesperson sells goods or services to

consumers for their personal, non-business use

Direct SellingFace to face sales to consumers, typically in their

homes, who use the products for their non-business personal use

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Types of Sales Jobs cont…

Selling for a WholesalerFor resaleFor use in producing other goodsFor use within an organization

Selling for a ManufacturerWorking for the firm who manufacturers the productUsually one of the most prestigious jobs to hold

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Exhibit 1-8

The complexity and difficulty of these seven sales job categories increase as they move left to right.

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Rewards

Non-financialIntrinsic reward of knowing you’ve skillfully delivered

a sales presentation Quick path to managing large amounts of

responsibilityQuick path to managing others

FinancialHigher average salary than that of other workers at

the same level within the organization.Based upon performance, not tenure

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Relationship Selling

Non-adversarialNon-manipulativeConsultativePartneringProblem-solvingGoal: long-term relationship

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Sales Jobs Are Different

Salespeople:Represent their companies to the worldWork with little or no supervisionRequire more people skillsAre often allowed to spend company fundsMay require travel and being away from home

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Preparing for the 21st Century

International and global sellingCultural fluencyLanguage fluency

Diversity of salespeople and customersCustomer partnershipsEthical and professional behaviorE-selling

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Relationship Marketing:Where Personal Selling Fits

Relationship Marketing:Where Personal Selling Fits

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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What is Marketing?

Marketing is a process of planning: The conception, pricing, promotion, and distribution of

goods, services, and ideas To create exchanges that satisfy individual and

organizational objectives

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Customer Orientation’s Evolution

The production conceptThe selling conceptThe marketing concept

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The Production Concept

Companies were production oriented

We know what people want – they want our product.

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The Selling Concept

Characterized by product demonstrations and unsophisticated sales techniques

Emphasis on the productProduct created and then soldManagement is sales-volume orientedStresses needs of the seller

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The Marketing Concept

Emphasis is on customer’s wantsCustomer’s wants drive productionManagement is profit-orientedPlanning is long-runStresses wants of buyers

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Marketing’s Importance in the Firm

Marketers have four main objectives: Maximize the sales for existing products in existing

markets Develop and sell new products Develop new markets for existing or new products Provide quality service to ensure repeat business

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What is Meant by the Term “Product?”

A product is a bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller

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The Term “Product” May Refer to a Good or Service

ExamplesGoods - a physical object for sale

– Automobile

– Cell phone

– Prescription medicineServices - an action or activity done for others for

a fee– Automobile repair

– Wireless phone plan

– Health insurance

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People Buy More Than the Product

People buy want-satisfaction asWhat the product will doIts qualityImage of owning as a

– Polo shirt vs. Wal-Mart shirt

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The Key Phrases That Differentiate Between Consumer and Industrial Products are:

Consumer product - personal useIndustrial product - producing other products

What is an example of an industrial product?Airlines purchase airplanesBoeing sells their airplanes to airlinesUniversity buys computers

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Price: It’s Important to Success

Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product

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Promotion Tells People

Promotion increases sales by communicating product information to potential customers

The four basic components of a firm’s promotional effort are: (PAPs)Personal sellingAdvertisingPublicitySales promotion

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Relationship Marketing

Relationship marketing is the creation of customer loyalty

Targets a major customer that it wants to sell to now and in the future

Establishes a long-term collaborative relationship

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Partnering with Customers

Encourages both the buyer and seller to share information

Two companies work toward the same objective

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Consultative Selling

The process of helping the customer achieve strategic short and long-term goals through the use of the seller’s goods and/or servicesA highly interactive dialogue between a salesperson

and a customerA balanced exchange of information

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Ethics First…Then Ethics First…Then Customer RelationshipsCustomer Relationships

Ethics First…Then Ethics First…Then Customer RelationshipsCustomer Relationships

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Management’s Social Responsibilities

Social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interests of society as well as to those of the organization

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Exhibit 3-2: Major Stakeholders in the Organization’s Performance

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The Psychology of Selling: Why The Psychology of Selling: Why People BuyPeople Buy

The Psychology of Selling: Why The Psychology of Selling: Why People BuyPeople Buy

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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A FABulous Approach to BuyerNeed Satisfaction

Stressing benefits is a very powerful selling technique

FAB selling technique helps emphasize benefit

F

A

B

eature

dvantage

enefit

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People Buy Benefit(s)

Not a product’s feature(s)Not a product’s advantage(s)

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How to Determine Important Buying Needs -- A Key to Success

L-O-C-A-T-E

isten

bserve

ombine

sk questions

alk to others

mpathize

L

O

C

A

T

E

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The Trial Close -- A Great Way to Uncover Needs and Sell

The trial close asks for an opinion, not a decision to buy

It gives feedback.The trial close is one of the best communication

techniques in the sales presentation

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The Trial Close Helps You to Determine:

Whether the prospect likes your product’s features, advantages, or benefits

Whether you have successfully answered any objections

Whether any objections remainWhether the prospect is ready for you to close the

sale

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Sell Sequence

SELL Sequence

- Show Feature

- Explain advantage

- Lead into benefit

- Let customer talk

S

E

L

L

- physical characteristic

- performance characteristic

- result of advantage

- ask opinion question

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The Buyer’s Personality Should Be Considered

Personality can be viewed as the individual’s distinguishing character traits, attitudes, or habits

Self-conceptReal selfSelf-imageIdeal selfLooking-glass self

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Adaptive Selling Based on Buyer’s Style

Personality typingAdapt your presentation to the buyer’s style

T

IFSTIFS

ensor styleeeler style

ntuitor style

hinker style

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Communication for Communication for Relationship Building: It’s Relationship Building: It’s

Not All TalkNot All Talk

Communication for Communication for Relationship Building: It’s Relationship Building: It’s

Not All TalkNot All Talk

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Communication: It Takes Two

In a sales context, communication is the act of

transmitting verbal and nonverbal information and

understanding between the seller and buyer

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Nonverbal Communication:Watch For It

Concept of spaceTerritorial space

Intimate space -- 2 feet

Personal space -- 2 to 4 feet

Social space -- 4 to 6 feet

Public space -- + 12 feetSpace threats -- too closeSpace invasion -- OK to be close

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Exhibit 5-3: Office Arrangements and Territorial Space

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Communication Through Appearance and the Handshake

Style hair carefullyDress as a professionalShake hands firmly and look people in the eye

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Body Language Gives You Clues

Nonverbal signals come from:Body angle

Face

Hands

Arms

Legs

http://www.selfgrowth.com/articles/kyle.html

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A Light Signal for Vehicles has a Green, Yellow, and Red Light

A person also sends three types of

messages using body communication signals

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Recognizing Body Signals

Knowing body signal guidelines can improve your communication ability by allowing the salesperson toBe able to recognize nonverbal signalsBe able to interpret them correctlyBe prepared to alter a selling strategyRespond positively both nonverbally and verbally to a

buyer’s nonverbal signals

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Sales Knowledge: Sales Knowledge: Customers, Products, Customers, Products,

TechnologiesTechnologies

Sales Knowledge: Sales Knowledge: Customers, Products, Customers, Products,

TechnologiesTechnologies

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Knowledge Builds Relationships

Knowledge increases a salesperson’s confidenceKnowledge increases a buyer’s confidence in

salespersonMore knowledge leads to more sales and more

relationships

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Know Your Company

General Company InformationCompany growth and accomplishmentPolicies and proceduresProduction facilitiesService facilities

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Know Your Product

Product knowledge may include:Performance dataPhysical size and characteristicsHow the product operatesSpecific features, advantages, and benefits of the

productHow well the product is selling in the marketplace

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Know Your Competition, Industry, and Economy

Understand competitors’ products, policies, and practices

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Prospecting—The Prospecting—The Lifeblood of SellingLifeblood of SellingProspecting—The Prospecting—The Lifeblood of SellingLifeblood of Selling

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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The Concept of Prospecting

• A salesperson without prospects is out of business

• A salesperson without prospects can no more close a sale than a surgeon without a patient can operate

• Prospects are everywhere - develop ways to find them

“I’d rather be a master prospector than be a wizard of speech and have no one to tell my story to.” -Paul J. Meyer

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Qualifying the Prospect

• Moving from a “lead”, to a qualified prospect

• Lead - is just a name

• Prospect - researched for money, and authority, and desire.

• Qualified prospect - evaluated prospect along with personal information

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Cultivate prospects who pass the MAD test:

oney

uthority

esire

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• What methods will YOU use?

Methods of Prospecting

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The Six-Step Telephone Track

• Step 1 - Introduce yourself and your company• A judgement will be made about you within 12 words• Keep it warm and friendly

• Step 2 - Take the curse off the call• A call is an interruption• Get permission to continue• Soften the impact with, “I need just a minute” etc.

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• Step 3 - State the purpose of the call

A brief, hard-hitting lead-in Mention referrals if you have them

• Step 4 - An interest-capturing statement Usually a customer benefit (Use your sales burger.) You could ask a thought-provoking question

• Step 5 - Request an appointment Don’t give too much information over the phone Give a choice of times for the meeting

The Six-Step Telephone Track

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• Step 6 - Overcome resistance

Agree with the objection

Switch back to your idea or reason for the appointment

Ask for the appointment again

Remember all you want is the appointment

The Six-Step Telephone Track